Business Case Problem with Sample Answer—

Unconscionable Contracts or Clauses. Geographic Expeditions, Inc. (GeoEx), which guided climbs up Mount Kilimanjaro, required climbers to sign a release to partici pate in an expedition. The form required any disputes to be submitted to arbitration in San Francisco and limited damages to the cost of the trip. GeoEx told climbers that the terms were nonnegotiable and that other travel firms imposed the same terms. Jason Lhotka died on a GeoEx climb. His mother filed a suit against GeoEx. GeoEx sought arbitration. Was the arbitra tion clause unconscionable? Why or why not? [Lhotka v. Geo graphic Expeditions, Inc., 181 Cal.App.4th 816, 104 Cal.Rptr.3d 844 (1 Dist. 2010)] (See Legality.)

—For a sample answer to Problem 12–3, go to Appendix F at the end of this text.