What is the difference between compensatory and punitive damages?
An example of an AI chatbot conversation about compensatory vs punitive damages in legal contexts.
Can you explain the difference between compensatory and punitive damages?
Sure! Compensatory damages are intended to reimburse the victim for actual losses, while punitive damages are meant to punish the wrongdoer.
Can you give me an example of each type of damage?
Of course! For compensatory damages, if someone is injured in a car accident, they might receive money for medical bills. For punitive damages, if a company knowingly sells a dangerous product, they might be fined to deter such behavior.
Are punitive damages awarded in every case?
No, punitive damages are not awarded in every case. They are typically reserved for cases involving gross negligence or intentional misconduct.
How do courts decide the amount for punitive damages?
Courts consider factors like the severity of the wrongdoing, the defendant's financial status, and the need to deter similar conduct in the future.
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