How to pass CIPS L4M3 exam with the help of dumps?

Question # 1

Which of the following are likely to be advantages of using invitation to tender? Select TWO hat apply:Short turnaround times

A. Quick implementation
B. Driving forward planning culture
C. Lower administration costs
D. Reducing risks of bribery and corruption

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Question # 2

Which of the following should be taken to avoid the conflicts between orally negotiated terms before the conclusion of contract and the final written contract?

A. Finding signs of misrepresentation of the other contracting party
B. Prevailing orally negotiated terms over the final written contract
C. Embedding a term excluding all prior oral discussions that are not mentioned in the final written contract
D. Avoiding long negotiation

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Question # 3

Information assurance protects information systems and...?

A. Hard copy
B. Computers
C. Inventory
D. People

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Question # 4

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

A. Fixed Price approach
B. Market based approach
C. Price indices
D. Cost plus pricing

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Question # 5

To expand its operation, Steel Co. decides to build a new plant. Despite of excitement, thesenior 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 ofcontract. What is the advantage of using model form of contract?

A. It shifts the balance of power in the favour of the buyer rather than the contractor
B. The company could avoid the need to draft a complex contract from blank
C. Model form of contract eliminates the need for legal advice totally
D. The company does not need to draft the drawings as well as specification anymore

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Question # 6

Which of the following regulates barriers to the trade of goods between Member States ofWTO?

A. NAFTA
B. GATT
C. CISG
D. TRIPS

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Question # 7

In a sale contract, a clause requires the seller to "defend, reimburse, and hold harmless"the buyer and its personnel from and against any and all damages arising in connection with some specific circumstances. This clause is an example of...?

A. Insurance
B. Liquidated damages
C. Indemnity
D. Force Majeure

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Question # 8

Which of the following is the set of principles that enables courts to determine exactly whatthe written contract says and what that must mean, then the court will uphold that?

A. Order of precedence
B. Rules of interpretation
C. Unfair Contract Act 1977
D. Rules of contract formation

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Question # 9

Which of the following is the contract provision that relieves the parties from performingtheir contractual obligations when certain circumstances like natural disasters, terroristattacks, etc arise?

A. Indemnity clause
B. Liquidated damage clause
C. Insurance clause
D. Exclusion clause

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Question # 10

Which of the following are always included within a framework agreement? Select TWOthat apply:

A. Exact quantity to be purchased
B. Call-off procedure
C. Exact price to be paid
D. Duration
E. Insurance

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Question # 11

Which of the following are the conditions for revocation of offer to be valid?1. The offeree has not received the offer yet2. Revocation of offer must be communicated with the offeree3. Revocation of offer must be sent via email4. Offeree has not accepted the offer yet

A. 2 and 4 only
B. 1 and 4 only
C. 1 and 3 only
D. 2 and 3 only

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Question # 12

Which of the following will be always automatically deemed as a consideration?

A. Promise to perform over and above an existing obligation
B. Promise given to a third party
C. Implied consideration
D. Past consideration

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Question # 13

Blakenall District Hospital (BDH) is a large hospital that is a major part of the government’shealth service. Purchasing staff are in the habit of placing many long-term contracts withsuppliers 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 tofind that, in some cases, members of staff are forcing suppliers to accept fixed pricecontracts. The policy has caused several problems such as some suppliers refusing to dealwith BDH and a few going out of business mid-way through performing a contract withBDH. This is due to fluctuating market prices of materials. The procurement managersuggests supplier to adopt variable pricing arrangement with price index. Is this a rightcourse of action?

A. No, variable pricing would only benefit the suppliers
B. Yes, this type of arrangement would provide absolute certainty when budgeting
C. Yes, this pricing arrangement would reimburse the fluctuation of material prices
D. No, price adjustment should be applied to short-term supply contract only (3-month duration or less)

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Question # 14

An organization has a normal tender process that often last 1 month from defining theneeds to contract award. Manufacturing department suddenly required a new special partthat they could not foresee within a month. Which of the following should be the priorityactions of procurement manager in this urgent situation? Select TWO that apply:

A. Design new specification
B. Develop relationships with potential suppliers
C. Review contract performance
D. Get high-level authority approval
E. Submit full business justification

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Question # 15

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

A. Sale of electricity
B. Sale of a property
C. Sale of iron ores
D. Sale of a ship

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Question # 16

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

A. CISG
B. GATS
C. ADA
D. Incoterms

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Question # 17

Sally places a purchase order to the supplier for some components that her companyrequires. The supplier delivers the goods as she asks, but the quality assurance team findsthat these components are defective and unfit for the company's operations. Whichdocument is the ground to decide whether the goods received are fit for purpose?

