In 2004, at Governor Schwarzeneggers urging, California adopted a budget measure that involved taxing punitive damages awards

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In 2004, at Governor Schwarzenegger’s urging, California adopted a budget measure that involved taxing punitive damages awards 75 percent. What this measure did was to take a punitive damages award in a civil suit, give 25 percent of the award to the plaintiff, and then put the other 75 percent of the award in a state fund to be used for state needs. California was right to enact this legislation, and other states would be wise to do so as well. Governor Schwarzenegger has been an innovative leader, and even though he did not sign the bill to renew the legislation in 2006, he said that the idea was still good, but the legislation needed work before he would renew the law. Following the governor’s lead, other states should enact similar legislation to help meet state budgetary needs.


1. What are the issue and conclusion of this essay?

2. Is significant information missing from the preceding argument?

Clue: What pieces of information would better aid you in deciding whether you agree with the author?

3. What ethical norm does the author appear to rely upon most in making the preceding argument?

4. Write an essay that someone who holds an opinion opposite to that of the essay the author might write.

Clue: What other ethical norms could influence an opinion on this issue?


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The Legal Environment of Business A Critical Thinking Approach

ISBN: 978-0132664844

6th Edition

Authors: Nancy K Kubasek, Bartley A Brennan, M Neil Browne

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