Question 1

Which of the following is set down in statute as a liability that exists without any need to prove fault?

Options :

A : Strict liability

B : Contingent liability

C : Current liability

D : Non-current liability

Answer: A

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 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 4

Which of the following are likely to be advantages of using invitation to tender? Select TWO that apply:

Options :

A : Quick implementation

B : Short turnaround times

C : Reducing risks of bribery and corruption

D : Driving forward planning culture

E : Lower administration costs

Answer: C,D

Question 5

A company needs to source a product from oversea. It wants to overcome technical barrier to cross-border trade by using standards in the specification. Which of the following is most likely to be incorporated into that specification?

Options :

A : National standards

B : International standards

C : Company standards

D : Brands

Answer: B

Free L4M3 Mock Exam – Practice Online Confidently

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