Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Contract and Commercial Management Professional Prep > Prep Test > Flashcards

Prep Test Flashcards

1
Q

IACCM research shows that on average, what percentage of contracts under-perform?

A

30-35%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Research shows that the number one factor that introduces risk to contracting is ?

A

Poor communication

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

True/False: Contract administration is the set of tasks that we perform each day in order to maintain the course of our in flight contracts
and ensure that they are delivered efficiently and effectively meeting the standard project constraints of time, cost and
quality.

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

True/False: An inadequate business case can result in cost overruns under a contract.

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Techniques for requirements gathering inputs include which of the following?: 1) Structured interviews, 2) Prototypes, 3) RFP responses, 4) Questionnaires

A

1, 2, 4

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What do the following indicate: a) Wasted time, b) High frustration levels, c) Proceeding with the wrong solution, & d) Ultimate
failure of the project?

A

Deficient requirements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What does the term “internal economy” describe?

A

The forces within a company that drive decisions and behaviors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Which of the following statements about requirements are true: 1) Requirements should focus solely on the functional and
technical aspects 2) There should be recognition that requirements change

A

Only 2 is true

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Consideration of which of the following factors may enhance benchmarking requirements?: 1) Technical standards, 2) Service level requirements for Service Level Agreements.

A

Both 1) and 2)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Which is a characteristic of more thorough requirements?

A

Ability to anticipate cultural and technical issues

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Which of the following should be considered as part of the requirements gathering process: 1) Keeping as many options open
as possible, 2) Human impact, 3) Corporate governance, 4) Quality standards

A

2, 3, 4

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Why should requirements be prioritized?

A

To enable use of a closest fit solution if exact alignment is not possible

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

In financial analysis, TCO stands for and means:

A

Total Cost of Ownership: The total cost of an asset over its useful life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What models are designed to address contract risk scenarios and alignment with strategy?

A

Sophisticated financial models

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Typically when choosing among mutually exclusive projects of the same value, the project with the _____ Net Present Value
should be selected.

A

Largest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What does a Return on Investment (ROI) calculation provide?

A

The degree to which an investment contributes financial return over a period of time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Which cost benefit analysis methodology defines an interest rate percentage that yields a discounted cash flow of zero over the calculated period?

A

Internal rate of return

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

If the NPV of a prospective project is negative, then the project probably should be:

A

Rejected because the net cash flows for the entire project are negative

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

In financial analysis, TCO stands for and means:

A

Total Cost of Ownership: The total cost of an asset over its useful life

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What does an Internal Rate of Return (IRR) provide?

A

One means of assessing a project’s financial business case / investment decision

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What does break-even analysis provide

A

The point in time when revenue from an investment equals the investment amount

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Cost Benefit Analysis can explore the financial return in terms of the point in time when revenues from an investment equal the amount of the investment. What is this called?

A

Break-even analysis

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

A joint venture outsourcing approach in which you have a stake enables which capability?

A

Pursuing business opportunities that you may not be able to pursue yourself

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

A useful commodity could be defined as which of the following?

A

Something that doesn’t differentiate us from the competition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What is a consortium?

A

A group of suppliers providing a coordinated tender response identifying their intention to work together

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What scope does a prime contractor have?

A

Entire scope

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Where a customer chooses a sourcing approach whereby a supplier takes responsibility for delivering the entire service, but then may subcontract some of it is known as?

A

Prime contractor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What do passive clauses require?

A

They will be triggered by a specific action, inaction or omission

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What is a warning sign that contract terms should be audited?

A

Specific exceptions are made frequently

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What is best practice when considering when to perform a terms audit?

A

Whenever your monitoring mechanisms indicate a need to do so

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What is important to understand when undertaking a terms audit?

A

The audit may cover SLAs, attachments and schedules

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Which of the following statements about the consequences of inappropriate terms is/are true?: 1) You will not accurately
reflect your trading environment, 2) You will increase your competitiveness in the market place

A

Only 1 is true

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

True or False, opportunity costs excludes soft, less quantifiable costs.

A

FALSE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

What can be the result of cost-cutting decisions during the procurement process?

A

Increase in risk and exposure to alternative costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

What is the best approach to eliminate assumptions supporting cost identification?

