Laura and Bruce Trethewey hired Basement Waterproofing Nationwide, Inc. (BWNI) to waterproof the walls in their basement for a fee of $2,500. BWNI’s contract stated: “BWNI will service any seepage in the areas waterproofed at no additional cost to the customer. All labor and materials will be at the company’s expense. Liability for any damage shall be limited to the total price paid for this contract.” The material that BWNI used to waterproof the Tretheweys’ walls swelled and caused large cracks to open in the walls. Water poured into the basement, and the Tretheweys ultimately spent $38,000 to repair the damage. They sued, claiming negligence and breach of warranty, but BWNI claimed its liability was limited to $2,500. Please rule. Apart from the legal ruling, comment on ethics. BWNI wanted to protect itself against unlimited damage claims. Is this a legitimate way to do it? Is this how BWNI would wish to be treated itself? If you think BWNI did behave ethically, what advice would you have for consumers who hire home improvement companies? If you believe the company did not behave ethically, imagine that you are a BWNI executive, charged with drafting a standard contract for customers. How would you protect your company’s interests while still acting in a way you consider moral?