What are disadvantages of a buyer contracting on the supplier's terms? Select TWO that apply.
A.
Materials will not be changed without the buyer’s consent
B.
The buyer would not be subject to any indemnity clause obligations
C.
Title to goods may remain with the supplier until payment is received
D.
Goods received late will incur penalties for the supplier
E.
Prices may increase without notification to the buyer
The Answer Is:
A, C, D, E
This question includes an explanation.
Explanation:
Contracting on the supplier’s terms can pose risks for the buyer. Common disadvantages include retention of title clauses (C), where the supplier retains ownership of goods until full payment is made. Also, suppliers may include clauses allowing them to raise prices without notification (E). These terms shift risk to the buyer and reduce predictability and control.
[Reference:, CIPS L4M3 Commercial Contracting Study Guide, Chapter 3, Section 3.1.3 – Standard forms of contract and negotiating key terms., , ]
L4M3 PDF/Engine
Printable Format
Value of Money
100% Pass Assurance
Verified Answers
Researched by Industry Experts
Based on Real Exams Scenarios
100% Real Questions
Get 65% Discount on All Products,
Use Coupon: "ac4s65"