Question

Kevin buys a new Volkswagen and signs a contract with Volkswagen saying that he will never sue the company for any personal injuries he may receive as a result of a faulty car. In exchange, Volkswagen reduces the price of the automobile by $6,500. This type of contract provision is:______.a. a revisionary clause.b. a dormant commerce clause.c. an exculpatory clause.d. a valid liquidated damages clause.

Answer 1

Answer: C. an exculpatory clause

Explanation: An exculpatory clause is a clause in a contract between transacting parties which states that one party usually the seller won't be liable or would be relieved of blame for any misdeed or injury resulting from the good sold or service rendered.

The exculpatory clause is high listed in Kevin's contract with Volkswagen where Volkswagen is relieved of any injury which may result from the purchase of the vehicle with Kevin given a discount of $6500 in return.