Fred Sweet Runs Dancing Classes for Middle-Aged and Elderly People

question 21

Multiple Choice

Fred Sweet runs dancing classes for middle-aged and elderly people.Some of Fred's customers lack physical coordination,and injuries from kicks,falls,etc.are common.Fred naturally fears that injured customers will sue him for negligence.Thus,he makes each customer sign a written contract containing a clause relieving Fred of all liability for injuries suffered during his dancing classes.However,fearful that he will lose business if potential customers become aware of his strategy,Fred states the clause in fine print and doesn't point it out to them.An injured customer sues Fred in negligence.Fred wants to defend on the basis of the clause in the contract.Which of the following is the biggest weakness in Fred's position?

• A) That Fred tried to use an exculpatory clause at all,because such clauses are invalid on public policy grounds.
• B) That Fred tried to use an exculpatory clause to relieve himself of negligence liability.
• C) That Fred has superior bargaining power,which makes the customer's acceptance of the exculpatory clause involuntary.
• D) That Fred used a fine-print exculpatory clause,which means that the customer lacked knowledge of the clause's existence.

---

Definitions:

Lack of Information

A situation where parties in a transaction have insufficient knowledge about the product, service, or conditions, leading to potential inefficiencies in market outcomes.

Monopoly

A market structure characterized by a single seller or producer dominating the entire market, with no close substitutes for the product or service offered.

Understocks

This term describes a situation where the inventory levels are lower than the demand, potentially leading to lost sales and customer dissatisfaction.

Produce Efficiently

The process of producing goods or services in a way that minimizes costs and waste while maximizing output and quality.