Question

3．Michael is chief director of L&L Limited Company. One day he learns that a client of L&L Company intends to buy 100 tons of cold rolled steel bar and has proposed negotiation with L&L. Michael contacts the client immediately and offers to sell at a lower price.  Michael’s behavior is a breach of (           )

A  Duty of loyalty;                                       B  Duty of care

C  Duty of Non-disclosure;                                D  Duty of confidentiality

4.Which of the following is/are offer? (            )

A  catalogs listing prices          B circulars                  C advertisements   

D  a quotation addressed to a specific client with an expression “valid by June 30th”.

5.About standard clause/contract, which is are true?

A If standard clauses are used in making a contract, the party that provides the standard clauses shall determine the rights and obligations between the parties in accordance with the principle of fairness.

B The party that provides the standard clauses shall call in a reasonable manner the other party's attention to the exemptible and restrictive clauses regarding its liability, and give explanations of such clauses at the request of the other party.

C Business are not allowed to incorporate any exemption clause in standard contract while they are transacting with consumers.

D The party that provides the standard clauses shall give explanations of such clauses at the request of the other party.

Answer 1

3. Here, Michael’s behavior is a breach of C  Duty of confidentiality because, in common law jurisdictions, the duty of confidentiality compels employees to maintain the secrecy of the activities of their clients. Information collected by lawyers regarding the activities of their employers can be private, and can not be used for the benefit of individuals not approved by the company. Here, Michael has breached the confidentiality code by contracting the client because he is supposed to keep it secret with himself until the negotiation clears. He also might have made a loss by offering a lower price without going through the negotiations.

4. A quotation that is addressed to a specific client with an expression “valid by June 30th” because the offeror here intends to fulfill the obligation in the form of quotation to a specific client. So, the correct option is D

5. The party supplying the standard clauses shall, at the invitation of the other party, call the attention of the other party to the exemptible and restricting clauses pertaining to its responsibility in a fair way, and provide descriptions of these clauses. This is because there might be certain criteria were the offeror might not be able to fulfill the clause when certain conditions arrive. In that case, these exemptions had to be taken care of.