Bobby Voluntarily Enrolls in a Skydiving Course at OpenSkies Pvt

question 44

Multiple Choice

Bobby voluntarily enrolls in a skydiving course at OpenSkies Pvt. Ltd., an adventure firm. He signs a contract that relieves OpenSkies of liability. After receiving proper instruction, he jumps from an airplane. Unfortunately, Bobby is injured when he could not steer his parachute toward the target area while landing. He sues the parachute center for damages. But the court found that the contract protected OpenSkies from damages, as Bobby had voluntarily joined the course knowing all the risks involved. What kind of contractual provision protected OpenSkies from having to pay Bobby damages?

• A) noncompete clause
• B) exculpatory clause
• C) duty of restitution
• D) disaffirmance

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Definitions:

Marginal Utility

The additional satisfaction or utility that a consumer receives from consuming an additional unit of a good or service.

Money Income

The total amount of monetary earnings or receipts accruing to an individual or household from various sources before any deductions like taxes.

Total Utility

The complete fulfillment experienced when a certain amount of products or services is consumed.

Utility Schedule

A utility schedule is a table that shows the relationship between quantities of a good or service consumed and the utility or satisfaction derived from that consumption.