1.Consider this "Ethical Issue" from Chapter 14 of the text: Exemption clauses are an important tool used by businesses to limit their exposure to liability. TheSale of Goods Actrecognizes and preserves the legality of an exemption clause. This position prioritizes the freedom to contract over the protective policy reflected in the implied terms contained in the statute. This priority is not absolute. The Supreme Court recognizes that an exemption clause may be unenforceable for public policy reasons such as a seller's criminal or fraudulent behavior.This is the exception rather than the rule when dealing with commercial contracts.

However, it may not be possible to contract out of the implied terms in the consumer context. Section 20 of the BCSale of Goods Actprovides that a provision that excludes implied terms with respect to fitness, quiet possession, and consistency with sample and description are void in the context of retail transactions. This places the retailer in a precarious situation. Few retailers manufacture their own goods; the chain of distribution usually involves a manufacturer and a wholesaler. The retailer is bound by the implied terms of theSale of Goods Actwhen dealing with consumers but may be unable to rely on them when pursuing the manufacturer or wholesaler of the goods.

Does this representafair result in today's marketplace? If not, how should it be changed?