Preview Questions Contract Manager | Role Specific Skill

Question 1: In an FMCG contract, which dispute resolution method is most appropriate for complex international disputes?

Which action should you take?

Choose only one option

Mediation by a mutual party with no formal rules.

Arbitration with a neutral third-party mediator.

Litigation through local courts in the country of the buyer.

Direct negotiation between the parties without third-party involvement.

Question 2: What does a "vendor development" clause do in an FMCG contract?

Which action should you take?

Choose only one option

It focuses only on cost-cutting measures without vendor improvement.

It encourages collaboration between the company and the vendor to improve operational efficiency, product quality, and innovation.

It discourages any changes in vendor processes or procedures.

It allows the company to change vendors frequently without improvement efforts.

Question 3: How does an indemnity clause protect the FMCG company in supplier contracts?

Which action should you take?

Choose only one option

It allows the supplier to terminate the contract at will.

It guarantees the supplier will not change the agreed price.

It shifts the risk of loss or damage from the FMCG company to the supplier.

It provides the FMCG company with compensation for third-party claims.

Question 4: How do you address disputes over product quality in an FMCG supply agreement?

Which action should you take?

Choose only one option

Set price reduction clauses for defective products only.

Include a refund clause without specific quality benchmarks.

Rely on trust and communication between parties without formal clauses.

Specify quality standards and third-party inspection procedures in the contract.

Question 5: How can a contract manager ensure that the dispute resolution process does not impact the vendor relationship in FMCG?

Which action should you take?

Choose only one option

By taking an adversarial approach to force compliance.

By avoiding all communication with the vendor during the dispute.

By maintaining open communication and focusing on collaborative solutions during the dispute.

By immediately terminating the contract to avoid further issues.

Question 6: How does a "service level agreement" (SLA) improve vendor management in FMCG?

Which action should you take?

Choose only one option

It sets clear expectations for vendor performance, including delivery times, product quality, and penalties for non-compliance.

It limits the vendor's ability to increase prices over time.

It focuses only on the quantity of goods supplied, ignoring quality.

It excludes any penalties for failing to meet delivery timelines.