CIPS L6M10 Exam Practice Test Instant Access

Question 1

How do transacting parties commonly address potential conflicts of laws in international trade agreements?

ABy deferring the choice of law to the distributor or buyer

BBy choosing the law of one of the transacting parties' home states

CBy relying on international arbitration exclusively

DBy avoiding any legal clauses in their contracts

Answer : B

International trade agreements commonly specify the law of one of the transacting parties' home states to resolve legal conflicts effectively. [P-121]

Question 2

What is crucial for inter-organizational reverse logistics practices?

AOutsourcing logistics.

BIndependent supply chain members.

CTrust and collaboration between partners.

DFrequent partner changes.

Answer : C

Collaboration and trust among stakeholders ensure effective reverse logistics. [P-174]

Question 3

What is a key factor considered when choosing between centralized and regionalized inventory handling?

ATransportation cost savings

BCustomer service measurements

CDistribution efficiency

DTotal cost concept

Answer : D

The total cost concept considers the overall impact on inventory management costs, prioritizing end-to-end cost reduction over isolated savings. [P-7]

Question 4

Which of the following contracts is responsible for setting out the rights and obligations of the carrier and the shipper regarding the transportation of goods?

AInsurance contract

BContract of finance

CContract of carriage

DSales contract

Answer : C

The contract of carriage defines the rights and obligations of both the carrier and the shipper in the transportation of goods. [P-122]

Question 5

ABC company is considering adopting practices to reduce carbon consumption and emissions. Which term aligns with their environmental goals?

AWaste management

BGreen logistics

CClosed loop supply chains

DGreen supply chain management

Answer : B

Green logistics specifically targets reducing carbon emissions in production and transportation. [P-144]

Question 6

Which types of goods and contracts are NOT subject to the CISG? (Select ALL that apply)

ASale of ships or aeroplanes

BThe sale of stocks and shares

CGoods for private consumption and use such as personal effects

DBonds and investment securities

EAuctioned goods

Answer : A, B, C, D, E

The CISG does not apply to personal effects, auctioned goods, stocks, bonds, or the sale of ships/aeroplanes. [P-127]

Question 7

What does the concept of separability of the flow of goods and the flow of ownership refer to?

AIt signifies the ability to distinguish between the ownership of goods and their physical location.

BIt highlights the importance of independent suppliers in foreign countries.

CIt implies that multinational firms cannot engage in foreign direct investment.

DIt means goods and ownership must always be physically located together.

Answer : A

The separability of goods and ownership means that goods may be physically located in one place, while ownership remains with an entity elsewhere. [P-111]

CIPS Global Logistics Strategy L6M10 Exam Practice Test