Which statement best describes the role of service level agreements with backup suppliers?

• A. SLAs are optional and rarely used.
• B. SLAs specify no performance targets.
• C. SLAs define performance standards and remedies to ensure continuity with backup suppliers.
• D. SLAs replace all other contract terms.

Answer: (C)

The main idea here is that service level agreements with backup suppliers establish clear performance standards and remedies to ensure continuity of service. They spell out measurable targets for what the supplier must deliver—uptime, response time, recovery time objectives—and how performance will be tracked. They also define remedies if targets aren’t met, such as service credits, price adjustments, or contract termination rights. With backup suppliers in play, SLAs make sure the fallback can meet agreed service levels, and provide a concrete framework for escalation and remediation during incidents. This creates accountability and clarity, helping the business stay resilient when a primary supplier can’t deliver. SLAs are not optional add-ons, they do specify targets, and they do not replace all other contract terms; they complement the contract by focusing on performance and remedies.