A. CSR policies
B. Pre-qualification questionnaire
C. Code of conduct
D. Specification

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Question # 18

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

A. Evaluate tender or quotation
B. Select the best supplier
C. Challenge the used specification
D. Issue invitation to tender or request for quotation

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Question # 19

Which of the following are examples of incentives which can be embedded in contract terms? Select THREE that apply

A. Gainshare
B. Indemnity
C. Contract extensions
D. Service credits
E. Liquidated damages
F. Faster payment

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Question # 20

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

A. Contract variation
B. Schedule
C. Subcontracting
D. Standard terms and conditions

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Question # 21

In a contract, both buyer and supplier agreed the lead time is 3 days. The contract alsorequires that any variation must be made in writing. Then the buyer places an order byphone call and requests delivery the next day, but the supplier delivers on the third daysince the order. Can buyer refuse to pay as supplier did not deliver per time?

A. No, the supplier delivers within a reasonable time
B. Yes, late delivery is a force majeure event
C. Yes, the supplier has breached the contract
D. No, supplier has shortened lead time to 1 day

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Question # 22

Which of the following are key features of standard terms and conditions? Select TWO thatapply

A. Standard terms always comply with implied terms
B. Specific to each purchase order
C. Non-disclosure
D. Non-negotiable
E. Designed to be used in repetitive transactions

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Question # 23

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

A. Service charter
B. Service guarantee
C. SLA
D. Service standard

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Question # 24

Which of the following is regulated by standard ISO 14001?

A. Energy management
B. Quality management systems
C. Environmental management
D. Information security management

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Question # 25

What is the purpose of using key performance indicators in procurement and supply?

A. To validate the supplier's bid or tender
B. To monitor supplier's performance
C. To ease the termination process
D. To qualify which supplier is suitable

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Question # 26

Which of the following is an example of liquidated damages clause?1. "In the event of a delay to the Offshore Installation Completion Date as per the ContractSchedule for which Contractor is solely responsible, Contractor shall pay to Company0.25% per day of delay, subject to a maximum of 10% of the Initial Contract Price."2. “If Seller breaches its obligation to deliver goods in accordance with the scheduleprovided for in this contract, Seller shall pay Buyer $x per day for each day of delay"3. "The Contractor shall defend and hold the Buyer, its officers, officials, employees andvolunteers harmless from any and all claims, injuries, damages, losses or suits includingattorney fees, arising out of or in connection with the performance of this Agreement,except for injuries and damages caused by the sole negligence of the Buyer."4. "The contract is subjected to delay remedies. The amount will be agreed by both partiesduring the delivery"

A. 2 and 4 only
B. 1 and 3 only
C. 3 and 4 only
D. 1 and 2 only

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Question # 27

Danielle buys a car from Aaron. Not long after, she receives an proposal from Brian, who isinterested in buying the car but his budget is very constraint. Then, Brian decides to sign ahire purchase agreement with Danielle which lasts 4 years. Brian lives very far fromDanielle, so he hires Charlie to deliver the car to his place. During the transport, Charliehas an accident and the car is written off. At the time of accident, who has the title of thecar?

A. Charlie
B. Aaron
C. Brian
D. Danielle

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Question # 28

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

A. Validity of a contract when it is formed on the basis of misrepresentation
B. Rules regarding battle of the forms
C. Effectiveness of contract terms in the standard terms and conditions
D. Rule of offer and acceptance

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Question # 29

Which of the following indicates the ratio between profit and costs?

