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Arthur's Garage, Inc. v. Racal-Chubb Security Systems, Inc.
The Dallas Court of Appeals held that a $350 limitation of liability provision in a commercial alarm contract was not subject to penalty analysis and survived public policy challenges, but ruled it could not limit the alarm company's exposure under the Texas Deceptive Trade Practices Act for non-warranty claims. The court also enforced an indemnity provision requiring the customer to indemnify the alarm company for third-party claims, finding it satisfied both express-negligence and conspicuousness requirements under Texas law.