Exemplary damages are imposed primarily to:

Exemplary damages, also known as punitive damages, are awarded in legal cases with the primary purpose of making an example of the offender. This type of compensation goes beyond simply covering the losses experienced by the victim. Instead, exemplary damages are intended to punish particularly egregious behavior and discourage others from engaging in similar conduct in the future.

The rationale behind this principle is to underline society's disapproval of the wrongful act and to reinforce the idea that such behavior will result in serious consequences. This serves both a general deterrent effect, encouraging others to adhere to lawful standards, and a specific deterrent effect aimed at the offender, highlighting the unacceptable nature of their actions.

While other choices address aspects of damages, they do not capture the essence of exemplary damages as effectively. For example, simply penalizing the offending party or covering the victim's losses does not encapsulate the broader goal of deterring similar conduct through the potential consequences of exemplary damages.