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NEW QUESTION 44
Which of these statements about mediation is true? Select TWO
- A. mediation produces legal precedents
- B. mediation is flexible
- C. mediation involves a third party who makes a judgement on the issue
- D. mediation is expensive
- E. mediation can be used as a stalling tactic
Answer: B,E
Explanation:
The correct answers are 1 and 3. The other options are false; Mediation does not produce legal precedents- only litigation can do this. Mediation is a cheap dispute resolution option (much cheaper than arbitration or litigation) and the third party has no authority on the matter- they are there as a facilitator of dialogue, not to make a judgement. For more information on mediation see p.74
NEW QUESTION 45
Which of the following will you put into box 1?
- A. Time is of the Essence
- B. Specification
- C. Subcontracting
- D. Payment Term
Answer: A
Explanation:
The correct answers are as follows:
This is ‘Time is of the Essence’ – failure to deliver the food on time will have consequences.
NEW QUESTION 46
Which of the following would not be considered a contract? Select TWO
- A. a phone call between a supplier and buyer in which the buyer agrees to purchase 100 teddy bears from the supplier for £100.
- B. a domestic agreement between two parents about who will pick the kids up from school
- C. A written agreement between two robbers to rob a bank which states that the money gained would be split evenly between the two.
- D. a written document in which Paul agrees to clean Freda’s house for £10
- E. an email chain between a buyer and supplier which includes a PO and Invoice
Answer: B,C
Explanation:
The correct answers are; A written agreement between two robbers to rob a bank which states that the money gained would be split evenly between the two AND a domestic agreement between two parents about who will pick the kids up from school. There are 3 instances when a contract isn’t considered a contract and these are; illegal activity (like example A), a social or domestic arrange-ment (like example B) and when something is an ‘Invitation to Treat’. See p.2-3 Remember con-tracts don’t have to be written – they can be verbal (example C), the exchange doesn’t have to be fair (example D) and it can be implied by conduct (example E).
NEW QUESTION 47
Penguin Ltd has a contract with Blue Company. Blue Company has just broken a warranty in the contract. What remedies does Penguin Ltd have available?
- A. they can claim damages and terminate the contract
- B. they can terminate the contract but cannot claim damages
- C. they can sue and claim damages
- D. they can claim damages but not terminate the contract
Answer: D
Explanation:
They can claim damages but not terminate the contract. If Blue company has broken a Condition, they would be able to terminate the contract, but this isn’t the case for a breach of a Warranty. See p.43 for more details
NEW QUESTION 48
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