CIPS Exam L5M3 Topic 1 Question 25 Discussion

Actual exam question for CIPS's L5M3 exam

Question #: 25
Topic #: 1

[All L5M3 Questions]

Popsi Cula is a manufacturer of sugared beverages and produces over 5000 tonnes of soda each day. It is extremely important that ingredients are delivered to the factory on specific days in order for the production to keep to its very tight schedule. Popsi Cula is onboarding a new supplier - which of the following clauses would it be important for the contract to contain?

Aliquidated damages

Blimitation of liability

Ctime is of the essence

DKPIs

Show Suggested Answer

Suggested Answer: B

The correct answers are as follows:

This is arbitration as it involves a panel.

by Stefanie at Apr 25, 2024, 07:10 AM

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Reita

14 days ago

Hmm, I'm torn between B) limitation of liability and C) time is of the essence. Popsi Cula probably wants to limit its liability in case of delays, but the tight production schedule makes time of the essence.

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Golda

19 days ago

I think the correct answer is C) time is of the essence. This clause emphasizes the importance of timely delivery to Popsi Cula's production schedule.

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