A

Research, analysis and proactive management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

What should be identified when assessing cost benefit analyses?

A

Outcomes with and without allocated costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Which of the following are key knowledge areas in relation to cost identification?: 1) Corporate cost savings targets, 2) Tax, 3) Costing & Pricing. 4) Price vs Cost of Relationship

A

2, 3, 4

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

What information should a bidder be required to include in their proposal?

A

Corporate financial statements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

What should happen to a bidder that introduces “hidden costs” during negotiations?

A

Disqualification

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

When sending out an RFP, what request should you include in your cover letter?

A

Explanation of any variations from your requirements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

Which of the following are possible outcomes of an RFI process?: 1) Contracts are signed, 2) Decision to “make” rather than “buy’, 3) Send the project out under an RFP, 4) “Kill” the project

A

2, 3, 4

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

Why should an RFI define the suppliers’ required response format & content?

A

To obtain a consistent response from all suppliers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

In general, the more restricted the Contracts role and the more it is rules-driven, the later the Contracts group becomes involved.

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

What is important for suppliers to understand in relation to a Request for Information (RFI)?

A

It is used to obtain information to support decision making

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

When prospective business is identified what is the most important factor for the supplier to recognize?

A

Whether the opportunity is one they want to win

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

How can a contracts professional add value through creative solutions?

A

By expanding the value of the deal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

What is important for suppliers to understand in relation to a Request for Information (RFI)?

A

It is used to obtain information to support decision making

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

When prospective business is identified what is the most important factor for the supplier to recognize?

A

Whether the opportunity is one they want to win

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

Which of the of the following attributes do successful bid teams demonstrate?: 1) Co-operation, 2) Communication, 3)
Hierarchy, 4) Prioritizing of tasks

A

1, 2, 4

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

Is the customer’s organizational structure an input to a bid/no bid decision.

A

No

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

What is important for suppliers to understand in relation to a Request for Information (RFI)?

A

It is used to obtain information to support decision making

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

After giving a presentation on their proposal response, a supplier suggests having lunch / dinner with you as the customer to continue the discussion. Who should pay this expense?

A

First check your corporate hospitality policy’

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

If you are the buyer, what do you need to be sure of when you enter into the BAFO stage?

A

You have budgetary approval to proceed with the procurement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

How should you handle the supplier’s cost response to a proposal?

A

Evaluate cost responses separately to technical responses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

In the bidding process, what process will help you to choose between suppliers once two or three suppliers have been
shortlisted?

A

BAFO

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

What is one of the aims of the final round in the proposal process?

A

Lowering the cost of the suppliers’ proposal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

What should be used to assess how many suppliers intend to respond to a RFx?

A

Intent to bid due date

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

Which of the following statements islare true about the scope of responsibility of an RFx single point of contact?: 1) They will coordinate all related supplier-company interactions, 2)They will coordinate all related intra-company communications

A

Both 1 & 2 are true

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

Bidders will ask questions about your request for proposal. Which of the below is best practice in responding to them?

A

Maintain confidentiality by not advising bidders who asked what question

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

If you are the buyer, what do you need to be sure of when you enter into the BAFO stage?

A

You have budgetary approval to proceed with the procurement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

In the bidding process, what process will help you to choose between suppliers once two or three suppliers have been
shortlisted?

A

BAFO

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

What approach should be taken to manage large RFP efforts?

A

The project management approach your company uses for large projects

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

What should be used to assess how many suppliers intend to respond to a RFx?

A

Intent to bid due date

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

What approach should be taken when answering questions submitted by suppliers in relation to an RFP?

A

Ensure that the supplier who asked the question cannot be identified when you send out the responses.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

What is one of the aims of the final round in the proposal process?

A

Lowering the cost of the suppliers’ proposal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
66
Q

Why is it important to understand how your domestic law affects bidding?

A

To understand what constitutes a binding offer and acceptance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
67
Q

under (English) Common Law, how may an offer be revoked?

A

By giving notice to the other party prior to acceptance that the offer has been revoked

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
68
Q

Which legal code does not provide a mechanism for an offer to be revoked if it states a time frame and it has been received by the customer?

A

UNCISG

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
69
Q

Above what value does the Uniform Commercial Code in the USA require contracts to be in writing?

