CAM CAM Contract Management & Procurement

Question 1

Which contract clause protects a company from losses caused by a vendor's failure to deliver services as agreed?

Accepted Answer

Indemnification clause

Answer

Force majeure clause

Answer

Confidentiality clause

Answer

Arbitration clause

Question 2

In procurement, what does the term 'RFP' stand for?

Accepted Answer

Request for Proposal

Answer

Request for Payment

Answer

Review of Pricing

Answer

Report for Procurement

Question 3

A certified account manager reviewing a vendor contract notices a 'liquidated damages' clause. What does this clause specify?

Accepted Answer

A pre-agreed penalty amount for contract breach

Answer

The total contract value

Answer

Conditions under which the contract is void

Answer

Payment terms for services rendered

Question 4

Which procurement strategy involves maintaining multiple approved vendors to reduce supply chain risk?

Accepted Answer

Dual-sourcing

Answer

Sole-sourcing

Answer

Vertical integration

Answer

Just-in-time procurement

Question 5

During contract negotiations, what is a 'BATNA'?

Accepted Answer

Best Alternative to a Negotiated Agreement

Answer

Baseline Assessment of Total Net Assets

Answer

Budget Allocation for Targeted Negotiation Activities

Answer

Binding Agreement to Negotiate Alternatives

Question 6

A contract renewal is approaching in 90 days. Which action should an account manager prioritize first?

Accepted Answer

Review contract performance metrics and SLA compliance

Answer

Immediately issue a new RFP to the market

Answer

Notify finance to freeze the current budget

Answer

Escalate to legal without reviewing current terms