Which One of the Following Is False with Regard to Exemption

question 40

Multiple Choice

Which one of the following is false with regard to exemption (exclusion) clauses?

• A) Such clauses are prohibited in any sale of goods contract.
• B) To be part of the contract, such clauses must be brought to the attention of the parties before or at the time of contract.
• C) Even if there is an exemption clause in the contract, the court can hold that the exemption clause is of no effect if the breach is a fundamental breach.
• D) Where there is an exemption clause in a contract, the court will strictly construe that clause; i.e., the wording of the clause must cover the situation that occurred.
• E) An effective exemption clause is a barrier blocking the party wronged from his or her remedy, e.g., from damages.

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