CIPS Exam L5M3 Topic 1 Question 16 Discussion

Actual exam question for CIPS's L5M3 exam

Question #: 16
Topic #: 1

[All L5M3 Questions]

Tutu Incorporated has a contract with a software company to provide their IT software. They want to ensure that the supplier pays compensation if there are any issues with service (e.g. the software doesn't work for a day). Which two items would Tutu Incorporated need to include in the contract?

Aunliquidated damages

Bletter of credit

Cservice level agreement

Dservice credit

Einsurance

Show Suggested Answer

Suggested Answer: B

The correct answers are as follows:

This is arbitration as it involves a panel.

by Devorah at Oct 20, 2023, 07:07 AM

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Aleisha

1 months ago

This is a no-brainer. C and D all the way. Although, maybe they should throw in a lifetime supply of ice cream for the IT team, just to be safe.

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Patti

9 days ago

That sounds like a solid plan.

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Armando

13 days ago

D) service credit

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Freeman

15 days ago

C) service level agreement

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Serina

1 months ago

I bet the supplier wishes they could just include a 'get out of jail free' card in the contract instead. Too bad life doesn't work like Monopoly.

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Lajuana

1 months ago

I'm not sure about unliquidated damages, but a letter of credit and insurance could be good options too. Gotta cover all the bases, you know?

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Santos

17 days ago

A) unliquidated damages

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Shaquana

2 months ago

I think they should also include service credit to hold the supplier accountable for any software failures.

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Jina

2 months ago

I agree with Lacresha, service level agreement will ensure compensation for any service issues.

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Mira

2 months ago

C and D seem like the obvious choices here. The contract needs to specify the service level agreement and the service credit that the supplier will provide if they don't meet those standards.

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Keith

24 days ago

Yes, the service level agreement and service credit are crucial to protect Tutu Incorporated in case of any issues with the software.

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Deane

25 days ago

I agree, C and D are essential to ensure the supplier is held accountable for their service.

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Lacresha

2 months ago

I think Tutu Incorporated should include service level agreement in the contract.

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