CIPS L5M5 Exam - Topic 1 Question 2 Discussion

Actual exam question for CIPS's L5M5 exam

Question #: 2
Topic #: 1

[All L5M5 Questions]

Juicy Boots has a contract with Orange Ltd containing a Retention of Title Clause. Juicy Boots failed to pay for two deliveries, and Orange Ltd reclaims goods already delivered. Is this valid?

AYes -- the product still belongs to Orange Ltd

BYes -- the product can be reclaimed under any circumstances

CNo -- if Juicy Boots signed for delivery, goods belong to them

DNo -- delivery on time transfers ownership

Show Suggested Answer

Suggested Answer: A

Comprehensive and Detailed Explanation From Exact Extract of Documents:

A Retention of Title Clause states that ownership of goods remains with the seller until full payment is made. According to the L5M5 study guide (p.190), Orange Ltd legally retains ownership of the fruit delivered until Juicy Boots settles payment. This clause protects suppliers, particularly SMEs, from non-payment risks. Signing for delivery does not override the clause, and timely delivery is irrelevant. Retention of Title is an important risk management tool in procurement contracts.

Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.190

by Marya at Oct 05, 2025, 01:46 PM

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Santos

15 hours ago

D is interesting. Timely delivery could mean ownership transfer.

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Fatima

6 days ago

I feel C could be valid. Signing for delivery might imply ownership.

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Mertie

11 days ago

B seems too broad. Not every circumstance allows reclamation.

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Angelyn

16 days ago

I agree, A makes sense. Ownership stays with Orange Ltd until paid.

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Bambi

21 days ago

I thought delivery meant ownership transferred automatically?

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Christiane

26 days ago

Wait, but if Juicy Boots signed for it, doesn’t that change things?

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Mattie

1 month ago

Totally agree, Orange Ltd can reclaim the goods!

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Eun

1 month ago

Retention of Title means ownership stays with the seller until paid.

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Celestina

1 month ago

I feel like I might be mixing things up, but if Juicy Boots signed for delivery, doesn't that mean they own the goods? So maybe C or D?

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Lucina

2 months ago

I practiced a similar question and I think the key is that the clause allows reclaiming goods if payment isn't made, so A makes sense to me.

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Billye

2 months ago

I'm not entirely sure, but I remember something about ownership transferring upon delivery unless specified otherwise. Maybe C or D could be correct?

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Mirta

2 months ago

A is the way to go. Orange Ltd has the right to reclaim the goods if Juicy Boots didn't pay.

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Kallie

2 months ago

I think A is correct. The Retention of Title Clause protects the seller.

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Rochell

2 months ago

I think the Retention of Title Clause means the goods still belong to Orange Ltd until paid for, so A seems right.

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India

3 months ago

No way, the contract protects Orange Ltd's rights here!

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Stevie

3 months ago

Haha, D is just silly. Delivery on time? What kind of exam question is this?

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Karima

3 months ago

I'm going with B. You can reclaim goods under any circumstances with a Retention of Title Clause, right?

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Larae

4 months ago

C is definitely wrong. If Juicy Boots signed for delivery, the goods are theirs, no matter what.

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Amos

4 months ago

Hmm, I think A is the correct answer. Retention of Title Clause means the goods still belong to Orange Ltd.

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Jamey

4 months ago

Wait, I'm not sure about this. The question says Juicy Boots "failed to pay for two deliveries" - does that mean the goods were already delivered before the non-payment? I better double-check the legal principles on this.

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Franchesca

4 months ago

This looks straightforward to me. If there's a retention of title clause, then the goods still belong to Orange Ltd even after delivery, so they can reclaim them. I'm pretty confident I know the right answer here.

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Robt

4 months ago

Okay, I think I've got a strategy here. I'll need to look up the legal principles around retention of title clauses and when ownership transfers, then apply that to the specific details in the question. Gotta make sure I don't miss any key facts.

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Nguyet

5 months ago

I'm a bit confused by the wording here. Does the question mean that Juicy Boots didn't pay for the last two deliveries, or that they failed to pay for the goods that were already delivered? That could make a difference in how I approach this.

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Jeffrey

5 months ago

Hmm, this seems like a tricky one. I'll need to carefully review the details about retention of title clauses and when ownership transfers.

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Kenneth

2 months ago

I think A is the right choice. The product still belongs to Orange Ltd.

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Reita

3 months ago

But what about C? If Juicy Boots signed for delivery, doesn't that change things?

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