CIPS A8 Quiz 1 Topic 1 Questions 1-5

Question: 1

Which of the following best describes the nature of risks, as applied to contract management?

AThe foreseeing of things that could possibly go wrong with the performance of the contract

BThe possibility that the goods being supplied might be dangerous in some way

CThe question of when ownership of the goods actually changes hands

DThe possibility that the goods being supplied might have to travel through unstable or war-torn parts of the world.

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Question: 2

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.

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Question: 3

Which of the following is a feature of international transport that Incoterms help define?

AThe responsibility for costs of freight, carriage and insurance borne by either the buyer or the seller

BThe mode(s) of transport to be used for the journey of the goods from seller to buyer

CThe port of entry for the goods into the buyers country

DThe type(s) of packaging to be used to protect the goods on their journey from seller to buyer.

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Question: 4

Which one of the following best describes the requirement of the Sale of Goods Act 1979 regarding sale by description?

AThe buyer has a duty to describe their requirements clearly on the request for quotation (RFQ) and/or purchase order

BThe seller has a duty to ensure that any paperwork accompanying the goods contains a clear description of them

CThere must be a clear stipulation on the purchase order if the buyer wishes the bulk of the goods to correspond to any description used

DThere is an implied condition that the goods supplied must correspond to any description used.

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Question: 5

Which of the following best describes the main purpose of contract management?

AInforming a member of your company's senior management team if something goes wrong with the supplier's performance of a contract

BAllowing a contract to take its course unless something goes wrong at which point you take action

CRequesting the expeditor to telephone the supplier regularly to obtain constant delivery updates

DEnsuring that a contract is performed to a standard that fully meets the objectives and expectations agreed between buyer and seller.

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CIPS A8 Quiz:1 Topic:1 Questions:1-5