Henry Ford Learning Institute: Key Legal Risks in Terms & Conditions and How to Fix Them | Erayaha

## When We Examined Henry Ford Learning Institute’s Terms & Conditions: What $1M+ Legal Risks Did We Find?

Imagine a scenario where a single ambiguous clause leads to a $500,000 privacy fine, or a vague liability waiver results in a six-figure lawsuit. Our analysis of Henry Ford Learning Institute’s (HFLI) Terms & Conditions reveals several such risks—each with significant financial and reputational implications.

1. Privacy: Unrestricted Release of Personal Information HFLI’s terms allow the release of users’ personal contact information to third parties without specifying purpose, consent, or safeguards. This exposes HFLI to potential violations of GDPR and CCPA, where fines can reach up to €20 million or 4% of annual global turnover. Without clear limits and user consent, the risk of regulatory action and class-action lawsuits is substantial.

Legal Analysis

high Risk

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By agreeing to these Terms, you agree thatconsent to HFLI may releasereleasing your name and personal contact information to third parties for the purpose of allowing yousolely as necessary to facilitate your use of the Services, and only with your explicit, informed consent. You acknowledge that this informationHFLI will allow third partiesimplement appropriate safeguards to know that you are affiliatedensure compliance with HFLIapplicable privacy laws, including GDPR and allow such third parties to initiate contact with you. Any further information you provide on your own to these third partiesCCPA, and will be done atnot disclose your own risk and be subjectpersonal information to the privacy policies of any third parties associated with the Services, which may be entirely different than those provided by HFLIfor unrelated purposes without your prior written consent.

Legal Explanation

The original clause lacks specificity regarding the purpose, scope, and legal basis for releasing personal information, and does not require user consent for each disclosure. The revision introduces explicit consent, limits disclosure to necessary purposes, and references compliance with privacy regulations, reducing regulatory and litigation risk.

2. Liability: Overbroad Waiver and Release The waiver section requires users to waive all claims—even those unknown at the time—without exceptions for gross negligence or willful misconduct. Courts routinely strike down such overbroad waivers, which could render the entire section unenforceable and expose HFLI to uncapped damages in the event of a serious incident. Litigation costs in such scenarios can easily exceed $250,000 per claim.

Legal Analysis

critical Risk

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You expressly assume the risk of and accept full responsibility for any and all injuries, disease, sickness (including death), property damage, and accidents that may occur as a result of your participation in any activities related to the Services and releaseto the extent permitted by law. However, this waiver does not apply to claims arising from liability HFLI,’s or Ford Fund’s gross negligence, and their respective officerswillful misconduct, directors, agents, representatives, employees, and affiliatesor violations of law. You hereby waiveNothing in this waiver limits any and all claims you may hereafter have as a result of any and all injuries, disease,rights or sickness (including death)remedies available to your person or property as a result of your participation in activities related to the Servicesyou under applicable law.

Legal Explanation

The original clause is overly broad, waiving all claims including those resulting from gross negligence or willful misconduct, which courts often find unenforceable. The revision carves out exceptions for gross negligence, willful misconduct, and legal violations, increasing enforceability and reducing risk of invalidation.

3. Intellectual Property: Perpetual, Unlimited License Without User Protections HFLI claims a perpetual, irrevocable, worldwide, royalty-free license to user-submitted content, but does not specify any limitations or user protections. This could result in disputes over commercial use, moral rights, or unauthorized exploitation—potentially leading to IP litigation or reputational harm. Settlements in similar cases have ranged from $50,000 to $500,000.

Legal Analysis

high Risk

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To the extent necessary for HFLI to provide the Services, youYou grant to HFLI a nonexclusive, irrevocable, worldwide, perpetual, unlimited fully paid up, and royalty-free rightlicense to use, copy, prepare derivative works of,and distribute, publish, remove, retain, add, process, or analyze your Intellectual Property solely for the purpose of providing the Services, subject to your right to revoke this license upon written notice. HFLI will not use your Intellectual Property for commercial purposes unrelated to the Services without your express written consent.

Legal Explanation

The original clause grants HFLI an unlimited, perpetual license without user protections, which could be challenged as overreaching. The revision limits the license to necessary service-related uses, allows for revocation, and prohibits unrelated commercial exploitation, reducing IP dispute risk.

4. Arbitration & Class Action Waiver: Potential Unenforceability The arbitration clause prohibits class actions and representative claims, but lacks clear opt-out provisions and fails to address consumer-specific arbitration rights under federal law. Courts have invalidated similar clauses, exposing organizations to costly class action litigation. Defense costs for class actions can exceed $1 million, even before damages are awarded.

Legal Analysis

critical Risk

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You agree to the exclusive jurisdiction of the courts located within the State of Michigan to resolvefor any disputes between, except as otherwise required by applicable consumer protection laws. The waiver of class actions and representative claims applies only to the partiesextent permitted by law, and you agree that proper venue isretain any non-waivable rights under federal or state law. An opt-out mechanism for arbitration and class action waiver will be provided in the State of Michiganaccordance with applicable law. YOU WAIVE THE RIGHT TO LITIGATE IN COURT OR ARBITRATE ANY CLAIM OR DISPUTE AS A CLASS ACTION, EITHER AS A MEMBER OF A CLASS OR AS A REPRESENTATIVE, OR TO ACT AS A PRIVATE ATTORNEY GENERAL.

Legal Explanation

The original clause prohibits class actions and representative claims without addressing statutory rights or opt-out provisions, risking unenforceability. The revision aligns with federal and state consumer protection laws, provides an opt-out, and preserves non-waivable rights, reducing exposure to class action litigation.

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Conclusion: Proactive Legal Protection Is Essential Our examination shows that HFLI’s current Terms & Conditions contain several high-impact legal risks that could result in substantial financial losses, regulatory penalties, and reputational damage. Addressing these issues with precise, enforceable language is critical for robust legal protection.

Are your contracts exposing your organization to preventable risks? How much could a single ambiguous clause cost your business? What steps can you take today to ensure your legal framework is future-proof?

This analysis is for educational purposes only and does not constitute legal advice. For actual legal guidance, consult with a licensed attorney. This assessment is based on publicly available information and professional legal analysis. See erayaha.ai’s terms of service for liability limitations.