An EC related to misrepresentation:

is valid if reasonable, is invalid if a fraudulent misrepresentation

Incorporation by signature:

subject to exception if there is misrepresentation

An EC excluding liability for negligence:

is always invalid, is valid if reasonable and relates only to property/money

invalidates terms not in good faith

The Unfair Contracts Terms Act (UCTA):

prohibits some EC but allows others if reasonable

Incorporation by previous dealings:

is guided by the Hollier v Rambler Motors case

Contra proferentum rule:

applies more strictly if SOGA implied terms excluded

applies to contra proferentum rule

Incorporation means that:

the exemption clause (EC) applies to the contract

An EC excluding liability for non-performance/substantially different performance:

is valid in consumer contracts if reasonable

There are 3 ways to incorporate an EC into a contract:

signature, reasonable notice, previous dealings

Contra proferentum rule:

applies to the interpretation of EC

Unfair Terms in Consumer Contracts Regulations (UTCCR):

applies only to consumer contracts

UCTA deals with EC which exclude the Sale of Goods Act (SOGA) implied terms as follows:

against consumers they are always prohibited

Incorporation by reasonable notice:

must be in a way that a person would expect to include terms

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Exemption Clauses

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Exemption clauses quiz suitable for A Level Law students

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Questions 15

Answers

1
An EC related to misrepresentation:
is valid if reasonable
is valid always
is valid only against business
is invalid if a fraudulent misrepresentation
2
Incorporation by signature:
has no exceptions
subject to exception if there is misrepresentation
subject to exception if signor does not understand the EC
3
An EC excluding liability for negligence:
is always invalid
is void against consumers
is valid if reasonable and relates only to property/money
is valid if it is reasonable and relates to personal injury
4
UTCCR:
invalidates terms made in good faith
none of the above
invalidates terms that cause a balance in rights of parties
invalidates terms not in good faith
5
The Unfair Contracts Terms Act (UCTA):
excludes all EC against consumers
allows all EC as long as they are reasonable
allows any EC against a business
prohibits some EC but allows others if reasonable
6
Incorporation by previous dealings:
applies if the parties have been doing business a long time
is guided by the Hollier v Rambler Motors case
can be dealings with another family member
can be by only a couple of previous dealings
7
Contra proferentum rule:
applies less strictly if excluding liability for negligence
applies more strictly to limitation clauses
applies more strictly if SOGA implied terms excluded
8
UTCCR:
none of the above
invalidates fair terms
applies to contra proferentum rule
does not apply the contra proferentum rule
9
Incorporation means that:
the EC is used by a company
the exemption clause (EC) applies to the contract
The EC is incorporated into legislation
10
An EC excluding liability for non-performance/substantially different performance:
is valid in business contracts if reasonable
is valid in consumer contracts if reasonable
is valid in all contracts if reasonable
is valid in business contracts but not consumer contracts
11
There are 3 ways to incorporate an EC into a contract:
signature, verbal notice, legislation
signature, written notice, legislation
signature, reasonable notice, previous dealings
signature, reasonable notice, legislation
12
Contra proferentum rule:
interprets the EC against the customer
interprets the EC in favour of the business
applies to the interpretation of EC
applies if the EC is not part of the contract
13
Unfair Terms in Consumer Contracts Regulations (UTCCR):
applies only to consumer contracts
applies to individually negotiated contracts
applies to business and consumer contracts
applies only to EC
14
UCTA deals with EC which exclude the Sale of Goods Act (SOGA) implied terms as follows:
they are always allowed if reasonable
against consumers they are always prohibited
they are always prohibited
against businesses they are always prohibited
15
Incorporation by reasonable notice:
must be in a way that a person would expect to include terms
must be in writing
must be read by the customer
can be after the contract is concluded

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