BMGT 380 - Mark plans to open a barbeque restaurant

the following questions

8. Mark plans to open a barbeque restaurant. He can either open the business as a sole proprietorship or obtain a franchise for “Smokin’ Hot Bar-B-Q”.

Compare and contrast the advantages and disadvantages of opening the business as a sole proprietorship and a franchise.

9. Leon, a bank vice president, joined Fitness Center, Inc. (FC). He signed a contract for the membership. The contract stated, among other things, an exculpatory clause that FC…

“shall not be liable for any claim, demand, cause of action of any kind whatsoever for, or on account of death, personal injury, property damage or loss of any kind resulting from or related to Member’s use of facilities or participation in any sport, exercise or activity within the club premises…”

While working out at FC, Leon sustained back injuries when a treadmill on which he was walking suddenly collapsed at FC. Leon sued FC for his injuries.

Discuss:

a. Is the exculpatory clause in the contract valid or invalid in Leon’s case and why?

b. Possible product liability claim(s) for which Leon could sue FC and why product liability claims might be applicable to this case

c. Possible ordinary (non-product liability) negligence claim for which Leon could sue FC and why a negligence claim might be applicable to this case

d. The likely outcome if Leon sues FC under product liability

e. The likely outcome if Leon sues FC under ordinary negligence