In Situations Where an Exemption Clause Appears Too Be So

question 22

Multiple Choice

In situations where an exemption clause appears too be so broad as to shield the wrongdoer from liability,

• A) the courts have determined that the clause is effective to protect the wrongdoer.
• B) the courts have declared that the exemption clause amounts to an anticipatory breach of the contract.
• C) the courts have declared the exemption clause to be void.
• D) the courts have characterized the breach as a fundamental breach and have argued that the exemption clause does not cover a fundamental breach.
• E) the courts have declared that the exemption clause is too broad and thus not part of the contract.

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Definitions:

Trade Between Two Countries

The exchange of goods and services across international borders between two nations, facilitating access to foreign markets and resources.

Absolute Advantage

The ability of an individual, firm, or country to produce more of a good or service than competitors using the same amount of resources.

Lower Cost

A situation where there is a reduction in the total expense required to produce goods or services.

Exchange Rate

The exchange rate determining the worth of one currency in a different currency.