CIPS A8 Exam Questions Instant Access - No Installation Required

Question 1

Which of the following is the provision under the EXW INCOTERM relating to costs?

AThe supplier pays up to the point of delivery of the goods and for export formalities

BThe supplier pays for delivery of the goods alongside the ship on the quay

CThe seller pays for the packing of the goods for export and preparation for despatch

DThe seller pays for all costs and freight to the named destination place.

Answer : B

Question 2

Which of the following best describes open book cost auditing?

ARequesting financial reports of a suppliers expenditure on and performance of a contract

BRegular progress meetings during the running time of a contract to discuss finances and contract performance with the supplier

CAnalysing the suppliers balance sheet and profit and loss account to gain knowledge of its finances

DThe supplier providing a detailed breakdown of the time, materials and other resources spent on completing a contract.

Answer : D

Question 3

Which of the following is the stipulation of the Sale of Goods Act (1979) regarding 'description'?

AThe buyer must always provide a full description of the goods required on all documentation sent to the seller

BThe seller must always provide a full description of the goods in all documents such as brochures or catalogues

CThe goods supplied must always correspond to their description when there is a sale by description

DThe goods supplied must always correspond to the description provided by the buyer in the request for quotation.

Answer : D

Question 4

Which of the following is the stipulation of the FCA Incoterm regarding costs?

AThe supplier pays for all costs of delivery of the goods alongside ship on the quay

BThe supplier pays for all costs and freight to the named destination port

CThe supplier pays for all costs and freight to the named frontier place

DThe supplier pays for all costs up to the point of delivery to a named carrier.

Answer : A

Question 5

Which of the following best describes the time at which payment should be made in accordance with the agreed payment terms?

AAfter the goods have been delivered to the buyer

BAfter the buyer has confirmed that the order is complete

CAfter the buyer has received the seller's advice note

DAfter the goods received note has been raised.

Answer : A

Question 6

Which of the following would constitute an 'invitation to treat' under English law?

AA purchase order

BAn acknowledgement of order

CA supplier's catalogue

DA supplier's quotation.

Answer : B

Question 7

Which of the following best describes the 'battle of the forms'?

ABuyer and seller arguing about aspects of a contract during negotiation when they are looking to commit an agreement to paper

BA situation where documents exchanged by buyer and seller represent 'counter-offers' rather than acceptance of an offer

CThe buyer holding discussions with the seller over the perceived failure to carry out contractual duties, such as late delivery

DBuyer and seller cannot agree on the type of contract to be used, for example, between an annual contract and a short-term contract.

Answer : D

CIPS Preparing and Managing Contracts A8 Exam Questions