A

US$500

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
70
Q

What helps in later phases in relation to terms & conditions identified as being possible areas of disagreement during the bid phase?

A

Ensuring clarity & openness between the parties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
71
Q

To which sales transactions may the UN Convention on Contracts for the International Sale of Goods (CISG) apply?

A

Sales transactions between convention countries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
72
Q

What elements should be included in the event a letter of intent is used?

A

A valid until date and understanding of consequences if not enacted

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
73
Q

Which of the following statements about offer termination islare true? : 1) Offers may not be terminated once they have been
made, and 2) Offers may only be terminated using the same method by which the offer was made

A

Neither 1 or 2 is true

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
74
Q

Which type of transaction does the UNCISG cover?

A

The sale of goods only

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
75
Q

In order to be enforceable, a contract formed under the UN Convention on Contracts for the International Sale of Goods (CISG) must be

A

Able to be proved by any means and does not necessarily have to be in writing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
76
Q

What effect does the UN Convention on Contracts for the International Sale of Goods (CISG) have on stating a time limit in
which the offer must be accepted?

A

Creates a revocable offer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
77
Q

When preparing your bid, you should ask yourself a range of questions, including?: 1) How to get all parties to work on the
bidder’s time-zone, 2) Which terms are controlled by law & which are left to negotiation?, 3) What liability may be imposed for non-performance?, 4) Will the terms of your agreement be valid in the country in which the work is to be performed?

A

2, 3, 4

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
78
Q

What do cross-border contracts (for goods) involving countries who have signed up to the UN Convention on Contracts for the
International Sale of Goods (CISG) provide?

A

CISG automatically applies unless specifically excluded

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
79
Q

What effect does the UN Convention on Contracts for the International Sale of Goods (CISG) have on stating a time limit in which the offer must be accepted?

A

Creates an irrevocable offer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
80
Q

Which of the following statements about offer termination is/are true? : 1) Offers may not be terminated once they have been
made, and 2) Offers may only be terminated using the same method by which the offer was made

A

Neither 1 or 2 is true

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
81
Q

What should be checked when considering supplier references?

A

That they are good quality and they can be validated

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
82
Q

When conducting evaluation of proposals, each team member should score what?

A

The relevant section for their area of knowledge for each proposal

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
83
Q

Which of the following are elements of total cost of ownership?: 1) Internal resources, 2) Opportunity costs, 3) Tangential
property, 4) Transfer of title

A

1, 2, 3

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
84
Q

A very complex project may require a more segmented approach to evaluation. This is called

A

Two cycle evaluation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
85
Q

What are intangible evaluation criteria?

A

Factors that rely on organizational culture and behavior

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
86
Q

What is the first step in developing an evaluation process?

A

Develop an organizational evaluation model & process

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
87
Q

What should be checked when considering supplier references?

A

That they are good quality and they can be validated

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
88
Q

When embarking on a long-term project, which of the following is often not given adequate consideration at the proposal
evaluation stage?

A

The supplier’s cultural compatibility with the buyer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
89
Q

By understanding projects on a stakeholder’s radar screen, you will

A

Stay informed and maintain confidence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
90
Q

Stakeholders are likely to have the least focus on what aspects of the contract?

A

The terms and conditions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
91
Q

When you are substantially affected by a project, but you are not able to greatly influence it, then you are which type of
stakeholder?

A

Keep informed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
92
Q

A simple stakeholder map does not look at which of the following?

A

The level of independence that a stakeholder may have

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
93
Q

A stakeholder group with a low level of impact and a high level of dependence on an outcome is represented as which group type for communication purposes?

A

Keep satisfied

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
94
Q

By understanding projects on a stakeholder’s radar screen, you will

A

Stay informed and maintain confidence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
95
Q

What should be considered when identifying a stakeholder’s important issues?: 1) What programs they have in the near future, 2) What they consider to be a risk

A

Both 1) and 2)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
96
Q

When you are substantially affected by a project, but you are not able to greatly influence it, then you are which type of stakeholder?

A

Keep informed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
97
Q

Who is the primary catalyst for obtaining the right contract and then managing the delivery of the contracted objectives?

