In Which One of the Following Instances Would the Seller

question 99

Multiple Choice

In which one of the following instances would the seller most likely succeed in an attempt to escape liability by the use of an exemption clause when the buyer suffers a loss?

• A) A consumer transaction is involved and provincial legislation prohibits such exemption clauses in consumer transactions.
• B) The buyer of an expensive computer software program received, a month after the sale, an invoice on which was printed an exemption clause that he hadn't been shown before.
• C) The store had posted at the entrance to the dressing rooms a large sign reading "Not responsible for stolen articles," and the customer lost a briefcase in a fire that swept through the dressing rooms.
• D) There has been a breach of the fundamental obligation of the contract, and the court holds that on its true construction the parties did not mean it to cover a serious breach.
• E) Ralph bought a used lawnmower under a written and signed contract that contained an "as is" clause.

---

Definitions:

Profit-maximizing

The process or strategy of adjusting production and sales in order to achieve the highest possible profit from operations, considering both revenues and costs.

Charges

Fees imposed for services rendered or penalties for not meeting certain conditions.

Profit-maximizing

A strategy aiming to achieve the highest profit possible by adjusting output levels, pricing, or other operational variables.

Produces

The act or process of creating goods and services.