Mikael Recently Started a Home-Based Business Selling Custom Fishing Lures

question 128

Multiple Choice

Mikael recently started a home-based business selling custom fishing lures. He decided that he could make a lot more money selling his homemade lures on the Internet. Mikael is not the least bit technologically-inclined, but he knows that his next-door neighbour, Perm, does web design on the side. He decides to hire her to create a website for his new venture. Perm has him sign an agreement that includes an exemption clause that limits her liability in cases of negligence. In the course of designing the website, Perm becomes annoyed at Mikael because his dog keeps digging up her rose bushes. Rather than confront Mikael directly, Perm deliberately puts the wrong pricing information on Mikael's website to get him back. If Mikael suffered damages as a result and wanted to sue Perm, what would the likely result be?

• A) The exemption clause would protect Perm because of the principle of "freedom to contract".
• B) Perm only did freelance web design; as a non-professional she would not face liability.
• C) The exemption clause would be severed as being an illegal restraint of trade.
• D) Perm's actions were outside the scope of the contract, so Mikael would have no claim in law.
• E) Perm's acts were deliberate, not negligent, so Perm would not be protected by the exemption clause.

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Definitions:

Porter's Five Forces Model

A framework for analyzing a business's competitive environment, focusing on five key forces that influence its ability to serve customers and turn a profit.

Substitute Products

Products that serve as alternatives to one another in the market, satisfying similar needs or wants of consumers.

Immediate Rivals

Competitors that directly impact a business’s operations or market position, often operating in the same industry and targeting similar customer bases.