A salesman told a homeowner that once the alarm and fire detection system he was selling was in place, she should never have to worry about losing her house to a fire. He explained that if a fire ever started, the system was set up to alert her as well as the closest fire station. Convinced, the homeowner signed on the dotted line. But just two months later when a lightning strike caused a fire, the alarm system never contacted the fire department. The house burned to the ground.
The homeowner’s insurance company paid the homeowner’s fire claim, then sued the alarm company, which in turn defended itself by presenting a copy of the signed sales contract. That document stated in bold letters that no alarm system could guarantee prevention of a loss, and that the company would not be liable to the homeowner, even if damages...
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