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NEW QUESTION 54
An exchange of written documents between a buyer and supplier, each detailing their own Terms and Conditions is known as the Battle of the Forms. Who generally wins the Battle?
- A. The party who commits a breach
- B. The party with the greatest liability
- C. The party who issued the last document
- D. The party who issued the first document
Answer: C
Explanation:
The Battle of The forms is won by the party who sends the last form. This is referred to in the study guide as 'the last shot wins'
NEW QUESTION 55
Jenny has received a written offer from a supplier. She emails them to clarify if they can do next day delivery. The supplier does not reply. The next day Jenny makes the payment. Has a contract been formed?
- A. no- the clarification constitutes a conditional acceptance
- B. no- a contract has not been signed
- C. yes- a counter offer has been made
- D. yes- the supplier made an offer and Jenny accepted it by making a payment
Answer: D
Explanation:
Yes- the supplier made an offer and Jenny accepted it by making a payment is the correct answer. The other three options are incorrect: 'yes- a counter offer has been made' = there is no counter-offer made in this example - a clarification is not a counter-offer / 'no- the clarification constitutes a conditional acceptance' = clarifications are not conditional acceptance / 'no- a contract has not been signed' = there doesn't need to be a signed document- acceptance can be through performance. Issuing the payment would be considered acceptance via performance. See p 2-12 for more information on conditional acceptance, counter offers and acceptance of offers.
NEW QUESTION 56
Molly is a wedding planner who has just set up as a sole-trader. She has a meeting with a po-tential couple to organise their wedding. The couple is extremely risk adverse and have asked Molly to email them a copy of her insurances. Which insurances should Molly send? Select TWO
- A. Professional Indemnity Insurance
- B. Public Liability Insurance
- C. Products Liability Insurance
- D. Employers Liability Insurance
Answer: A,B
Explanation:
The correct answers are indemnity insurance and public liability insurance. Molly doesn't have any products so this wouldn't be required- she's a consultant. As a sole-trader she doesn't have employees so doesn't need Employer's Liability Insurance. The book does not go into much detail about types of insurances - but this is a known exam topic. So if you aren't confident on these four types of insurance and when you'd expect a supplier to have them - do some extra research before the exam. Insurance types are briefly mentioned on p. 25
NEW QUESTION 57
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