Chapter 3 Guiding Principles

Question 1

What agency has the binding authority to “settle all accounts” of the government (i.e. to determine whether a particular use of funds is proper)?

Answer 1

The Government Accountability Office

Question 2

Fenway Company verbally agreed to purchase 5 fans from Top Fans Inc., at the total price of $476.20. Top Fans Inc. delivered two of the fans but has not delivered the other 3 fans. Fenway paid for the 2 fans delivered. Which of the following is true?

Answer 2

Although Top Fans already delivered, and Fenway accepted, the 2 fans, Top Fans can still provide a written notice of its objection to the contract to preclude it from being enforced

Question 3

Which of the following is an underlying concept in the UCC applicable to contracts?

Answer 3

There must be a written record of any contract for the sale of goods of $500 or more in order to be enforceable

Question 4

Which of the following describes perfect competition?

Answer 4

Many independent buyers; many independent sellers; easy entry to market; balanced pricing between buyers and sellers

Question 5

The Uniform Commercial Code:

Answer 5

Is a primary source of guidance in the commercial contracting community

Question 6

Which of the following is an example of a record?

Answer 6

Executed contract

Question 7

Maintaining memos, emails and other files to demonstrate proper business operations and decision-making rationale is called which of the following?

Answer 7

Documentation

Question 8

A Procurement Specialist at Company A is responsible for purchasing a fleet of vehicles under federal agency contract. His sister owns a large car dealership that sells the type of vehicles needed and she is planning to submit a bid. This situation could be an example of which of the following:

Answer 8

Personal conflict of interest

Question 9

The government’s authority to enter into a contract comes from:

Answer 9

The U.S. Constitution

Question 10

Which of the following is likely an example of an organizational conflict of interest?

Answer 10

Before an acquisition for information technology is conducted, Company A is awarded a contract to prepare data system specifications and equipment performance criteria to be used as the basis for the equipment competition. Company A is preparing to submit a proposal to supply the equipment.

Question 11

In contract interpretation, the practices or methods of dealing that are regularly observed and justify an expectation that they will apply to a specific transaction are called what?

Answer 11

Usage of trade

Question 12

The Uniform Commercial Code is a uniform law. This means that:

Answer 12

It must be adopted as law by each state separately

Question 13

Company A, Company B, and Company C produce 95% of Product X. If Company B raises the price of its Product X, consumers may choose to buy from Company A or Company C instead. If Company A and Company C decide to follow Company B’s lead and raise their prices, the three companies:

Answer 13

Can control the entire Product X market through their power to set prices

Question 14

A hurricane destroying a manufacturing plant is an example of:

Answer 14

Force Majeure

Question 15

Guileless Imports purchased 10,000 metal wheels from Annular Supply Co. under a sale on approval contract. Annular Supply delivered the wheels to Fraught Freight for shipping to the destination, but the shipping container sank and all the wheels were lost. Which party bears liability for the loss?

Answer 15

The seller is fully liable

Question 16

The prohibition on expending or authorizing an obligation of funds in excess of the amount available in the appropriation derives from:

Answer 16

The Anti-Deficiency Act

Question 17

Clear payment terms in a contract fulfill which essential contract element?

Answer 17

Consideration between the parties

Question 18

Which of the following describes the Guiding Principles relationships in the CMBOK Competency System?

Answer 18

They encompass Pre-award, Award, and Post-award

Question 19

The Sarbanes-Oxley Act:

Answer 19

Prevents companies from accounting for unrealized profits

Question 20

Which of the following is a difference between commercial contracts and government contracts?

Answer 20

In government contracts, only the buyer has the authority to require a contract change

Question 21

The U.S. cell phone market is an example of:

Answer 21

An Oligopoly

Question 22

An Organizational Conflict of Interest exists when:

Answer 22

The nature of the work to be performed under a contract may result in an unfair competitive advantage to the contractor.

Question 23

What is an express warranty?

Answer 23

Specifically states in the contract what the product will/will not do

Question 24

A “well-trained” contract manager:

Answer 24

Has learned relevant competencies

Question 25

Knowledge management is best described by which of the following?

Answer 25

An organization’s capability to capture and reuse critical and relevant information

Question 26

Acquisition statutes are ______________ in the Federal Acquisition Regulation

Answer 26

Implemented

Question 27

Article 2 of the UCC requires that a written contract must:

Answer 27

Specify a quantity

Question 28

Fund appropriated by Congress are commonly restricted in two ways:

Answer 28

Intended use and time of availability

Question 29

Divestiture of a company (the creation of a new company with a completely separate board of directors) may be recommended as a remedy for what?

Answer 29

Organizational conflict of interest

Question 30

Which of the following represents the relationship between principal and agent?

Answer 30

You are authorized by your company to make binding decisions on their behalf

Question 31

When someone not authorized to act on behalf of a principal causes action by another party, it is:

Answer 31

Apparent authority

Question 32

A government contracting officer representative is designated via a letter of appointment signed by the contracting officer that delineates specific duties and responsibilities. This is an example of:

Answer 32

Express authority

Question 33

The ___________________ statute requires all U.S. performed services contracts greater than $2500 to pay minimum wages based on prevailing wages in that location.

Answer 33

Service Contract Labor Standards

Question 34

Which of the following would be considered a characteristic of a successful knowledge management framework?

Answer 34

Groups of subject matter experts connected through technology

Question 35

When one contracting party gives the other contracting party reason to believe they will not perform the contract, they are providing a

Answer 35

Repudiation

Question 36

Article 2 of the UCC covers:

Answer 36

The Sale of Goods

Question 37

Pleasant Elevation is a construction company working on a government building. Some of its employees were injured in an accident on the job site. After receiving notification of the accident, the contracting officer, Michelle Jackson, issued an order to suspend contract performance. Pleasant Elevation stopped construction so that the government could conduct an investigation. Ms. Jackson’s actions were an example of:

Answer 37

Express authority

Question 38

One aspect of a monopsony is that it:

Answer 38

Has many independent sellers

Question 39

The negotiation between the buyer and seller of a change to an existing contract is an example of:

Answer 39

Bilateral Monopoly

Question 40

During contract performance which party is most likely to bear the risk of loss?

Answer 40

The party who had control of the goods when the loss occurred

Question 41

Company A, Company B, and Company C produce 95% of Product X. If Company B raises the price of its Product X, consumers may choose to buy from Company A or Company C instead. This is an example of:

Answer 41

Oligopoly

Question 42

The CMBOK suggests that:

Answer 42

Certification is an indicator of professional strength

Question 43

Which of the following is NOT one of the tenets of a successful contract management team?

Answer 43

Shared leadership

Question 44

No debt may be paid out of public funds unless Congress has made an ______________ for that purpose.

Answer 44

Appropriation

Question 45

Which of the following is not a requirement of a written contract for the sale of goods?

Answer 45

The place of delivery

Question 46

Complete the equation: All the information + all the _________ = Knowledge

Answer 46

Experience

Question 47

There are four types of knowledge required by contracts managers. The communication skills needed for a successful negotiation would fall into which of the following categories?

Answer 47

Tacit Knowledge

Question 48

Which of the following is not a competency of Guiding Principles?

Answer 48

Collaboration

Question 49

When conducting research, asking “Is this information current, official, and verifiable?” is an example of what?

Answer 49

Information filtering

Question 50

3Which skill below is needed to be a successful contract manager?

Answer 50

Creativity