Question

Arnie and Matt are involved in a car accident. Immediately before the accident, Arnie was observed speeding and driving erratically. On the other hand, Matt was obeying the speed limit and driving in a very cautious and responsible manner. As a result of the accident, Matt's car needs $2,500 worth of repairs and Matt loses a week's salary because he has to take time off to recover from injuries sustained during the crash. Which of the following statements best describes the nature of the damages in this case?

a. The repairs are compensatory damages, and the lost wages are consequential damages.
b. products liability law arises from both state statutes and state common law
c. None of the above

Answer 1

The correct answer is letter A.

Explanation: Compensatory Damage aims to repair the unfair aggression suffered by the victim.

Consequential Damages are damages to the property or physical integrity of the creditor as a result of default.