A Student Bought an I-Pod Nano for the Stated Purpose

question 106

Multiple Choice

A student bought an I-Pod Nano for the stated purpose of listening to his taped notes while he took his daily run. The contract he signed with the seller, Tape Talk Ltd., included a clause excusing the seller from liability for the breach of "any term of the contract, whether a breach of condition or warranty whether express, implied, statutory or otherwise." After only 30 days, the I-Pod failed to function at all. It was totally useless for the student's purpose, so he took it back to the seller. The seller refused to take it back and pointed out the exemption clause in the signed contract. On these facts, which of the following could be true?

• A) The student is out of luck because the contract with the exemption clause was in writing.
• B) The student could get around the exemption clause by arguing insufficient notice.
• C) The student could get around the exemption clause by the court's strict interpretation (construction) of the clause.
• D) All exemption clauses are illegal, and therefore the student would not be bound by this one.
• E) The student could be awarded damages if the exemption clause were found invalid by the court on the grounds that the clause could not be interpreted to mean it would forgive such a fundamental breach.

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Definitions:

Suppliers' Expectations

The assumptions or beliefs that suppliers have about future market conditions, which can influence their pricing and production decisions.

Price of Goods

The amount of money required to purchase a particular product or service in the marketplace.

Advancement in Technology

describes improvements in technology that often lead to increased productivity, efficiency, and the creation of new products or processes.

Number of Producers

Refers to the total count or quantity of manufacturers or suppliers of a particular good or service in a market.