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L4M3 Pass Guaranteed, L4M3 Reliable Test Forum

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L4M3 Pass Guaranteed, L4M3 Reliable Test Forum

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CIPS L4M3 exam, also known as the CIPS Commercial Contracting exam, is an important certification for procurement professionals who want to advance their careers in commercial contracting. L4M3 exam is designed to assess the knowledge and skills required to manage commercial contracts effectively, from the planning stages to the final delivery of goods or services. Passing L4M3 exam demonstrates a high level of proficiency in contract management and can help procurement professionals stand out in a competitive job market.
The CIPS L4M3 Exam covers a broad range of topics related to commercial contracting, including contract formation and negotiation, contract management, contract performance monitoring, and dispute resolution. It also includes questions related to legal and regulatory compliance, ethics, and risk management. L4M3 exam is designed to test both theoretical knowledge and practical application of commercial contracting concepts, and requires candidates to demonstrate their ability to analyze and solve complex contracting problems.
CIPS Commercial Contracting Sample Questions (Q147-Q152):NEW QUESTION # 147
A retailer prefers to display its best selling products and promotion programme on the building windows.
According to rule of contract formation, this act will generally constitute...?
  • A. An invitation to treat
  • B. An offer
  • C. A mailbox rule
  • D. A legal capacity
Answer: A
Explanation:
Fisher v Bell [1960] and Pharmaceutical Society of Great Britain v Boots Cash Chemists [1953] identified that the courts will generally consider goods advertised in shop windows or those with a price tag attached to constitute an invitation to treat. An invitation to treat is a concept in contract law. It refers to an invitation for a party to make an offer enter into contractual negotiations.
Invitations to treat can be anything displayed to a large number of people, as long as there is no defined way to choose who can accept. Items on display in a shop, advertisements, and catalogues are all common examples of invitations to treat.
However, there are cases in the US shows that under some circumstances an advertisement can become an offer (see Leftkowitz v Great Minneapolis Surplus Stores [1957]).
Reference:
- What is an Invitation to Treat in Contract Law?
- CIPS study guide page 29
LO 1, AC 1.2

NEW QUESTION # 148
Which of the following should be applied when measuring frequency of on-time deliveries during a contract period?
  • A. Qualitative assessment
  • B. Subjective measure
  • C. Numerical measure
  • D. Binary measure
Answer: C
Explanation:
Number of on-time deliveries can be quantified, then numerical measures can be applied.
Frequency of on-time deliveries is measured as on-time deliveries as a percentage of total no. of deliveries for period.
LO 2, AC 2.2

NEW QUESTION # 149
Which of the following are reasons why a purchaser wants to embed a subcontracting clause into the main contract? Select TWO that apply:
  • A. To keep main contractor liable
  • B. To induce the conflicts between the main contractor and subcontractors
  • C. To reduce the main contract complexity
  • D. To improve supply chain transparency
  • E. To condemn whole liabilities to subcontractors
Answer: A
Explanation:
There are number of reasons why the purchaser will want to control the supplier's subcontracting:
- Supply chain transparency: Normally the purchaser has invested a lot of effort into selecting the right contractor. However, the main contractor's selection of subcontractor might not be in such careful manner, which may result in poor performance. Purchaser must know who subcontractors are. Controlling the subcontracting process can help the purchaser control the outcome.
- Contract terms: the purchaser's requirements must be reflected in the subcontracts. The subcontracting clauses may require the main contractor to do this.
- Liability: the main contractor may subcontract the whole or a part of its liabilities. Subcontracting clause may bind the contractor to be liable with the work, it cannot just blame the subcontractor for any faults.
Reference: CIPS study guide page 154-155
LO 3, AC 3.2

NEW QUESTION # 150
Which of the following is the type of insurance that cover the liabilities of service provider such as legal advice, accountancy, technical designs, etc?
  • A. PII
  • B. Employer's liability
  • C. Public liability
  • D. Product liability
Answer: A
Explanation:
The most usual forms of insurance cover are as below:
- Employer's liability: Employers' liability insurance, sometimes known as employment practices liability insurance (EPLI), protects employers from financial loss if a worker has a job-related injury or illness not covered by workers' compensation. Employers' liability insurance can be packaged with workers' compensation insurance to further protect companies against the costs associated with workplace injuries, illnesses, and deaths. Employers' liability insurance is also called "part 2" of a workers' compensation policy.
- Public/product liability: Public liability insurance covers you against any claims made against your business
- for example if you were held legally liable for personal injury, or for damage done to property. The insurance will also cover you for any legal costs associated with defending claims against your business.
- Professional indemnity insurance (PII): Professional indemnity or liability insurance offers such coverage to professional advice or service providing individuals and companies ensuring protection against any legal costs and damages awarded as a result of claims relating to negligence. Whereas more general forms of liability insurance focus on direct forms of harm such as sustaining injuries, professional indemnity insurance provides a far more detailed and comprehensive form of coverage. The cover protects a firm or individual's liability relating to any financial loss caused by errors or omissions in the service provided as well as any alleged failure to perform on behalf of a client.
- Goods in transit coverage: Goods in transit insurance, sometimes referred to as GIT, covers goods against loss or damage while being moved from one place to another. These goods can be being carried by individuals in their own vehicle, self employed drivers or contractors or by third party carriers. The insurance can cover both domestic and international trips, with specific add-ons available for insurance within Europe.
Reference: CIPS study guide page 151-152
LO 3, AC 3.2

NEW QUESTION # 151
Esther Francis has recently changed job from a supply role at Shine Cleaning Services (SCS) to a purchasing role at Southern Commercial Property (SCP).
Esther requires industry technical input to develop a cleaning services requirements specification for her new employer. Esther Francis wants to include her former employer SCS, in a market engagement exercise to inform the specification. Which of the following would be the most appropriate way to deal with the conflict of interest?
  • A. Conduct the market engagement with SCS off the record
  • B. Ask a colleague to conduct the market engagement with SCS
  • C. Conduct market engagement with several capable suppliers, including SCS
  • D. Declare the potential conflict of interest to a senior manager of SCS
Answer: C
Explanation:
The best practice for managing a potential conflict of interest is:
* To ensure transparency,
* To treat all capable suppliers fairly,
* To avoid preferential treatment.
Therefore, Esther should include SCS among several capable suppliers in a structured market engagement process (D). This avoids favouritism, provides a broad market view, and maintains ethical standards.
Options like "off the record" or only declaring to SCS miss the key requirement: fair and open treatment of multiple suppliers.
Reference: CIPS L4M3 Commercial Contracting - Ethics, conflicts of interest and fair treatment of suppliers.

NEW QUESTION # 152
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