Divided Parcel (DP) includes the following on its mailing receipts: "We are not responsible for any damages to packages whether or not through the intentional or reckless fault or negligence of our employees. Send packages at your own risk." Mary reads this clause but sends her watch back to the manufacturer to be repaired anyway. The watch is destroyed when the DP driver uses the package for a ball and tosses it to his buddy. Mary is:
A) out of luck because the clause was communicated to her.
B) out of luck because she should have insured the package.
C) likely to collect from DP since exculpatory clauses always violate public policy.
D) likely to collect from DP because it attempted to excuse intentional and reckless behavior.

Question

Quizplus · Accepted Answer

Exculpatory clauses attempting to excuse a party from liability for their own intentional or reckless behavior are generally not enforceable, especially when it involves a public service or when it significantly affects public interest. In this case, the driver's intentional or reckless act of using the package as a ball directly led to the damage, making it likely that Mary could collect damages from DP despite the clause.

Divided Parcel (DP) Includes the Following on Its Mailing Receipts