CIPS A8 Exam Actual Questions

Question No. 1

Which of the following is the stipulation of the FCA Incoterm regarding costs?

AThe supplier pays for all costs of delivery of the goods alongside ship on the quay

BThe supplier pays for all costs and freight to the named destination port

CThe supplier pays for all costs and freight to the named frontier place

DThe supplier pays for all costs up to the point of delivery to a named carrier.

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Correct Answer: A

Question No. 2

Which of the following would constitute an 'invitation to treat' under English law?

AA purchase order

BAn acknowledgement of order

CA supplier's catalogue

DA supplier's quotation.

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Correct Answer: B

Question No. 3

Q7. Which of the following best describes an 'implied contract term'?

AA contract term inserted into the contract by agreement between buyer and seller

BA contract term that arises out of legislation or legal precedent

CA contract term found in the small print on the reverse of a purchase order

DA contract term specifically referred to in the seller's quotation.

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Correct Answer: A

Question No. 4

Which of the following best describes the nature of a 'one-off ' order?

AAn order that covers the continuous supply of an item for a period of 12 months

BAn order for an item that is telephoned to a supplier rather than transmitted in writing

CAn order for the supply of a finite quantity of an item to be delivered at a stated, specific time

DAn order written on a makeshift document rather than on the usual purchase order document.

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Correct Answer: D

Question No. 5

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

AInforming a member of your companys 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 expediter to telephone the supplier regularly to obtain constant delivery updates

DForecasting and analysing potential risks in the contract under the headings of cost, quality and time.

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Correct Answer: B

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