Free CIPS L3M4 Exam Questions

Become CIPS Certified with updated L3M4 exam questions and correct answers

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Total 148 Questions | Updated On: Jun 03, 2025

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Question 1

Which of these statements is a correct description of a contract?

A : A promise made by a supplier to supply goods or services

B : An agreement enforceable by law made between two or more people

C : An offer and acceptance has taken place

D : A promise made by the buyer to place an order

Answer: B

Question 2

An office manager buys some wallpaper based on samples, only to find the batch of paper delivered is of a slightly different colour than the sample provided. Is this an implied term covered under sale by description?

A : No, it is sale by sample. The bulk does not correspond with the sample

B : Yes, it is sale by description. The wallpaper is not the correct colour

C : No, it is not of satisfactory quality. The wallpaper is not fit for purpose intended

D : Yes, it is sale by description. The wallpaper does not conform to the description

Answer: A

Question 3

In contracts, implied terms play a crucial role in defining the rights and obligations of parties, even when not expressly stated in the contract. Which of the following are potential examples of implied terms? Select TWO that apply.

A : Terms that are incorporated by reference to another contract document, such as a technical specification

B : Terms that are inferred by the courts based on general legal principles, ensuring parties act honestly and fairly in their contractual dealings

C : Terms that are not fundamental but the breach of which entitles the innocent party to claim damages without the right to terminate the contract

D : Terms that are fundamental to a contract, the breach of which may give rise to the right to terminate the contract

E : Terms that are fundamental to a contract, the breach of which may give rise to the right to terminate the contract

Answer: B,E

Question 4

You are a procurement manager for a successful electrical component re-seller and distributor. The company presently carries stock of over fifty thousand different items, some of which may be variances of the same product, or similar products from different manufacturers. The managing director of the business is looking to increase the margin on products sold and has asked for your support. It is a competitive industry with a customer base that will be resistant to a price increase. Which of the following could support this request?

A : Standardize the products purchased

B : Improve the quality of products purchased

C : Reduce the range of products purchased

D : Increase the range of products sold

Answer: C

Question 5

Which of the following would be most suitable for a one-off purchase agreement?

A : New desk fans for a sales office

B : Copy paper for a printing supplier

C : Installation of and support for new HR software

D : Supply of vegetables for an office canteen

Answer: C

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Total 148 Questions | Updated On: Jun 03, 2025

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