CIPS A8 Exam Practice Test Instant Access

Question 1

Which of the following best describes the essential nature of contract management?

AExpediting or 'progress chasing'' particularly when goods ordered are late in arriving

BEnsuring that a legally binding contract is formed in the first place with particular attention to contract terms

CA process that ensures that the contract is performed to a standard that fully meets the objectives and expectations of the buyer

DTaking legal action in the event of a supplier not performing to the standard stated in the contract.

Answer : D

Question 2

Which of the following would you expect to find as a fundamental part of legislation whose aim is to protect the buyer when purchasing services?

AThe service provided must be carried out using reasonable care and skill

BThe service provided must be fit for the purpose

CThe service provided must be the same as is carried out for other customers

DThe service provided must conform to any description of the service

Answer : C

Question 3

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 4

Which of the following best describes a situation when fixed pricing would be appropriate?

AWhen the supplier can estimate the level of resources required

BWhen the supplier has to forecast costs over a long period of time

CWhen prices are likely to fluctuate over short periods of time

DWhen the buyer has a good working relationship with the seller.

Answer : B

Question 5

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 6

Which of the following is considered by most observers to be the least effective way to manage a contracts progress?

AHave a member of staff go to the sellers premises and work with the sellers staff until the contract is completed

BTelephone the seller several times a day to ask detailed questions about the contracts progress

CTo do nothing and leave the contract to run its course until completion

DArrange meetings on a regular basis to check the contracts progress and take action in case of problems.

Answer : B

Question 7

Which of the following best describes 'intention to create legal relations' under English law?

AThe buyer indicating that they intend to take the seller to court due to a dispute

BThe buyer ordering goods from the seller by means of a written purchase order

CThe buyer receiving written confirmation of a purchase order from the seller

DThe buyer and seller understanding that their agreement is enforceable in law.

Answer : A

CIPS A8 Preparing and Managing Contracts Exam Practice Test