Intro to Paralegal Studies Practice

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Prepare for the Intro to Paralegal Studies Test. Review with multiple choice questions and flashcards, each with detailed explanations and hints. Get exam-ready with comprehensive study insights!

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What are compensatory damages awarded for?

To punish a defendant for wrongful acts
To cover actual losses incurred by the plaintiff
To deter similar behaviors in the future
To settle disputes without a trial

The correct answer is: To cover actual losses incurred by the plaintiff

Compensatory damages are specifically designed to reimburse the plaintiff for actual losses and expenses that they have incurred as a result of the defendant's wrongful conduct. These damages aim to restore the plaintiff to the financial position they would have been in had the injury or loss not occurred. This includes not only direct monetary losses, such as medical bills or loss of income, but also intangible losses such as pain and suffering. The focus of compensatory damages is on making the plaintiff whole, rather than punishing the defendant or deterring future conduct, which distinguishes them from punitive damages or other forms of legal remedies.