A

The contract and commercial management professional

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
98
Q

By understanding projects on a stakeholder’s radar screen, you will

A

Stay informed and maintain confidence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
99
Q

If you are unlikely to be impacted by a contract and you have little importance towards it then you are most likely to be categorized as which type of stakeholder?

A

Build awareness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
100
Q

Stakeholders are likely to have the least focus on what aspects of the contract?

A

The terms and conditions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
101
Q

What can be the impact of the contract management process not being integrated with product lifecycle management?

A

Negative market image

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
102
Q

What is a key element in the contracts role in product lifecycle management?

A

Validate proposed new or amended terms and conditions with corporate capabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
103
Q

What should terms and conditions provide for new products/services?

A

Competitive advantage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
104
Q

When understanding the market they operate in, best practice companies with a large product portfolio expect which of the following?

A

Their terms and conditions to support successful sales agendas

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
105
Q

What does having contracting as an integral part of product/service development provide to the business?

A

Increased revenue and better customer opportunities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
106
Q

What should be assessed when considering how effective the contracts role is in product lifecycle management?

A

How frequently deals need to be handled as special bids

107
Q

What should terms and conditions provide for new products/services?

A

Competitive advantage

108
Q

When understanding the market they operate in, best practice companies with a large product portfolio expect which of the following?

A

Their terms and conditions to support successful sales agendas

109
Q

What does a buyer rely upon in Solutions contracts?

A

The suppliers expertise to ensure an effective solution

110
Q

What is an example of a Solutions contract?

A

A technical capability as part of a greater project

111
Q

Which of the following statements about the critical success factors for outsourcing from the purchaser’s perspective is/are true?: 1) Knowing the strategic direction they will be taking, 2) Building in contractual flexibility

A

1 and 2 are true

112
Q

Why might a contract be needed for a straightforward or low value product acquisition?

A

Contracts are always necessary

113
Q

What advantage might an outsourcer provide?

A

Source of ideas

114
Q

What specific term or issue do outsourcing contracts introduce?

A

Transition

115
Q

Which commercial terms, published by the International Chamber of Commerce, are widely used for defining delivery terms in international transactions

A

Incoterms

116
Q

True or False: Two of the critical success factors for outsourcing from the purchaser’s perspective are establishing performance benchmarks and understanding how value can be added by outsourcing.

A

TRUE

117
Q

What issue frequently results from scope of work drafts produced by technical managers?

A

They inadvertently override key terms

118
Q

Which of the following statements about the critical success factors for outsourcing from the purchaser’s perspective is/are true?: 1) Knowing the strategic direction they will be taking, 2) Building in contractual flexibility

A

1 and 2 are true

119
Q

The contract structure should reflect which of the following?

A

The nature & value of the relationship

120
Q

What contract clause, usually limited to ‘Acts of God’, specifies the conditions under which either of the parties may be excused from performance?

A

Force majeure

121
Q

You have decided information needs to be confidential. What is a key consideration when creating the Non-Disclosure Agreement (NDA)?

A

How long should the information remain confidential

122
Q

The contract structure should reflect which of the following?

A

The nature & value of the relationship

123
Q

What are liquidated damages?

A

A contract provision to assess reasonable damages for specific instances like late delivery

124
Q

When a term is specific to the deal, where in the contract will you find its meaning conveyed?

A

Definitions

125
Q

When does warranty start?

A

As defined in the contract

126
Q

Liquidated damages are a form of what?

A

Compensation

127
Q

What do you need to be particularly wary of if allowing substitutions to deliverables in the contract?

A

There are appropriate acceptance terms for substitutions

128
Q

When does warranty start?

A

As defined in the contract

129
Q

Which contract clause is used to grant protection against potential losses?

A

Indemnity

130
Q

Which of the following statements about legal review of contract terms is / are true? 1) All terms should be reviewed by a lawyer, 2) Negotiating and finalizing the contract wording may be speeded up by legal review of all the contract documentation

A

Neither 1 or 2 is true

131
Q

The contract structure should reflect which of the following?

A

The nature & value of the relationship

132
Q

Which of the following would be most likely lead to termination for cause?

A

One party breaches or threatens to breach the contract

133
Q

Liquidated damages are a form of what?

A

Compensation

134
Q

What do the completion/acceptance criteria detail?

