Valerie contracted with Timothy to sell her shares of stock to him for $500 even though she knew the company was about to go bankrupt and the stock was worth $5. If a court wanted to punish Valerie for her actions they would assess ________ damages.

Question

Quizplus · Accepted Answer

Punitive damages are awarded to punish the defendant for egregious wrongdoing and to deter similar future behavior. In this scenario, Valerie's intentional misrepresentation about the value of the stock to profit at Timothy's expense would likely be seen as egregious, justifying punitive damages.

Valerie Contracted with Timothy to Sell Her Shares of Stock