Question 1

Which two of the following could not be classified as internal triggers for change? A change of:

Options :

A : Leadership

B : Major customer

C : Profitability

D : Legislation

Answer: B,D

Question 2

An office manager buys some wallpaper based on samples, only to find the batch of paper delivered is of a slightly different colour than the sample provided. Is this an implied term covered under sale by description?

Options :

A : No, it is sale by sample. The bulk does not correspond with the sample

B : Yes, it is sale by description. The wallpaper is not the correct colour

C : No, it is not of satisfactory quality. The wallpaper is not fit for purpose intended

D : Yes, it is sale by description. The wallpaper does not conform to the description

Answer: A

Question 3

Which of these statements is a correct description of a contract?

Options :

A : A promise made by a supplier to supply goods or services

B : An agreement enforceable by law made between two or more people

C : An offer and acceptance has taken place

D : A promise made by the buyer to place an order

Answer: B

Question 4

Which of the following is a qualitative key performance indicator?

Options :

A : To increase on-time in-full deliveries by 40%

B : To reduce costs by 10% over a year

C : To improve customer relationships by 20%

D : To reduce the defect rate to below 25%

Answer: C

Question 5

In contracts, implied terms play a crucial role in defining the rights and obligations of parties, even when not expressly stated in the contract. Which of the following are potential examples of implied terms? Select TWO that apply.

Options :

A : Terms that are incorporated by reference to another contract document, such as a technical specification

B :

Terms that are inferred by the courts based on general legal principles, ensuring parties act honestly and fairly in their contractual dealings

C :

Terms that are not fundamental but the breach of which entitles the innocent party to claim damages without the right to terminate the contract

D :

Terms that are fundamental to a contract, the breach of which may give rise to the right to terminate the contract

E :

Terms that are fundamental to a contract, the breach of which may give rise to the right to terminate the contract

Answer: B,E