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NEW QUESTION 49
What is the first stage in conflict resolution?
- A. look at remedies available
- B. assess the impact of the breach
- C. decide on the type of conflict resolution approach
- D. identify the nature and source of the conflict
Answer: D
Explanation:
The first stage is ‘identify the nature and source of the conflict’. Stage 2 is assess the impact of the breach, stage 3 is look at remedies available and stage 4 is agree on a way forward and type of conflict resolution. These stages are explained on p.62 of the study guide.
NEW QUESTION 50
Mark is a consultant who works with building managers and advises them on how to make their buildings safer. What type of insurance should Mark have?
- A. Property Insurance
- B. Product Liability
- C. Professional Indemnity
- D. Public Liability
Answer: C
Explanation:
Mark needs professional indemnity insurance. Types of insurance is a known exam topic and the study guide does not cover this particularly well. Types of insurance is mentioned on p.25 but Pro-fessional Indemnity Insurance isn’t really explained and this does come up in the exam. Professional Indemnity Insurance is needed when your job is to give advice to people (like as a Consultant). It’s used for if the advice you give turns out to be bad. For example, if Mark told the building manager he should get ABC Fire Alarm installed, and actually this Fire Alarm doesn’t meet the necessary Health and Safety standards, he could get sued by the building manager. He could then claim on his Professional Indemnity Insurance.
NEW QUESTION 51
John is a chocolatier and has a big order of Easter Eggs coming up in April. He also creates chocolates to sell all year round in his shop, but Easter Eggs represent a large proportion of his profits each year. John’s chocolate making machine has just broken and he has ordered a new one to be delivered in February. However due to a delay, the manufacturer of the new machine can’t deliver until May. What course of action can John take?
- A. John cannot claim for any loss as these are in the future and he doesn’t know what these would be
- B. John can claim for both the loss of the Easter Eggs and his regular earnings
- C. John can claim for the loss of the Easter Eggs but not his regular earnings
- D. John can claim for loss of his regular earnings but not for the easter eggs
Answer: B
Explanation:
3 is the correct answer. This question is testing your understanding of ‘consequential loss’ which is explained on p.109. Consequential loss is where you can claim damages for incidental loss (loss that isn’t a direct cause of the breach of the contract, such as future earnings). In this scenario the breach is the late delivery and the incidental damage is John not being able to sell any chocolate in his shop or make his Easter Eggs. There are questions like this in the real exam- remember to think what the textbook would say and don’t overthink this. The scenario doesn’t always give you a lot of information (for example this doesn’t say if there is a contract in place) so think- which of these four options is the most logical and what is this question trying to test me on.
NEW QUESTION 52
Sally is shopping and sees an advert in a travel agent’s window that says that flights to Malta are 50% off. She enters the shop and begins to speak to a travel agent who informs her that the poster she’d seen is out of date. Is the travel agent obliged to give Sally the discounted flight?
- A. yes- the offer is valid until another offer or counter offer is provided
- B. no- the offer has been rescinded
- C. yes- the offer was displayed and therefore must be honoured
- D. no – the advert is an invitation to treat
Answer: D
Explanation:
Adverts are invitations to treat – not offers. Therefore the travel agent isn’t bound to provide the discounted flight. See p.3 for more information on offers and ITTs
NEW QUESTION 53
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