Which of the Following Is Generally True About Exculpatory Clauses

question 37

Multiple Choice

Which of the following is generally true about exculpatory clauses?

• A) They are not valid with respect to intentional acts.
• B) The test is if they are reasonable in time, scope and geographic area.
• C) They are always found to be valid.
• D) They are not valid for ordinary negligence.
• E) They are never valid.

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Definitions:

SEC Regulation

Rules and standards established by the U.S. Securities and Exchange Commission for governing securities and financial markets.

Independent Audit Firm

A third-party organization or entity that performs financial audits on companies or individuals to ensure the accuracy and integrity of financial statements and compliance with applicable standards and regulations.

Fee Compensation

Payments made to professionals or firms for their services, typically in the context of advisory, management, or service provision roles.

Certify

To officially confirm or attest, often in writing, that information or a document is true and accurate.