Live The Dream Ltd provides a limousine and driver hire service. All of the company’s clients sign the company’s standard contract. The contract includes a clause, within the standard terms and conditions, that states: ‘Live The Dream Ltd accepts no liability whatsoever for any financial loss, property damage or personal injury incurred during the hire period’. Leona hired a limousine and driver for her 40th birthday night out. She signed the standard contract which included the standard terms and conditions and paid £500, the full cost of the hire, in advance. When Leona was getting into the limousine at the start of her night out, the vehicle was nudged from behind by a passing car. As a result, the limousine rolled forward and ran over Leona’s foot. Leona’s foot was badly bruised and Leona was in too much pain to continue with her birthday night out. The other vehicle involved drove off, and all subsequent attempts to identify the vehicle and the driver failed. Live The Dream Ltd has used the exclusion clause to justify not refunding any of the £500 Leona paid. Question 14 Has the exclusion clause been incorporated into the contract? A Yes, Leona has signed the contract, which includes the exclusion clause, so it is incorporated B Possibly, but only if the clause was highlighted and explained to Leona before she signed C Possibly, but only if Leona received a copy of the signed contract after signing D No, exclusion clauses included within the standard terms and conditions cannot be incorporated into contracts involving consumers Question 15 Which of the following statements regarding the impact of The Unfair Contract Terms Act 1977 on this scenario is correct? A Under the Act, the exclusion clause is void because it was included within the standard terms and conditions B The Act would not apply as the contract is for provision of a service C Under the Act, the exclusion clause will be void unless found to be reasonable D Under the Act, the wording of the exclusion clause is too general and is therefore void uestion 16 The Consumer Rights Act 2015 allows a challenge to made to unfair terms in certain contracts if the term causes a significant imbalance in the rights of the parties to the detriment of the consumer. Which of the following statements regarding the impact of the Consumer Rights Act 2015 on this scenario is correct? A Leona cannot bring a challenge under the Act because the contract is for the provision of a service B Leona cannot bring a challenge under the Act because her signature signifies acceptance of the term, regardless of whether it is unfair C Leona cannot bring a challenge under the Act because it does not apply to exclusion clauses as they are governed solely by the Unfair Contract Terms Act 1977 D Leona can bring a challenge under the Act on the basis that the exclusion clause is unfair
Live The Dream Ltd provides a limousine and driver hire service. All of the company’s clients sign the company’s standard contract. The contract includes a clause, within the standard terms and conditions, that states: ‘Live The Dream Ltd accepts no liability whatsoever for any financial loss, property damage or personal injury incurred during the hire period’. Leona hired a limousine and driver for her 40th birthday night out. She signed the standard contract which included the standard terms and conditions and paid £500, the full cost of the hire, in advance. When Leona was getting into the limousine at the start of her night out, the vehicle was nudged from behind by a passing car. As a result, the limousine rolled forward and ran over Leona’s foot. Leona’s foot was badly bruised and Leona was in too much pain to continue with her birthday night out. The other vehicle involved drove off, and all subsequent attempts to identify the vehicle and the driver failed. Live The Dream Ltd has used the exclusion clause to justify not refunding any of the £500 Leona paid.
Question 14
Has the exclusion clause been incorporated into the contract?
A Yes, Leona has signed the contract, which includes the exclusion clause, so it is incorporated
B Possibly, but only if the clause was highlighted and explained to Leona before she signed
C Possibly, but only if Leona received a copy of the signed contract after signing
D No, exclusion clauses included within the standard terms and conditions cannot be incorporated into contracts involving consumers
Question 15
Which of the following statements regarding the impact of The Unfair Contract Terms Act 1977 on this scenario is correct?
A Under the Act, the exclusion clause is void because it was included within the standard terms and conditions
B The Act would not apply as the contract is for provision of a service
C Under the Act, the exclusion clause will be void unless found to be reasonable
D Under the Act, the wording of the exclusion clause is too general and is therefore void
uestion 16
The Consumer Rights Act 2015 allows a challenge to made to unfair terms in certain contracts if the term causes a significant imbalance in the rights of the parties to the detriment of the consumer. Which of the following statements regarding the impact of the Consumer Rights Act 2015 on this scenario is correct?
A Leona cannot bring a challenge under the Act because the contract is for the provision of a service
B Leona cannot bring a challenge under the Act because her signature signifies acceptance of the term, regardless of whether it is unfair
C Leona cannot bring a challenge under the Act because it does not apply to exclusion clauses as they are governed solely by the Unfair Contract Terms Act 1977
D Leona can bring a challenge under the Act on the basis that the exclusion clause is unfair
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