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

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?

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

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?

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

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?

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

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

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

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?

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

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?

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

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

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

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

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

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

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

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…?

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?