QUESTION 3 17 Foremost Company is a national company that installs computers for

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QUESTION 3 17 Foremost Company is a national company that installs computers for major corporations. In all of its contracts, there is a clause that states that Foremost is not liable for damages caused by the negligent installation of the computers. Foremost also operates a factory where the computers are made. Many people work in this factory and every employee is required to sign a release whereby Foremost is absolved from any liability for damages caused by its negligence. Discuss the requirements for an exculpatory clause to be valid and discuss whether these two particular clauses are enforceable

Explanation / Answer

In my opinion, the first condition is most probable enforceable as the negotiation was done between the business on this issue. However the second term will not be enforceable as there is not an equality of bargaining power of the different parties. In fact, this condition will not be effective mainly due to the clauses of worker compensation laws.

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