Philip has been in training for several months and now plans to run in the school-sponsored, ten-mile, fun run mini-marathon. He completes and signs an entry blank which contains the statement, "I hereby agree to hold the sponsors harmless for any

injury sustained as a result of participation in this event no matter how such injury may be caused." a. What is the legal term for this clause in the agreement? b. Is the clause valid and legally enforceable? Explain its legal effect.


a.
This is an exculpatory clause.

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b. This type of clause is generally looked upon with disfavor since there is a policy to discourage overreaching and to assure that wrongdoers will pay the damages caused by their tortious conduct. However, Philip should not automatically assume that the clause will not be upheld, because the policy of freedom of contract is also a factor in determining the validity of contractual clauses exempting a party from liability for his tortious conduct, and thus not all such clauses are held to be against public policy. Exculpatory clauses relieving a person from tort liability for harm caused intentionally or recklessly are generally unenforceable as violating public policy. Thus, the school would probably not be excused from intentional or reckless wrong conduct even though Philip signed the entry blank. Exculpatory clauses excusing negligent conduct are unenforceable on grounds of public policy if they exempt an employer from liability to an employee, a public service business from liability to a customer, or a person from liability to a party who is a member of a protected class. In this case, the fun run does not fit into these categories, so the exculpatory clause relating to the sponsor's negligent conduct might be enforceable.

Business

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Which of the following is true about market-nichers?

A) They are market followers in small markets. B) They tend to have high manufacturing costs. C) Their return on investment exceeds that in larger markets. D) A nicher achieves high volume as against a mass marketer that achieves high margin. E) They usually experience long-term losses.

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Relevant costs are often referred to as:

A. Sunk costs B. Differential costs C. Unavoidable costs D. All of the above

Business

Lawrence, an employee of Triple Time, Inc., has gross salary for March of $4,000. The entire amount is under the OASDI limit of $118,500 and thus subject to FICA. He is also subject to federal income tax at a rate of 18%. Provide the journal entry to record salaries expense and payroll withholdings. (Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%.) Salaries will be paid at a later date. Omit explanation.

What will be an ideal response?

Business

The Age Discrimination in Employment Act of 1967 (ADEA) permits discrimination in pay, benefits, or continued employment for employees age 40 and over.

Answer the following statement true (T) or false (F)

Business