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Commercial Contracting

Last Update 6 hours ago Total Questions : 233

The Commercial Contracting content is now fully updated, with all current exam questions added 6 hours ago. Deciding to include L4M3 practice exam questions in your study plan goes far beyond basic test preparation.

You'll find that our L4M3 exam questions frequently feature detailed scenarios and practical problem-solving exercises that directly mirror industry challenges. Engaging with these L4M3 sample sets allows you to effectively manage your time and pace yourself, giving you the ability to finish any Commercial Contracting practice test comfortably within the allotted time.

Question # 31

Which of the following is the international standard for labelling hazardous substances?

A.

GPS

B.

HSE

C.

CODEX STAN 1-1985

D.

GHS

Question # 32

What are disadvantages of a buyer contracting on the supplier ' s terms? Select TWO that apply.

A.

Materials will not be changed without the buyer’s consent

B.

The buyer would not be subject to any indemnity clause obligations

C.

Title to goods may remain with the supplier until payment is received

D.

Goods received late will incur penalties for the supplier

E.

Prices may increase without notification to the buyer

Question # 33

As part of a tender, which of the following are advantages that a purchasing organisation would expect to achieve by specifying that suppliers hold certification to an international environmental management standard, such as ISO 14001?

It provides assurance that bidders have achieved a common standard of practice

It provides a guarantee that any polluting suppliers will be unable to tender

The standard is recognisable to local and international bidders

It removes the need to conduct internal environmental training

A.

3 and 4 only

B.

2 and 4 only

C.

1 and 3 only

D.

1 and 2 only

Question # 34

A procurement professional is preparing a sale & purchase contract of a machinery. Which of the following clauses should be added to the contract? Select TWO that apply

A.

Supplier selection mechanism

B.

Insurance requirements

C.

Period of hire

D.

Ratio decidendi

E.

Guarantees

Question # 35

Which of the following is an agreement between service provider and user that quantifies the minimum quality of service?

A.

Service charter

B.

Service guarantee

C.

SLA

D.

Service standard

Question # 36

Which of the following is the model form of contract for construction which is recommended by World Bank?

A.

ITC

B.

JCT

C.

CIPS

D.

FIDIC

Question # 37

Which of the following might be considered as advantages, to the supplier, of key performance indicators (KPIs)? Select TWO that apply.

A.

They help the supplier to focus on specific critical success factors and maximise on effectiveness

B.

They help the supplier to achieve higher productivity by cutting down on other aspects like quality

C.

They help the supplier to avoid confusion arising from unclear expectation from buyers

D.

They help the supplier to share their best cost-saving systems with their competitors

E.

They help the supplier to ensure that they do not exceed the target performance levels

Question # 38

Foodstuffs may arrive from an overseas supplier in a deteriorated state. Is this covered under the implied term of ' satisfactory quality ' ?

A.

No, it is sale by sample

B.

No, it is sale by description

C.

Yes, the food is not of a reasonable standard

D.

Yes, as the title has not passed yet

Question # 39

Maximum Score 1

A construction company wishes to place the contract for the building of a new hotel to a principal contractor using a model form contract. Which of these is an advantage of using a ‘model form contract’?

A.

It avoids the requirement to create complex contracts each time but can be adapted to suit particular circumstances

B.

Formulae or indices can be included to assess any additional supplier’s claims for contract price adjustment

C.

Incentive payment terms can be included to reward the supplier for attainment of cost savings

D.

Legal advice is still required if significant amendments or variations are to be made to the contract

Question # 40

A purchase order can become a contract between supplier and purchaser if it is...?

A.

Received by the supplier

B.

Accepted by the supplier

C.

Issued by the buyer

D.

Edited by the supplier

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