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CPM521S - CONTRACT AND PERFORMANCE MANAGEMENT - 1ST OPP - NOV 2022 |
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nAmI BI AunIVERSITY
OF SCIEnCE Ano TECHnOLOGY
FACULTY OF COMMERCE, HUMAN SCIENCESAND EDUCATION
DEPARTMENT OF MARKETING AND LOGISTICS
QUALIFICATION: BACHELOR OF PROCUREMENT & SUPPLY CHAIN MANAGEMENT
QUALIFICATION CODE: 07BPSM
LEVEL: 5
COURSE CODE: CPM521S
COURSE NAME: CONTRACTAND PERFOMANCE
MANAGEMENT
SESSION: NOVEMBER 2022
PAPER: THEORY
DURATION: 3 HOURS
MARKS: 100
FIRST OPPORTUNITY EXAMINATION
EXAMINER(S)
MS. SELMA KAMBONDE (FT/DI)
MR. TANGI NEPOLO (PM)
MR. PUIS SHIFETA (DI)
MODERATOR: MS. EMILIA SALOMO
INSTRUCTIONS
1. Answer ALL the questions.
2. Write clearly and neatly.
3. Number the answers clearly.
THIS QUESTION PAPER CONSISTS OF 7 PAGES {Including this front page)
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SECTIONA: MULTIPLE CHOICEQUESTIONS
(SO MARKS)
QUESTION 1
There are twenty (20) Multiple-choice questions with several possible choices each. Choose
the best possible answer, for example 1.1 A. Each question is equivalent to 2 marks. Only
write the letter next to the correct answer.
1.1 The transactional part of procurement which is defined as the act of obtaining raw
materials, services, and other assets, mainly focusing on the acquisition activity is
called..........
(2 marks)
a) Procurement management
b) Purchasing
c) Contract management
d) Supply chain management
1.2 Valid contracts involve parties whose judgments are not categorically questioned. The
following list represents groups of people whose consent, and therefore legal capacity,
could be challenged, EXCEPT?
(2 marks)
a) Insolvent
b) Bankrupt
c) People with mental impairments
d) Young people over the age of 18 years
1.3 An agreement between two private parties that creates mutual legal obligation, which
can either be either oral or written is called................
(2
marks)
a) Breaching of contract
b) An agreement
c) A contract
d) Mutual agreement
1.4 Which of the following is NOT the key requirement of valid and enforceable contract?
(2 marks)
a) An offer and unacceptance
b) Capacity of the parties
c) Consideration
d) Legality of purpose
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1.5 In a procurement context, the process of arriving at an agreement on the conditions of
a contract, through discussions between buyer and seller is called.
(2 marks)
a) Contract management
b) Negotiation
c) An agreement
d) Breach of contract
1.6 A primary aim of a procurement should be to achieve ____
?
a) Stock Control
b) Value for money
c) Outsourcing
d) Inventory management
(2 marks)
1.7 The following is NOT an objective of Procurement Management
(2 marks)
a) To achieve corporative productive internal relationships
b) To accomplish organizational procurement objectives at the lowest possible operating
cost and as efficiently as possible
c) To regulate the government procurement of goods, works and services, the letting or
hiring of anything or the acquisition or granting of rights for or on behalf of, and the
disposal of assets of, public entities
d) To support and supplements the activities of the other functions within the business
1.8 Which of the following statements do you think has greatest validity?
a) Purchasing has a broader meaning than procurement
b) Procurement is broadly equivalent to purchasing.
c) Procurement has a broader meaning than purchasing
d) None of the above
(2 marks)
1.9 Which one of the below is not essential requirement of a contract?
a) Technical matter of nature
b) Proper and valid consideration
c) Written and signed
d) Free consent of parties
(2 marks)
1.10 Which ONE of the following is a provision in a contract under which one party
commits to compensate the other for any harm or loss arising out of the contract?
(2 marks)
a) Indemnity
b) Intellectual property
c) Exclusion clause
d) Warranty
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1.11 A Namibia local company is under pressure from customer to place more emphasis
on social value when sourcing its products. It should prioritise which of the following
criteria when developing specifications and selecting suppliers?
(2 marks)
1. Reducing product costs
2. Supporting local communities
3. Improving working conditions
4. Increasing sales revenues
a) 1 and 2 only
b) and 3 only
c) and 4 only
d) 1 and 3 only
1.12 Model form contracts are popular because they offer additional protections to
suppliers. Is this statement correct?
(2 marks)
a) Yes, in industries that use model contracts they protect a buyer from all supplier
conditions
b) No, they are popular because it is a legal requirement to use them if available in that
industry sector
c) Yes, in those industries that use them model contracts considerably limit supplier
liability
d) No, they are popular because they are widely accepted and understood in industries
that use them
1.13 What is the well-accepted term for the function that deals with the operation's
interface with its supplier markets?
