Question 1

Mandy has recently taken up a new hobby called "bouldering". This is similar to rock

-climbing,

but the primary difference is that bouldering does not involve the use of ropes and harnesses,

and instead, only a crash pad (i.e. a mat placed on the floor to cushion any fall) is used. She

visited Vertical No

-Limits Gym ("VNL") which has bouldering facilities to explore the

possibility of signing up for an annual pass.

The customer service representative at VNL explained the rates and procedures f

or signing up

and asked Mandy to complete and sign a document which is labelled as a "Health Declaration

Form". Although the document did contain some questions relating to the customer's health

condition, the document also stated in small print at the bot

tom, as follows:

"By signing this

form, you acknowledge and agree to our standard terms and conditions. They can be found on

our website and also on the notices placed in the gym."

Mandy was concerned about the content of the standard terms and conditions

since she did not

know what they were. The customer service representative noticed her look of concern and

assured Mandy, "

Don't worry, this is just a standard form that all customers sign. There are

no hidden charges or anything like that.

" Feeling somew

hat assured, Mandy proceeded to

complete and sign the document.

After Mandy made payment for the annual pass, the customer service representative handed to

Mandy a receipt. On the back of the receipt, there was a printed line of text which stated as

follows:

"Our standard terms and conditions can be found on our websit

e and also on the

notices placed in the gym."

Indeed, at the main entrance of the gym and on the counter next to the cashier, there were

notices which set out a long list of text, including the following clauses:

"(11) Bouldering is a high-

risk activity.

Users should be aware that there

could be unknown and unanticipated risks which may result in injury,

illness, or even death.

...

(16) Vertical No

-Limits Gym's liability to any user, whether arising from

negligence or otherwise, for any injury, sickness o

r any other losses that results

from the use of the facilities in this gym shall be capped at $50."

The notices were made using A4

-sized black paper with white print in times new Roman font

and with font size 12. The text was readable but the reader would

need to stand next to the

notice in order to read it. The same text also appeared on VNL's website.

Mandy was excited to commence her climbing activity, and so, she did not bother reading the

notices. When Mandy was midway through her climb on the rock w

all, and as she placed her

foot on one of the artificial footholds carved into the rock wall, she slipped and fell. Even

though there was a crash pad placed at the floor to cushion her fall, she sprained her ankle as

she hit the mat. Her shoes also became damaged as a result of the fall.

BUS201

Group

-based Assignment

SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSS)

Page

5 of

6

Upon investigation by one of the staff members onsite, it was discovered that the foothold in

question was wet and slippery due to residual cleaning liquid left on it. This was used during

routine cleaning by the staff, but

the cleaning staff was negligent in not wiping it dry after

cleaning.

VNL refused to compensate Mandy fully for the injury to her ankle and the damage to her

shoes. Instead, they referred her to Clause 16 in the notices, and wanted to pay only $50 to her

.

Apply

the legal rules under the

four (4)

points relating to the enforceability of exemption and

limitation of liability clauses to analyse whether the relevant clause in this scenario is valid and

enforceable against Mandy in relation to (i) her ankle injury, and (ii) the damage to her shoes.

(60 marks)