CIPS Managing Contractual Risk L5M3 Exam Questions in PDF

Free CIPS L5M3 Dumps Questions (page: 5)

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:

W
Wong
12/20/2023 11:34:00 AM

q10 - the answer should be a. if its c, the criteria will meet if either the prospect is not part of the suppression lists or if the job title contains vice president

D
david
12/12/2023 12:38:00 PM

this was on the exam as of 1211/2023

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Tink
7/24/2023 9:23:00 AM

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Jaro
12/18/2023 3:12:00 PM

i think in question 7 the first answer should be power bi portal (not power bi)

9
9eagles
4/7/2023 10:04:00 AM

on question 10 and so far 2 wrong answers as evident in the included reference link.

T
Tai
8/28/2023 5:28:00 AM

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VoiceofMidnight
12/29/2023 4:48:00 PM

i passed!! ...but barely! got 728, but needed 720 to pass. the exam hit me with labs right out of the gate! then it went to multiple choice. protip: study the labs!

A
A K
8/3/2023 11:56:00 AM

correct answer for question 92 is c -aws shield

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Nitin Mindhe
11/27/2023 6:12:00 AM

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BailleyOne
11/22/2023 1:45:00 AM

explanations for the answers are to the point.

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patel
10/25/2023 8:17:00 AM

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MortonG
10/19/2023 6:32:00 PM

question: 128 d is the wrong answer...should be c

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8/12/2023 7:56:00 PM

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Miguel
10/5/2023 12:16:00 PM

question 11: https://help.salesforce.com/s/articleview?id=sf.admin_lead_to_patient_setup_overview.htm&type=5

N
Noushin
11/28/2023 4:52:00 PM

i think the answer to question 42 is b not c

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8/28/2023 1:00:00 AM

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10/31/2023 12:51:00 AM

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suresh
12/16/2023 10:54:00 PM

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Wali
6/4/2023 10:07:00 PM

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7/18/2023 1:10:00 AM

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D
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10/15/2023 1:34:00 PM

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12/17/2023 8:36:00 AM

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Vetri
10/3/2023 12:59:00 AM

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R
Ranjith
8/21/2023 3:39:00 PM

for question #118, the answer is option c. the screen shot is showing the drop down, but the answer is marked incorrectly please update . thanks for sharing such nice questions.

E
Eduardo Ramírez
12/11/2023 9:55:00 PM

the correct answer for the question 29 is d.

D
Dass
11/2/2023 7:43:00 AM

question no 22: correct answers: bc, 1 per session 1 per page 1 per component always

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