Chapter 6 Self-test questions

Chapter 6 Self-test questions

Exemption clauses and unfair contract terms

Quiz Content

not completed
. The Unfair Contract Terms Act 1977 subjects every contract term falling within its scope to a reasonableness test.

not completed
. A purchases an electric oven for his bakery business from the B company. Before the contract is made, A is given a document that contains the following clause: 'A purchaser is entitled to return any goods within 12 days of purchase and receive a full refund. However, if the returned goods are not defective in any way then the customer must pay a £10 handling charge.' A does not read the conditions before buying the oven and now wants to return the oven immediately because he has decided to emigrate abroad. Which one of the following statements most accurately summarises the position?

not completed
. The party seeking to challenge the effectiveness of an exemption clause has the burden of establishing that the clause has not been incorporated into the contract and does not cover the other (breaching) party's liability in issue.

not completed
. A was travelling abroad for business purposes and hired a car from B company. The contract of hire exempted B from liability for 'any losses or damage suffered by the hirers, whether caused by our company's neglect or fault or not'. At the time of contracting, A made it clear that he wanted to leave his personal belongings in the car from time to time and B expressed no objection. When A parked the car outside a cinema, his personal belongings left in the car were stolen. It was discovered that this was solely attributed to the negligence of one of B's staff, who failed to repair the defective back door of the car. One of the legal questions arising from this case was whether the exemption clause covered B's negligence liability for the lost property. Which one of the following statements is probably true in respect of this legal question?

not completed
. A buys a train ticket from a self-service machine for the purpose of travelling to an important business meeting. The ticket contains the following clause printed on its face in large, red letters: 'No liability in negligence is accepted for injury or death caused to passengers whilst travelling on this train.' Which one of the following statements is most likely to be true in relation to the exclusion clause?

not completed
. For the purposes of the Consumer Rights Act 2015, if the parties have not raised the question of the fairness of a term as an issue and have not indicated an intention to do so, a court has no power to raise the issue itself.

not completed
. A booked a business trip at the Metropole Hotel, Moscow, with B Ltd. The contract (supplied on B Ltd's standard terms) contained a highlighted clause allowing B Ltd to relocate A to another hotel if the Metropole has been overbooked. Which one of the following statements most accurately describes the enforceability of that clause?

not completed
. In applying the reasonableness test under the Unfair Contract Terms Act 1977 to commercial contracts, the courts generally take a non-interventionist approach. In which one of the following cases was this approach not applied?

not completed
. In applying the reasonableness test under s.11 of the Unfair Contract Terms Act 1977 to determine whether the term is a fair and reasonable one to have included, the courts make a broad assessment of the parties' relationship, considering factors such as the circumstances known to the parties at the time of contracting, as well as all relevant events subsequent to the contract's formation and the effect of those events on each party.

not completed
. Which of the following statements in relation to the question whether a contractual provision is unfair for the purposes of the Consumer Rights Act 2015 is incorrect?

Back to top