Question 1

2021-04-01-09-13-17-26ac4e281adef4bae85e39b38d532e9c

Which of the following will you put into box 4?

Options :

A :

Payment Term

B : Time is of the Essence

C : Subcontracting

D : Specification

Answer: C

Question 2

Terry's Toys is a Toy Manufacturer who has an agreement to provide Toys to an online retailer. The retailer has ordered 500 toys from Terry and Terry has incurred costs of £3000 manufacturing the toys. Halfway through production the retailer calls Terry to cancel the order. Terry reads through the contract and sees a liquidated damages clause of £1000. What should Terry do?

Options :

A : Terry can apply to the court to increase the liquidated damages to £3000

B : Terry can sue the retailer for the additional costs incurred above the liquidated damages

C : Terry can deliver the toys as agreed as there is a contract in place

D : Terry can do nothing and must pay the additional £2000 out of his own pocket

Answer: D

Question 3

2021-03-31-15-36-11-0cfaf8452dd7dd756d2fb60fe4b41708

Which of the following will you put into box 2?

Options :

A : subcontracting

B : reputational damage

C : penalty clause

D : consequential loss

Answer: B

Question 4

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?

Options :

A : litigation

B : adjudication

C : conciliation

D : mediation

Answer: B

Question 5

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

Options :

A : mediation

B : negotiation

C : arbitration

D : conciliation

Answer: B