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NEW QUESTION 31
Which of the following would not be considered acceptance of a contract term?

• A. silence
• B. accepting a delivery of a product into the factory
• C. an invoice
• D. a handshake

Answer: A

Explanation:
Silence is not acceptance. Acceptance can be in writing, verbal or implied by conduct. The three other options are ways in which a contract could be accepted by conduct. See p.8 of the study guide

NEW QUESTION 32
Which of the following would be included in a contract to assign costs and responsibilities be-tween buyer and seller when products are delivered?

• A. Liability
• B. Liquidated Damages
• C. Indemnity
• D. Incoterms

Answer: D

Explanation:
Incoterms assign costs and responsibilities about when products are delivered. See p. 37 for a full list of the different Incoterms. You don't need to know all Incoterms for the exam, but it's a good idea to know what they are and why they'd be put into a contract

NEW QUESTION 33
Which of the following situations would be considered a minor breach of a contract? Select TWO:

• A. A supplier delivers a lorry-load of produce six hours late due to a burst tyre.
• B. a supplier has breached a non-disclosure agreement
• C. a zoo orders three baby lions and is given three baby tigers
• D. a painter is contracted to paint a room white but paints it magnolia as there was no white paint available
• E. a consultant has given bad advice

Answer: B,D

Explanation:
The correct answers are: 1) the painter using magnolia instead of white, and 5) the supplier who was late on his delivery. These are considered minor breaches because the contract was still fulfilled and it didn't affect the contract in any significant way. In this type of question you have to use logic to deduce the right answer; 2) A consultant giving bad advice would be a major breach - it would be a huge issue, particularly if that advice led to an accident or death. Think about an Architect advising on a type of pillar, and it turns out that pillar can't support the weight of the building. That would be bad. 3) Lions and Tigers are not the same thing - so that would be a pretty fundamental mistake in a contract. 4) Breaching a non-disclosure agreement is usually considered a major breach of a contract (this is mentioned in chapter 2.1). See p. 48 for more information on minor breaches.

NEW QUESTION 34
Lisa has a contract with an internet provider and the contract stated the need for Wi-Fi to be online 100% of the time. The Wi-Fi has only been available 97% of the time. In order for Lisa to claim compensation from her internet provider, which of the following would need to be present in the contract?

• A. change control
• B. service credits
• C. liability clause
• D. subcontracting

Answer: B

Explanation:
This would be service credits. If this is present and the contract stated 100% online access- Lisa could claim 3% of her money back. See p.112 for information on service credits

NEW QUESTION 35
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