Question

Under the DTPA, if a consumer suffered $5,000 in loses, how much may they recover in punitive damages...?

A. 15,000 dollars ($)
B. 5,000 dollars ($)
C. 10,000 dollars ($)
D. 1,000 dollars ($)

Answer 1

Under the DTPA, if a consumer suffered $5,000 in loses, they may recover 10,000 dollars ($) in punitive damages. ( option C)

Step-by-step explanation:

Under the Deceptive Trade Practices Act (DTPA), the calculation of punitive damages involves considering the amount of economic damages suffered by the consumer. (option C). In this case, the consumer experienced $5,000 in losses. According to the DTPA, punitive damages can be awarded up to two times the economic damages sustained. Mathematically, this is represented as:

`\[ \text{Punitive Damages} = 2 * \text{Economic Damages} \]`

Substituting the given economic damages
`(\(E_d\))` of $5,000 into the formula:

`\[ \text{Punitive Damages} = 2 * 5,000 \]`

`\[ \text{Punitive Damages} = 10,000 \]`

Therefore, the consumer may recover punitive damages of $10,000 under the DTPA. Option C, 10,000 dollars ($), aligns with this calculation.