CFL Damages Calculation & Economic Analysis 2

Question 1

In patent infringement damages, a 'reasonable royalty' is most commonly calculated using the framework established in:

Accepted Answer

Georgia-Pacific Corp. v. U.S. Plywood Corp.

Answer

Georgia-Pacific sets out 15 factors for determining a reasonable royalty rate through a hypothetical negotiation between willing parties.

Question 2

When calculating economic damages, the difference between 'general damages' and 'special damages' (consequential damages) is that general damages:

Accepted Answer

Flow naturally from the wrong and need not be specifically pleaded

Answer

General damages naturally and necessarily flow from the breach, while special damages require specific pleading because they arise from particular circumstances of the plaintiff.

Question 3

The 'event study' methodology in securities damages analysis isolates the price impact of alleged fraud by:

Accepted Answer

Separating stock price movements attributable to the fraud from market and industry-wide movements

Answer

An event study uses regression analysis to strip out market and industry effects, leaving only the stock price change attributable to the company-specific event.

Question 4

In commercial litigation, 'expectation damages' aim to put the non-breaching party in the position they would have been in if:

Accepted Answer

The contract had been fully performed

Answer

Expectation damages give the non-breaching party the benefit of the bargain—the economic position they would have achieved with full performance.

Question 5

In a trade secret misappropriation case, which damages theory would be most appropriate when the defendant's unjust enrichment exceeds the plaintiff's provable lost profits?

Accepted Answer

Disgorgement of the defendant's profits attributable to the trade secret use

Answer

When unjust enrichment exceeds provable lost profits, courts may award the defendant's profits attributable to the misappropriation under DTSA and the Uniform Trade Secrets Act.

CFL - Certified Financial Litigator Practice Test

CFL - Certified Financial Litigator Practice Test

CFL Damages Calculation & Economic Analysis 2