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Procurement Law And Contract Management (Pscm 026) Question Paper

Procurement Law And Contract Management (Pscm 026)

Course:Accounting, Finance& Investments

Institution: Kenya Methodist University question papers

Exam Year:2012

TIME: 2 HOURS
Instructions:
Question One
Explain the following types of contracts.
Fixed-price contract with escalation/descalation.
(4 Marks)
Fixed-price contract with redetermination.
(4 Marks)
Explain any THREE risk of unethical behavior purchasing.
(6 Marks)

Explain the following term as used in purchasing.
(6 Marks)
Express warranty
Implied warranties
Warranty of title
Explain the seller’s and buyer’s rights.
(10 Marks)

Question Two
What does the term agent mean? Under what conditions can a purchasing agent be held personally responsible for ’abusing’.
(10 Marks)

Explain FIVE types of unethical purchasing behaviours.
(10 Marks)

Question Three
Explain THREE types of damages available to the purchaser.
(6 Marks)

Suppose you sign a contract with supplier for Sh. 5,000 worth of goods. You tell the supplier that you are only authorized to sign contracts for Shs. 4,000 without approval from the comptroller of your company, but the supplier agrees anyway. Later, you find out that you only need shs 2,500 worth of goods. How many shs worth of goods are you legally bound to purchase from the supplier.
(6 Marks)
Explain THREE circumstances that can lead to cancellation of order.
(8 Marks)

Question Four
Explain any FIVE methods of settling purchasing contractual disputes.
(10 Marks)
Explain the risks involved in long-term supply contracts.
(10 Marks)

Question Five
Discuss types of contracts that may be encountered by purchases.

(12 Marks)
Suppose you are a purchase manager who is the contract administrator for a supplier installing a purchasing transaction management information systems. What are some of the key elements that you would wish to include in the contract with this supplier?
(8 Marks)

Procurement Law And Contract Management (Pscm 026) Question Paper

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