2025 Best L4M3 Exam Preparation Material with New Dumps Questions [Q138-Q155]

Q138. CMS Corp goes into a gainshare agreement with the contractor, EIP Ltd. Both parties agree that the final fee will be calculated on target cost – target fee basis. Which of the following will affect the final fee payable in this gainshare agreement? Select TWO that apply:

Q139. When a supplier signs an insurance policy with an insurance company, which of the following is transferred to insurance company?

Q140. Blakenall District Hospital (BDH) is a large hospital that is a major part of the government’s health service.
Purchasing staff are in the habit of placing many long-term contracts with suppliers and sub-contractors.
Whilst these contracts are usually carried out successfully, prices are often paid that are well over budget. The purchasing manager is concerned to find that, in some cases, members of staff are forcing suppliers to accept fixed price contracts. The policy hascaused several problems such as some suppliers refusing to deal with BDH and a few going out of business mid-way through performing a contract with BDH. This is due to fluctuating market prices of materials. The procurement manager suggests supplier to adopt variable pricing arrangement with price index. Is this a right course of action?

Q141. Which of the following is the best definition of consideration in contract law?

Q142. Bethy sees a coat on shop window with a $100 price tag. She comes and asks the shop owner to buy it. The owner states that the price has not been updated and the current price for the coat is $120. Bethy says the owner should honour the quoted price on window shop. Is Bethy correct?

Q143. Maximum Score: 1
Which of the following are recognised procurement risks when entering into a fixed price contract with a supplier? Select TWO that apply.

Q144. Nestle gave away records of “Rockin’ Shoes” or a voucher to people who sent in three wrappers from Nestle’s 6d. milk chocolate bars as well as 1s 6d. Which of the following were the consideration of Nestle’s customer? Select TWO that apply

Q145. A construction company wishes to place the contract for the building of a new hotel to a principal contractor using a model form contract. Which of these is an advantage of using a ‘model form contract?’

Q146. Which of the following statement is true about insurance?

Q147. Company A buys a lorry from Company B on hire purchase. During the contractual period, Company A makes default in paying the instalment. Company B has…?

Q148. MWB operates serviced offices in central London. Rock entered a contractual licence with MWB to occupy office space in Marble Arch and had accumulated licence fees in arrears. The original licence agreement contained a ‘No Oral Modification’ clause that said: ‘All variations to this licence must be agreed, set out in writing and signed on behalf of both parties before they take effect’.
After 6 months, Rock director re-negotiated to extend payment period over phone call and MWB credit controller agreed his proposal. Is this agreement considered as an effective variation to the original licence agreement?

Q149. A fashion company is drafting a specification for an order in next year. The company wants to expand its supply base in low cost countries. The procurement department is considering applying standard ISO 3759 on method for the preparation, marking and measuring of textile fabrics, garments and fabric assemblies for use in tests for assessing dimensional change after a specified treatment. Which of the following should be taken into account when embedding this standard into the specification?

Q150. Maria is working on a new one-off construction project and is looking to expand a factory. A requisition comes through for an outright purchase of a digger. Maria changes this to a lease order instead. Is she right to do so?

Q151. What are disadvantages of a buyer contracting on the supplier’s terms? Select TWO that apply.

Q152. Maximum Score 1
Contract terms are statements by the parties to the contract as to what they understand their rights and obligations to be under the contract. It is important from the outset that there is a genuine agreement between the parties as to what the contract terms are. After the contract has been made, it is too late for either party to alter its terms unilaterally.
Which of the following is another role that negotiated contract terms might play?

Q153. 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?

Q154. To expand its operation, Steel Co. decides to build a new plant. Despite of excitement, the senior management is very concerned about the complexity and risks of such project. Hugo, the procurement manager, suggests that the company can adopt a model form of contract. What is the advantage of using model form of contract?

Q155. Bandpro is a reseller of branded computer products to the private and public sector. The procurement team must purchase 500 items each day solely by multiple phone calls and emails to suppliers. Due to this practice, it takes a lot of time to track and collect relevant documents.Some important documents even get lost, which makes procurement audit more burdensome. Which of the following would increase the robustness of audit trails in procurement activities?