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NEW QUESTION 50
Which of the following will you put into box 6?
- A. dual sourcing
- B. audit
- C. insurance
- D. monitor
The correct answers are as follows:
Table Description automatically generated with low confidence
NEW QUESTION 51
An indemnity clause should contain which of the following pieces of information 1) duties of both parties 2) a monetary limit 3) insurance levels 4) details of the breach 5) a time limit
- A. 1,3,4
- B. 1,2,5
- C. 3,4,5
- D. 2,4,5
Indemnity clauses should contain duties of both parties, a monetary limit and a time limit (1 2 and 5). It should also detail what types of costs are covered. These four points are explained on p.61. An indemnity clause doesn't necessarily signal a breach in contract, and levels of insurance are not relevant here.
NEW QUESTION 52
Which of the following form part of the Stakeholder Salience Model? Select TWO
- A. attitude
- B. interest
- C. legitimacy
- D. level
- E. power
Power and Legitimacy are part of the Stakeholder Salience Model - the third characteristic is Urgency. See p.
NEW QUESTION 53
Which of the following will you put into box 1?
- A. treat
- B. tolerate
- C. terminate
- D. transfer
The correct answers are as follows:
Table Description automatically generated
Nothing can be done to change this risk (you can't stop an earthquake from happening), so you therefore need to transfer the risk to another party, or include for this within a contract.
NEW QUESTION 54
Khalid is a procurement manager who works at a manufacturing organisation based in the UK. The organisation creates building fabric materials by converting raw materials such as steal into useable items in the construction industry. Khalid sources most of his steal internationally due to competitive prices. On one occasion with his usual supplier, the ship that is carrying the materials sinks due to an unexpected storm.
Which clause would be activated within the contract?
- A. liability clause
- B. transportation clause
- C. force majeure
- D. breach of contract
this is an example of force majeure. Force majeure is a popular exam topic and comes up in chapter 2.1 p. 66.
A force majeure is when an event, such as a storm, happens which affects the delivery of the contract, but over which neither party has any control.
NEW QUESTION 55