CIPS Managing Contractual Risk L5M3 Dumps in PDF

Free CIPS L5M3 Real Questions (page: 24)

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?

  1. sue for damages as the flip flops have already been made and this incurred costs
  2. nothing- there is no written contract in place
  3. subcontract the manufacturing of the flipflops to a third party
  4. claim on insurance

Answer(s): A

Explanation:

Verity can sue for damages. The order was placed over the phone meaning that there was a verbal contract in place. Contracts do not need to be written to be enforceable so option 2 is incorrect. There is no termination clause mentioned in the question so you can assume that there isn't one. This means that the retailer is committing a breach of the verbal contract by cancelling the order. Verity could therefore apply for damages. (Whether or not they'd be awarded is a different matter!). This question tests your understanding of when contracts can be terminated and remedies for breaches. See p. 134.



Which of the following is not a form of ADR (Alternative Dispute Resolution)?

  1. mediation
  2. negotiation
  3. arbitration
  4. conciliation

Answer(s): B

Explanation:

Negotiation isn't an alternative dispute resolution because it's supposed to be the 'default' dispute resolution- the one you automatically do when a problem occurs. Only if negotiation fails should you turn to ADR. P. 142



Franky B's is a popular restaurant chain which is seeking a resolution to a conflict it has with its supplier of Fried Chicken. It is looking for a dispute resolution that does not involve the court but in which an expert third party will make a binding decision.
Which is the most suitable dispute resolution method for Franky B's?

  1. litigation
  2. adjudication
  3. conciliation
  4. mediation

Answer(s): B

Explanation:

This is Adjudication. The other answers are incorrect- litigation involves the court. Conciliation and mediation do not provide binding decisions. P. 143



Perry is seeking a resolution to a conflict he has with his supplier. He wants a third party to make a binding and legally enforceable decision and wants the issue to remain confidential. He is considering litigation. Is this the best solution for Perry?

  1. yes- litigation is the most appropriate for his requirements
  2. no- Perry should try mediation
  3. no- Perry should try Adjudication
  4. no - Perry should try Conciliation

Answer(s): C

Explanation:

Perry should try adjudication. Litigation is public so there would be no confidentiality. Out of the four options only adjudication would provide Perry with what he needs; a binding decision which is confidential. See p.146 for more information on litigation.



Robert has a contract with Farmer Ted who provides his manufacturing firm with potatoes. There is a contract in place, signed by both parties that Ted will deliver 2 tonnes of potatoes per week. Due to changes in demand, Robert would like Ted to start providing 3 tonnes of potatoes every three weeks.
What must be in place for this change to occur?

  1. a variation clause and a new liquidated damage fee
  2. a variation clause and a signed agreement by both parties
  3. a notification of change and adequate compensation
  4. a notification of change and indemnity

Answer(s): B

Explanation:

A variation clause and signed agreement by both parties is required to make the change. See p.16-17 for more information on contract variations. Note a 'notification of change' isn't valid unless it's accepted by the other party- so it's a good idea for both parties to sign to say they agree to the change.



Share your comments for CIPS L5M3 exam with other users:

A
al
6/7/2023 10:25:00 AM

most answers not correct here

B
Bano
1/19/2024 2:29:00 AM

what % of questions do we get in the real exam?

O
Oliviajames
10/25/2023 5:31:00 AM

i just want to tell you. i took my microsoft az-104 exam and passed it. your program was awesome. i especially liked your detailed questions and answers and practice tests that made me well-prepared for the exam. thanks to this website!!!

D
Divya
8/27/2023 12:31:00 PM

all the best

K
KY
1/1/2024 11:01:00 PM

very usefull document

A
Arun
9/20/2023 4:52:00 PM

nice and helpful questions

J
Joseph J
7/11/2023 2:53:00 PM

i found the questions helpful

M
Meg
10/12/2023 8:02:00 AM

q 105 . ans is d

N
Navaneeth S
7/14/2023 7:57:00 AM

i have interest to get a sybase iq dba certification

A
Aish
10/11/2023 5:27:00 AM

want to pass exm.

A
Anonymous
6/12/2023 7:23:00 AM

are the answers correct?

K
Kris
7/7/2023 9:43:00 AM

good morning, could you please upload this exam again, i need it to test my knowledge in sd-wan with version 7.0.

M
Meghraj mali
10/7/2023 1:47:00 PM

very nice question

N
Noel
11/1/2022 9:14:00 PM

i have learning disability and this exam dumps allowed me to focus on the actual questions and not worry about notes and the those other study materials.

J
Jas
10/25/2023 6:01:00 PM

165 should be apt

N
Neetu
6/22/2023 8:41:00 AM

please upload the dumps, real need of them

M
Mark
10/24/2023 1:34:00 AM

any recent feeedback?

G
Gopinadh
8/9/2023 4:05:00 AM

question number 2 is indicating you are giving proper questions. observe and change properly.

S
Santhi
1/1/2024 8:23:00 AM

passed today.40% questions were new.litwere case study,lots of new questions on afd,ratelimit,tm,lb,app gatway.got 2 set series of questions which are not present here.questions on azure cyclecloud, no.of vnet/vms required for implimentation,blueprints assignment/management group etc

R
Raviraj Magadum
1/12/2024 11:39:00 AM

practice test

S
sivaramakrishnan
7/27/2023 8:12:00 AM

want the dumps for emc content management server programming(cmsp)

A
Aderonke
10/23/2023 1:52:00 PM

brilliant and helpful

A
Az
9/16/2023 2:43:00 PM

q75. azure files is pass

K
ketty
11/9/2023 8:10:00 AM

very helpful

S
Sonail
5/2/2022 1:36:00 PM

thank you for these questions. it helped a lot.

S
Shariq
7/28/2023 8:00:00 AM

how do i get the h12-724 dumps

A
adi
10/30/2023 11:51:00 PM

nice data dumps

E
EDITH NCUBE
7/25/2023 7:28:00 AM

answers are correct

R
Raja
6/20/2023 4:38:00 AM

good explanation

B
BigMouthDog
1/22/2022 8:17:00 PM

hi team just want to know if there is any update version of the exam 350-401

F
francesco
10/30/2023 11:08:00 AM

helpful on 2017 scrum guide

A
Amitabha Roy
10/5/2023 3:16:00 AM

planning to attempt for the exam.

P
Prem Yadav
7/29/2023 6:20:00 AM

pleaseee upload

A
Ahmed Hashi
7/6/2023 5:40:00 PM

thanks ly so i have information cia

AI Tutor 👋 I’m here to help!