Introductory Business Law CLEP Prep Practice Exam

What type of damages are awarded if the plaintiff is found to have acted in good faith?

1. Nominal Damages

2. Compensatory Damages

3. Punitive Damages

4. Exemplary Damages

The correct answer is: Nominal Damages

Damages are monetary compensation awarded to the plaintiff in a civil case. If the plaintiff is found to have acted in good faith, it means that they genuinely believed their actions were justifiable. In this case, nominal damages would be awarded as they are meant to acknowledge that the plaintiff's rights were violated, but no real harm was done. The other options, compensatory, punitive, and exemplary damages, are not applicable in this scenario. Compensatory damages are awarded to cover the actual monetary losses or expenses incurred by the plaintiff. Punitive damages are meant to punish the defendant's behavior and deter them from repeating it in the future. Exemplary damages are similar to punitive damages, but they are meant to set an example for others to avoid similar misconduct. Since the plaintiff in this case acted in good faith, these types of damages would not be appropriate.