CIPS Exam L5M3 Topic 3 Question 37 Discussion

Actual exam question for CIPS's L5M3 exam

Question #: 37
Topic #: 3

Buyer A and Supplier B have had a disagreement regarding a breach in the contract. They are looking to resolve the issue via arbitration. Which of the following is true about arbitration?

Athe outcome is binding and enforceable

Bthere are strict rules and processes to follow

Cthe arbitrator's role is to facilitate dialogue

Dthe outcome will set a legal precedent

Show Suggested Answer

Suggested Answer: A

The outcome is binding and enforceable is the correct answer. However the ruling can be appealed. Arbitration is a flexible approach, and the outcome doesn't set legal precedent. The role of the arbitrator is to reach a decision, only in mediation is the role of the third party to facilitate dialogue rather than reach a decision. See p.80 for more information on arbitration.

by Theresia at Sep 19, 2024, 07:31 AM

Limited Time Offer

25%

Off

Get Premium L5M3 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Pearly

2 months ago

C) just sounds like conflict resolution 101 - the arbitrator is there to help, not make the decisions for us.

upvoted 0 times

Galen

23 days ago

D) the outcome will set a legal precedent

upvoted 0 times

...

Tony

24 days ago

C) the arbitrator's role is to facilitate dialogue

upvoted 0 times

...

Katina

1 months ago

B) there are strict rules and processes to follow

upvoted 0 times

...

Basilia

1 months ago

A) the outcome is binding and enforceable

upvoted 0 times

...

Latonia

2 months ago

This seems like a straightforward legal question, unlike that last one about configuring a network router. I'm sticking with A).

upvoted 0 times

...

Tiara

2 months ago

I'll go with A) - can't argue with a legally binding outcome, even if the process is a bit stuffy.

upvoted 0 times

Emelda

1 months ago

C) the arbitrator's role is to facilitate dialogue

upvoted 0 times

...

Melissia

1 months ago

B) there are strict rules and processes to follow

upvoted 0 times

...

Ressie

1 months ago

A) the outcome is binding and enforceable

upvoted 0 times

...

Kanisha

2 months ago

B) sounds about right - there are formal rules and procedures that must be followed in arbitration.

upvoted 0 times

Helene

1 months ago

C) the arbitrator's role is to facilitate dialogue

upvoted 0 times

...

Lindsey

1 months ago

B) there are strict rules and processes to follow

upvoted 0 times

...

Leonor

2 months ago

A) the outcome is binding and enforceable

upvoted 0 times

...

Alonso

2 months ago

I think the answer is C) the arbitrator's role is to facilitate dialogue because they are supposed to help the parties reach a resolution.

upvoted 0 times

...

Dalene

3 months ago

I disagree, I believe the answer is B) there are strict rules and processes to follow.

upvoted 0 times

...

Glen

3 months ago

I think the answer is A) the outcome is binding and enforceable.

upvoted 0 times

...

Camellia

3 months ago

A) is definitely the correct answer here. Arbitration decisions are legally binding and enforceable.

upvoted 0 times

Gretchen

2 months ago

A) Yes, the outcome of arbitration will set a legal precedent for future cases.

upvoted 0 times

...

Dominga

2 months ago

C) The arbitrator's role is to facilitate dialogue between the parties involved.

upvoted 0 times

...

Leoma

2 months ago

B) That's right, there are strict rules and processes to follow in arbitration.

upvoted 0 times

...

Eulah

2 months ago

A) is definitely the correct answer here. Arbitration decisions are legally binding and enforceable.

upvoted 0 times

...