A. Gearing
B. Margin
C. Mark-up
D. Liquidity

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Question # 30

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

A. Call-off
B. Framework arrangement
C. Performance management framework
D. Framework agreement

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Question # 31

Bandpro is a reseller of branded computer products to the private and public sector. Theprocurement team must purchase 500 items each day solely by multiple phone calls andemails to suppliers. Due to this practice, it takes a lot of time to track and collect relevantdocuments. Some important documents even get lost, which makes procurement auditmore burdensome. Which of the following would increase the robustness of audit trails inprocurement activities?

A. Every evidence must be recorded by paper
B. Adopt e-procurement
C. Spend less time on auditing procurement procedures
D. Rectify non-compliant activities

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Question # 32

Which of the following would be useful tools to incentivise supplier innovation over theduration of the contract?1. Gainshare arrangement2. Liquidated damages3. Service credits4. Fixed bonus payments

A. 3 and 4 only
B. 2 and 4 only
C. 1 and 4 only
D. 1 and 3 only

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Question # 33

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

A. It is a standard set of terms and conditions published by CIPS
B. It is not necessarily discussed by the parties, but nonetheless forms part of the contract
C. It is the term that is added to the contract by the law or based upon the facts of the case.
D. It is clearly agreed between the parties, and is virtually always written down in the contract

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Question # 34

Cleveland Insurance (Cleveland) offers a range of insurance services. The main softwareused in the call centre is a customer relationship management (CRM) system. Clevelandperceived an urgent need to replace the existing CRM system to deal with the increasingnumber of customers and services.Urgent Digital Ltd (Digital) is one of the bidders of Cleveland’s ITT for designing, buildingand managing the new CRM system. Its bid team is led by Hank Irvine, its technicaldirector. Hank realises that winning the Cleveland contract (valued at approximately £50M)will enhance his career. During discussions with Cleveland, Hank offers certain assurancesregarding timescales for the project. He has not carried out any investigations into theviability of the timescales. Hank has little idea whether the timescales can be met.Cleveland decides that Digital’s bid meets with its requirements, especially given theassurances in timescale offered by Hank, and decides to proceed with it, subject to aformal contract. Eventually, a formal contract is signed by both parties. The initialassurances given by Hank about the timing of the project are never going to be achievedand are at best grossly exaggerated.Cleveland brought the case to the court and sought rescission of contract with Digital. IsCleveland’s claim appropriate in this case?

A. Yes, because Cleveland needs to seek rescission first before claiming for damages
B. Yes, because both parties agreed with rescission of their contract
C. No, because the work had been carried out which could not be returned
D. No, because the contract does not include any provision on rescission

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Question # 35

XYZ Ltd and Engineer Corp signed a long-term supply contract in which both parties hadagreed on performance targets. Recently, due to increased customer demands, XYZ Ltdrealises that they should make changes to the contract with Engineer Corp with regards toperformance management. These changes are approved and signed by both the buyer andseller. The changes to the contract are known as...?

A. An amendment to the prime contract
B. A stand-alone subcontract to the prime contract
C. An appendix to the prime contract
D. A separate counter-offer to the supplier

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Question # 36

If service level agreement is used as a schedule that makes up the contract, it will be mostlikely to be a part of...?

A. Pricing arrangement
B. Performance management framework
C. Exclusion of liabilities
D. Specifications

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Question # 37

Transformers & Rectifiers Ltd wanted to buy some specialist gaskets. They sent a requestfor quotation with specification to Needs Ltd. The supplier replied with a quotation in whichhad its own terms and conditions. The buyer edited delivery terms on the quotation andsent the document back to Needs Ltd. Gaskets were delivered to Transformers’ premisewith an invoice from Needs Ltd. Which of the following is most likely to be the governingterms if the two companies must settle the dispute at court?

A. Edited terms and conditions
B. Terms and conditions in the request for quotation
C. Terms and conditions in the invoice
D. Terms & conditions in the original quotation

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Question # 38

Which of the following are likely to feature within an outcome-specification?1. Dimension2. Performance requirement3. Input material4. Product function

A. 2 and 4 only
B. 3 and 4 only
C. 1 and 2 only
D. 1 and 3 only

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