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Legal Concepts53) Which of the following statements is true of nominal damages?A) They are also known as compensatory damages.B) Only damages above $1,000 can qualify as nominal damages.C) Most courts favor nominal damages lawsuits.D) They are awarded even when a breach did not result in financial loss.

Flip Flop, Inc. treated interest on uncertain tax liabilities as interest expense and penalties as part of selling, general and administrative expenses in the prior year. How can Flip Flop treat interest and penalties this year?

Ryan was born and raised in North Carolina. At 18, he goes off to college in New York. After four years, he graduates and he gets a four-year contract to work at a New Jersey video game company after which time he plans to see how he likes the company and living in New Jersey. At the end of the contract, he's in the middle of applying for a one year government fellowship in Michigan at which point he plans to look for another permanent position, this time in California. While still living in New Jersey, he gets into a hang gliding accident (he's playing a game on his laptop at the same time he is steering the hang glider) and crashes into Cordelia (domiciled in North Carolina). After he moves to Michigan for the fellowship, Cordelia sues him for $100,000 in Michigan federal court. Working with a neighbor, you need to decide whether there would be diversity jurisdiction in this case. You should consider both Mas v. Perry and Gordon v. Steele in formulating your answer.

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