Free CIPS L5M3 Exam Questions

Become CIPS Certified with updated L5M3 exam questions and correct answers

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Total 122 Questions | Updated On: Mar 05, 2026

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Question 1

2021-04-01-10-29-32-60d4982a051344803c8102c9c6f0c318

Which of the following will you put into box 6?

A : judication

B : bitration

C : diation

D : tigation

Answer: C

Question 2

Terry's Toys is a Toy Manufacturer who has an agreement to provide Toys to an online retailer. The retailer has ordered 500 toys from Terry and Terry has incurred costs of £3000 manufacturing the toys. Halfway through production the retailer calls Terry to cancel the order. Terry reads through the contract and sees a liquidated damages clause of £1000. What should Terry do?

A : rry can apply to the court to increase the liquidated damages to £3000

B : rry can sue the retailer for the additional costs incurred above the liquidated damages

C : rry can deliver the toys as agreed as there is a contract in place

D : rry can do nothing and must pay the additional £2000 out of his own pocket

Answer: D

Question 3

Which of the following would be included in a contract to assign costs and responsibilities between buyer and seller when products are delivered?

A : demnity

B : quidated Damages

C : ability

D : coterms

Answer: D

Question 4

Which of the following processes is the most adversarial?

A : diation

B : tigation

C : judication

D : gotiation

Answer: B

Question 5

Franky B's is a popular restaurant chain which is seeking a resolution to a conflict it has with its supplier of Fried Chicken. It is looking for a dispute resolution that does not involve the court but in which an expert third party will make a binding decision. Which is the most suitable dispute resolution method for Franky B's?

A : tigation

B : judication

C : nciliation

D : diation

Answer: B

Page: 1 / 25

Total 122 Questions | Updated On: Mar 05, 2026

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