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Download Managing Contractual Risk Exam Dumps
NEW QUESTION 47
Which of the following situations would be considered a minor breach of a contract? Select TWO:
- A. a painter is contracted to paint a room white but paints it magnolia as there was no white paint available
- B. a consultant has given bad advice
- C. a supplier has breached a non-disclosure agreement
- D. a zoo orders three baby lions and is given three baby tigers
- E. A supplier delivers a lorry-load of produce six hours late due to a burst tyre.
Answer: A,C
Explanation:
The correct answers are: 1) the painter using magnolia instead of white, and 5) the supplier who was late on his delivery. These are considered minor breaches because the contract was still fulfilled and it didn't affect the contract in any significant way. In this type of question you have to use logic to deduce the right answer; 2) A consultant giving bad advice would be a major breach - it would be a huge issue, particularly if that advice led to an accident or death. Think about an Architect advising on a type of pillar, and it turns out that pillar can't support the weight of the building. That would be bad. 3) Lions and Tigers are not the same thing - so that would be a pretty fundamental mistake in a contract. 4) Breaching a non-disclosure agreement is usually considered a major breach of a contract (this is mentioned in chapter 2.1). See p. 48 for more information on minor breaches.
NEW QUESTION 48
David is selling his house and Barbera would like to buy it. David is expecting to get £100,000 for his house. Barbera offers £80,000 and David asks Barbera if she'll pay £90,000 instead. Barbera says no. After a week David hasn't had any other offers so would like to accept Bar-bera's offer. Can he do this?
- A. yes- Barbera's offer is still valid as it didn't come with a time clause attached
- B. no - David's counter offer rescinded Barbera's offer
- C. no- he waited too long and Barbera's offer has expired
- D. yes- Barbera's offer is the best he will receive
Answer: B
Explanation:
"No - David's counter offer rescinded Barbera's offer" is the correct answer. Remember: "once a counter offer is made, the original offer is viewed as rejected" - p.6 of the study guide. What this means is when David goes back to Barbera about the £80,000 - he is now the offeror - and Barbera has the option to reject this. David is no longer in a position to accept or reject - Barbera is.
NEW QUESTION 49
Which of the following processes is the most adversarial?
- A. adjudication
- B. mediation
- C. negotiation
- D. litigation
Answer: D
Explanation:
Litigation is the most adversarial. It's usually the last resort and shouldn't be used if you want to preserve the working relationship. P. 145
NEW QUESTION 50
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. litigation
- B. arbitration
- C. mediation
- D. negotiation
Answer: B
Explanation:
Arbitration ticks all of the boxes required by R3D3. Mediation isn't correct because it's not binding. Negotiation isn't correct because there's no 3rd party. Litigation isn't correct because it's not confidential. See p. 80 for more on arbitration.
NEW QUESTION 51
Which of the following are advantages to seeking a solution to conflict via litigation?
- A. the process provides certainty that an outcome will be reached
- B. The decision can be made by someone who isn't an expert in their field.
- C. There is no confidentiality
- D. The process is quick and cost-effective
Answer: A
Explanation:
The correct answer is 1 'the process provides certainty that an outcome will be reached'. Options 2 and 3 are true statements but they are not advantages of litigation, they are disadvantages. Option 4 is false - litigation is a long and costly process. See p. 85 for more information on litigation
NEW QUESTION 52
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