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CIPS - Commercial Contracting (L4M3) paper 6.
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1.
Which TWO of the following are examples of conformance specifications?
2.
Buyers often use specific methods to select suppliers under framework agreements. Identify TWO of these methods:
3.
Faith offers to sell her car to Brenda for £2000. When Brenda arrives with the agreed amount, Faith changes her mind and refuses to sell. Is there a legally binding agreement between the two parties?
4.
Which of these statements best describes a one-off contract?
5.
What factors should be considered during specification discussions with suppliers?
6.
Which statement is incorrect regarding leasing contracts?
7.
What is the most suitable method to track on-time deliveries throughout a contract?
8.
Which model contract would be best suited for manufacturing car lifts?
9.
In common law jurisdictions, when does acceptance become binding under the mailbox rule?
10.
Identify TWO correct statements about the RFQ process:
11.
How can a buyer influence the selection of tier 2 suppliers?
12.
Identify the THREE implied terms present in sales contracts from the following options.
13.
Boomplay Ltd, a UK-based music streaming company, plans to expand into the US market and hire a local data center provider. To measure performance effectively, the procurement manager designs an SLA. Which key elements should be included?
1. System availability
2. Mean time to recover from system failure
3. Actual number of on-time service deliveries
4. Dispute resolution procedure
14.
What should be included in an SLA as an appendix to a contract?
1. Frequency of service measurement
2. Minimum qualifications of supplier staff
3. Remedies for dispute resolution
4. On time service delivery
15.
In which scenario is an RFQ most appropriate?
16.
Which statement best defines a cost-reimbursable contract?
17.
Bata offered "Toughees' Shoes" records or vouchers to customers who submitted three wrappers from Bata's 6d. milk chocolate bars and paid 1s 6d. Which were the considerations provided by customers? Choose TWO:
18.
Which elements are likely to be express terms in a contract?
1. Legislation
2. Custom and practice
3. Contract particulars
4. Terms and conditions
19.
Social and environmental criteria are typically included in which type of specification?
20.
Which tools could drive supplier innovation during a contract?
1. Gainshare arrangement
2. Liquidated damages
3. Service credits
4. Fixed bonus payments
21.
SFO sent Vogon an RFQ with contract terms and specifications. SFO’s terms and conditions said that goods and services must be delivered by the Delivery Date and that Vogon must inform SFO 3 days before the Delivery Date if they cannot deliver. Vogon sent a quotation agreeing to SFO’s terms and conditions. The SFO procurement manager and senior management approved the quotation and told Vogon. But on the Delivery Date, Vogon said they could not supply the product because of a workers’ strike. Did Vogon break any contract with SFO?
22.
What is the name of the clause that releases parties from obligations during unforeseen events like natural disasters?
23.
Which standardized contract templates are widely used in the UK construction industry? Choose TWO:
24.
A supplier delivers goods one week late due to production delays, although the goods are defect-free. What options does the manufacturer have?
25.
Steven from Telecos Digital Ltd fails to meet a £50M contract deadline due to an unrealistic time estimate. What issue does this represent?
26.
In a cost-reimbursable contract, what does "cost" signify?
27.
KPIs for a global supplier include one-hour delivery and return order processing. Are these reasonable?
1. Delivery in an hour
2. Return orders in an hour
Is that a good thing or not?
28.
Which TWO factors are essential for a truck specification?
29.
What is the primary benefit of a fixed-price contract for the buyer?
30.
Should Pavillion Ltd incorporate a performance management framework into supplier contracts?
31.
What are common inclusions in an SLA? Select TWO:
