Online Access Free L4M3 Practice Test

Which of the following is a benefit to the buyer of using model form contracts?

• A.No legal advice is required as variations are not accepted
• B.It reduces time and costs in developing a formal contract
• C.The terms used are advantageous to the buyer
• D.Most suppliers are unfamiliar with the terms used

Consequences and actions that arise from certain KPI scores must be...? Select TWO that apply.

• A.Unilaterally imposed by the purchaser
• B.Mutually agreed
• C.Deliberately omitted
• D.Documented
• E.Terminated

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

Which of the following would be suitable key performance indicators (KPIs) for supplier performance?
Ensure you have customer loyalty
Value or percentage of cost reductions obtained
Win an award in the next 12 months
Percentage of on-time in full deliveries

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

Which of the following is likely to reduce risks of different rules regarding when offers and acceptance become effective between legal systems?

• A.Withdrawal protocol
• B.Deemed receipt protocol
• C.Letter of intent
• D.Time lapse