Monroe Sold Computers

question 70

Multiple Choice

Monroe sold computers. On the purchase of a new StarSystem computer the buyer signed the written contract that contained the following clause: "The seller is not liable for any breach of condition or warranty express or implied in this contract." The buyer was a businessman who intended to use the machine in his business for a while and then resell it. The machine was used properly but didn't operate well, and within one week it would not work at all. Monroe refused to take back the machine or to refund any money by relying on the exemption clause. Which of the following would be the buyer's best argument for avoiding the effect of the exemption clause in this case?

• A) Such clauses are prohibited under contract law and are therefore void.
• B) The buyer had no notice of the clause; therefore, it is not a term of the contract.
• C) On a narrow interpretation of the words used in the exemption clause, they do not cover his complaint.
• D) There is a fundamental breach of contract.
• E) There is a breach of a non-essential term of the contract.

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Definitions:

Kruskal-Wallis Test

An approach that is not based on parameter-specific criteria to determine if samples are from the same distribution.

Significance Level

The probability of rejecting the null hypothesis in a statistical test when it is actually true; commonly denoted by alpha.

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Messages designed to promote or sell a product, service, or idea to consumers or audiences.

Wilcoxon Signed Rank Test

A non-parametric statistical test used to compare two related samples, to assess whether their population mean ranks differ.