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NEW QUESTION 53
Mark is a consultant who works with building managers and advises them on how to make their buildings safer. What type of insurance should Mark have?

• A. Product Liability
• B. Property Insurance
• C. Public Liability
• D. Professional Indemnity

Answer: D

Explanation:
Mark needs professional indemnity insurance. Types of insurance is a known exam topic and the study guide does not cover this particularly well. Types of insurance is mentioned on p.25 but Pro-fessional Indemnity Insurance isn't really explained and this does come up in the exam. Professional Indemnity Insurance is needed when your job is to give advice to people (like as a Consultant). It's used for if the advice you give turns out to be bad. For example, if Mark told the building manager he should get ABC Fire Alarm installed, and actually this Fire Alarm doesn't meet the necessary Health and Safety standards, he could get sued by the building manager. He could then claim on his Professional Indemnity Insurance.

NEW QUESTION 54
Harry is negotiating a contract for a new IT system for his business. He is investing heavily in the system and wants the system to be able to provide the services he requires for the next 10 years. However he is aware that technology is changing quickly and would like to include a clause in the contract to ensure that the system he is purchasing is useable for the next 10 years. What should Harry include in the contract?

• A. change control
• B. benchmarking
• C. limitation of liability
• D. service credits

Answer: B

Explanation:
Benchmarking should be included- this is common in long-term contracts where variables can af-fect the market over time. By including benchmarking, harry gets assurance that the product he purchases will meet the market expectations over the next 10 years. The other answers are incorrect; 1- there is no mention of liability in the question so this is incorrect. 2- service credits would be used if he is concerned the product would be offline/ not perform (it's a form of damages) but this isn't the case in this scenario. He's not worried about underperformance, he's worried about obsolescence. 4- change control is for when there are multiple versions of a contract due to amendments being made.

NEW QUESTION 55
Which of the following is a source of breach in a contract?

• A. negligence
• B. warranty
• C. force majeure
• D. liability

Answer: A

Explanation:
Negligence can be a source of a breach. P.42

NEW QUESTION 56
Which of the following will you put into box 5?

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

Answer: A

Explanation:
The correct answers are as follows:

This is adjudication. Adjudication is the only option which has a specified timeframe.

NEW QUESTION 57
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