CIPS L4M3 Free Dumps (Part 2, Q41-Q90) Are Also Available to Help You Check the Quality of Commercial Contracting L4M3 Dumps (V9.02)

1. Information assurance protects information systems and...?

2. Which of the following is an agreement between service provider and user that quantifies the minimum quality of service?

3. Which of the following will always give rise to a claim of misrepresentation?

1. Silence

2. False thought

3. Statement of fact

4. Representation by conduct

4. 1.Which of the following is the model form of contract for construction which is recommended by World Bank?

5. A company needs to source a product from oversea. It wants to overcome technical barrier to cross-border trade by using standards in the specification.

Which of the following is most likely to be incorporated into that specification?

6. A fashion company is drafting a specification for an order in next year. The company wants to expand its supply base in low cost countries. The procurement department is considering applying standard ISO 3759 on method for the preparation, marking and measuring of textile fabrics, garments and fabric assemblies for use in tests for assessing dimensional change after a specified treatment.

Which of the following should be taken into account when embedding this standard into the specification?

7. Which of the following should be done by procurement professionals right after obtaining a pre-written specification for a critical item so that the added value will be the greatest?

8. Which of the following are the 'fundamental' labour standards laid down by the International Labour Organisation?

1. Elimination of child labour

2. Payment of a minimum wage

3. The right to collective bargaining

4. Abolition of forced labor

9. Under hire purchase agreement, when will the ownership of asset legally belong to the purchaser?

10. Which of the following is used to detail the complex matter that may be verbiage to the main document?

11. Which of the following may be a benefit for purchaser in using call off contract?

12. A senior procurement specialist in UK is preparing a specification in which ISO standards are used to send to global suppliers.

Is this action appropriate?

13. Royal Naval Hospital at Rockstown, Anyport manages a fleet of nine ambulance vehicles. During busy periods, it becomes very difficult to keep track of the location of each ambulance (and the nature of their journey). Continual problems lead to the proposal for a new control system (ERNS).

For this ERNS project, the procurement department has drafted a specification in which only a bullet point list of basic requirements was written down. The procurement manager understands that the specification should be developed more specifically but a cross functional team from the Hospital could not do that. A senior buyer suggests that some of Hospital's pre-qualified suppliers could support them in developing the specification.

Which of the following should be a priority approach of procurement department in developing dialogue with those suppliers about specification development?

14. Which of the following is an invitation to treat?

15. Which of the following are reasons why a buying organisation adopts a model contract?

1. Extremely advantageous terms for buyer

2. Correct legal terminology

3. Supplier cannot make variation to the model form

4. Specific to industry

16. Bandpro is a reseller of branded computer products to the private and public sector. The procurement team must purchase 500 items each day solely by multiple phone calls and emails to suppliers. Due to this practice, it takes a lot of time to track and collect relevant documents. Some important documents even get lost, which makes procurement audit more burdensome.

Which of the following would increase the robustness of audit trails in procurement activities?

17. Which of the following are always included within a framework agreement? Select TWO that apply:

18. Which of the following contracts would be best suited to a ‘variable pricing’ arrangement?

19. A procurement professional is drafting payment terms for a commercial contract. He is considering about payment method if defective products are found.

Which of the following should be embedded in payment terms to control this issue?

20. The pricing arrangement in which markup is added into cost base to calculate the final price is known as...?

21. Which of the following is always automatically considered as a contract?

22. Which of the following is most likely to be an one-off contract?

23. To expand its operation, Steel Co. decides to build a new plant. Despite of excitement, the senior management is very concerned about the complexity and risks of such project. Hugo, the procurement manager, suggests that the company can adopt a model form of contract.

What is the advantage of using model form of contract?

24. The model form contract invented by Institute of Civil Engineers is...?

25. A large company supplies a lot of products. Their shipments are often delayed and customers are not satisfied.

Which of the following KPIs is most likely to be applied to this situation?

26. Which of the following are likely to be advantages of using invitation to tender? Select TWO that apply:

27. Which of the following statements is true about model form of contract?

28. When a supplier signs an insurance policy with an insurance company, which of the following is transferred to insurance company?

29. Which of the following is a key feature of liquidated damage clauses?

30. Which of the following is the international standard for labelling hazardous substances?

31. Which of the following is set down in statute as a liability that exists without any need to prove fault?

32. Blakenall District Hospital (BDH) is a large hospital that is a major part of the government’s health service. Purchasing staff are in the habit of placing many long-term contracts with suppliers and sub-contractors. Whilst these contracts are usually carried out successfully, prices are often paid that are well over budget. The purchasing manager is concerned to find that, in some cases, members of staff are forcing suppliers to accept fixed price contracts. The policy hascaused several problems such as some suppliers refusing to deal with BDH and a few going out of business mid-way through performing a contract with BDH. This is due to fluctuating market prices of materials. The procurement manager suggests supplier to adopt variable pricing arrangement with price index.

Is this a right course of action?

33. A procurement professional is preparing a sale & purchase contract of a machinery.

Which of the following clauses should be added to the contract? Select TWO that apply

34. In which of the following conditions, request for quotation produces the best results?

35. Which of the following regulates barriers to the provision of services between countries?

36. A purchase order can become a contract between supplier and purchaser if it is...?

37. Which of the following can be considered as implied terms in a contract?

1. Case law

2. Statute

3. Trade custom

4. A term can never be implied, it must always be expressed by the parties

38. A procurement manager is preparing a long-term contract with a major supplier. She decides to use the variable pricing arrangement using price indices. The payment terms describe the circumstances and mechanism where the price is allowed to change.

In order to successfully manage this type of contract, the buying organisation should have...?

39. Which of the following are likely to be advantages of using invitation to tender? Select TWO that apply:

Short turnaround times

40. Transformers & Rectifiers Ltd wanted to buy some specialist gaskets. They sent a request for quotation with specification to Needs Ltd. The supplier replied with a quotation in which had its own terms and conditions. The buyer edited delivery terms on the quotation and sent the document back to Needs Ltd. Gaskets were delivered to Transformers’ premise with an invoice from Needs Ltd.

Which of the following is most likely to be the governing terms if the two companies must settle the dispute at court?

41. Company A buys a lorry from Company B on hire purchase.

During the contractual period, Company A makes default in paying the instalment. Company B has...?

42. Rochdale Ltd is looking for a new IT system to automate some of its operations. In designing the specification, procurement manager supposes that it should be done solely by the IT department who have deep expertise on this matter. Is procurement manager’s opinion appropriate?

43. A tire manufacturer entered into a contract with a distributor. In the contract, the distributor is prohibited from selling the tire under the price list. The distributor must pay $5 for each tire sold in breach.

The amount of $5 is known as...?

44. ABC Ltd is a UK based company. It plans to enter into a contract with XYZ Ltd which is based in Singapore.

Which of the following are the mandatory elements for the contract between ABC Ltd and XYZ Ltd to be legally binding? Select THREE that apply.

45. In the UK, Unfair Contract Terms Act 1977 regulates which of the following?

46. Which of the following is most likely to reduce ITT preparation time while maintaining the clarity of tendering documents?

47. A retailer prefers to display its best selling products and promotion programme on the building windows.

According to rule of contract formation, this act will generally constitute...?

48. According to rule of contract formation, which of the following is a valid acceptance?

49. CISG will be most likely to apply to which of the following transactions?

50. Which of the following are reasons why a purchaser wants to embed a subcontracting clause into the main contract? Select TWO that apply: