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NEW QUESTION 26
Which of the following will you put into box 5?

• A. payment terms
• B. liability
• C. liquidated damages
• D. Contract variation

Answer: A

Explanation:
The correct answers are as follows:

This is payment terms - the discussion is about amending the payment terms from 60 days to 30 days.

NEW QUESTION 27
Which of the following will you put into box 1?

• A. compromise
• B. compete
• C. collaborate
• D. avoid

Answer: A

Explanation:
The correct answers are as follows:

The answer is compromise as they're seeking a solution that will satisy everyone.

NEW QUESTION 28
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?

• A. mediation
• B. litigation
• C. conciliation
• D. adjudication

Answer: D

Explanation:
This is Adjudication. The other answers are incorrect- litigation involves the court. Conciliation and mediation do not provide binding decisions. P. 143

NEW QUESTION 29
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 document in which Paul agrees to clean Freda's house for £10
• D. an email chain between a buyer and supplier which includes a PO and Invoice
• E. A written agreement between two robbers to rob a bank which states that the money gained would be split evenly between the two.

Answer: B,E

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 30
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