Question $15$

$2$ pts

Elaina signed a contract that contained an exculpatory clause. If the parties get into a dispute concerning the enforceability of the exculpatory clause, how will a court rule?

The court will rule the exculpatory clause is legally binding provided Elaina knowingly and voluntarily signed the agreement.

Whether or not the exculpatory clause is binding depends on whether the parties are engaged in a business transaction or whether this is a consumer transaction. If it is consumer transaction then the clause will not be binding.

The court will rule the exculpatory clause is not binding regardless of the circumstances surrounding the situation. These clauses are illegal per se $($automatically$).$

The court will rule the exculpatory clause is not binding if it is determined the exculpatory clause in the contract Elaina signed contravenes public policy.