Cips pass4test l4m3 Premium Exam Questions by Luna-rae q19 vce pdf

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Exam Name:	Commercial Contracting
Exam Code:	L4M3 Dumps
Vendor:	CIPS	Certification:	CIPS Level 4 Diploma in Procurement and Supply
Questions:	233 Q&A's	Shared By:	luna-rae

Question 32

Which of the following are driving forces for increasing use of social and environmental criteria in specifications? Select TWO that apply.,

Options:

Process efficiencies

Stakeholder pressure

Insufficient financial resources

Scarcity of environmentally sustainable suppliers

Carbon footprint measure

Discussion

Question 33

Maximum Score 1

Which of the following are examples of a lack of ‘capacity’ to enter into a contract?

A contracting party has a severe mental disorder

A contracting party has failed to concentrate during negotiations

A contracting party is 19 years of age

A contracting party (corporation) has acted ‘ultra vires’ (beyond its defined legal powers)

Options:

1 and 2 only

1 and 4 only

2 and 3 only

2 and 4 only

Discussion

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Question 34

Maximum Score 1

Drafting a specification is important because these documents become embedded within the contract and therefore, are legally binding. Is this statement true?

Options:

No, because legally binding contracts only contain terms and conditions

No, as the specification is separate to the contract and has no legal standing

Yes, care needs to be taken because the specification should be part of the contract

Yes, because all specifications must be approved by the organisation's board according to legislation

Discussion

Question 35

In which scenarios would it be appropriate for a procurement organisation to include contractual indexation and/or price adjustment formulae clauses in a services contract? Select TWO that apply.

Options:

The supplier’s directors shall be paid dividends during the term

The supplier’s contract staffing costs will be subject to regulatory increase

The material components were tendered as fixed costs for the term

The supplier’s preference is to switch to a more expensive material specification

The market rates for the supplier's material costs will vary during the term