Question

In: Economics

Please provide detailed answers to the following 1. Think of an example of an exculpatory clause...

Please provide detailed answers to the following

1. Think of an example of an exculpatory clause that you have signed. For what type of activity would you be unwilling to sign an exculpatory clause? If your refusal to sign the exculpatory clause or agreement prevented you from participating in that activity, would you still refuse to sign it?
2. Do you think that too many limitations and restrictions can be placed on parties in a contract? Should there be more government regulation and standardization of contract terms between private parties? Why or why not?

Solutions

Expert Solution

1.

When we go to an adventure/amusement park, they usually get us to sign an exculpatory clause stating that if any accident or injury happens in the course of any ride, then management of the amusement park will not be responsible for that.

I would be particularly unwilling to an exculpatory clause where the risk to life or health is involved and the other party involved is considered unreliable. For example, I would not be willing to sign exculpatory clause for doctors and hospitals that have a track record of causing injury or death due to negligence, or for the schools that are notorious for violations of safety norms.

However, sometimes we have no option, but to sign the exculpatory clause. For example, in the event of critical emergency medical surgery, there is no time to argue, negotiate or reason with doctors or hospitals, and no time either to go to another hospital, than to sign the clause in a hurry to get immediate medical treatment. If I happen to be in such a situation, then I would not be in a position refuse to sign the clause. I would have to take my chances and rely on the doctor or hospital to provide the best possible care and treatment. This is what any sane person in a similar position would do, in spite of how unconscionable the clause is.

2.

yes, too many/unlimited limitations can be placed on parties in a contract. this is because the variables in a contract are many and one cannot restrict the number of variables in different contract cases.

yes, there should be more government involvement in regulation and standardization of contracts to ensure that one party does not take advantage of the other and also to make the contracts signed by parties more enforceable

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