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CIPS L4M3 Exam Syllabus Topics:
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Reference: https://www.cips.org/qualifications/diploma-in-procurement-supply/commercial-contracting/
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CIPS Commercial Contracting Sample Questions:
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?
- A. Terms and conditions in the request for quotation
- B. Edited terms and conditions
- C. Terms & conditions in the original quotation
- D. Terms and conditions in the invoice
Correct Answer: B 🗳️
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Which of the following is a key feature of liquidated damage clauses?
- A. The liquidated damages are non-negotiable
- B. The amount of damage is predetermined
- C. The amount of liquidated damages must be exceptionally larger than the actual damages incurred
- D. Liquidated damage is a penalty
Correct Answer: B 🗳️
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Which of the following are implied terms in sales contracts? Select THREE that apply.
- A. Mode of transportation
- B. Customer satisfaction
- C. Fitness for purpose
- D. Payment method
- E. Risk transfer
- F. Transfer of ownership
Correct Answer: C,E,F 🗳️
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Which of the following are among five 'pillars' of information assurance?
1. Recovery plan
2. Availability
3. Non-repudiation
4. Governance
- A. 1 and 4 only
- B. 2 and 3 only
- C. 1 and 2 only
- D. 3 and 4 only
Correct Answer: B 🗳️
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Maximum Score 6
An urgent component requirement needs to be purchased to meet the timescales of a project. A supplier proposes using its standard terms and conditions. What risk to the buying organisation could this bring?
- A. A breach of competition laws
- B. A breach of the supplier's internal financial controls
- C. Contract conditions that are favourable to the supplier
- D. Contract conditions that are favourable to the buyer
Correct Answer: C 🗳️
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