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Chapter 8: Exemption clauses


Question 1

Identify the existence of exemption clauses in these incidents and explain,
briefly, the nature of these clauses and the need to protect Kelly who, in this
situation, is a consumer.


  • Establish the factors which will be used to decide whether these clauses
    will be valid: incorporation – Olley v Marlborough Court, Thornton v
    Shoe Lane Parking, Parker v South Eastern Railway, Chapelton v
    Barry, Sugar v LMS Railway, Hollier v Rambler Motors; construction

    • Glynn v Margetson,etc.; legislation – the Unfair Contract Terms Act
      1977 and the Unfair Terms in Consumer Contract Regulations 1994.



  • Apply these to the facts regarding the injury and decide whether the
    clause used by the art gallery is likely to be binding.

  • Apply these to the facts regarding the coat and decide whether the
    clause is likely to be reasonable – Green v Cade, Smith v Bush, Photo
    Production v Securicor.


Question 2

This question is also a problem involving an apparent exemption of liability
for personal injury and an apparent exemption of liability for loss of a coat.
Use the material in Question 1 and apply it to Alison’s two problems.

Question 3
This question involves similar material to the above problems but is a
straightforward essay on how the law deals with exemption clauses. You
should therefore explain the law and develop a critique in order to answer
the question.


  • Explain the factors that are likely to be taken into consideration by the
    courts (as in Question 1). Remember that it must be established
    whether the person making a claim is a consumer.

  • Consider the lengths to which the courts used to go in order to protect
    the consumer – it was out of these efforts that the ‘rules’ of
    incorporation and construction developed.

  • Consider the role played by parliament in taking the lead (eventually)
    in protecting the consumer by the legislation on exemption clauses.

  • Evaluate the continuing role of the courts, in that (i) there is still a need
    to enquire whether a term is incorporated, and (ii) the legislation
    regarding exemption clauses needs to be interpreted and applied
    (especially words such as ‘reasonable’).


Answers guide 305

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