CIPS L5M3 Exam - 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

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Amos

6 months ago

The arbitrator's role is mainly to facilitate dialogue.

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Cordelia

6 months ago

Wait, does arbitration really set legal precedents?

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Christiane

6 months ago

I thought there were strict rules, but not as strict as court.

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Elinore

7 months ago

Totally agree, that's a key point!

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Nenita

7 months ago

The outcome is binding and enforceable.

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Matthew

7 months ago

I definitely remember that arbitration doesn't set legal precedents, so D seems wrong to me.

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Galen

7 months ago

I feel like I saw a practice question where the arbitrator's role was more about making decisions than just facilitating dialogue, so I'm leaning away from C.

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Ashanti

7 months ago

I'm not entirely sure, but I remember something about arbitration being less formal than court, so maybe B isn't true?

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Myra

8 months ago

I think option A is correct because arbitration outcomes are usually binding, right?

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Viva

8 months ago

I'm a little confused by the options here. The arbitrator's role is to facilitate dialogue, but the outcome is also binding? That seems a bit contradictory to me. I'll have to re-read the question and options more closely.

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Clorinda

8 months ago

Okay, let me think this through step-by-step. Arbitration is an alternative dispute resolution process, so it has to have some structure and rules. And the whole point is to resolve the disagreement, so the outcome must be binding, not just a recommendation. I'll go with A.

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Broderick

8 months ago

Hmm, I'm a bit unsure about this one. I know arbitration has a formal process, but I can't remember if the outcome is binding or not. I'll have to think this through carefully.

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Diane

8 months ago

This question seems pretty straightforward. I'm pretty confident I know the answer is A - the outcome of arbitration is binding and enforceable.

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Pearly

2 years ago

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

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Galen

2 years ago

D) the outcome will set a legal precedent

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Tony

2 years ago

C) the arbitrator's role is to facilitate dialogue

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Katina

2 years ago

B) there are strict rules and processes to follow

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Basilia

2 years ago

A) the outcome is binding and enforceable

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Latonia

2 years ago

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

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Tiara

2 years ago

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

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Emelda

2 years ago

C) the arbitrator's role is to facilitate dialogue

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Melissia

2 years ago

B) there are strict rules and processes to follow

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Ressie

2 years ago

A) the outcome is binding and enforceable

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Kanisha

2 years ago

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

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Helene

2 years ago

C) the arbitrator's role is to facilitate dialogue

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Lindsey

2 years ago

B) there are strict rules and processes to follow

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Leonor

2 years ago

A) the outcome is binding and enforceable

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Alonso

2 years 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.

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Dalene

2 years ago

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

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Glen

2 years ago

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

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Camellia

2 years ago

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

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Gretchen

2 years ago

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

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Dominga

2 years ago

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

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Leoma

2 years ago

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

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Eulah

2 years ago

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

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