[Jun 19, 2023] Pass CIPS L5M3 Exam Info and Free Practice Test [Q37-Q52] : Exams Labs Braindumps : http://blog.examslabs.com

Q37. Which of these statements about Guarantees are TRUE? Select 2

A Guarantee is a secondary obligation of a contract

A guarantor’s responsibility is higher than the Principle

A guarantee is a promise to repair or replace an item within a defined period of time

A guarantor’s responsibility cannot be higher than the Principle

Q38. Which of the following will you put into box 8?

Condition

Warranty

Innominate Term

Q39. Which of the following statements are TRUE about negotiation? Select THREE

the process is voluntary

the outcome of the negotiation is public

the process can involve a neutral third party

it is a quick and cost effective method to resolve disputes

the process is flexible

Q40. Dianne has a loan agreement which contains a clause for default. What does a clause for default imply?

this allows the lender to demand overdue payments are made straight away

this allows a lender to demand payment from a guarantor if the borrower is unable to pay

this allows the lender to declare insolvency

this allows the lender to demand full payment of the outstanding balance

Q41. Which of the following statements about adjudication is true?

adjudicators are appointed at random and therefore may not have specific knowledge of the subject matter

the decision making process can be lengthy and expensive

parties are expected to present their cases in person in front of the adjudicator

the decision made by the adjudicator is binding and usually communicated within 28 days

Q42. Parky Parks Ltd has a contract with Slides R Us for the provision of children’s playground equipment. The contract contains a clause for liquidated damages and puts the figure at £500k. Which of the following statements is correct? Select TWO

Liquidated damages needs to be a 100% accurate figure

If damages exceed £500k Parky Parks can apply to the courts to get Slides R Us to pay above this amount

Damages under the amount of £500k are not required to be paid to Parky Parks

liquidated damages is a genuine estimate of loss

costs incurred above £500k will be covered by Parky Parks Ltd

Q43. ABC has a contract with its supplier DEF who delivers pasta to ABC’s manufacturing plant. DEF has committed a breach and conflict resolution has taken place. The Court has awarded ABC ‘specific performance’ damages. What could this involve?

DEF must pay money to ABC as stated in the liquidated damages clause

DEF must pay an amount of money as determined by the courts

DEF must deliver the pasta required by ABC

DEF must rescind the contract

Q44. Fishfingers Ltd has a contract with a supplier of cod. When the contract was set up it was not known how important specific delivery times would be for the arrival of the fish. After several months it has now become apparent that delivering the fish within 3 hours of them being caught is fundamental to the contract as delayed delivery results in poorer quality Fish Fingers. When the contract was set up what was the delivery times?

a condition of the contract

a warranty

an innominate term

a time is of the essence clause

Q45. Fruity McFruitFace is an exporter of fruit. Which of the following payment terms would be most advantageous for it?

open account

documentary collection

documentary credits

advance payment

Q46. Which of the following statements about ‘Specific Performance’ are TRUE? Select TWO.

Orders for Specific Performance can be a lengthy and costly process

Orders for Specific Performance can be a cheap and quick way to remedy a breach in contract

If a party is ordered to complete a ‘Specific Performance’ and doesn’t, they can be ar-rested

The innocent party must mitigate all losses

Q47. Penguin Ltd has a contract with Blue Company. Blue Company has just broken a warranty in the contract. What remedies does Penguin Ltd have available?

they can sue and claim damages

they can claim damages and terminate the contract

they can terminate the contract but cannot claim damages

they can claim damages but not terminate the contract

Q48. Which of the following would be included in a contract to assign costs and responsibilities be-tween buyer and seller when products are delivered?

Indemnity

Liquidated Damages

Liability

Incoterms

Q49. Which of the following is a consensual form of dispute resolution?

negotiation

mediation

litigation

adjudication

Q50. Which of the following will you put into box 6?

Condition

Warranty

Innominate Term

Q51. Verity Fashion is a clothing manufacturer and has an order to create 10,000 pairs of flipflops for a retailer for the summer. The order was placed over the phone in February. The order has been completed and has been boxed up ready for delivery. The retailer calls Verity Fashion in June and says that the order is no longer required. What action can Verity Fashion take?

sue for damages as the flip flops have already been made and this incurred costs

nothing- there is no written contract in place

subcontract the manufacturing of the flipflops to a third party

claim on insurance

Q52. Which of the following will you put into box 7?

liability

payment terms

liquidated damages

Contract variation