Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

CIPS L5M5 Exam - Topic 2 Question 13 Discussion

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?
A) Yes -- the product still belongs to Orange Ltd
B) Yes -- the product can be reclaimed under any circumstances
C) No -- if Juicy Boots signed for delivery, goods belong to them
D) No -- delivery on time transfers ownership

CIPS L5M5 Exam - Topic 2 Question 13 Discussion

Actual exam question for CIPS's L5M5 exam
Question #: 13
Topic #: 2
[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?

Show Suggested Answer Hide 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 Asha at Apr 11, 2026, 01:43 PM

Limited Time Offer

25%

Off

Get Premium L5M5 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Helene
4 days ago
D) No -- delivery on time transfers ownership. This is tricky!
upvoted 0 times
...
Marnie
9 days ago
C) No -- if Juicy Boots signed for delivery, goods belong to them.
upvoted 0 times
...
Amina
14 days ago
But what if Juicy Boots signed for it? That matters.
upvoted 0 times
...
Dannette
19 days ago
B) Yes -- the product can be reclaimed under any circumstances.
upvoted 0 times
...
Rosalyn
25 days ago
I agree, the clause protects their ownership.
upvoted 0 times
...
Freida
30 days ago
A) Yes -- the product still belongs to Orange Ltd.
upvoted 0 times
...
Jacquline
1 month ago
This seems tricky... can they really just take them back like that?
upvoted 0 times
...
Kristel
1 month ago
Wait, so even after delivery, Orange Ltd still owns the goods?
upvoted 0 times
...
Marti
2 months ago
Really? I thought signing for delivery meant they own it.
upvoted 0 times
...
Rosalia
2 months ago
Totally agree, Orange Ltd can reclaim the goods!
upvoted 0 times
...
Laurene
2 months ago
A Retention of Title Clause means ownership stays with the seller until paid.
upvoted 0 times
...
Tonette
2 months ago
So, does this mean all deliveries are risky if you don't pay?
upvoted 0 times
...
Felix
2 months ago
I think once Juicy Boots signed, the goods are theirs.
upvoted 0 times
...
Richelle
2 months ago
Wait, can they really take back goods after delivery?
upvoted 0 times
...
Aja
4 months ago
Totally agree, Orange Ltd can reclaim the goods!
upvoted 0 times
...
Craig
4 months ago
Retention of Title means ownership stays with the seller until paid.
upvoted 0 times
...
Callie
5 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.
upvoted 0 times
...
Jeannetta
5 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?
upvoted 0 times
...
Aleta
5 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?
upvoted 0 times
...
Karrie
5 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.
upvoted 0 times
...

Save Cancel