A

Both parties’ obligations relative to the performance of the deliverables

135
Q

What do you need to be particularly wary of if allowing substitutions to deliverables in the contract?

A

There are appropriate acceptance terms for substitutions

136
Q

Which contract clause is used to grant protection against potential losses?

A

Indemnity

137
Q

Which of the following statements about legal review of contract terms is / are true? 1) All terms should be reviewed by a lawyer, 2) Negotiating and finalizing the contract wording may be speeded up by legal review of all the contract

A

Neither 1 or 2 is true

138
Q

The contract structure should reflect which of the following?

A

The nature & value of the relationship

139
Q

What do the completion/acceptance criteria detail?

A

Both parties’ obligations relative to the performance of the deliverables

140
Q

When a term is specific to the deal, where in the contract will you find its meaning conveyed?

A

Definitions

141
Q

When does warranty start?

A

As defined in the contract

142
Q

How does European Union law address the principle of exclusive territory of a distributor?

A

You may be in violation of the law if it is only granted for one ELI country

143
Q

In creating distributor agreement termination provisions, what term should be defined in the absence of definition in local law?

A

Just cause

144
Q

What is one of the drivers to form business consortia to contract for projects?

A

The risk is too great to reasonably be assumed by a single entity

145
Q

What is a joint venture?

A

A cooperative business activity between two or more separate organizations for strategic purposes.

146
Q

A consortium agreement usually requires which of the following: 1) Joint and several liability, 2) Responsibility for own scope, 3) Responsibility for others scope, 4) Creation of a new legal entity

A

1, 2, 3

147
Q

The EU anti-competitive regulations in relation to distributors addresses what type of restraint?

A

Vertical

148
Q

What factor is critical for Equity Joint Venture partners to anticipate, plan & agree?

A

The termination of the joint venture

149
Q

What is one of the drivers to form business consortia to contract for projects?

A

The risk is too great to reasonably be assumed by a single entity

150
Q

Which of the following statements about the reasons for using agents, representatives & distributors is/are true: 1) A special relationship may be required and such relationships are helpful in
conducting business in a particular market, 2) There will always be local business customs that are legally problematic in the home country of the principal

A

Only 1 is true

151
Q

What is a joint venture?

A

A cooperative business activity between two or more separate organizations for strategic purposes.

152
Q

Which of the following statements about the reasons for using agents, representatives & distributors is/are true: 1) A special relationship may be required and such relationships are helpful in conducting business in a particular market, 2) There will always be local business customs that are legally problematic in the home country of the principal

A

Only 1 is true

153
Q

What is a Service Level Agreement (SLA)?

A

A comprehensive tool to monitor and manage supplier service performance

154
Q

What is the first step in creating a Statement of Work?

A

Gathering the business needs and goals

155
Q

Which of the following are fundamental for inclusion in an SLA?: 1) Roles and responsibilities, 2) Consequences of failure, 3) Performance measurement, 4) Executive engagement

A

1, 2, 3

156
Q

Which of the following statements about supplier’s quality control and assurance procedures is/are true: 1) They should ensure the desired quality level in project deliverables, 2) They are maintainable and can be enhanced to meet anticipated changes

A

Both 1 and 2 are true

157
Q

Which of the following are fundamental for inclusion in an SLA?: 1) Roles and responsibilities, 2) Consequences of failure, 3) Performance measurement, 4) Executive engagement

A

1, 2, 3

158
Q

Which of the following statements about supplier’s quality control and assurance procedures is/are true: 1) They should ensure the desired quality level in project deliverables, 2) They are maintainable and can be enhanced to meet anticipated changes

A

Both 1 and 2 are true

159
Q

Why should a word be changed when drafting a contract?

A

When you wish to clarify the intended meaning

160
Q

How are missing terms treated by courts in common law countries?

A

The courts will fill in missing terms

161
Q

Which is the overriding principle for drafting a contract?

A

Begin with the end in mind

162
Q

What best defines a contract?

A

A promise between parties

163
Q

How do best practice companies perform contract drafting?

A

As a team effort

164
Q

Identify the missing words in the following sentence: “Will the contract document I am using be .
— and provide my company with the protection it needs?”

A

Sufficient to describe the transaction completely

165
Q

What is a contract?

A

It defines what is being sold and bought and when that occurs

166
Q

What is essential when constructing a contract?

