Question

A manufacturer delivers a new tractor to Farmer Ted on the first day of the harvest season. But, the tractor won't start. It takes two weeks for the right parts to be delivered and installed. The repair bill comes to $1,000. During the 2 weeks, some acres of Farmer Ted's crops die. He argues in court that his lost profit on those acres is $60,000. If a jury awards $1,000 for tractor repairs, it will be in the form of _____ damages. If it awards $60,000 for the lost crops, it will be in the form of _____ damages.

A) Compensatory damages
B) Punitive damages
C) Nominal damages
D) Liquidated damages

Answer 1

If a jury awards $1,000 for tractor repairs, it will be in the form of compensatory damages. If it awards $60,000 for the lost crops, it will also be in the form of compensatory damages.

Step-by-step explanation:

If a jury awards $1,000 for tractor repairs, it will be in the form of compensatory damages. Compensatory damages are designed to compensate the injured party for their actual losses or expenses incurred as a result of the defendant's actions. In this case, the $1,000 is intended to cover the cost of the tractor repairs.

If a jury awards $60,000 for the lost crops, it will be in the form of compensatory damages as well. Again, this is to compensate Farmer Ted for the actual loss of profits he suffered due to the tractor not starting and the subsequent crop damage.