L4M3 Commercial Contracting Recap Week 3

Which of the following should be applied when tracking how often deliveries are on time during the contract?

• Binary measure

• Numerical measure

• Subjective measure

• Qualitative assessment

Streaming Ltd is a UK music streaming company that wants to expand in the US. It needs to hire a local data centre service provider. The procurement manager wants to use a service level agreement (SLA) to measure the provider’s performance. What should the SLA contain?

Choose all that apply

• System availability

• The mean time to recover from the system failure

• The actual number of on-time service delivery

• Dispute resolution procedure

Which of the following are likely to be express terms in a contract?

Choose all that apply

• Legislation

• Custom and practice

• Contract particulars

• Terms and Conditions

What methods do buyers use to pick suppliers from a framework agreement? Select TWO that apply:

• Contract for lease

• Mini competition

• Call off contract

• Rescission of contract

• Direct call-off

Which of the following are likely to be advantages of using a Tender process. Select TWO that apply

• Reducing risks of bribery and corruption

• Quick implementation

• Lower administration costs

• Take advantage of the rivalry in the market

• Short tunaround times

Which of the following is regulated by standard ISO 14001?

• Environmental management

• Energy management

• Efficiency management

• Quality management

Which of the following are always included within a framework agreement? Select TWO that apply:

• Exact quantity to be purchased

• Duration

• Call off procedure

• Insurance

• Exact price to be paid

Is it a good idea for a UK procurement specialist to use ISO standards in a specification for global suppliers?

• No, ISO standards are unfamiliar to global suppliers

• No, the procurement specialist must use BSI standards instead

• Yes, every specification must have ISO standards

• Yes, ISO standards are globally recognisable

According to rule of contract formation, which of the following is a valid acceptance?

• The person asks for a lower price

• The person orally agrees to pay the offered price

• The person says that she will think about it overnight

• The person states that she is able to pay the offered price

A company is planning a major procurement contract the will involve the issue of Invitations to tender (ITT), a bidding process and negotiations with the selected bidder.  When will be the best time to indicate the express terms it would like to include in the contract?

• When the negotiation begins

• When the preferred bidder is selected

• When the ITTs are issued

• When negotiations are nearing the end