Preview Questions Contract Manager | Role Specific Skill

Question 1: How should a contract manager ensure that force majeure clauses comply with international trade laws?

Which action should you take?

Choose only one option

By ensuring the clause clearly defines specific events that may excuse performance under international law.

By including vague terms that allow for any type of disruption.

By excluding force majeure clauses to avoid confusion.

By allowing the supplier to define force majeure events without limitation.

Question 2: What is the role of an "audit" clause in managing financial risks in FMCG contracts?

Which action should you take?

Choose only one option

It allows one party to audit the other's operations without restrictions.

It focuses solely on product audits, excluding financial assessments.

It eliminates the need for any financial checks during the contract term.

It provides the right to conduct audits on financial records to ensure compliance with payment terms and contract obligations.

Question 3: What role does arbitration play in dispute resolution for FMCG contracts?

Which action should you take?

Choose only one option

It forces both parties to agree on one settlement without compromise.

It provides a non-binding recommendation to both parties.

It delays resolution, giving more time to negotiate.

It allows a neutral third party to make a binding decision, which can be faster than litigation.

Question 4: What is the primary function of a "termination for convenience" clause in managing contract risks in FMCG?

Which action should you take?

Choose only one option

It is used to renegotiate contract terms every 12 months.

It ensures that the contract cannot be terminated under any circumstances.

It allows either party to terminate the contract without cause, providing flexibility and risk management in changing business conditions.

It only allows the buyer to terminate if they can prove a breach of contract.

Question 5: What is the role of a "force majeure" clause in FMCG contracts in risk management?

Which action should you take?

Choose only one option

It limits the number of suppliers that can be used in the contract

It outlines the penalties for late delivery of goods

It protects parties from liability when unforeseen events prevent contract fulfillment

It enforces strict timelines for product delivery

Question 6: How do "governing law" provisions help in mitigating legal risks in international FMCG contracts?

Which action should you take?

Choose only one option

By specifying which country's legal system will be used to interpret the contract

By limiting the product range to specific markets

By determining the financial penalties for late delivery

By standardizing the labor policies for all countries