Originally Posted by FBinNY

The release will not prevent you from bringing a liability suit for any product defect or because the shop performed defective work. Nor will it raise legal fees, since attorneys take these cases on a contingency fee basis, taking a set percentage of any award.

However, it can prevent you for bringing suits for things like failure to warn, or selling an inappropriate bike. The release is usually combined with a checklist, where you confirm such things as knowing or being told the laws of your state, were reminded to wear a helmet, know how to use a quick release, and so on. This can prevent a number of the most common suits or help a dealer prevail if for instance you have an accident because you misused the QR when mounting a wheel.

As such, it isn't an unreasonable requirement, and is really no worse than you signing that you got the bike.