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In Krysa V

Question 111

Multiple Choice

In Krysa v.Paine,where Paine's Car Company was found to have committed fraud in the sale of a truck to Krysa,what did the court rule regarding the punitive damages award?


A) Punitive damages are not available in a fraud action based on a contract.
B) Punitive damages are limited to 9:1 in all cases.
C) Punitive damages are allowed at 9:1 in cases involving personal injury, but in contracts must adhere to a 3:1 ratio.
D) Punitive damages of 27:1 are permitted in cases of extreme fraud.
E) Punitive damages should never have a cap or their function as a deterrent and punishment would be lost.

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