Which of the Following Exculpatory Clauses Will Most Likely Be

question 65

Multiple Choice

Which of the following exculpatory clauses will most likely be enforceable?

• A) an exculpatory clause that relieves a riding stable of negligence
• B) an exculpatory clause that relieves a riding stable from intentional torts
• C) an exculpatory clause that relieves a riding stable from criminal acts
• D) an exculpatory clause that is hidden in an eight-page document that all riders are required to sign
• E) an exculpatory clause that the injured party signs after an accident involving the riding stable's gross negligence

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenue.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, without having control or joint control over those policies.

Cost Method

An accounting approach used for investments, where the investment is recorded at its acquisition cost and adjustments are made for dividends received and permanent declines in value.

Equity Method

An accounting technique used when a company invests in a firm and has significant influence over it, recognizing its share of profit or loss in its own financial statements.