Punish corporate wrongdoing by awarding punitive damages


Discussion Question 1:

A few years ago a New Mexico jury awarded Stella Liebeck $2.7 million in punitive damages after she received third degree burns from a cup of McDonald's coffee she spilled in her lap. Do you think it is appropriate to punish corporate wrongdoing by awarding punitive damages in a private lawsuit? Was the award appropriate in this case?

Discussion Question 2:

In light of the legal policy discussed above, should the manufacturer be held strictly liable despite all the warnings if the hostess were injured? Having used the product despite the warnings, should the hostess be considered negligent? Should manufacturers be allowed to make and sell products they know are "POISONOUS" and "FLAMMABLE," in other words very, very dangerous?

Discussion Question 3:

The last time I was in Nogales I was offered a $10 "Rolex" watch. Was the seller violating the Lanham Trademark Act? Is there any possibility a consumer paying $10 for a "Rolex" could be confused about the authenticity of his purchase? If not, why should the makers of genuine Rolex watches be upset?

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Business Law and Ethics: Punish corporate wrongdoing by awarding punitive damages
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