Which One of the Following Is False with Regard to Exemption

question 40

Multiple Choice

Which one of the following is false with regard to exemption (exclusion) clauses?

• A) Such clauses are prohibited in any sale of goods contract.
• B) To be part of the contract, such clauses must be brought to the attention of the parties before or at the time of contract.
• C) Even if there is an exemption clause in the contract, the court can hold that the exemption clause is of no effect if the breach is a fundamental breach.
• D) Where there is an exemption clause in a contract, the court will strictly construe that clause; i.e., the wording of the clause must cover the situation that occurred.
• E) An effective exemption clause is a barrier blocking the party wronged from his or her remedy, e.g., from damages.

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Definitions:

Income

The money received by an individual or group for work, through investments, or from other sources, usually measured over a period of time.

Wealth

An abundance of valuable possessions or money, often considered the stock of valuable resources or material possessions of an individual, community, or country.

Redistributive Policies

Government policies designed to redistribute wealth and resources from one segment of the population to another, typically from the wealthier to the less wealthy.

Economic Inequality

The unequal distribution of wealth, income, and access to resources within a society, leading to disparities in living standards.