A student bought an iPod for the stated purpose of listening to his recorded notes while he took his daily run.The contract he signed with the seller included a clause excusing the seller from liability for the breach of "any term of the contract,whether a breach of condition or warranty whether express,implied,statutory or otherwise." After only 30 days,the iPod failed to function at all.It was totally useless for the student's purpose,so he took it back to the seller.The seller refused to take it back and pointed out the exemption clause in the signed contract.Based on these facts,which of the following could be true?
A) The student could get around the exemption clause by arguing insufficient notice.
B) The student could get around the exemption clause by the court's strict interpretation (construction) of the clause.
C) The student could be awarded damages if the exemption clause were found invalid by the court on the grounds that the clause could not be interpreted to mean it would forgive such a fundamental breach.
D) The student is out of luck because the contract with the exemption clause was in writing.
E) All exemption clauses are illegal, and therefore the student would not be bound by this one.

Question

Quizplus · Accepted Answer

The exemption clause in the contract may be found invalid by the court if it is determined that it cannot be interpreted to excuse a fundamental breach, such as the complete failure of the iPod to function. This would allow the student to potentially be awarded damages. Choice A is incorrect because insufficient notice does not apply in this situation. Choice B is not a guarantee and depends on the specific interpretation of the court. Choice D is incorrect because the fact that the contract was in writing does not necessarily mean the exemption clause is valid. Choice E is incorrect because exemption clauses are not necessarily illegal, but their validity depends on various factors such as their clarity and reasonableness.

A Student Bought an IPod for the Stated Purpose of Listening