A

It should provide answers and remedies for most problems that may arise in the transaction it covers

167
Q

Streamlining our contracts into a suite of standard template contracts is going to achieve what outcome?

A

Reduced relationship complexity and therefore less risk exposure

168
Q

True/False: Streamlining, standardizing and optimizing our contracts which will result in an increase in the size of the legal team

A

False

169
Q

The use of a knowledge management tool is a means to achieve which of the following? 1) Support risk analysis as part of negotiations planning, 2) Better long-term relationships

A

Both 1 and 2

170
Q

Streamlining our contracts into a suite of standard template contracts is going to achieve what outcome?

A

Reduced relationship complexity and therefore less risk exposure

171
Q

Streamlining, standardizing and optimizing our contracts is NOT likely to result in which of the following outcomes?

A

An increase in the size of the legal team

172
Q

The Chaos approach to knowledge management is best suited to

A

Research and discovery applications

173
Q

The use of a knowledge management tool is a means to achieve which of the following? 1) Support risk analysis as part of negotiations planning, 2) Better long-term relationships

A

Both 1 and 2

174
Q

What are the 3 schools of thought or approaches to knowledge management?

A

Directed Process, Chaos and Field

175
Q

What is a key element in driving successful negotiations?

A

The motivation of the parties

176
Q

Which of the following are common obstacles faced by those planning negotiations?: 1) Stubborn suppliers, 2) Being involved too early, 3) uncooperative colleagues, 4) Confused roles

A

1, 3, 4

177
Q

Which of the following are common weaknesses in the early stages of the negotiation process?: 1) Poor planning, 2) Subject matter experts, 3) unclear roles, 4) Conflicting motivations

A

1, 3, 4

178
Q

Which pressure do text books such as “Getting to yes” not properly address in their theoretical approach to negotiating?

A

Company politics, measurements and organization

179
Q

Why would experienced negotiators, who thrive on creative solutions to a negotiation, say that greater internal controls and discipline improve the outcome?

A

They want to avoid a negotiation being compromised by unplanned actions

180
Q

Price, volume, and delivery date are types of what kind of negotiation goal?

A

Tangible

181
Q

The bargaining zone in a negotiation represents which of the following?

A

The upper and lower limit you set for a negotiation

182
Q

What is it important to assess when understanding our side’s negotiation goals?

A

That the other party is willing and able to accommodate us

183
Q

What type of framing is focused on how the deliberations will proceed?

A

Process

184
Q

What type of framing is focused on the risk associated with any negotiated commitment?

A

Loss-gain

185
Q

Which of the following elements are part of the final stage of negotiation, Stage 4 - Agreement or final breakdown?: 1) Wrapping up, 2) Agreement structuring, 3) Summarizing. 4) Deadlock

A

1, 2, 3

186
Q

The bargaining zone in a negotiation represents which of the following?

A

The upper and lower limit you set for a negotiation

187
Q

What type of framing is focused on a key issue or concern?

A

Substantive

188
Q

In a negotiation the more issues you have the more likely there is to be which of the following?

A

Tradable items

189
Q

Relationship, image, and reputation are types of what kind of negotiation goal?

A

Intangible

190
Q

What is it important to assess when understanding our side’s negotiation goals?

A

That the other party is willing and able to accommodate us

191
Q

What is substantive framing in negotiation?

A

Defining whether there is a focus on a specific item or issue

192
Q

Which of the following are elements of the Argument, Compromise & Search for Alternative Solutions stage of negotiation?: 1) Search for Alternative Solutions, 2) Communicate trades, 3)Compromise on negotiation team membership, 4) use of persuasion techniques

A

1, 2, 4

193
Q

Being evasive is indicative of which negotiation style?

A

Positional

194
Q

How do best practice negotiators approach different negotiation styles?

A

They are able to use all styles interchangeably depending on need

195
Q

What do people adopting a positional negotiating style assume?

A

Only one party can emerge from the negotiation a clear winner

196
Q

What is an advantage of principled negotiating?

A

Flexibility

197
Q

What is critical to understand in relation to issues that may be non-negotiable?

A

The context of all parties involved

198
Q

How do collaborative negotiators view information?

