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NEW QUESTION 33
Which of the following will you put into box 7?
- A. Litigation
- B. Negotiation
- C. Mediation
- D. Arbitration
Answer: D
Explanation:
The correct answers are as follows:
Arbitration - this is a binding resolution made by a third party. This answer could be litigation, but that option has been taken by box 6 and you can only use the answers once. Mediation would not be a binding resolution and negotiation doesn't involve a third party.
NEW QUESTION 34
Which of the following is a source of breach in a contract?
- A. liability
- B. warranty
- C. negligence
- D. force majeure
Answer: C
Explanation:
Negligence can be a source of a breach. P.42
NEW QUESTION 35
Which of the following would not be considered acceptance of a contract term?
- A. a handshake
- B. accepting a delivery of a product into the factory
- C. silence
- D. an invoice
Answer: C
Explanation:
Silence is not acceptance. Acceptance can be in writing, verbal or implied by conduct. The three other options are ways in which a contract could be accepted by conduct. See p.8 of the study guide
NEW QUESTION 36
Which of the following statements about penalty clauses is not true?
- A. they provide damages in excess of the true cost of a breach
- B. they are illegal
- C. they can harm the working relationship
- D. they are used to deter the parties from breaching the contract
Answer: B
Explanation:
2 - penalty clauses are not illegal. However they may be judged excessive in a court of law and thrown out. Most contracts will instead opt for liquidated damages rather than a penalty clause. See p.90
NEW QUESTION 37
Which of the following are advantages to seeking a solution to conflict via litigation?
- A. There is no confidentiality
- B. the process provides certainty that an outcome will be reached
- C. The process is quick and cost-effective
- D. The decision can be made by someone who isn't an expert in their field.
Answer: B
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 38
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