Which of the Following Statements Concerning a Disclaimer Is Not

question 31

Multiple Choice

Which of the following statements concerning a disclaimer is not true?

• A)A disclaimer is an exemption clause.
• B)A disclaimer is an exclusion clause.
• C)A disclaimer is a statement that one of the parties to the contract will not be liable for the consequences of a failure to perform their obligations.
• D)In Thornton v Shoe Lane Parking Ltd [1971] 2 QB 163 the court held a disclaimer to be effective where it was stated in small print at the bottom of a car park entry ticket issued by an automatic machine.

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Definitions:

Short-Term Bank Loans

Borrowings from banks that are scheduled to be repaid within a year.

Reserve Inventory Storage Costs

Expenses associated with storing unsold merchandise or materials that a business holds in reserve beyond its immediate operational needs.

Shortage Cost

Costs incurred when demand exceeds supply, including opportunity costs of unmet sales and customer dissatisfaction.

Marketable Securities

Financial instruments that can be easily converted to cash without significant loss of value.