(2 marks)
a) Materials management
b) Physical distribution management
c) Purchasing and supply management
d} Logistics
1.14 If any parties to the businesscontract refuses or fails to perform his part of the
contract or by his act makes it impossible to perform his obligation under the contract, it
is called as____
(2 marks)
a) breach of contract
b) void contract
c) tender
d) novation
1.15 Which one of the following statements is true?
(2 marks)
a) If a condition in a business contract is breached the infringed party may treat the
whole contract as terminated but may choose to carry on with the contract and claim
damages.
b) If a warranty in a contract is breached the injured party may treat the whole contract
as terminated.
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c) If a condition in a contract is breached the injured party may claim damages but
must continue with the contract otherwise, he will be in breach of contract.
d) If a warranty in a contract is breached the injured party has no remedy.
1.16 Why is sharing of information a key part of achieving a win-win outcome from a
negotiation?
(2 marks)
a) It gives the buying party important information that it can use to negotiate lower
prices
b) It allows the buyer to improve its specification to get better offers from other
suppliers.
c) It allows both parties to offer solutions that will help solve the other parties' issues
d) It builds mutual trust as each party will return the trust shown in them by the other
and gives the supplying party important information to negotiate a longer contract
term
1.17 Which of the following is an indication of a competitive style of negotiation?
(2 marks)
a) Win-lose
b) Win-win
c) Each parties win and lose a bit
d) Conflict avoiders
1.18 To most people the term "bargaining" and "negotiation" are used?
a) Interchangeable
b) Mutual exclusive
c) Not related
d) Interdependent
(2 marks)
1.19 Which of the following is true about compromising style of negotiation? (2 marks)
a) Both parties give up part of what they really want.
b) From a personal-satisfaction standpoint, compromise is win/win.
c) Compromising is appropriate when the issue is moderately important.
d) Compromising is appropriate when attempts at forcing or collaborating haven't
worked.
1.20 What is BATNA short for?
a) Best Alternative to a Negotiated Agreement
b) Best Arbiter to a New Agreement
c) Best Analogy used by the person who won the Negotiating Agreement
d) Best Alternative to No Agreement
(2 marks)
1.21 Which of the following best describes a force majeure clause?
(2 marks)
a) Prevent unauthorized disclosure of confidential information
b) Detailing how any party can opt-out of the arrangement and conditions that will end
the contract.
c) To protect parties from liabilities caused by a breach of contract or negligent acts of
third parties.
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d) To remove liability for failure to perform contractual obligation caused by
unforeseen and unavoidable circumstances
1.22 A sold a cow to B with a warranty that it was free from disease, but in fact was
suffering from some mouth disease at the time of sale. As a result, the cow purchased
died and also infected other cows of What should B do?
(2 marks)
a) Bis not entitled to claim any damages from A
b) Bis entitled to claim loss suffered in his business
c) Bis entitled to claim cost of the cow and the loss due to diseases inflicted on other
cows, from A
d) None of the above
1.23 Which of the following is not a component of contract management?
a) Managing relationships
b) Managing service performance
c) Contract administration
d) Humanitarian disaster management
(2 marks)
1.24 An agreement becomes a contract if:
a) It is by the free consent of the parties.
b) Parties are competent.
c) It is enforceable by law.
d) None of the above
(2 marks)
1.25 A large manufacturing group is going through a period of investment under which
several facilities will close on a short-term basis for re-fit and upgrade works to be
undertaken. The chief procurement officer (CPO) is concerned about the organization's
ability to meet customer orders should any work carried out by suppliers overrun. In respect
of this concern, the CPO should consider using which of the following contractual terms
with these suppliers?
(2 marks)
a) Insurance
b) Force majeure
c) Liquidated damages
d) Warrantee clause
SECTIONA: SOTOTAL MARKS
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SECTION B: STRUCTURED QUESTIONS
(50 MARKS}
QUESTION 2
Discussthe roles and objectives of Procurement Management in a business environment?
(20 Marks}
QUESTION 3
Recently, you have been appointed as a Contract Manager for New Dimensions Trading in
Oshakati. The company wants to award a contract to PJT Holdings, to renovate it is aging
buildings, however, there is no clear understanding of the key requirements of valid and
enforceable contract that leads to contract formation.
3.1 You are required to scrutinize the key elements of a valid contract and advise the board
on how ensure that all the legal key requirements are met?
(20 Marks}
3.2 What is contract risk and with practical examples, explain the different types of contract
risks
(10 Marks}
SECTION B: 50 TOTAL MARKS
GRAND TOTAL:100 MARKS
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