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CIPS Commercial Contracting Sample Questions (Q114-Q119):

NEW QUESTION # 114
Which of the following is the set of principles that enables courts to determine exactly what the written contract says and what that must mean, then the court will uphold that?

  • A. Rules of contract formation
  • B. Unfair Contract Act 1977
  • C. Order of precedence
  • D. Rules of interpretation

Answer: D

Explanation:
Courts may be called upon to interpret a statute due to disputes over the meaning of a word or phrase contained within a statute. These disputes may arise through a variety of reasons. It has long been held that words are an imperfect means of communication. Omissions may have occurred at the drafting stage, word or phraseology ambiguity, etymological change through time, oversight on specific points, or a failure to adapt legislation to new developments. This may result in the judiciary providing a role in statutory interpretation. Statutory interpretation in its broadest sense is the process of determining the true meaning of a written document. In UK, the Interpretation Act 1978 provides limited scope to assist judges with statutory interpretation in that it only provides standard definitions to common provisions such as a rebuttable presumption that terminology in the masculine gender also include the feminine, and that the singular includes plural.
An order of precedence clause sets out the order in which the contract documents take precedence in the event of an inconsistency.
The Unfair Contract Terms Act 1977 (c 50) is an Act of Parliament of the United Kingdom which regulates contracts by restricting the operation and legality of some contract terms. It extends to nearly all forms of contract and one of its most important functions is limiting the applicability of disclaimers of liability. The terms extend to both actual contract terms and notices that are seen to constitute a contractual obligation.
Reference:
- Rules of Statutory Interpretation
- CIPS study guide page 43-46
LO 1, AC 1.2


NEW QUESTION # 115
Which of the following are most likely to be substantive elements of the specification of a truck? Select TWO that apply:

  • A. Guarantee
  • B. Ethics
  • C. Expected lifespan
  • D. Foreword
  • E. Abbreviation

Answer: A,C

Explanation:
The key substantive elements to be included in a specification are:
- Characteristics of the product or service
- Time scale for delivery
- Response times for defects
- KPIs relating to performance and reliability
- Lifespan and durability expectations
- Documentary requirement for training/user manual and/or management information
- Any specific requirements regarding implementation
Reference:
LO 2, AC 2.1


NEW QUESTION # 116
Which of the following are the 'fundamental' labour standards laid down by the International Labour Organisation?
1. Elimination of child labour
2. Payment of a minimum wage
3. The right to collective bargaining
4. Abolition of forced labor

  • A. 1, 2 and 3 only
  • B. 2, 3 and 4 only
  • C. 1, 3 and 4 only
  • D. 1, 2 and 4 only

Answer: C

Explanation:
ILO Declaration on Fundamental Principles and Rights at Work was adopted in 1948. The Declaration commits Member States to respect and promote principles and rights in four categories, whether or not they have ratified the relevant Conventions.
These categories are: freedom of association and the effective recognition of the right to collective bargaining, the elimination of forced or compulsory labour, the abolition of child labour and the elimination of discrimination in respect of employment and occupation.
Reference:
- ILO Declaration on Fundamental Principles and Rights at Work
- CIPS study guide page 161-163
LO 3, AC 3.2


NEW QUESTION # 117
Which of the following is most likely to reduce ITT preparation time while maintaining the clarity of tendering documents?

  • A. Eliminating pre-qualification stage from all tendering processes
  • B. Using request for quotation
  • C. Standardising documentation whenever possible
  • D. Monitoring usage

Answer: C

Explanation:
One of the major disadvantages of tendering process is that it is lengthy, bureaucratic and slow. To reduce the preparation time, buying organisation can:
- Plan forward
- Standardise tendering documents (such as notices, terms and conditions,...) whenever possible
- Train procurement staff
- Write down policies for tender-waiver
Buying organisation should not eliminate the pre-qualification stage from all tendering processes. This stage is used as a filter to select the most competent suppliers for next stage in restricted tendering. To save time in this process, you can design a model questionnaire.
Reference:
LO 1, AC 1.1


NEW QUESTION # 118
Which of the following is the term that describes an item bought for a single and non-recurring use or purpose?

  • A. Operational purchase
  • B. Stock purchase
  • C. Ad-hoc purchase
  • D. Call-off purchase

Answer: C

Explanation:
Ad-hoc purchase is the item bought for a single and non-recurring use or purpose.
A call-off contract, also known as a blanket order, is a purchase order which enables bulk orders over a period of time.
Operational procurement refers to the procurement of goods and services that are required to sustain an organization's day-to-day business operations.
Reference:
LO 1, AC 1.3


NEW QUESTION # 119
......

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