Question 1

Which of the following are true statements about RFQ process? Select TWO that apply.

Options :

A : RFQ process creates heavier administrative burdens than tendering process

B : Price is often the only variable in the RFQ and quotations

C : Buying organisation should only send RFQ to pre-qualified suppliers

D : RFQ process is not suitable for low value purchase

E : RFQ process requires the suppliers to submit their technical proposals

Answer: B,C

Question 2

A retailer prefers to display its best selling products and promotion programme on the building windows. According to rule of contract formation, this act will generally constitute...?

Options :

A : A legal capacity

B : An invitation to treat

C : An offer

D : A mailbox rule

Answer: B

Question 3

Which of the following are reasons why a purchaser wants to embed a subcontracting clause into the main contract? Select TWO that apply:

Options :

A : To improve supply chain transparency

B : To condemn whole liabilities to subcontractors

C : To reduce the main contract complexity

D : To keep main contractor liable

E : To induce the conflicts between the main contractor and subcontractors

Answer: A,D

Question 4

Sharaton Foods Holding is looking for a vegetable harvesting and packaging system. They use the performance specification in the tendering process. What are the benefits of using this type of specification?

1. Provide opportunities for innovation
2. Potentially limit the competition among the suppliers
3. Require less effort to produce a specification
4. Allow the end user to provide details on technical aspects

Options :

A : 1 and 4 only

B : 1 and 3 only

C : 1 and 2 only

D : 2 and 3 only

Answer: B

Question 5

In a contract, both buyer and supplier agreed the lead time is 3 days. The contract also requires that any variation must be made in writing. Then the buyer places an order by phone call and requests delivery the next day, but the supplier delivers on the third day since the order. Can buyer refuse to pay as supplier did not deliver per time?

Options :

A : No, the supplier delivers within a reasonable time

B : Yes, late delivery is a force majeure event

C : No, supplier has shortened lead time to 1 day

D : Yes, the supplier has breached the contract

Answer: A

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