Online Access Free L5M3 Practice Test

Which of the following will you put into box 1?

• A.reputational damage
• B.consequential loss
• C.penalty clause
• D.subcontracting

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

Which of the following will you put into box 6?

• A.payment terms
• B.liquidated damages
• C.liability
• D.Contract variation

GoGo Ltd has contracted Reny Manufacturing to produce a bespoke piece of equipment for them. It is an asset and costs a significant amount of money. A contract is drawn up which states that GoGo Ltd has the right to terminate the contract at any time for any reason. Halfway through production of the asset, GoGo Ltd calls Reny Manufacturing to cancel the order. Reny Manufacturing has incurred many costs already. Can GoGo Ltd cancel the order?

• A.yes- there is a termination clause in the contract
• B.no- Reny Manufacturing will sue for damages
• C.yes- the order has not yet been delivered meaning that GoGo Ltd can cancel- there has been no transfer of ownership
• D.no- the termination clause is unfair

A large financial organisation ensures that they have contracts with all of their suppliers. In which instance would indemnity not necessarily form part of the contract?

• A.A software licence agreement
• B.A confidentiality agreement
• C.In assignment of intellectual property rights
• D.A Deed of Appointment of a Consultant