Question 1

Which of the following usually have no legal standing? Select TWO that apply:

Options :

A : Commission

B : Framework agreement

C : Framework arrangement

D : Estimate

E : Service level agreement

Answer: C,D

Question 2

Crown Commercial Service signed a four-year framework agreement with three suppliers on providing street lightning services. When the services are needed, the agency holds a mini competition. Eventually, the deal was awarded to Amey Public Services (APS) which was not listed as a supplier on the framework. Is this action compliant with legal requirement?

Options :

A : Yes, because APS tender matched all Crown Commercial Service’s requirement

B : No, because APS tender had not been evaluated before contract award

C : No, because once the framework agreement is set up, no additional suppliers can be added to it

D : Yes, because the intention had been to award the contract to APS in line with the framework agreement

Answer: C

Question 3

When should liquidated damages clauses be written into a contract?

Options :

A : When the breaching party wants to exclude all its liabilities

B : When the innocent party wants to punish the breaching party.

C : When the loss to the innocent party will be either too uncertain or too difficult to calculate.

D : When the court approves the damages amount before the contract is executed.

Answer: C

Question 4

Sally places a purchase order to the supplier for some components that her company requires. The supplier delivers the goods as she asks, but the quality assurance team finds that these components are defective and unfit for the company's operations. Which document is the ground to decide whether the goods received are fit for purpose?

Options :

A : Code of conduct

B : CSR policies

C : Specification

D : Pre-qualification questionnaire

Answer: C

Question 5

You are to do the KPIs and targets for international supplier and the following was done
1. Delivery in an hour
2. Return orders in an hour
Is that a good thing or not?

Options :

A : Yes, the higher the targets are, the better the outcomes will be

B : No, because the KPIs are not a realistic and justified

C : Yes, because these targets will propel the suppliers to continuous improvement

D : No, the local suppliers are always the best choice

Answer: B