CIPS L4M3 Commercial Contracting Review Questions and Correct Answers

Ad-Hoc Purchase An item bought for a single and non-recurring use or purpose Alternative Dispute Resolution (ADR) Any method of resolving a dispute between two parties which does not involve court action, including escalation to higher levels of authority, mediation, adjudication and arbitration Articles of Incorporation The legal document creating a commercial company and setting out its purpose Base Year The starting point for an index, at which point the index is set to 100 Battle of the Forms A series of forms such as orders, delivery notes, etc., issued in sequence by purchaser and supplier, each containing terms that appear to override those on the previous document Bespoke Made or provided especially for a specific end user Bribery The promise, offer or giving of the financial advantage to someone in the expectation that they will improperly perform their functions, or to reward them for having done so; also accepting such a promise, offer or advantage (whether or not the function is improperly performed) Category A group of goods or services that have shared characteristics CISG The Vienna Convention on Contracts for the International Sale of Goods, a United Nations treaty seeking to harmonize contract terms for the sale of goods between different countries Closed System A system or process that, once started, does not allow new entrants. A framework agreement might have multiple buyers and multiple suppliers, but once set up, no additional buyers or suppliers can be added to it. Code of Practice (CoP) A set of written rules explaining how people working in a particular profession should behave. Sometimes related to particular professions, they may equally relate to anyone working in a given environment or carrying out a particular function Collusion Where two or more potential suppliers (or the purchaser and one or more suppliers) secretly co-operate to undermine the competitiveness of a tender process