CIPS L5M3 Exam - Topic 2 Question 47 Discussion

Actual exam question for CIPS's L5M3 exam

Question #: 47
Topic #: 2

[All L5M3 Questions]

An agreement in which an organisation is not accountable for any damages that occur during a contract is known as what?

Alimited liability

Bliquidated damages

Chold harmless agreement

Dwaiver of subrogation

Show Suggested Answer

Suggested Answer: B

The correct answers are as follows:

This is arbitration as it involves a panel.

by Amie at Feb 06, 2025, 06:46 AM

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Marta

9 months ago

Yup, definitely a hold harmless agreement!

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Rosalind

9 months ago

Limited liability is different, right?

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Kaycee

10 months ago

Wait, are you sure? Sounds a bit sketchy.

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Leslie

10 months ago

Totally agree, that's the right term!

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Marilynn

10 months ago

It's called a hold harmless agreement.

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Vallie

10 months ago

I’m confused between hold harmless and waiver of subrogation. They sound similar, but I can't remember the details!

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Oretha

11 months ago

I’m leaning towards option C, but I also recall something about waivers in a different context.

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Janae

11 months ago

I remember practicing a question about liability agreements, and I feel like limited liability was mentioned there.

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Tarra

11 months ago

I think it might be a hold harmless agreement, but I'm not completely sure.

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Yolando

11 months ago

Okay, let me break this down. An agreement where the organization isn't liable for damages... I'm going to go with C, a hold harmless agreement.

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Gerardo

11 months ago

The key here is understanding what "not accountable for any damages" means. I'm leaning towards C, a hold harmless agreement, but I'll double-check the other options to be sure.

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Ashton

11 months ago

Hmm, I'm not too sure about this one. I'll have to think it through carefully to make sure I get the right answer.

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Caren

11 months ago

I think this is a hold harmless agreement, where the organization is not held accountable for any damages during the contract.

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Ngoc

1 year ago

B) liquidated damages? More like 'liquidated my brain cells' trying to figure this one out. Hold harmless agreement FTW!

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Luisa

1 year ago

D) waiver of subrogation

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Tracey

1 year ago

C) hold harmless agreement

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Yuki

1 year ago

A) limited liability

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Arlene

1 year ago

D) waiver of subrogation? Really? That doesn't sound like it fits the description at all. This is a tricky one!

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Margret

1 year ago

B) liquidated damages

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Aja

1 year ago

C) hold harmless agreement

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Blondell

1 year ago

A) limited liability

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Thea

1 year ago

Hmm, I was leaning towards B) liquidated damages, but I think you're right, Valentin. A hold harmless agreement is the way to go.

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Kimbery

1 year ago

Yes, it protects the organisation from being held responsible for damages.

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Gail

1 year ago

I agree, a hold harmless agreement is the best option.

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Alpha

1 year ago

I'm leaning towards B) liquidated damages, as it specifies the amount of damages in advance.

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Valentin

1 year ago

C) hold harmless agreement - This seems like the correct answer, as it describes an agreement where the organization is not held accountable for any damages.

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