Intro to Paralegal Studies Practice

What are nominal damages awarded for?

1. A token sum when liability has been found but monetary damages cannot be shown

2. An amount exceeding actual damages to deter the wrongdoer

3. Compensation for medical expenses incurred by the victim

4. Payment for loss of income due to injury

The correct answer is: A token sum when liability has been found but monetary damages cannot be shown

Nominal damages are awarded as a token sum to recognize that a legal wrong has occurred when there is no substantial monetary loss or when the plaintiff is unable to establish more tangible damages. In scenarios where liability is established but the injuries or losses do not amount to a quantifiable monetary sum, the court may grant a small amount, often a symbolic figure such as one dollar, to affirm that the defendant's actions were legally wrong. This serves to uphold the principle of justice and signals that the plaintiff's rights were infringed upon, even if they did not suffer financially. In contrast, the other choices indicate concepts associated with different types of damages. For example, damages that exceed actual damages are generally punitive in nature and aim to punish the offending party and deter future misconduct, while compensatory damages are intended to cover specific economic losses such as medical expenses or lost income due to injury.