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Business Law 380 Leon, a bank vice president, joined Fitness Center, Inc. (FC).

ID: 454058 • Letter: B

Question

Business Law 380

Leon, a bank vice president, joined Fitness Center, Inc. (FC). He signed a contract for the membership. The contract stated, among other things, an exculpatory clause that FC…

“shall not be liable for any claim, demand, cause of action of any kind whatsoever for, or on account of death, personal injury, property damage or loss of any kind resulting from or related to Member’s use of facilities or participation in any sport, exercise or activity within the club premises…”

While working out at FC, Leon sustained back injuries when a treadmill on which he was walking suddenly collapsed at FC. Leon sued FC for his injuries.

Discuss:

Is the exculpatory clause in the contract valid or invalid in Leon’s case and why?

b. Possible product liability claim(s) for which Leon could sue FC and why product liability claims might be applicable to this case

c. Possible ordinary (non-product liability) negligence claim for which Leon could sue FC and why a negligence claim might be applicable to this case

d. The likely outcome if Leon sues FC under product liability

e. The likely outcome if Leon sues FC under ordinary negligence

Explanation / Answer

The exculpatory clause in the contract is a valid one. But it is only for the court to decide whether they have taken reasonable care in maintaining the FC properly.

It is not sure that all the products that are kept in the FC are all the own products of the FC. There is a particular maintenance process that should be happening in all the product. If all the proper maintenance has been done, then the FC would not be liable for the damages as per the exculpatory clause. The manufacturer and the maintenance team would be liable for that.

Again if there is negligence on the part of the FC then, FC would be responsible for the damages and injuries to Leon.

If the reasonable care is taken on the part of the FC, then the exculpatory clause will save them, if not they will be liable for all the damages. Just be having the exculpatory clause, will not save them from all the damages.