Unconscionable Contracts and Clauses

Unconscionable Contracts and Clauses

Instructions/Descriptions

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Unconscionable Contracts and Clauses

PART A: Case Study: Unconscionable Contracts and Clauses (15 POINTS)

DIRECTIONS : This MANDATORY Writing Assignment is a case study based on Chapt. 12 (pages 297-303) in the 11th edition of BUSINESS LAW TODAY- STANDARD EDITION. The text for your case study is provided on the next page (p.2).

1. The due date for this mandatory case study Writing Assignment is TUES, March 23, 2019, before you take TEST #2 IN CLASS.
2. HELPFUL HINTS:
3. Read the Case Study Text Very Carefully (at least twice).
4. This case study has a value of 15 points. You may receive a grade from 0 to 15 points for PART A of Assignment #2 contingent upon the quality of your responses, format, and meeting the deadline date.
5. Requirements: Minimum: 1 full typed page, single-spaced; (12 Font Size; Type-Arial) with 1” top, bottom, left & right margins. Use proper English rules, grammar and spelling. At least one-half (1/2) of the page should have a detailed explanation of your legal reasons and your analysis which should include quoted support or evidence from the textbook. (CITE THE TEXT PAGE NUMBERS AT THE END OF THE LEGAL REASONS SECTION).
6. The case study problem must be completed using the case study format found in the textbook. See Case 12.3 for an example of the case study format (page 301 of text). The correct format must include the following four sections:
7. FACTS: Type all of the case “FACTS” from the case text provided on page DO NOT EDIT THE CASE FACTS.
8. ISSUE: Type the QUESTION(S) as they appear at the end of the case.
9. DECISION : Write your sentence stating a SPECIFIC NAME or addressing the ISSUE above to be resolved. You’re the ‘Judge’ – be definite with your Decision and provide a thorough legal analysis in support of your decision.
10. LEGAL REASONS : ANALYZE YOUR DECISION carefully. Discuss fully and use

the legal terms and concepts from your text readings, and any applicable case law precedent found in the textbook that supports your decision. You are developing an informed answer to a business law problem in answering the case questions. This is a major part of the case study writing assignment! A significant deduction of points will occur for a poorly written and any “short” analysis of the legal reasons that support your decision.

DO NOT PLAGIARIZE. note your resources including internet resources; case law found in text; etc. Use your own words! You will not be wrong if you state your Decision and Legal Reasons with clarity and use good business law principles and “judgment” or “logic” in terms of your analysis. However, I cannot read or comprehend what is not written. I’m looking for you to provide a clear decision, to demonstrate a critical understanding of your decision and support for your decision through thoughtful legal reasoning and critical thinking.

CASE STUDY TEXT: Unconscionable Contracts or Clauses

Geographic Expeditions, Inc. (GeoEx), which guided climbs up Mount Kilimanjaro, required climbers to sign a release to participate in the expedition. The form required disputes to be submitted to arbitration in San Francisco, limited damages to the cost of the trip, and included a clause which released GeoEx from all liability in the event of physical injury no matter who is at fault. GeoEx told climbers that the terms were nonnegotiable and that other travel firms offering the same or similar services imposed the same terms on their customers.

Jason Lotka singed the release and participated in one of the GeoEx expeditions. Unfortunately, he died on the GeoEx climb. His mother filed suit in a California court against GeoEx. GeoEx sought to have the case dismissed and to force the mother to engage in arbitration in San Francisco.

Are both the arbitration and limitation on damages clauses unconscionable contract clauses? Why or why not? Explain the basis for your conclusions.

Is the release from liability clause enforceable?

What factors will a court examine in determining if a release (exculpatory) clause should be enforced? Under what circumstances is a court likely to enforce such an exculpatory clause?

Unconscionable Contracts and Clauses

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