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1.
A company specializing in branded computer products for diverse sectors procures 500 items daily through phone calls or emails with suppliers. This process complicates the management and retrieval of procurement documents, making it challenging to effectively oversee the entire procurement cycle. To enhance oversight and improve audit trails, the company could implement a comprehensive digital procurement system.
2.
BIDCO Ltd. requested a quote from Pentagon Ltd. for specialized gaskets with specific requirements. Pentagon Ltd. submitted a quote along with their terms and conditions. BIDCO Ltd. then modified the delivery terms and returned the revised quote. Pentagon Ltd. subsequently delivered the gaskets and issued an invoice. In case of a dispute leading to legal proceedings, the terms and conditions that will apply to the transaction are likely those modified by BIDCO Ltd., as they were the last to propose changes before the goods were delivered.
3.
Standard terms and conditions should generally apply to which group of items?
4.
Bravo Co. is preparing for the construction of a new plant but is concerned about potential risks and uncertainties. Johnson, the procurement manager, suggests adopting a standardized contract model. How might this benefit the company?
5.
At what point does the buyer legally acquire ownership of the asset in a hire purchase contract?
6.
To avoid potential technical issues when purchasing from abroad, a company aims to incorporate standards into the product specifications. What type of standards should be included?
7.
Lucy is interested in a coat priced at $120, believing that the owner must honor the price displayed in the shop window. Is she correct?
8.
To efficiently manage a long-term contract with an essential supplier, a procurement manager uses price indices to adjust the pricing. The payment terms specify how and when the price will be adjusted based on these indices. What does the buying organization need to have for effective contract management?
9.
What type of insurance should a supermarket acquire if a cleaner they hired from a new supplier causes damage to a customer's floor?
10.
Under what circumstances does a request for quotation produce the best results?
11.
Information assurance protects information systems through...
12.
What is the purpose of liquidated damages clauses in contracts?
13.
What benefits does a buying organization gain by using a model contract?
1. Favorable terms for the buyer
2. Correct legal terminology
3. Suppliers cannot alter the model terms
4. Industry-specific focus
14.
For a Royal Naval hospital facing difficulties tracking its ambulances, the procurement team is considering implementing a new system, ERNS. Although basic requirements have been outlined, they need help developing a more detailed specification. Some of their current suppliers may offer useful insights. How should the procurement team approach collaboration with these suppliers?
15.
Why might organizations incorporate additional social and environmental standards in their specifications? Select two relevant reasons.
16.
When drafting a sales and purchase agreement for machinery, which two clauses should be included?
17.
What is the ideal data source for crafting specifications for an Invitation to Tender (ITT) as a service contract nears its expiration?
1. Incumbent supplier
2. Maintenance services
3. Alternative supplier
4. User's knowledge
18.
What type of agreement sets a minimum level of service quality between a service provider and a user?
19.
Which agreement governs obstacles to cross-border delivery of services?
20.
What type of contract is automatically recognized as a valid agreement without requiring explicit designation?
21.
In contract formation principles, what does a retailer displaying products in a shop window typically signify?
22.
What is the most precise definition of consideration in contract law?
23.
If Preston Co. purchases a lorry from Ludwig Co. under a hire purchase agreement and misses an installment, what can Ludwig Co. do?
24.
For a contract between Westlands Co. (UK) and Jumbo Co. (Singapore), which three elements must the contract have to be legally enforceable? Select three options.
25.
What are the essential elements for a valid contract? Select two options.
26.
Express terms in a contract are articulated in which of the following forms? Select two relevant options.
27.
Which type of insurance helps service providers cover legal expenses when they face lawsuits for not meeting professional standards?
28.
Which contract type is most suitable for a variable pricing agreement?
29.
If a buyer and supplier agree to a cost-plus arrangement with a cost base of $350 and an 11% markup, the invoice price will be...
30.
Which transaction is most likely governed by the CISG?
31.
What legal recourse is available if a contract is formed based on fraudulent misrepresentation?
32.
Pelican Co. and Engineer Dickson revise performance targets in their long-term supply contract and sign a new agreement. The changes are referred to as:
33.
A Precious Golden hospital is encountering difficulties in monitoring its fleet of nine ambulances and is considering the implementation of a new system, ERNS, to improve tracking. While the procurement team has defined the basic system requirements, they need further help in drafting a comprehensive specification. They believe that some of their existing suppliers could provide valuable input. What strategy should the procurement team use to collaborate with these suppliers in developing the specification?
