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NEW QUESTION # 106
Under a price adjustment agreement, which of the following would be supplier's justification for increasing unit price?
Answer: C
Explanation:
Normally in a price adjustment agreement, the supplier is allowed to change price based on an indexation, which is published by a third party (for example, government or exchange market). The selected indices often associate with input materials of supplier. For instance, the plastics manufacturer may adjust their price based on crude oil price as oil is major input of producing plastics. Other suppliers may select different set of indices, such as Producer Perception Index.
In this question, only 'Rise in fuel price' could be a justification for supplier to increase price because:
- It may affect the input material price
- The index is checked and published by an independent third party.
Reference:
LO 3, AC 3.3
NEW QUESTION # 107
Which of the following are most likely to be substantive elements of the specification of a truck? Select TWO that apply:
Answer: B,D
Explanation:
The key substantive elements to be included in a specification are:
- Characteristics of the product or service
- Time scale for delivery
- Response times for defects
- KPIs relating to performance and reliability
- Lifespan and durability expectations
- Documentary requirement for training/user manual and/or management information
- Any specific requirements regarding implementation
Reference: CIPS study guide page 90-92
LO 2, AC 2.1
NEW QUESTION # 108
Which of the following is the best definition of "ultra vires"?
Answer: A
Explanation:
Ultra vires is a Latin phrase, meaning "beyond the powers." Describes actions taken by government bodies or corporations that exceed the scope of power given to them by laws or corporate charters. When referring to the acts of government bodies (e.g., legislatures), a constitution is most often the measuring stick of the proper scope of power.
Reference: CIPS study guide page 42-43
LO 1, AC 1.2
NEW QUESTION # 109
Which of the following sections would typically be included in a specification for services? Select THREE that apply.
Answer: B,C,F
Explanation:
A well-drafted service specification includes a clear description of the services to be delivered, fault rectification timelines, and the duration of service. These define scope, performance expectations, and timelines. Evaluation methodology and contract terms are important, but they are part of separate procurement or contractual documentation.
Reference:CIPS L4M3 Commercial Contracting Study Guide, Chapter 2, Section 2.1.3 - Components of service specifications.
NEW QUESTION # 110
Which of the following would be considered as advantages of an industry model form contract?
It provides greater flexibility for negotiation
It reduces the cost of contract development
It is usually designed to be fair to both parties
It removes the need for the buyer to understand it
Answer: D
Explanation:
Industry model contracts are pre-written templates that include widely accepted terms. They save time and legal costs during contract development and are generally written to be neutral or fair toboth parties. They do not remove the need for buyers to understand the terms and are not necessarily highly flexible.
Reference:CIPS L4M3 Commercial Contracting Study Guide, Chapter 3, Section 3.1.3 - Use of industry standard form contracts.
NEW QUESTION # 111
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