Kyle Bruno enters into a contract with X Entertainment to be stuntman in a movie being produced. Bruno is widely known as the best motorcycle stuntman in the business, and the movie to be produced,Xtreme Riders, has numerous scenes involving high-speed bike stunts. Filming is set to begin August 1 and end by December 1 so that the film can be released the following summer. Both parties to the contract have stipulated that the filming must end on time in order to capture the profits from the summer movie market. The contract states that Bruno will be paid 10 percent of the net proceeds from the movie for his stunts. The contract also includes a liquidated damages provision, which specifies that if Bruno breaches the contract, he will pay X Entertainment $1 million. In addition, the contract includes a limitation of liability clause stating that if Bruno is injured during filming, X Entertainment's liability is limited to nominal damages.

Include in your discussion answers to the following Questions:

1. Suppose that while performing a high-speed wheelie on a motorcycle, Bruno is injured by an intentionally reckless act of an X Entertainment employee. Will the court enforce the limitation-of-liability clause?
2. What factors would a court consider to determine if the $1 million liquidated, damage clause is valid or is a penalty?