Do you know any dangerous terms of service, what do you think about them?

I found Dedicated server seller to have really dangerous TOS:

A $250 charge for violating this policy will be charged to the person initiating the SPAM. Furthermore BrainStorm Network - OneProvider reserves the right to prosecute for this violation. A $1.00 charge will be assessed PER EMAIL sent should BrainStorm Network - OneProvider choose to pursue and prosecute.
What if i have server and resell VPSs from it and my client send million SPAM email? Then i will pay $250 + $1,000,000 ? really scared..