QUESTION: 25

Which of the following encourages social and environmental criteria in public sector contracting in the UK?

Social Action, Responsibility and Heroism Act
The Public Services Act
Children and Social Work Act
Supply and Appropriation Act

Answer(s): B

Explanation:

Social and environmental criteria are increasingly encouraged in public sector contracting. In the UK, The Public Services (Social Value) Act 2012 encourages public organising to apply social and environmental criteria in contract.

Reference:

CIPS study guide page 98-99 LO 2, AC 2.1

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QUESTION: 26

A construction company is undertaking a housing development project. They need lots of bricks and other building materials, but the construction site doesn't have large area for storage of materials. Therefore, the company's suppliers must deliver the building materials with fixed quantity and at fixed time intervals.
What type of contract is used between the construction company and its suppliers?

Framework agreement
Spot transaction
One off contract
Call off contract

Answer(s): D

Explanation:

In the scenario, the contract between the company and its suppliers is continuous rather than one- off. So it cannot be one-off contract or spot purchase. The quantity and time is well known and fixed, this type of contract is known as call-off contract or blanket order.

Reference:

CIPS study guide page 63-64 LO 1, AC 1.3

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QUESTION: 27

Which of the following is the set of principles that enables courts to determine exactly what the written contract says and what that must mean, then the court will uphold that?

Order of precedence
Rules of interpretation
Unfair Contract Act 1977
Rules of contract formation

Answer(s): B

Explanation:

Courts may be called upon to interpret a statute due to disputes over the meaning of a word or phrase contained within a statute. These disputes may arise through a variety of reasons. It has long been held that words are an imperfect means of communication. Omissions may have occurred at the drafting stage, word or phraseology ambiguity, etymological change through time, oversight on specific points, or a failure to adapt legislation to new developments. This may result in the judiciary providing a role in statutory interpretation. Statutory interpretation in its broadest sense is the process of determining the true meaning of a written document. In UK, the Interpretation Act 1978 provides limited scope to assist judges with statutory interpretation in that it only provides standard definitions to common provisions such as a rebuttable presumption that terminology in the masculine gender also include the feminine, and that the singular includes plural. An order of precedence clause sets out the order in which the contract documents take precedence in the event of an inconsistency.
The Unfair Contract Terms Act 1977 (c 50) is an Act of Parliament of the United Kingdom which regulates contracts by restricting the operation and legality of some contract terms. It extends to nearly all forms of contract and one of its most important functions is limiting the applicability of disclaimers of liability. The terms extend to both actual contract terms and notices that are seen to constitute a contractual obligation.

Reference:

- Rules of Statutory Interpretation
- CIPS study guide page 43-46 LO 1, AC 1.2

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QUESTION: 28

Which of the following is regulated by standard ISO 14001?

Energy management
Quality management systems
Environmental management
Information security management

Answer(s): C

Explanation:

ISO has about 22,000 international standards covering a vast range of aspects of product or service quality. Below are some of the most common ISO standards:
- ISO 9001: Quality management system
- ISO 27001: Information security management
- ISO 5001: Energy management
- ISO 14001: Environmental management

Reference:

- ISO 14001:2015 Environmental management systems -- Requirements with guidance for use
- CIPS study guide page 86 LO 2, AC 2.1

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QUESTION: 25

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QUESTION: 28

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