Free Access to CIPS.L4M3.v2025-07-07.q116 with Valid Practice Test (Page 8)

Question 31

A supermarket purchases a new batch of house cleaner from new supplier. The supermarket is concerned about possible damage that the house cleaner may cause to consumers' floor. What type of insurance must they cover?

A.Fire and explosion insurance
B.Product liability insurance
C.Professional indemnity insurance
D.Public liability insurance

Question 32

Rochdale Ltd is looking for a new IT system to automate some of its operations. In designing the specification, procurement manager supposes that it should be done solely by the IT department who have deep expertise on this matter. Is procurement manager's opinion appropriate?

A.No, because challenging the user's demand is the role of procurement
B.Yes, because designing complex specification would waste procurement manager's time
C.Yes, because procurement professional has no expertise in IT sector
D.No, because designing complex specification could only be outsourced

Question 33

Which of the following statements is true about model form of contract?

A.When model contracts are employed, there are no requirements for legal advice and input
B.Model contract form's standard clauses often contain correct legal terminology without recourse to third party experts.
C.The standard clauses of model contract forms give the offeror legal advantages over the offeree
D.Only the publishers of model forms of contract can edit the clauses of these forms

Question 34

Which of the following should be used in a contract for window cleaning during the next three months?

A.Variable pricing arrangement
B.Fixed pricing arrangement
C.Standard schedule of rates
D.Cost-plus arrangement

Question 35

The pricing arrangement in which markup is added into cost base to calculate the final price is known as...?

A.Fixed Price approach
B.Market based approach
C.Price indices
D.Cost plus pricing

Question 31

Question 32

Question 33

Question 34

Question 35

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