“It is a well established rule that failure to read a contract does not relieve a party of their obligation under such contract …” —Tucker, District Judge 

Facts: Dong Lin went skiing at the Spring Mountain ski area in Pennsylvania, which was owned by Spring Mountain Adventures, Inc. (Spring Mountain). Prior to renting her equipment and going skiing, Lin signed a release form that included the following title line on the front page in bold capital print: “EQUIPMENT RENTAL FORM AND RELEASE FROM LIABILITY.” Above the signature line the contract stated in capital print: “PLEASE READ THE AGREEMENT ON THE BACK OF THIS FORM BEFORE SIGNING. IT RELEASES US FROM CERTAIN LIABILITY.” Directly between the instruction to read the release and the signature line was the following statement: “I, the undersigned, have carefully read and understood the Acceptance of Risk and Liability Release on the back of this paper.” Lin did not read the contract before signing it. As Lin was skiing, she lost control and fell or slid into a padded snowmaking machine that was on the slopes. As a result of her collision, Lin suffered several permanent and many disfiguring injuries to her face and body, and injuries to her brain, bones, muscles, and nerves. Lin underwent surgical procedures and incurred medical expenses. Lin sued Spring Mountain in U.S. district court for negligence to recover damages for her injuries, current and future medical costs, pain and suffering, and emotional harm. Spring Mountain made a motion to dismiss the lawsuit based on the release of liability form signed by Lin. 

Issue: Is the release of liability form signed by Lin enforceable? 

Language of the Court: Plaintiff Lin signed the release form herself, and such form contained the bolded front-page title “EQUIPMENT RENTAL FORM AND RELEASE FROM LIABILITY ”, giving Plaintiff Lin notice of the form’s purpose and intent. At the bottom of the page is the following bolded statement “I have carefully read and understood the Acceptance of Risk and Liability Release and have signed the front of this form.” Plaintiff Lin signed the form, which provided her with ample notice of the release terms. It is a well established rule that failure to read a contract does not relieve a party of their obligation under such contract that they sign, and such parties will be bound by the agreement without regard to whether the terms were read and fully understood.

Decision: The U.S. district court held that the release form signed by Lin was enforceable and granted Spring Mountain’s motion to dismiss. 

Ethics Questions: Is it ethical for companies to use release of liability forms? What would be the consequences if persons were held not to be bound by contracts they did not read?