Courts are more likely to uphold an exemption clause in a contract between two companies than if the contract is between a consumer and a company.

Question

Quizplus · Accepted Answer

Courts generally assume that companies have equal bargaining power and are more sophisticated in understanding contract terms, making it more likely for exemption clauses to be upheld in business-to-business contracts.

Courts Are More Likely to Uphold an Exemption Clause in a Contract