CIPS A8 Exam Practice Test Instant Access

Question 1

Which of the following best describes a purchasers 'request for quotation'?

AA document sent to a supplier indicating a budget price which the purchaser expects to pay for an item

BA document sent to a supplier asking the supplier to provide prices for a product or service to be supplied

CA document sent to a supplier to order goods or services from the suppliers catalogue

DA document sent to a supplier to indicate the actual delivery quantity required to reinforce a blanket order.

Answer : A

Question 2

Which of the following would you expect to be included in legislation whose purpose is to protect the buyer when purchasing goods?

AA condition that the seller must provide adequate service to the buyer

BA condition that the buyer must pay for the goods in advance

CA condition that the goods belong to the seller and that they have the right to sell them

DA condition that the buyer will accept the goods when they are delivered by the seller.

Answer : C

Question 3

Which of the following best describes a reason for the use of progress payments?

AThey provide the supplier with working capital in advance of the contract

BThey save the supplier from having to borrow commercially to provide working capital

CThey delay the time of payment and thus allow a saving to the buyer

DThey give the buyer the opportunity to counter claim under warranty

Answer : B

Question 4

Which of the following is a feature of international transport that Incoterms help define?

AThe responsibility for costs of freight, carriage and insurance borne by either the buyer or the seller

BThe mode(s) of transport to be used for the journey of the goods from seller to buyer

CThe port of entry for the goods into the buyers country

DThe type(s) of packaging to be used to protect the goods on their journey from seller to buyer.

Answer : A

Question 5

Which of the following is most likely to be regarded as a warranty in a contract agreed under English law?

AThe goods shall be delivered at the time stipulated; time shall be of the essence of the order

BThe goods shall be delivered at the place or places stated on the order

CThe price paid will be the price agreed between the buyer and the seller

DThe goods should, if possible, be packaged in lots of 100 on pallets.

Answer : B

Question 6

Which of the following is classed as a material alteration to an offer under the UNCITRAL convention?

AType of packaging

BMethod of delivery

CThe price

DUse of agents

Answer : B

Question 7

Which of the following best describes a 'fixed price'?

AA price which is quoted in writing by a supplier as a result of an enquiry from the buyer

BA price which may only be altered by reference to a formula agreed between buyer and seller

CA price that has been paid for an item every time it has been ordered for a period of more than
12 months

DA non-variable price, which cannot be changed unless both buyer and seller agree.

Answer : B

CIPS Preparing and Managing Contracts A8 Exam Practice Test