Bob, owner of a pizza business, went with his wife to pick out a new family car. Since they already knew the make and model they wanted, it did not take long before the contract was signed by the wife for a new 2017 Chevrolet. While the paperwork was being done, Bob talked with another salesman about the used cars on the lot, telling him that he needed a mechanically sound car but not a new car for his business. The salesman showed him one that he said was in good shape and would give several years of service. Bob made a very low offer that the salesman accepted, much to Bob's surprise. The contract Bob signed, like his wife's, contained a clause exempting the seller, B & S Motors, from liability for breach of any warranties, including any implied warranties under the Sale of Goods Act. A few weeks after the sale, the wife and daughter were injured in an accident caused by a faulty steering mechanism in the new car. Furthermore, the used car was not in good shape and lasted weeks, not years. On these facts, which of the following is true?
A) An exemption clause is always effective in exempting the seller from liability.
B) The wife could not succeed in an action against B & S Motors because there is an exemption clause in the contract of sale.
C) The daughter could sue B & S Motors for breach of contract.
D) The daughter could sue B & S Motors for negligence.
E) If legislation in the province prohibits a seller from overriding the requirement that goods be fit and of merchantable quality in consumer transactions, the wife may win for breach of contract.
Correct Answer:
Verified
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