CIPS L4M3 Exam - Topic 9 Question 48 Discussion

Actual exam question for CIPS's L4M3 exam

Question #: 48
Topic #: 9

[All L4M3 Questions]

Which of the following are key features of standard terms and conditions? Select TWO that apply

AStandard terms always comply with implied terms

BSpecific to each purchase order

CNon-disclosure

DNon-negotiable

EDesigned to be used in repetitive transactions

Show Suggested Answer

Suggested Answer: D, E

The key features, advantages and disadvantages of standard terms are summarised below:

- Form: Concise, generic and designed to be attached to purchase or sales orders

- Non-negotiable

- Ineffective terms: may be replaced by implied terms or national legal code rules, or subject to court 'balance of interest' judgement.

- Advantages: Basic contractual protection for most common circumstances; Avoid having to create new contract for repeat business.

- User friendly

- Usage: Low value, low risk, repetitive transactions

- Coverage: Definitions, relationship to other contracts, formation of the contract, order of precedence, price, invoicing and payment, specification, legal compliance, warrantee and liability, ownership and risk, intellectual property, data management and ethics.

- Disadvantages: Does not allow for specific circumstances; Risk for creating battle of the forms; Can create contractual uncertainty if used with purchase orders under call-off contracts.

LO 3, AC 3.1

by Gertude at Sep 14, 2024, 02:03 PM

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Dominga

3 months ago

Non-disclosure is definitely a key feature too!

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Trinidad

3 months ago

I thought they were specific to each purchase order, not non-negotiable.

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Devon

3 months ago

Wait, do standard terms really always comply with implied terms?

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Leatha

4 months ago

Totally agree, they should be designed for repetitive transactions!

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Anissa

4 months ago

Standard terms are often non-negotiable.

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Nana

4 months ago

Wait, do standard terms always comply with implied terms? I can't remember if that's a requirement or not.

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Lajuana

4 months ago

I feel like I’ve seen a question like this before, and I think non-disclosure might be important too.

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Bong

4 months ago

I'm not entirely sure, but I remember something about non-negotiable terms being a key feature.

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Justine

5 months ago

I think standard terms and conditions should be designed for repetitive transactions, right? That sounds familiar.

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Cecily

5 months ago

I feel pretty confident about this one. Standard terms are all about efficiency and consistency, so D and E are definitely the key features. The other options don't really fit with the purpose of standard terms and conditions.

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Dannie

5 months ago

Okay, let me see. I remember that standard terms are meant to be consistent across transactions, so that rules out B. And they're usually designed to cover common situations, not just one-off deals, so E seems right. I'm a bit unsure about the non-disclosure part, though.

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India

5 months ago

Hmm, I'm a bit confused on this one. I know standard terms are supposed to be non-specific to each purchase order, but I'm not sure if that means they're always non-negotiable. I'll have to think about this one a bit more.

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Isaiah

5 months ago

I think the key features are that standard terms are non-negotiable (D) and designed for repetitive transactions (E). Those seem like the most important ones to me.

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Brendan

1 year ago

As a lawyer, I have to say that non-disclosure clauses are pretty standard these days too. But I guess the exam wanted to focus on the core features.

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Jacquelyne

1 year ago

Haha, imagine if the answer was 'B - Specific to each purchase order'! That would kind of defeat the whole purpose of 'standard' terms, wouldn't it?

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Erin

1 year ago

Hmm, I'm not so sure about A. I thought standard terms were meant to override any implied terms, not comply with them. Anyway, D and E are the obvious choices.

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Chuck

1 year ago

Definitely agree with D and E. I'm surprised they didn't include 'boilerplate' as an option - that's a classic term for standard, non-negotiable contract terms.

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