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What is the distinguishing purpose of vindictive or exemplary damages?

Vindictive or exemplary damages have a punitive purpose.

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What is the distinguishing purpose of vindictive or exemplary damages?

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Answer and explanation

Correct answer A

Vindictive or exemplary damages have a punitive purpose.

Option feedback

Option A

Vindictive or exemplary damages have a punitive purpose.

Option B

Compensatory damages address proven loss. That is a different purpose from punishment.

Option C

A token award recognizing a breach describes nominal damages.

Option D

An amount named for breach is relevant to reasonable compensation under section 74. Its inclusion does not turn the award into punitive damages.

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