Chapter 3 Guiding Principles Flashcards
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)?
The Government Accountability Office
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?
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
Which of the following is an underlying concept in the UCC applicable to contracts?
There must be a written record of any contract for the sale of goods of $500 or more in order to be enforceable
Which of the following describes perfect competition?
Many independent buyers; many independent sellers; easy entry to market; balanced pricing between buyers and sellers
The Uniform Commercial Code:
Is a primary source of guidance in the commercial contracting community
Which of the following is an example of a record?
Executed contract
Maintaining memos, emails and other files to demonstrate proper business operations and decision-making rationale is called which of the following?
Documentation
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:
Personal conflict of interest
The government’s authority to enter into a contract comes from:
The U.S. Constitution
Which of the following is likely an example of an organizational conflict of interest?
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.
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?
Usage of trade
The Uniform Commercial Code is a uniform law. This means that:
It must be adopted as law by each state separately
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:
Can control the entire Product X market through their power to set prices
A hurricane destroying a manufacturing plant is an example of:
Force Majeure
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?
The seller is fully liable
The prohibition on expending or authorizing an obligation of funds in excess of the amount available in the appropriation derives from:
The Anti-Deficiency Act
Clear payment terms in a contract fulfill which essential contract element?
Consideration between the parties
Which of the following describes the Guiding Principles relationships in the CMBOK Competency System?
They encompass Pre-award, Award, and Post-award
The Sarbanes-Oxley Act:
Prevents companies from accounting for unrealized profits
Which of the following is a difference between commercial contracts and government contracts?
In government contracts, only the buyer has the authority to require a contract change
The U.S. cell phone market is an example of:
An Oligopoly
An Organizational Conflict of Interest exists when:
The nature of the work to be performed under a contract may result in an unfair competitive advantage to the contractor.
What is an express warranty?
Specifically states in the contract what the product will/will not do
A “well-trained” contract manager:
Has learned relevant competencies
Knowledge management is best described by which of the following?
An organization’s capability to capture and reuse critical and relevant information
Acquisition statutes are ______________ in the Federal Acquisition Regulation
Implemented
Article 2 of the UCC requires that a written contract must:
Specify a quantity
Fund appropriated by Congress are commonly restricted in two ways:
Intended use and time of availability
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?
Organizational conflict of interest
Which of the following represents the relationship between principal and agent?
You are authorized by your company to make binding decisions on their behalf
When someone not authorized to act on behalf of a principal causes action by another party, it is:
Apparent authority
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:
Express authority
The ___________________ statute requires all U.S. performed services contracts greater than $2500 to pay minimum wages based on prevailing wages in that location.
Service Contract Labor Standards
Which of the following would be considered a characteristic of a successful knowledge management framework?
Groups of subject matter experts connected through technology
When one contracting party gives the other contracting party reason to believe they will not perform the contract, they are providing a
Repudiation
Article 2 of the UCC covers:
The Sale of Goods
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:
Express authority
One aspect of a monopsony is that it:
Has many independent sellers
The negotiation between the buyer and seller of a change to an existing contract is an example of:
Bilateral Monopoly
During contract performance which party is most likely to bear the risk of loss?
The party who had control of the goods when the loss occurred
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:
Oligopoly
The CMBOK suggests that:
Certification is an indicator of professional strength
Which of the following is NOT one of the tenets of a successful contract management team?
Shared leadership
No debt may be paid out of public funds unless Congress has made an ______________ for that purpose.
Appropriation
Which of the following is not a requirement of a written contract for the sale of goods?
The place of delivery
Complete the equation: All the information + all the _________ = Knowledge
Experience
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?
Tacit Knowledge
Which of the following is not a competency of Guiding Principles?
Collaboration
When conducting research, asking “Is this information current, official, and verifiable?” is an example of what?
Information filtering
3Which skill below is needed to be a successful contract manager?
Creativity
