Question

Which of the following describe circumstances under which an exculpatory clause is generally unenforceable? Select all that apply.
a. When the parties have unequal bargaining power
b. When it covers a recreational activity
c. When it covers public transportation
d. If it is clearly written

Answer 1

Answer:

a. When the parties have unequal bargaining power  

c. When it covers public transportation  

Explanation:

Exculpatory clauses are often found in agreements between a company and a consumer when the activity is in danger, such as at a fitness center or ski resort. The company wants the consumer to understand the risk involved and to avoid lawsuits, so it includes a disclaimer in its contract. These clauses are used to limit liability, so they are not enforced when the parties have unequal bargaining power and when covering public transport.