In Which One of the Following Instances Would the Seller

question 99

Multiple Choice

In which one of the following instances would the seller most likely succeed in an attempt to escape liability by the use of an exemption clause when the buyer suffers a loss?

• A) A consumer transaction is involved and provincial legislation prohibits such exemption clauses in consumer transactions.
• B) The buyer of an expensive computer software program received, a month after the sale, an invoice on which was printed an exemption clause that he hadn't been shown before.
• C) The store had posted at the entrance to the dressing rooms a large sign reading "Not responsible for stolen articles," and the customer lost a briefcase in a fire that swept through the dressing rooms.
• D) There has been a breach of the fundamental obligation of the contract, and the court holds that on its true construction the parties did not mean it to cover a serious breach.
• E) Ralph bought a used lawnmower under a written and signed contract that contained an "as is" clause.

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Definitions:

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a specific price over a given period of time.

Quantity Demanded

The total amount of goods or services that consumers are willing to purchase at a given price level at a specific time.

Market Price

The current price at which an asset or service can be bought or sold, determined by supply and demand dynamics in the market.

Equilibrium Price

The market price at which the quantity of a good or service supplied is equal to the quantity demanded, leading to market balance.