Monroe Sold Computers

question 55

Multiple Choice

Monroe sold computers. On the purchase of a new IBM computer the buyer signed the written contract that contained the following clause: "The seller is not liable for any breach of condition or warranty express or implied in this contract." The buyer was a businessman who intended to use the machine in his business for a while and then resell it. The machine was used properly but didn't operate well, and within one week it would not work at all. Monroe refused to take back the machine or to refund any money by relying on the exemption clause. Which of the following would be the buyer's best argument for avoiding the effect of the exemption clause in this case?

• A) The buyer had no notice of the clause; therefore, it is not a term of the contract.
• B) There is a breach of a non-essential term of the contract.
• C) There is a fundamental breach of contract.
• D) Such clauses are prohibited under contract law and are therefore void.
• E) On a narrow interpretation of the words used in the exemption clause, they do not cover his complaint.

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Definitions:

Empowerment

The process of becoming stronger and more confident, especially in controlling one's life and claiming one's rights.

Power-Based Authority

Authority derived from control over resources, position in a hierarchy, or a recognized ability to exert influence over others.

Effective Management Skills

Competencies and abilities that enable individuals to manage processes, projects, and teams successfully, achieving desired outcomes.

Short-Term Goals

Objectives set to be achieved in a relatively short period of time, serving as steps toward longer-term goals.