Question

CIGARETTE MARKETING SCENARIO
The marketing of cigarettes, a legal product, has a storied past. Prior to 1971, this product was advertised heavily on television. Some ads even suggested that doctors recommended certain brands over others. Consumer groups have claimed that tobacco manufacturers knew the harmful effects of smoking but hid it from consumers and continued to market the product. Now there are several restrictions on the marketing of cigarettes, many resulting from a master settlement with several states to limit liability from future lawsuit claims. Gone are the days of sports sponsorships and billboards that tobacco manufacturers relied on heavily after the broadcast advertising ban. The current threat to cigarette marketing is the Tobacco Control Act, which requires graphic warning labels that will take up a substantial portion of the package. Refer to Cigarette Marketing Scenario. Tobacco companies have lost several lawsuits brought by smokers or their families, and juries have awarded them damages to cover the cost of their health care as well as damages to punish the companies for their wrongdoing, resulting in multi-million dollar awards to the plaintiffs. Damages intended to cover the cost of consumers' health care are called _____ damages.
a. punitive
b. compensatory
c. statutory
d. nominal
e. exemplary

Answer

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