Free L4M3 Exam Braindumps

XYZ Ltd is negotiating a long-term supply contract of important parts with a supplier. Dave, procurement manager teams up with Alla, legal manager to construct a service level agreement. Dave is concerned that poor performance of supplier may cause damages to the operations of the organisation.
Which of the following can be used in conjunction with SLA to compensate the buying organisation in case of supplier's poor performance?
1. Warranties

2. Force majeure clauses
3. Penalty clauses
4. Service credits

  1. 1 and 3 only
  2. 3 and 4 only
  3. 1 and 2 only
  4. 4 and 2 only

Answer(s): B

Explanation:

Service level agreement often sets out the minimum quality standards of the services provided, remedies if that standards are not met, consequences if the targets are exceeded. Penalty clauses and service credits are remedies that are often used in conjunction with service level agreement to ensure the performance and to compensate the purchaser if targets are not met.


Reference:

CIPS study guide page 110 LO 2, AC 2.2



In which of the following section of a specification, requirements for training to use the equipment will be set out?

  1. Performance
  2. Consultation requirements
  3. Implementation
  4. Issue reference

Answer(s): C

Explanation:

Implementation is a substantive requirement which covers the following areas:
- Will there be a need to train the staff to use the equipment?
- Are there integration requirements with other systems or processes?
- How will this work?
- What are the timescales?
- Are detailed method statements required?
Consultation requirements regards to explicitness of compliance with any national or local legal requirements


Reference:

CIPS study guide page 90-92 LO 2, AC 2.1



In common law, which of the following documents is legally binding without the need for consideration?

  1. One-off contract
  2. Hire purchase agreement
  3. Deed
  4. Blanket order

Answer(s): C

Explanation:

In common law (the legal system in which most rules come from case law or precedents, such as UK, US, Australia, etc), the contract is legally binding if it has the following requirements:
- Offer
- Acceptance
- Certainty & Intention to Create Legal Relations

- Consideration & Promissory Estoppel
- Legal capacity
According to these rules, 'Blanket order', 'One-off purchase', and 'Hire purchase agreement' are contractually binding. One of the reason is that they have consideration. However, there is a type of legal instruments that does not need consideration to be legally binding. They are called 'Deeds'. A deed (anciently "an evidence") is any legal instrument in writing which passes, affirms or confirms an interest, right, or property and that is signed, attested, delivered, and in some jurisdictions, sealed. It is commonly associated with transferring (conveyancing) title to property. At common law, to be valid and enforceable, a deed must meet several requirements:
- It must state on its face that it is a deed, using wording like "This Deed..." or "executed as a deed".
- It must indicate that the instrument itself conveys some privilege or thing to someone.
- The grantor must have the legal ability to grant the thing or privilege, and the grantee must have the legal capacity to receive it.
- It must be executed by the grantor in presence of the prescribed number of witnesses, known as instrumentary witnesses (this is known as being in solemn form).
- In some jurisdictions, a seal must be affixed to it. Originally, affixing seals made persons parties to the deed and signatures optional, but seals are now outdated in most jurisdictions, so the signatures of the grantor and witnesses are primary.
- It must be delivered to (delivery) and, in some jurisdictions, accepted by the grantee (acceptance).


Reference:

- Deed - Wikipedia
- Formation of the contract
- CIPS study guide page 40 LO 1, AC 1.2



If service level agreement is used as a schedule that makes up the contract, it will be most likely to be a part of...?

  1. Pricing arrangement
  2. Performance management framework
  3. Exclusion of liabilities
  4. Specifications

Answer(s): B

Explanation:

If a service level agreement is used as a schedule to a contract, it will generally have the following contents:
- Service definitions. If the service information is provided by the specification, SLA should only refer to the specification to avoid any inconsistencies.
- Details on how to measure KPIs, who will measure KPIs
- Minimum requirements or targets
- Remedies if the minimum requirements are not met
...
Since SLA often lists out the KPI targets, consequences for not meeting the KPI targets and remedies to situation of poor performance, it is a part of performance management.


Reference:

CIPS study guide page 110-116
LO 2, AC 2.2






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