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. Both the repairs and the lost wages are consequential damages.
B. Both the repairs and the lost wages are compensatory damages.
C. The repairs are consequential damages, and the lost wages are compensatory damages.
D. The repairs are compensatory damages, and the lost wages are consequential damages.

Answer 1

Answer: D. The repairs are compensatory damages, and the lost wages are consequential damages.

Explanation:

Compensatory damages is described as the money given to the party who filed for a case they incurred damages, to pay for damages cost and injuries.

consequential damages is the damages paid for when the ailing party causes far severe damages that bridges into the rights of the affected party. Arnie would have to pay Matt compensatory damages for the accident and consequential damages because it affected his work period.