Latest Sep-2023 CIPS L4M3 Dumps Updated 161 Questions [Q38-Q58]

QUESTION 38
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

1, 2 and 4 only

2, 3 and 4 only

1, 3 and 4 only

1, 2 and 3 only

QUESTION 39
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?

Edited terms and conditions

Terms and conditions in the request for quotation

Terms and conditions in the invoice

Terms & conditions in the original quotation

QUESTION 40
Which of the following are commonly used as model forms of contracts in construction in the UK?

Select TWO that apply

JCT

AS

NEC

CIPS

IET

QUESTION 41
Michelle contacts Hannah and asks her if she would be interested in purchasing her car for £2000. Hannah immediately takes £2000 to Michelle and says she wants to buy the car. Michelle subsequently refuses to proceed. Has the contract between Michelle and Hannah been made?

No, because Michelle has rejected Hannah’s offer on buying the car

Yes, because both parties have full legal capability to enter into a contract

Yes, by her performance Hannah has accepted Michelle’s offer on selling the car

No, because by refusing to proceed, Michelle rejects Hannah’s counter-offer

QUESTION 42
Under a price adjustment agreement, which of the following would be supplier’s justification for increasing unit price?

Rise in fuel price

Rise in economies of scale

Rise in shares price

Rise in customer’s satisfaction

QUESTION 43
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?

Evaluate tender or quotation

Select the best supplier

Challenge the used specification

Issue invitation to tender or request for quotation

QUESTION 44
Which of the following best defines an ‘express’ term in general contract arrangements?

It is a standard set of terms and conditions published by CIPS

It is not necessarily discussed by the parties, but nonetheless forms part of the contract

It is the term that is added to the contract by the law or based upon the facts of the case.

It is clearly agreed between the parties, and is virtually always written down in the contract

QUESTION 45
Which of the following are driving forces for increasing use of social and environmental criteria in specifications? Select TWO that apply.,

Process efficiencies

Stakeholder pressure

Insufficient financial resources

Scarcity of environmentally sustainable suppliers

Carbon footprint measure

QUESTION 46
Which of the following are NOT covered by CISG? Select TWO that apply:

Transfer of risks

Contract validity

Remedies for breach of contracts

Liability of the seller for death or personal injury

Liability to pay damages

United Nations Convention on Contracts for the International Sale of Goods (Vienna Convention or CISG) Vienna Convention was prepared by by the United Nations Commission on International Trade Law (UNCITRAL) and adopted by a diplomatic conference on 11 April 1980. The Convention was welcomed by several countries from different geographic areas, with different legal and political systems. As of 20 August 2020, the Convention has93 Contracting States. The Convention has proved the effectiveness of an uniform text on international trade law.
What CISG covers, and what it does not
In the 6 first articles of the Convention, the authors set up the boundaries of its application.
First is about where it applies. According to UNCITRAL, the Convention applies to contracts of sale of goods between parties whose places of business are in different States and either both of those States are Contracting States or the rules of private international law lead to the law of a Contracting State. A few States have availed themselves of the authorisation in article 95 to declare that they would apply the Convention only in the former and not in the latter of these two situations. As the Convention becomes more widely adopted, the practical significance of such a declaration will diminish. Finally, the Convention may also apply as the law applicable to the contract if so chosen by the parties. In that case, the operation of the Convention will be subject to any limits on contractual stipulations set by the otherwise applicable law.
Second, the Convention has a list of goods that are not subject to its application in Article 2. Article 3 clarifies the differences between manufacturing contracts and sale contract.
Third, Article 4 and 5 clearly states what CISG does not covers, including grounds for contract invalidity and liabilities to death or injury of person caused by the the goods Finally, the Convention respects the contractual freedom of the trading parties. Trading parties may select this convention as governing law or select other instrument, such as UPICC or domestic laws.
Reference:
– Governing law in International Contracts – Would you choose CISG or UPICC (Part 1)
– CIPS study guide page 49-52
LO 1, AC 1.2

QUESTION 47
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 has caused 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?

No, variable pricing would only benefit the suppliers

Yes, this type of arrangement would provide absolute certainty when budgeting

Yes, this pricing arrangement would reimburse the fluctuation of material prices

No, price adjustment should be applied to short-term supply contract only (3-month duration or less)

QUESTION 48
Which of the following regulates barriers to the trade of goods between Member States of WTO?

NAFTA

GATT

CISG

TRIPS

QUESTION 49
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?

Internal discussion

General networking

One-to-one meeting with the suppliers

Request for quotation from the suppliers

QUESTION 50
A purchase order can become a contract between supplier and purchaser if it is…?

Received by the supplier

Accepted by the supplier

Issued by the buyer

Edited by the supplier

QUESTION 51
Which of the following is the procedure that makes no further competition under a framework agreement?

Closed system

Direct call-off

Standing offer

Blanket order

QUESTION 52
Which of the following are likely to be express terms in a contract?
1. Legislation
2. Custom and practice
3. Contract particulars
4. Terms and conditions

2 and 3 only

1 and 4 only

3 and 4 only

1 and 2 only

QUESTION 53
Which of the following are always considered as minimum preconditions for a contract? Select TWO that apply:

Specification

Promise

Omission

Consideration

Intention to be bound

QUESTION 54
In which of the following conditions, request for quotation produces the best results?

With an ambiguous specification

Under framework agreements

Under a complex process

With strategic items

QUESTION 55
Which of the following is likely to reduce risks of different rules regarding when offers and acceptance become effective between legal systems?

Withdrawal protocol

Letter of intent

Time lapse

Deemed receipt protocol

QUESTION 56
When a supplier signs an insurance policy with an insurance company, which of the following is transferred to insurance company?

Right

Risk

Legal responsibility

Contractual obligation

QUESTION 57
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…?

Good market knowledge

Selection of base year

Value for money

Economy of scale

QUESTION 58
Bethy sees a coat on shop window with a $100 price tag. She comes and asks the shop owner to buy it. The owner states that the price has not been updated and the current price for the coat is $120. Bethy says the owner should honour the quoted price on window shop. Is Bethy correct?

Yes, the owner has made an offer by showing his product on the shop window and he must honour that offer

Yes, $120 for a coat is extremely unreasonable and the owner’s later offer therefore void

No, the display on shop window is just an invitation to treat and the owner may change the price at his will

No, the owner is revoking his initial offer to sell at $100 and he is proposing new offer to Bethy