Discuss CIPS L5M5 Exam Topic 2 Question 13

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

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

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20 comments · newest first

Helene 2 months ago

D) No -- delivery on time transfers ownership. This is tricky!

Marnie 2 months ago

C) No -- if Juicy Boots signed for delivery, goods belong to them.

Amina 2 months ago

But what if Juicy Boots signed for it? That matters.

Dannette 3 months ago

B) Yes -- the product can be reclaimed under any circumstances.

Rosalyn 3 months ago

I agree, the clause protects their ownership.

Freida 3 months ago

A) Yes -- the product still belongs to Orange Ltd.

Jacquline 3 months ago

This seems tricky... can they really just take them back like that?

Kristel 3 months ago

Wait, so even after delivery, Orange Ltd still owns the goods?

Marti 4 months ago

Really? I thought signing for delivery meant they own it.

Rosalia 4 months ago

Totally agree, Orange Ltd can reclaim the goods!

Laurene 4 months ago

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

Tonette 4 months ago

So, does this mean all deliveries are risky if you don't pay?

Felix 4 months ago

I think once Juicy Boots signed, the goods are theirs.

Richelle 4 months ago

Wait, can they really take back goods after delivery?

Aja 6 months ago

Totally agree, Orange Ltd can reclaim the goods!

Craig 6 months ago

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

Callie 7 months ago

I feel like delivery timing plays a big role here. If they delivered on time, maybe D is correct? But I'm not completely confident.

Jeannetta 7 months ago

I practiced a similar question, and I recall that ownership can depend on the terms of the contract. Could it be A or B?

Aleta 7 months ago

I'm not entirely sure, but I think if Juicy Boots signed for the delivery, that might mean they own the goods now. So maybe C?

Karrie 7 months ago

I remember studying Retention of Title Clauses, and I think they allow the seller to reclaim goods until paid for. So, I lean towards A.

CIPS L5M5 Exam - Topic 2 Question 13 Discussion