On February 14, Rocky Resorts Inc. held a special hillside party which featured snowboard and inner-tube races "under the lights" commencing at 11:00 p.m. Participants were required to purchase a ticket for $50.00 which included tickets for 3 alcoholic drinks and 1 food item. The races were to be timed races with participants departing every 30 seconds. The resort, as in the past, featured prizes for the race winners.

Tickets sold stated on the reverse side:

"Participants take full responsibility for their actions and agree that Rocky Resorts Inc. shall not be responsible for any injury or harm caused or sustained during the event."

Each participant was required to sign the ticket as a condition of participating.

Two events occurred which have given rise to legal action.

The first action involved Erica. Erica had never snowboarded before, but had gone to Rocky Resorts with her University roommates. At their urging, Erica agreed to participate in the snowboarding races. Erica had one drink with her meal and nervously boarded the ski lift. Her friends had already gone out for some practice runs and she was to meet them at the top of the hill. At the hilltop there were a number of people, however, she did not see her friends. She decided that she would practice prior to the race. She started down a gentle slope marked with a number of signs with black diamonds. Suddenly, the hill dropped off sharply and she found that she was speeding down the hill out of control. In front of her, in the middle of the hill was a clump of trees with the path diverging to either side. Erica was unable to turn the snowboard and collided with the trees. As a result of the collision she sustained a broken jaw, broken leg and broken arm. Evidence presented at trial suggested that despite the collision, an ordinary person would have sustained only bruising. However, Erica had a serious pre-existing bone condition (of which she was unaware) which had resulted in the multiple fractures. As a result of the injuries sustained, Erica was in extreme pain for 3 months as she underwent 6 operations. She was unable to complete her University year and, more importantly, lost several modelling contracts which would have paid her $50,000.00. As well, the modelling agency indicated that as a result of the disfiguring of her jaw, it was unlikely that she would have any future in modelling.

Erica has commenced an action against Rocky Resorts Inc. for damages in the amount of $1,000,000.00. She alleges that no one explained to her that the black diamond course was the most difficult; there were no markings to indicate where she should be, and that no instruction on the use of the snowboard was provided.

Required: Examine the issues which will be raised at trial and the likely outcome of the litigation. Be certain to refer to and explain the application of the legal principles and elements of a tort action as part of your answer.