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In Hunter Engineering Co

Question 32

Multiple Choice

In Hunter Engineering Co. v. Syncrude Canada Ltd., the Supreme Court of Canada had to determine whether an exemption clause overrode the operation of the Sale of Goods Act. What did the Court determine?


A) Parties cannot contract out of the Sale of Goods Act.
B) An exemption clause is effective in all cases except when dealing with a fundamental breach.
C) An exemption clause that is inconsistent with the Sales of Goods Act is illegal and therefore void.
D) Except in cases involving a sale of goods, the presence of an exemption clause will protect a party from any misconduct.
E) Even in the face of a fundamental breach, it is possible for parties to exempt themselves from liability.

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