Reference no: EM132263756
CASE STUDY TEXT : Unconscionable Contracts or Clauses
Geographic Expeditions, Inc. (GeoEx), which guided climbs up Mount Kilimanjaro, required climbers to sign a release to participate in the expedition.
The form required disputes to be submitted to arbitration in San Francisco, limited damages to the cost of the trip, and included a clause which released GeoEx from all liability in the event of physical injury no matter who is at fault. GeoEx told climbers that the terms were nonnegotiable and that other travel firms offering the same or similar services imposed the same terms on their customers.
Jason Lotka singed the release and participated in one of the GeoEx expeditions. Unfortunately, he died on the GeoEx climb. His mother filed suit in a California court against GeoEx. GeoEx sought to have the case dismissed and to force the mother to engage in arbitration in San Francisco.
Are both the arbitration and limitation on damages clauses unconscionable contract clauses? Why or why not? Explain the basis for your conclusions.
Is the release from liability clause enforceable?
What factors will a court examine in determining if a release (exculpatory) clause should be enforced? Under what circumstances is a court likely to enforce such an exculpatory clause?