Mikael Recently Started a Home-Based Business Selling Custom Fishing Lures

question 153

Multiple Choice

Mikael recently started a home-based business selling custom fishing lures. He decided that he could make a lot more money selling his homemade lures on the Internet. Mikael is not the least bit technologically-inclined, but he knows that his next-door neighbour, Perm, does web design on the side. He decides to hire her to create a website for his new venture. Perm has him sign an agreement that includes an exemption clause that limits her liability in cases of negligence. In the course of designing the website, Perm becomes annoyed at Mikael because his dog keeps digging up her rose bushes. Rather than confront Mikael directly, Perm deliberately puts the wrong pricing information on Mikael's website to get him back. If Mikael suffers damages as a result and wants to sue Perm, what would the likely result be?

• A) The exemption clause would protect Perm because of the principle of "freedom to contract."
• B) The exemption clause would be severed as being an illegal restraint of trade.
• C) Perm's actions were outside the scope of the contract, so Mikael would have no claim in law.
• D) Perm only did freelance web design; as a non-professional she would not face liability.
• E) Perm's acts were deliberate, not negligent, so Perm would not be protected by the exemption clause.

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Definitions:

Absenteeism

Absenteeism refers to the habitual non-presence of an employee at their job without a valid reason, often affecting productivity and morale.

Anchoring Effect

The inadequate adjustment of subsequent estimates from an initial estimate that serves as an anchor.

Anchoring Effect

A cognitive bias where an individual relies too heavily on an initial piece of information (anchor) when making decisions.

Anchoring Effect

A cognitive bias where an individual's decisions or estimates are influenced by an initial piece of information (anchor).