SuperBumperCars,Inc.requires all customers to sign a release that contains a clause that releases SuperBumperCars from all liability in the event of an injury occurring during a bumper car ride,no matter who is at fault.This is an example of
A)a covenant not to compete.
B)an adhesion contract.
C)an exculpatory clause.
D)an illusory promise.

Question

Quizplus · Accepted Answer

This is an example of an exculpatory clause, which seeks to release a party from liability for their own negligence or wrongdoing. Such clauses are often found in contracts for recreational activities or other high-risk activities.

Note: A is incorrect because a covenant not to compete pertains to a restriction on an individual's ability to work in the same industry or with certain competitors. B is incorrect because an adhesion contract is a type of contract in which the terms are not negotiable and are presented to the weaker party on a "take it or leave it" basis. D is incorrect because an illusory promise refers to a promise that is not actually a promise because it is conditional or vague.