CIPS L4M8 Complete Exams Practice
Questions with Expert Graded A+
Answers | Brand New Version
1. Sourcing involves - ANSWER identifying and vetting those suppliers who
are able to supply the product or service, as required in a specification from
a procurement professional
2. Different stages of Ordering - ANSWER - User need
- Raise requisition
- Approved process
- Issue PO
- Receive goods/service
- Approve invoice
3. Invitation to treat - ANSWER an expression of willingness to negotiate with
the intention of forming a contract
4. Implied terms - ANSWER are always present in a contract in a contract and
are set by national law. The do not have to be written or verbally agreed:
they always exist
5. Express terms are - ANSWER terms that are negotiated and created rather
than being automatically included. They are agreed between the parties
negotiating the contract
6. Examples of Implied terms - ANSWER - Sale of Goods Act
- Goods being fit for purpose
- Negligence
, - Confidential breaches
7. Examples of Express terms - ANSWER - Payment terms
- Specification
- Delivery details
- Quantities
8. Standard term contract - ANSWER A pre-written contract that leaves little
or no room for negotiation on terms between the parties
9. Standard term, or model, contracts include the following elements -
ANSWER - Definitions
- General terms
- Commercial provisions: payment terms, liability, performance and
delivery details
- Secondary commercial provisions: confidentiality and intellectual
property rights
- Standard clauses: force majeure and the law of the country to be
followed
10.Advantages of standard/model contracts - ANSWER - Saves time
- Saves money
- Industry standard contracts are widely accepted and understood by
both buyers and suppliers
11.Disadvantages of standard/model contracts - ANSWER - Bespoke terms
may not be included
- Better terms could be negotiated
- Buyers do not get experience in creating contracts
12.Different stages of Sourcing - ANSWER - Understand the need
, - Develop strategy
- Raise requisition
- Source suppliers
- Issue ITT/RFQ
- Negotiate and award contract
- SRM/contract management
13.Sourcing can take place in the following locations - ANSWER - Localised
- Regional
- National
- Global
14.Localised sourcing - ANSWER conducted with suppliers who are near to
the buying organisation
15.Regional sourcing - ANSWER conducted with suppliers in the same area,
but slightly further away than the localised choices
16.National sourcing - ANSWER conducted throughout an entire country. EG
suppliers may be hundreds of miles away from the buying organisation but
they are still controlled by the same legislation and regulations
17.Global sourcing - ANSWER conducted worldwide. This type of sourcing
often involves different legislation and regulations to those of the buying
organisation
18.The buyer needs to think about the following factors when deciding which
type of sourcing is best - ANSWER - Urgency of need: local suppliers
shorter lead times
- Volume of need: larger quantities for economies of scale better for
global sourcing
, - Quality of need: high quality may need further than local
- Budget allocated to need: low budget may need global sourcing
19.Contracts can either be - ANSWER Verbal or Written
20.The five stages of forming a contract - ANSWER 1. Intention
2. Capacity
3. Offer
4. Consideration
5. Acceptance
Stages of a contract: 1.Intention - ANSWER the contracting parties must intend to
enter into a legal contract. If there is no intention to create a legal relationship, the
contract is not legally binding
Stages of a contract: 2. Capacity - ANSWER all parties should be of sound mind
and fully aware of their contractual obligations
Stages of a contract: 3. Offer - ANSWER the promise in exchange for
performance from the other party
Stages of a contract: 4. Consideration - ANSWER the exchange of one thing for
another within an agreement
Stages of a contract: 5. Acceptance - ANSWER the point where the offeree
accepts the proposal from the offeror. Offers can be accepted by body language, a
formal letter or email or by paying for the goods/services
Express terms include the following - ANSWER - Price
Questions with Expert Graded A+
Answers | Brand New Version
1. Sourcing involves - ANSWER identifying and vetting those suppliers who
are able to supply the product or service, as required in a specification from
a procurement professional
2. Different stages of Ordering - ANSWER - User need
- Raise requisition
- Approved process
- Issue PO
- Receive goods/service
- Approve invoice
3. Invitation to treat - ANSWER an expression of willingness to negotiate with
the intention of forming a contract
4. Implied terms - ANSWER are always present in a contract in a contract and
are set by national law. The do not have to be written or verbally agreed:
they always exist
5. Express terms are - ANSWER terms that are negotiated and created rather
than being automatically included. They are agreed between the parties
negotiating the contract
6. Examples of Implied terms - ANSWER - Sale of Goods Act
- Goods being fit for purpose
- Negligence
, - Confidential breaches
7. Examples of Express terms - ANSWER - Payment terms
- Specification
- Delivery details
- Quantities
8. Standard term contract - ANSWER A pre-written contract that leaves little
or no room for negotiation on terms between the parties
9. Standard term, or model, contracts include the following elements -
ANSWER - Definitions
- General terms
- Commercial provisions: payment terms, liability, performance and
delivery details
- Secondary commercial provisions: confidentiality and intellectual
property rights
- Standard clauses: force majeure and the law of the country to be
followed
10.Advantages of standard/model contracts - ANSWER - Saves time
- Saves money
- Industry standard contracts are widely accepted and understood by
both buyers and suppliers
11.Disadvantages of standard/model contracts - ANSWER - Bespoke terms
may not be included
- Better terms could be negotiated
- Buyers do not get experience in creating contracts
12.Different stages of Sourcing - ANSWER - Understand the need
, - Develop strategy
- Raise requisition
- Source suppliers
- Issue ITT/RFQ
- Negotiate and award contract
- SRM/contract management
13.Sourcing can take place in the following locations - ANSWER - Localised
- Regional
- National
- Global
14.Localised sourcing - ANSWER conducted with suppliers who are near to
the buying organisation
15.Regional sourcing - ANSWER conducted with suppliers in the same area,
but slightly further away than the localised choices
16.National sourcing - ANSWER conducted throughout an entire country. EG
suppliers may be hundreds of miles away from the buying organisation but
they are still controlled by the same legislation and regulations
17.Global sourcing - ANSWER conducted worldwide. This type of sourcing
often involves different legislation and regulations to those of the buying
organisation
18.The buyer needs to think about the following factors when deciding which
type of sourcing is best - ANSWER - Urgency of need: local suppliers
shorter lead times
- Volume of need: larger quantities for economies of scale better for
global sourcing
, - Quality of need: high quality may need further than local
- Budget allocated to need: low budget may need global sourcing
19.Contracts can either be - ANSWER Verbal or Written
20.The five stages of forming a contract - ANSWER 1. Intention
2. Capacity
3. Offer
4. Consideration
5. Acceptance
Stages of a contract: 1.Intention - ANSWER the contracting parties must intend to
enter into a legal contract. If there is no intention to create a legal relationship, the
contract is not legally binding
Stages of a contract: 2. Capacity - ANSWER all parties should be of sound mind
and fully aware of their contractual obligations
Stages of a contract: 3. Offer - ANSWER the promise in exchange for
performance from the other party
Stages of a contract: 4. Consideration - ANSWER the exchange of one thing for
another within an agreement
Stages of a contract: 5. Acceptance - ANSWER the point where the offeree
accepts the proposal from the offeror. Offers can be accepted by body language, a
formal letter or email or by paying for the goods/services
Express terms include the following - ANSWER - Price
