Since 2008, the Argentine Consumer Protection Law has permitted punitive damages. Thus, Argentina has become the first (and only) country with a pure continental-civil law system that allows punitive damages awards. However, these awards cannot exceed 5 million Argentine pesos. Consequently, this paper analyzes the basis for the existence of this legal cap. We conclude that there is no real justification for a fixed legal cap. Furthermore, that the appropriate limit of a punitive damages award must be solely the amount necessary to accomplish its preventive function (a deterrence of damages according to the socially acceptable level of care).

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