An Exculpatory Clause Is Generally Unenforceable When

question 36

Multiple Choice

An exculpatory clause is generally unenforceable when

• A)it attempts to release a party from liability for ordinarily negligent behavior.
• B)it involves public transportation.
• C)it is written clearly and in bold,large print.
• D)the affected activity is a recreational activity.

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Definitions:

Periodic Inventory System

An inventory accounting system where stock levels are updated at regular intervals, not continuously.

Gross Profit

Gross profit is the difference between sales revenue and the cost of goods sold, indicating how efficiently a company is producing or sourcing its products.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, showing revenue, expenses, and net income.

Perpetual Inventory System

A procedural method in inventory accounting that directly records every inventory sale or purchase with the aid of computerized point-of-sale systems and enterprise asset management software.