Cengage Advantage Books: Business Law 9th Edition by Arnold Goldman ,William Sigismond

Exercise 10

Beaver participated in the annual Elkhart Grand Prix go-kart races in Elkhart, Indiana. She signed an exculpatory agreement containing the release of the race organizers from all liability associated with the races unless a claim at issue involved willful misconduct. During the event in which she drove, a piece of polyurethane foam padding used as a course barrier was torn from its base, and it ended up on the track. One portion of the packing struck Beaver in the head, and another portion was thrown into oncoming traffic, causing a multikart collision, during which Beaver sustained severe injuries. Beaver filed an action against the race organization, claiming that the foam padding used on the course was defective. She further claimed that because of the defects in the padding, the exculpatory agreement was illegal and void. The race organizers contended that the exculpatory agreement released her from any liability. Who is correct? (U.S. Court of Appeals, 7th Circuit, 246 F. 3d 905)