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Managing Contractual Risk

Last Update 7 hours ago Total Questions : 120

The Managing Contractual Risk content is now fully updated, with all current exam questions added 7 hours ago. Deciding to include L5M3 practice exam questions in your study plan goes far beyond basic test preparation.

You'll find that our L5M3 exam questions frequently feature detailed scenarios and practical problem-solving exercises that directly mirror industry challenges. Engaging with these L5M3 sample sets allows you to effectively manage your time and pace yourself, giving you the ability to finish any Managing Contractual Risk practice test comfortably within the allotted time.

Question # 21

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

A.

mediation

B.

negotiation

C.

arbitration

D.

conciliation

Question # 22

Which of the following conflict resolution styles may involve a private caucus and a joint ses-sion?

A.

mediation

B.

adjudication

C.

negotiation

D.

litigation

Question # 23

Which of the following will you put into box 4?

A.

Payment Term

B.

Time is of the Essence

C.

Subcontracting

D.

Specification

Question # 24

Which of the following will you put into box 1?

A.

compete

B.

avoid

C.

compromise

D.

collaborate

Question # 25

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?

A.

sue for damages as the flip flops have already been made and this incurred costs

B.

nothing- there is no written contract in place

C.

subcontract the manufacturing of the flipflops to a third party

D.

claim on insurance

Question # 26

Alan has an ongoing contract with a supplier for the provision of gardening tools to his horti-culture business. He has been working with the supplier for over 20 years and has recently discovered that the supplier committed a breach in a warranty 3 years ago. Can Alan claim damages?

A.

yes- the breach has occurred and a contract is in place

B.

yes- Alan can claim damages and rescind the contract

C.

no- Alan could only claim if the breach was of a condition, not a warranty

D.

no- Alan cannot claim because the breach was so long ago

Question # 27

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 zoo orders three baby lions and is given three baby tigers

D.

a supplier has breached a non-disclosure agreement

E.

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

Question # 28

Which of the following will you put into box 5?

A.

liability

B.

payment terms

C.

liquidated damages

D.

Contract variation

Question # 29

Which of the following is usually the default method for resolving disputes?

A.

litigation

B.

mediation

C.

negotiation

D.

conciliation

Question # 30

Which of the following will you put into box 4?

A.

anticipatory breach

B.

fundamental breach

C.

payment terms

D.

specification

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