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Chapter 5 Multiple choice questions
Return to Commercial Law Concentrate 6e Student Resources
Chapter 5 Multiple choice questions
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What is the difference between exclusion, limitation, and exemption clauses?
An exclusion clause is where the party to the contract seeks to
exclude
all liability for certain breaches of the contract. A limitation clause is where a party to the contract seeks to
limit
his liability for certain breaches of the contract. An exemption clause is the term used to describe both exclusion and limitation clauses.
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An exclusion clause is where the party to the contract seeks to
exclude
all liability for certain breaches of the contract. A limitation clause is where a party to the contract seeks to
limit
his liability for certain breaches of the contract. An exemption clause is the term used where either an exclusion or limitation clause has been upheld by the court.
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They are all the same and the terms are entirely interchangeable.
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They are all the same but different statutes use different terms.
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Which one of the following statements is correct?
The way in which a court will construe both limitation and exclusion clauses will depend on the seriousness of the breach and the extent of the loss sustained.
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The way in which a court will construe both limitation and exclusion clauses will depend on the seriousness of the breach without regard to the extent of the loss sustained.
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A clause which limits liability will not be construed as strictly as one which excludes liability altogether.
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A limitation clause will be construed just as strictly as an exclusion clause.
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Which one of the following statements is correct?
Whether an exemption clause is likely to be incorporated into the contract will depend on whether or not the recipient had reasonable notice of it.
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Whether an exemption clause is likely to be incorporated into the contract will depend on whether or not the recipient had expressly agreed to its inclusion.
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Whether an exemption clause is likely to be incorporated into the contract will depend on whether or not the contract is in writing.
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Whether an exemption clause is likely to be incorporated into the contract will depend on the seriousness of the breach and possibly the extent of the loss sustained.
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Is it possible for a seller to exclude or restrict liability for a breach of section 12 of the Sale of Goods Act 1979?
Yes
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No
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Yes, if it merely limits (rather than excludes) the seller's liability, but otherwise no.
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Yes, if the seller sells the goods in the course of a business, but otherwise no.
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Where will one find the statutory provision relating to exemption clauses in consumer contracts?
Sections 31 and 47 of the Consumer Rights Act 2015
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Section 2(1) of the Sale of Goods Act 1979
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The Unfair Contract Terms Act 1977
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This is dealt with at common law
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Where will one find the statutory provision relating to exemption clauses for contracts for the sale of goods that are supplied with a service?
The Supply of Goods and Services Act 1982
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This is dealt with at common law
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Section 7 of the Unfair Contract Terms Act 1977
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These terms can never be excluded
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The word "reasonableness" is often used in connection with exemption clauses. Which party has the burden of establishing reasonableness?
The party claiming that the term satisfies the requirement of reasonableness must show that it does
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This is a matter for the trial judge
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The party claiming that the term does not satisfy the requirement of reasonableness must show that it does not
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Depends on the facts of the case
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What is the meaning of an "unfair term" for the purposes of the Unfair Terms in Consumer Contracts Regulations 1999?
One that fails the test of reasonableness under the Unfair Contract Terms Act 1977.
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One that has not been individually negotiated and fails the test of reasonableness under the Unfair Contract Terms Act 1977.
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One that has not been individually negotiated if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations arising under the contract, to the detriment of the consumer.
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One that is deemed by the court to be unfair. There is no specific meaning of the expression.
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Are core terms covered by the Unfair Terms in Consumer Contracts Regulations 1999?
Yes, unless they have been individually negotiated.
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Yes, unless they seek to exclude or limit liability.
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Yes
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No
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What is the effect of a term being judged unfair under the Consumer Rights Act 2015?
It will render the contract void
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It will render the contract voidable
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It will entitle the consumer to an award of damages
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It will not be binding on the consumer
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