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[Hardware] Test L4M3 Dumps - L4M3 Exam Practice

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【Hardware】 Test L4M3 Dumps - L4M3 Exam Practice

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CIPS Commercial Contracting Sample Questions (Q225-Q230):NEW QUESTION # 225
Northern Province Authority (NPA) seeks to use market dialogue to improve the contract specification for a new procurement tender of a domestic waste collection contract. Which of the following topics would be appropriate for dialogue with potential suppliers?
  • A. Contract terms
  • B. Service innovation
  • C. Human resourcing
  • D. Pricing proposals
Answer: B
Explanation:
Early market dialogue is used to explore supplier capabilities and gather ideas, particularly in complex or innovative services. Discussing service innovation with suppliers helps the buyer shape better specifications and outcomes. Topics like pricing and contract terms should remain within formal procurement stages to ensure fairness.
Reference:CIPS L4M3 Commercial Contracting Study Guide, Chapter 2, Section 2.1.1 - Use of early market engagement and its limitations.

NEW QUESTION # 226
In a sale contract, a clause requires the seller to "defend, reimburse, and hold harmless" the buyer and its personnel from and against any and all damages arising in connection with some specific circumstances. This clause is an example of...?
  • A. Force Majeure
  • B. Liquidated damages
  • C. Indemnity
  • D. Insurance
Answer: C
Explanation:
An indemnity is a promise by one party to compensate another for the loss suffered as a consequence of a specific event, called the ''trigger event''.
The trigger event can be anything defined by the parties, including:
- A breach of contract;
- A party's fault or negligence;
- A specific action.
An indemnity operates as a transfer of risks between the parties, and changes what they would otherwise be liable for or entitled to under a normal damage claim.
Force Majeure Provisions: A force majeure event refers to the occurrence of an event which is outside the reasonable control of a party and which prevents that party from performing its obligations under a contract.
Liquidated damages are presented in certain legal contracts as an estimate of otherwise intangible or hard-to-define losses to one of the parties. It is a provision that allows for the payment of a specified sum should one of the parties be in breach of contract.
LO 3, AC 3.2

NEW QUESTION # 227
Maximum Score 1
Setting key performance indicators (KPIs) for supplier performance should ensure ...
  • A. Managed supply risks
  • B. Lowest price for products
  • C. Earliest delivery
  • D. Reduced vendor base
Answer: A
Explanation:
KPIs track and control supplier performance, helping to identify and mitigate supply risks such as late delivery or poor quality.
They are a proactive management tool, not a price or sourcing mechanism.
Reference: CIPS L4M3 Commercial Contracting - "Purpose and use of KPIs in contract management."

NEW QUESTION # 228
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. Declare the potential conflict of interest to a senior manager of SCS
  • D. Conduct market engagement with several capable suppliers, including SCS
Answer: D
Explanation:
The best way to manage conflicts of interest is through transparency and fairness. Including multiple suppliers in the market engagement process ensures no single supplier, including the one with a perceived connection, gains an advantage. This protects the integrity of the procurement process.
Reference:CIPS L4M3 Commercial Contracting Study Guide, Chapter 2, Section 2.1.1 - Ethical and fair practice in early market engagement.

NEW QUESTION # 229
An organization has a normal tender process that often last 1 month from defining the needs to contract award. Manufacturing department suddenly required a new special part that they could not foresee within a month. Which of the following should be the priority actions of procurement manager in this urgent situation?
Select TWO that apply:
  • A. Develop relationships with potential suppliers
  • B. Design new specification
  • C. Submit full business justification
  • D. Review contract performance
  • E. Get high-level authority approval
Answer: C
Explanation:
This urgent needs occasionally occur due to a sudden change in circumstances. The process for selecting a replacement supplier must still be controlled. If there is a reason for normal processes to be waived, this must be fully documented and approved at a high level.
Reference: CIPS study guide page 7
LO 1, AC 1.1

NEW QUESTION # 230
......
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