AI Contract Terms: Data Use, Indemnity and SLAs Quiz

Answers and explanations appear as you take the quiz.

1. About how much monthly downtime does a 99.9% monthly uptime SLA still allow?
   • About 4 minutes
   • About 43 minutes
   • About 7 hours
   • About 3 days
2. What remedy do most SLAs provide when the vendor misses its uptime target?
   • A full refund of all fees paid
   • Cash damages set by a court
   • Service credits against future fees
   • A free upgrade to a higher plan
3. Which condition is commonly attached to vendor IP indemnities for generated output?
   • The customer must use the vendor's safety filters and be on an eligible plan
   • The customer must publish all generated outputs publicly
   • The customer must host the model on its own servers
   • The customer must pay a separate fee for each claim
4. Why should a no-training commitment be in the signed agreement rather than relying on a vendor's web FAQ?
   • FAQs are written in another language
   • FAQs apply only to consumer users
   • FAQs are usually stricter than contracts
   • A web FAQ can change and is not necessarily binding
5. A vendor says it does not train on your data but keeps it for about 30 days. What explains this?
   • The vendor is breaking its own contract
   • Training and retention are the same thing
   • Data can be retained, for example for abuse monitoring, without being used for training
   • Retention applies only to model outputs, never inputs
6. What are liability caps in vendor contracts commonly tied to?
   • The vendor's annual revenue
   • The fees paid over a period such as 12 months
   • The number of users on the account
   • The customer's insurance coverage
7. What does an order-of-precedence clause do?
   • Decides which document wins when linked contract documents conflict
   • Sets the order in which invoices are paid
   • Ranks customers for support response times
   • Lists the models the vendor will release next
8. For which obligations do buyers most often negotiate higher 'super caps'?
   • Marketing and co-branding commitments
   • Monthly invoicing accuracy
   • Feature roadmap delivery dates
   • Data breaches, confidentiality and indemnity