Professional Documents
Culture Documents
Terms to Know
Punitive damages: damages exceeding simple compensation and awarded to punish the defendant;
purpose is to change behavior of the wrongdoer.
Tort Reform: refers to laws passed on a state-by-state basis which place limits or caps on the type or
amount of damages that may be awarded in personal injury lawsuits.
Caps on damages: refers to a law that limits the amount a jury can award for damages regardless of the
facts of the case.
Mandatory arbitration: a process by which parties “agree” to have a third party arbitrator (single
arbitrator or a panel), instead of a jury or judge, resolve a dispute.
Arbitration clause: clause in a contract that requires the parties to resolve their disputes through an
arbitration process.
2. Summarize the coffee burn incident that occurred with Stella Liebeck.
3. McDonald’s first offered $_________ on what was initially a $__________ medical problem.
4. According to their manual, what was the holding temperature supposed to be for the McDonald’s water?:
____________________ degrees
5. The Stella Liebeck vs. McDonald’s trial revealed that McDonald’s had over __________ previous
complaints about burns from hot beverages.
6. In what percentages did the jury assign blame in the hot coffee lawsuit against McDonalds?
Liebeck: _____%
McDonalds: _____%
7. The jury awarded Mrs. Liebeck $160,000 in compensatory damages and $__________ million in punitive
damages.
8. The punitive damage award was reduced to $________________.
9. According to the documentary, tort reform is intended to _____________ the likelihood that you can bring
a lawsuit.
10. Briefly explain some of the lawsuits mentioned which were distorted when reported/spoken about by the
media.
14. After a three week trial, the jury found that Dr. Knolla’s negligence caused Colin’s brain injury and
awarded the Gourley’s $_________ million in damages.
15. The jury did not know that the law in Nebraska capped all damages. The verdict was reduced to
$_________ million.
17. What state is used as an example to show the ‘myth’ of health care costs?
19. Oliver Diaz was a judge on the Mississippi Court of Appeals for 5 years before he was appointed to the
Mississippi Supreme Court in March 2000. In November 2000, he was up for ______________.
20. The U.S. Chamber of Commerce is not part of the _____________________. It is a membership
organization of businesses and is the nation’s largest lobbying group for ______________________.
21. Who did the Diaz family find out had purchased all of the available airtime?
22. Justice Diaz ran for re-election in 2009 and the Chamber of Commerce ran another well-financed campaign
against him. Justice Diaz ___________ the election.
25. Exhibit One: The public relations campaign ► Be a savvy consumer of _____________: Question
whether or not you are getting the _________________________.
26. Exhibit Two: Caps on damages ► Know your ______________________: Tell your state legislators to
_______________ caps on damages.
28. Exhibit Four: Mandatory Arbitration ► Read your _________________: Tell Congress to support
legislation to ___________ the use of mandatory arbitration.