Free CIPS L5M3 Exam Dumps Questions & Answers

Which of the following is a source of breach in a contract?

• A.  warranty
• B.  liability
• C.  negligence
• D.  force majeure

R3D3 is a computer manufacturer who has had an issue with their supplier. They are seeking a conflict resolution approach which is flexible but will provide a binding and enforceable outcome. They would like the resolution to be confidential and directed by an independent third party that is appointed for them. Which of the following would be the best conflict resolution for them to select?

• A.  arbitration
• B.  mediation
• C.  litigation
• D.  negotiation

What is a Prime Contract?

• A.  A contract between a buyer and main supplier
• B.  A contract between a supplier and a subcontractor
• C.  A contract between a public sector organisation and the taxpayer
• D.  A contract between an end customer and a company which has full responsibility for its performance

When drafting a liability clause in a contract, which of the following statements are TRUE? Select THREE

• A.  liability is a legal responsibility
• B.  the goal of the liability clause is to punish the contractor for poor performance
• C.  exclusions should be narrowly defined and clearly state which types of liabilities are excluded
• D.  liability cannot be excluded for injury resulting from negligence
• E.  liability can only be limited where there is valid insurance

John is a chocolatier and has a big order of Easter Eggs coming up in April. He also creates chocolates to sell all year round in his shop, but Easter Eggs represent a large proportion of his profits each year. John's chocolate making machine has just broken and he has ordered a new one to be delivered in February. However due to a delay, the manufacturer of the new machine can't deliver until May. What course of action can John take?

• A.  John can claim for loss of his regular earnings but not for the easter eggs
• B.  John can claim for the loss of the Easter Eggs but not his regular earnings
• C.  John cannot claim for any loss as these are in the future and he doesn't know what these would be
• D.  John can claim for both the loss of the Easter Eggs and his regular earnings