Dashawn Was Severely Injured While Participating in a "Fitness Challenge

question 35

Multiple Choice

Dashawn was severely injured while participating in a "fitness challenge" that was organized and operated by Zeta Inc.He has sued for negligence.Zeta relies on the defence of voluntary assumption of risk.In support of that defence,Zeta has produced a "Disclaimer of Liability" that Dashawn signed.Which of the following statements is TRUE?

• A)The court will struggle to uphold the disclaimer clause and deny liability if at all possible.
• B)Zeta will be relieved of liability only if the disclaimer clause applied to the factual and legal risk of injury and is otherwise enforceable contractually.
• C)Because of general contractual principles,the disclaimer clause may be effective in response to a claim for breach of contract but not in response to a claim for negligence.
• D)As a general rule,a disclaimer clause is effective only if the plaintiff carelessly contributed to their own loss.
• E)If the defence applies,the court will reduce liability only to the extent that is fair,so that Dashawn will still recover some damages.

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Definitions:

Accrued Interest

Interest that has been earned but not yet received or recorded as income by the company.

Face Value

The nominal or dollar value printed on a bond, note, or other financial instrument.

Bond Sinking Fund

A fund set aside by a corporation to repay bonds at maturity, ensuring the security of the bondholders' investment.

Bonds Payable

A long-term liability account that represents the amount a company owes to bondholders.