CIPS L5M3 Exam - 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

Limited Time Offer

25%

Off

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

Contribute your Thoughts:

Submit Cancel

Carey

3 months ago

Totally agree, service level agreements are key!

upvoted 0 times

...

Wava

3 months ago

Wait, can they really enforce that?

upvoted 0 times

...

Sherita

3 months ago

Service credit is a must if things go wrong.

upvoted 0 times

...

Eladia

4 months ago

Unliquidated damages won't help here.

upvoted 0 times

...

Benton

4 months ago

Definitely need a service level agreement!

upvoted 0 times

...

Amie

4 months ago

I feel like both a service level agreement and service credit would be the best choices here. They directly address performance and compensation.

upvoted 0 times

...

Becky

4 months ago

I'm a bit confused about unliquidated damages. I thought they were more for general liability rather than specific service issues.

upvoted 0 times

...

Bok

4 months ago

I remember discussing service credits in class. They seem relevant for compensation if the software fails.

upvoted 0 times

...

Lashaunda

5 months ago

I think a service level agreement is definitely needed to outline the expected performance. Not sure about the other one though.

upvoted 0 times

...

Andra

5 months ago

I feel pretty confident about this one. Based on the details provided, the two items Tutu Incorporated should include are a service level agreement and service credits. Those will give them the contractual mechanisms to get compensation if the software doesn't work as expected.

upvoted 0 times

...

Amira

5 months ago

I'm a little confused by the wording of the question. Is it asking about the specific terms Tutu Incorporated should include, or just general contract items that could address this issue? I want to make sure I understand before selecting my answer.

upvoted 0 times

...

Joana

5 months ago

Okay, I've got this. The key things Tutu Incorporated would need are a service level agreement and service credits. Those will ensure the supplier is held accountable for any disruptions in service.

upvoted 0 times

...

Annmarie

5 months ago

Hmm, I'm a bit unsure about this one. I need to carefully read through the options and think about which two would be most relevant for ensuring the supplier pays compensation for service issues.

upvoted 0 times

...

Elli

5 months ago

This seems like a straightforward question about contract terms. I'll focus on identifying the two key items the question is asking for.

upvoted 0 times

...

Art

5 months ago

Okay, this looks straightforward. I'll need to find the steps to configure the Log Analytics workspace to use the encryption key.

upvoted 0 times

...

Aja

5 months ago

I'm a bit unsure about this one. I'll read through the options carefully and try to eliminate the ones that don't seem relevant to ending a transaction.

upvoted 0 times

...

Aleisha

9 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.

upvoted 0 times

Myra

8 months ago

Haha, ice cream for the IT team would be a nice bonus!

upvoted 0 times

...

Gaynell

8 months ago

Definitely, can't go wrong with those two.

upvoted 0 times

...

Patti

9 months ago

That sounds like a solid plan.

upvoted 0 times

...

Armando

9 months ago

D) service credit

upvoted 0 times

...

Freeman

9 months ago

C) service level agreement

upvoted 0 times

...

Serina

9 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.

upvoted 0 times

...

Lajuana

10 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?

upvoted 0 times

Terina

8 months ago

I think including a service level agreement and service credit would also be important to ensure the software company meets their obligations.

upvoted 0 times

...

Yong

8 months ago

D) service credit

upvoted 0 times

...

Ivette

8 months ago

C) service level agreement

upvoted 0 times

...

Anthony

8 months ago

Yeah, having a letter of credit and insurance in the contract would definitely help protect Tutu Incorporated in case of any issues.

upvoted 0 times

...

Carol

8 months ago

E) insurance

upvoted 0 times

...

Bettye

8 months ago

B) letter of credit

upvoted 0 times

...

Santos

9 months ago

A) unliquidated damages

upvoted 0 times

...

Shaquana

10 months ago

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

upvoted 0 times

...

Jina

10 months ago

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

upvoted 0 times

...

Mira

10 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.

upvoted 0 times

Keith

9 months ago

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

upvoted 0 times

...

Deane

9 months ago

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

upvoted 0 times

...

Lacresha

11 months ago

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

upvoted 0 times

...