A

A means to strengthen the overall outcome

199
Q

Threats, tension & pressure are indicative of which negotiation style?

A

Positional

200
Q

How should the negotiating environment be established?

A

In a manner conducive to agreement

201
Q

What general human motivation is likely to lead to a fair outcome in negotiations?

A

The desire to achieve balance

202
Q

What should be recognized about internal consensus in negotiations?

A

Often requires its own negotiation

203
Q

How do best practice negotiators approach different negotiation styles?

A

Assess which style is appropriate & use all confidently

204
Q

What is a mutual exchange of value between parties?

A

A trade-off

205
Q

What is a useful measure of power in negotiation?

A

The amount of cooperation required from the other party

206
Q

What should a negotiator do rather than concede?

A

Trade

207
Q

Which of these is least likely to cause a negotiation to fail?

A

understanding a motivation to reject a viewpoint

208
Q

How should the negotiating environment be established?

A

In a manner conducive to agreement

209
Q

What should a negotiator understand in relation to negotiation goals of both parties?

A

The priorities among those goals

210
Q

What should be used to sell ideas in negotiations?

A

Logic

211
Q

A well constructed problem solving opening to a negotiation is likely to use which negotiation style?

A

Principled

212
Q

What is an advantage of closing the last gap on a flip of a coin?

A

It provides an efficient and fair way to close a last issue of little importance to either side

213
Q

What process can negotiation be defined as?

A

The coming to terms on a particular matter in which the parties have corresponding or complementary desires

214
Q

Which of the following are methods for closing the last gap in negotiations?: 1) Split the difference, 2) Coin flip, 3) use alternative supplier, 4) Third party umpire

A

1, 2, 4

215
Q

Which of the following statements about the last gap is/are true?: 1) It may represent unfinished emotional business, 2) It occurs in every negotiation

A

Only 1 is true

216
Q

What is a key aspect of constructing trades in negotiation?

A

Trading an item that has a low value to one party but a high value to the other party

217
Q

What is the last gap in a negotiation?

A

The last step necessary to reach agreement

218
Q

Which of these factors are stages in Michael Porter’s Value Chain, a method of understanding the behavior of costs?: 1) Inbound logistics, 2) Operations, 3) Accounting. 4) Services

A

1, 2, 4

219
Q

You have identified that many potential customers cannot afford the purchase price of your new product. You should:

A

Look at creating alternative options such as lease or rental agreements

220
Q

Best practice corporations will do which of the following? 1) Ensure a healthy overlap between legal terms and financial terms during negotiation 2) Restrict the ability of contracts teams to review financial metrics, and focus them on terms and conditions instead

A

Only 1

221
Q

In a price analysis, which of these terms will have the greatest bearing on cost?

A

Warranty performance

222
Q

What might a customer use if performance is key to their profitability or reputation?

A

Service credits and incentives

223
Q

What type of contract payment option is intended to promote collaboration & the achievement of the customer’s objectives?

A

Incentives

224
Q

What type of contract payment option is intended to promote collaboration & the achievement of the customer’s objectives?

A

Shared benefit

225
Q

Which of the following is true about the contracts specialist? 1) They should only focus on contract terms 2) They do not need to be involved in cost and pricing decisions

A

Neither 1 or 2 is true

226
Q

Emerging practice identifies post-signature contract management as being a framework for what?

A

Delivering effective contract outcomes

227
Q

Which core contract element addresses what the contract is about?

A

Scope

228
Q

Which core contract element identifies whether the contract is working?

A

Service levels (SLAs), metrics, milestones

229
Q

Which meeting agenda includes key contract points, project deliverables, timescales and any unclear aspects of the contract?

A

Contract handover meeting

230
Q

TRUE/FALSE. When the contract was agreed is one of the the four core elements of a contract?

A

False

231
Q

Payment is a critical issue for both parties in terms of __________, accuracy, and amounts.

A

Timing

232
Q

What are the “trinity’ of contract and project management?

A

Scope, schedule and cost

233
Q

What should be used to manage internal and external contract performance?

A

Key performance indicators

234
Q

With the proper monitoring and measurement tools in place, reliable warning signs can be seen in the data as early as

A

10% completion

235
Q

When a target date is missed and the deliverable subsequently accepted on a later date, what is the best practice approach to take?

