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ABCar Co is a new type of car company. They hire various subcontractors namely DesignCar Ltd., who designs the cars, ManuCar Inc., who manufactures the

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ABCar Co is a new type of car company. They hire various subcontractors namely DesignCar Ltd., who designs the cars, ManuCar Inc., who manufactures the vehicles, and TestCar Co., who tests the cars before they are put into full production, Recently, ABCar Co has received many complaints about the failure of the braking system. There is a dispute between ABCar Co, DesignCar Ltd., ManuCar Inc., and Test Car Co. as to who is responsible for the problem and who must bear the cost to fix it. Referring to the dispute resolution mechanisms you explained in question 3 (a) (you don't need to reproduce the information), which dispute resolution mechanism would you select to resolve this dispute and why would you select it? Why would you reject the other ones? (6 marks) What is purchasing insurance an example of? Risk acceptance Risk reduction Risk transfer Risk evaluation Risk retention ABCar Co is a new type of car company. They hire various subcontractors namely DesignCar Ltd., who designs the cars, ManuCar Inc., who manufactures the vehicles, and TestCar Co., who tests the cars before they are put into full production, Recently, ABCar Co has received many complaints about the failure of the braking system. There is a dispute between ABCar Co, DesignCar Ltd., ManuCar Inc., and Test Car Co. as to who is responsible for the problem and who must bear the cost to fix it. Referring to the dispute resolution mechanisms you explained in question 3 (a) (you don't need to reproduce the information), which dispute resolution mechanism would you select to resolve this dispute and why would you select it? Why would you reject the other ones? (6 marks) What is purchasing insurance an example of? Risk acceptance Risk reduction Risk transfer Risk evaluation Risk retention

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