100% Real & Accurate L5M3 Questions and Answers with Free and Fast Updates [Q11-Q30]

4.2/5 - (4 votes)

100% Real & Accurate L5M3 Questions and Answers with Free and Fast Updates

Get Unlimited Access to L5M3 Certification Exam Cert Guide

NO.11 Jenny has received a written offer from a supplier. She emails them to clarify if they can do next day delivery. The supplier does not reply. The next day Jenny makes the payment. Has a contract been formed?

yes- the supplier made an offer and Jenny accepted it by making a payment

yes- a counter offer has been made

no- the clarification constitutes a conditional acceptance

no- a contract has not been signed

NO.12 Which of these statements about Guarantees are TRUE? Select 2

A Guarantee is a secondary obligation of a contract

A guarantor’s responsibility is higher than the Principle

A guarantee is a promise to repair or replace an item within a defined period of time

A guarantor’s responsibility cannot be higher than the Principle

NO.13 Molly is a wedding planner who has just set up as a sole-trader. She has a meeting with a po-tential couple to organise their wedding. The couple is extremely risk adverse and have asked Molly to email them a copy of her insurances. Which insurances should Molly send? Select TWO

Products Liability Insurance

Employers Liability Insurance

Professional Indemnity Insurance

Public Liability Insurance

NO.14 Buyer A and Supplier B have had a disagreement regarding a breach in the contract. They are looking to resolve the issue via arbitration. Which of the following is true about arbitration?

the outcome is binding and enforceable

there are strict rules and processes to follow

the arbitrator’s role is to facilitate dialogue

the outcome will set a legal precedent

NO.15 Which of the following will you put into box 4?

Payment Term

Time is of the Essence

Subcontracting

Specification

NO.16 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?

yes- the order has not yet been delivered meaning that GoGo Ltd can cancel- there has been no transfer of ownership

no- Reny Manufacturing will sue for damages

yes- there is a termination clause in the contract

no- the termination clause is unfair

NO.17 Which of the following situations would be considered a minor breach of a contract? Select TWO:

a painter is contracted to paint a room white but paints it magnolia as there was no white paint available

a consultant has given bad advice

a zoo orders three baby lions and is given three baby tigers

a supplier has breached a non-disclosure agreement

A supplier delivers a lorry-load of produce six hours late due to a burst tyre.

NO.18 Tyrone Enterprises has just come out of a meeting with one of its suppliers Bob. The meeting has not gone well and the contract has become frustrated. What does this mean?

Negotiations between the buyer and supplier have failed and dispute resolution will need to take place

the supplier has committed a major breach and is unable to fulfil the contract

a situation has occurred which means that the contract can no longer be performed

The buyer no longer requires the supplier but is tied into the contract

NO.19 If an innocent party wishes to terminate a contract due to a breach, which of the following is true?

only future obligations of the parties are excused and discharged

all obligations of the innocent party are excused and discharged

all obligations of the offending party are excused and discharged

only past obligations of the parties are excused and discharged

NO.20 Which of the following will you put into box 7?

Condition

Warranty

Innominate Term

NO.21 Which of the following statements are TRUE about negotiation? Select THREE

the process is voluntary

the outcome of the negotiation is public

the process can involve a neutral third party

it is a quick and cost effective method to resolve disputes

the process is flexible

NO.22 Which of the following is not a form of ADR (Alternative Dispute Resolution)?

mediation

negotiation

arbitration

conciliation

NO.23 Fishfingers Ltd has a contract with a supplier of cod. When the contract was set up it was not known how important specific delivery times would be for the arrival of the fish. After several months it has now become apparent that delivering the fish within 3 hours of them being caught is fundamental to the contract as delayed delivery results in poorer quality Fish Fingers. When the contract was set up what was the delivery times?

a condition of the contract

a warranty

an innominate term

a time is of the essence clause

NO.24 Which of the following must a legally binding contract contain? Select THREE

Intention

Indemnity

Consideration

Liability

Capacity

NO.25 Which of the following is a source of breach in a contract?

negligence

liability

force majeure

warranty

NO.26 When there has been a major breach in a contract, the contract will be terminated. Is this statement true?

yes- the contract will be terminated and damages sought

yes- the contract must be terminated as there is no means by which the contract could continue after a major breach

no- the contract can be affirmed by the injured party

no- the contract can continue if the offending party proves that further breaches won’t occur

NO.27 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?

mediation

arbitration

negotiation

litigation

NO.28 A buyer and supplier have a contract and the supplier has committed a major breach. However, as they are the sole supplier to the buyer, the buyer has decided not to terminate the contract and instead to work with the supplier to remedy the situation. What is this called?

affirmation of the contract

conflict resolution

awarding damages

assigning liability

NO.29 Which of these statements about mediation is true? Select TWO

mediation is flexible

mediation produces legal precedents

mediation can be used as a stalling tactic

mediation is expensive

mediation involves a third party who makes a judgement on the issue

NO.30 Which of the following statements about adjudication is true?

adjudicators are appointed at random and therefore may not have specific knowledge of the subject matter