A

Record the problem and resolve immediately

236
Q

When monitoring the performance schedule, which are concerns that should be addressed: 1) A deliverable that is late, 2) A late deliverable that is accepted

A

Both 1 & 2 are concerns that need to be addressed

237
Q

In considering the impact of the contract change, what should team members document and report?

A

Whether there is an impact on other terms

238
Q

Which of the following possible impacts of a contract change on performance are ordinarily true?: 1) May improve or get worse, 2) KPls may change or new KPls established, 3) Contract performance is legally required to improve by at least 10%, 4) New SLAS may need to be established

A

1, 2, 4

239
Q

TRUE/FALSE: Tracking cost estimates against contract price to forecast likely profit or loss levels is used to anticipate claims.

A

FALSE

240
Q

What can result from an unauthorized change?

A

Contract claim

241
Q

What is a typical reason for a contract change?

A

Errors or omissions in the contract documentation

242
Q

What should the contract reflect in relation to contract change management?

A

Core principles considered critical to success

243
Q

A disparity in expectations between the customer and supplier can lead to dispute and contracting parties rightfully expect accurate and useful information to flow between them in a timely
manner.

A

TRUE

244
Q

In what circumstance is litigation the default route for solving disputes?

A

The contract does not specify alternative means of dispute resolution

245
Q

What should be the first step in a dispute resolution process?

A

Negotiation

246
Q

Which of the following are underpinning causes of contractual disputes?: 1) High value contract, 2) Departure from agreed or reasonable processes (quality of work), 3) Poor contract management
causing ill-will between the parties, 4) Miscommunication

A

2, 3, 4

247
Q

TRUE/FALSE: A typical mediation is confidential but not binding.

A

TRUE

248
Q

Capturing lessons learned associated with a contract should happen when?

A

Throughout the contract lifecycle

249
Q

In what circumstance may total rejection occur?

A

The product and/or service has failed in some fundamental way

250
Q

What type of termination occurs when one party fails to meet its contractual obligations?

A

Termination for cause

251
Q

What type of termination occurs when the parties agree to end the contract by agreement?

A

Termination for convenience

252
Q

What type of acceptance means the requirements detailed in the contract have been met and there will be a smooth close-out?

A

unconditional

253
Q

What type of responsibilities may continue following contract termination?

A

Continuing obligations

254
Q

Partial acceptance is represented by what situation?

A

There will be multiple steps to closure

255
Q

What is an example of a responsibility that may continue after the contract has ended?

A

Confidentiality

256
Q

Which of the following are typical contract close-out activities: 1) Making final payment, 2) Resolution of outstanding claims, 3) Verifying physical completion, 4) Drawing down on performance
bond

A

1, 2, 3

257
Q

What key issue should be addressed regardless of how a contract may be terminated?

A

Title and rights to work in progress

258
Q

Which of the following are commercially sensitive areas that a supplier should protect with a non-disclosure agreement (NDA)?: 1) Company structure, 2) Current and possible future technology, 3) Market potential, 4) Service capabilities

A

2, 3, 4

259
Q

What other benefit does the weighting of evaluation criteria achieve, in addition to elevating the influence of the most important criteria?

A

Weighting the high-level categories accordingly will provide appropriate factoring and ample evidence of strategic focus.

260
Q

Which of the following terms designates an obligation or duty?

A

Shall

261
Q

What approach to negotiation involves the negotiator seeking to understand the interests of both parties?

A

Principled

262
Q

What is a disadvantage of positional negotiating?

A 
○ Inflexibility
		○ Damages relationships
		○ Failure rate
		○ Achieves unsatisfactory / inefficient agreement
Causes loss of focus
263
Q

Which of the following are to defend against a supplier claim?:

A

○ Selection criteria and rationale
○ Request for Proposal
○ Response(s) to RFPs and RFIs
○ Contracts and agreements (including changes)
○ Progress reports
○ Testing plans and results
○ Acceptance criteria, metrics and letters.
○ Copy of deliverables
○ Payment authorizations
○ User communications / complaints
○ Contact / meeting summaries and minutes
○ Action item / resolution list
○ Dispute, claim records, change history and documentation
These are the documentary records that you should be building in your virtual

Contract and Commercial Management Professional Prep (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions