selma is suing william for fraud that induced her to enter into a contract with him. william sold selma…

selma is suing william for fraud that induced her to enter into a contract with him. william sold selma worthless stocks that he falsely and intentionally claimed were very valuable. in attempting to punish william for his fraudulent misrepresentation, selma will seek _______ damages.\n\nmultiple choice\n\n○ compensatory\n\n○ nominal\n\n○ liquidated\n\n○ consequential\n\n○ punitive

selma is suing william for fraud that induced her to enter into a contract with him. william sold selma worthless stocks that he falsely and intentionally claimed were very valuable. in attempting to punish william for his fraudulent misrepresentation, selma will seek _______ damages.\n\nmultiple choice\n\n○ compensatory\n\n○ nominal\n\n○ liquidated\n\n○ consequential\n\n○ punitive

Answer

Brief Explanations:

To determine the correct type of damages, we analyze each option:

  • Compensatory: Aims to compensate for losses, not punish.
  • Nominal: Token damages (e.g., $1), not for punishment.
  • Liquidated: Pre - agreed damages in a contract, not punitive.
  • Consequential: Cover indirect losses, not punitive.
  • Punitive: Intended to punish the wrongdoer for intentional/fraudulent conduct, which matches Selma’s goal to punish William for fraud.

Answer:

E. punitive