CPCM UPDATED EXAM SCRIPT QUESTIONS AND ANSWERS
GRADED A+
✔✔Written contract - ✔✔3 requirements
-provide evidence of a contract for the sale of goods
-signed by the party to be charged
-specify a quantity
-Contract for the sale of goods over$500 must be in writing to be enforceable
✔✔Sarbanes-Oxley Act - ✔✔-Requirements to prevent companies from accounting for
profits not realized in effort to portray value where none exists
-Signed into law on July 30, 2002
✔✔Government Contract Law - ✔✔-Authority from the U.S. Constitution
-Govt has the implied power to use contracts to fulfill its responsibiities
✔✔Commercial Contract Law - ✔✔-States are primary source of law on commercial
transactions
-Statutory Law
-Private Law
✔✔Article 2 of the UCC - ✔✔Current law governing contracts for the sale of goods
between corporations
✔✔Case Law - ✔✔Legal principles derived from judicial decisions that are determined
by applying statutory and regulatory requirements and interpreting the law as it applies
to the case
✔✔Common Law - ✔✔a body of law common to the whole population, produced by the
efforts of the judiciary to harmonize their decisions with precedent decisions and
changes in law or regulation
✔✔Contract Formation elements - ✔✔-Demonstration of mutual agreement through and
offer and acceptance
-consideration (something of value-money)
-Legal purpose
-capacity of the parties
✔✔Contracts Interpretation - ✔✔-Course of performance
-course of dealing
-usage of trade
✔✔Course of performance - ✔✔Acts in the performance of the contract by either party
that are not objected to.
Consistent with the express terms
,✔✔Course of dealing - ✔✔A series of previous conduct between the parties to a
transaction that can be regarded as establishing a common basis of understanding for
the terminology and conduct
✔✔Usage of Trade - ✔✔Practices or methods of dealing that are regularly observed
and justify an expectation that they will apply to the transaction
✔✔Acceptance - ✔✔The act of an authorized buyer by which the buyer assents to
ownership of existing and identified supplies or specific services rendered as partial or
complete performance of a contract
✔✔Offer - ✔✔A legally binding promise, made by one party to another, to enter into a
contractual agreement if accepted
✔✔Mutual assent - ✔✔Offer made by one party and the unconditional acceptance of
that offer by another
✔✔Arms Export Control Act - ✔✔Controls the export of defense articles and services
and charges the President to exercise the authority
✔✔Antideficiency Act - ✔✔Act prohibiting the obligation of government money in
advance of an appropriation or in excess of the amount of an available appropriation
✔✔Authorization Act - ✔✔Act of Congress that permits a federal program or activity to
begin or continue from year to year
✔✔Appropriation Act - ✔✔A statute that provides legal authority for federal agencies to
incur obligation and make payments out of the treasury for specific purposes.
✔✔Buy American Act - ✔✔Manufactured articles, materials, and supplies manufactured
in the US shall be acquired for public use
✔✔Contract Disputes Act - ✔✔Claims by a contractor against the government arising
under a contract shall be in writing and shall be submitted to the CO for a decision
✔✔Competition in Contracting Act - ✔✔Requires full and open competition unless
exceptions apply, as well as market research and acquisition planning. All responsible
sources may submit proposals or bids.
✔✔Service Acquisition Reform Act - ✔✔Establishes the civilian acquisition workforce
training fund, the position of chief acquisition officer from civilian agencies, and the
requirement for performance based service contracts.
,✔✔Federal Property and Administrative Services Act - ✔✔Provides for an economical
and efficient system for procurement and supply of personal property and nonpersonal
services
✔✔Procurement Integrity Act - ✔✔Established new rules regarding ethical behavior for
government and contractors including technical staff.
✔✔Federal Acquisition Reform Act - ✔✔Full and open competition must be pursued in a
manner that is consistent with the governments need to efficiently fulfill its requirements
✔✔Federal Acquisition Streamlining Act - ✔✔Changed over 200 existing statutes and
shifted the emphasis in federal procurement to using commercial practices, empowering
CO's to exercise business judgment and emphasizing the importance of past
performance
✔✔Walsh-Healy Public Contracts Act - ✔✔Contracts over $15,000
manufacturers pay workers federal minimum way and time 1/2 for all hours worked over
40
✔✔Contract Work Hours & safety Standards Act - ✔✔Established a 40 work week and
time 1/2 for hours worked over 40
✔✔Free Trade - ✔✔a concept that assumes international trade unhampered by govt
measures such as tariffs or nontariff barriers
✔✔Fair Trade Agreements - ✔✔Help level the international playing field and encourage
foreign govts to adopt open and transparent rulemaking procedures and
nondiscriminatory laws and regulations
✔✔Sherman Anti-trust Act - ✔✔prohibits monopolies
✔✔Clayton Act - ✔✔Prohibits certain forms of price discrimination
✔✔Robinson-Patman Act - ✔✔Amended the Clayton act
-Requires sellers to sell to everyone at the same price and requires buyers to buy from
a seller at the same price as everyone else.
✔✔Convention on Contracts for the international Sale of goods - ✔✔To provide a
modern, uniform, and fair regime for contracts for the international sale of goods
✔✔International Traffic in Arms Regulations (ITAR) - ✔✔The Govt views the sale,
export, and re-transfer of defense articles and defense services as an integral part of
safeguarding national security and furthering US foreign policy objectives
, ✔✔Principal - ✔✔An officer, director, owner or person having primary management or
supervisory responsibilities within a business entity.
✔✔Fiduciary - ✔✔A person who handles another person's money or property in a
capacity that involves confidence or trust
✔✔Agency - ✔✔A relationship that exists wheent there is a delegation of authority to
perform all acts connected within a particular trade, business, or company
✔✔Actual Authority - ✔✔An agent's specific authority that the principal intentionally
confers on the agent
-purpose: to affect legal relations of the principals with third persons
✔✔Apparent Authority - ✔✔The appearance of being a principal's agent with power to
act for the principal
✔✔Express authority - ✔✔Authority plainly granted, either verbally or in writing, to an
agent by a principal
Purpose: to do specific actions
✔✔Implied authority - ✔✔Given by a principal to an agent that is not actually expressed
or otherwise communicated
-Purpose: to perform all usual and necessary tasks to exercise the agent's expressed
authority
✔✔Market Research - ✔✔The process used for collecting and analyzing information
about the entire market available to satisfy the minimum agency needs to arrive at the
most suitable approach to acquiring, distributing, and supporting supplies and services
✔✔Market intelligence - ✔✔information on a company's competitors or competitive
teams operating the marketplace or industry
✔✔Market strategy - ✔✔The action plan of how a company will sell its services or
products
✔✔Market Survey - ✔✔Attempts to ascertain whether other qualified sources capable of
satisfying the government's requirements exist
✔✔Market surveillance - ✔✔Includes all the activities that acquisition personnel perform
continuously to keep themselves abreast of technology and product developments in
their areas of expertise
✔✔Fair and reasonable price - ✔✔A price that is fair to both parties considering the
agreed-upon conditions, promised quality, and timeliness of contract performance
GRADED A+
✔✔Written contract - ✔✔3 requirements
-provide evidence of a contract for the sale of goods
-signed by the party to be charged
-specify a quantity
-Contract for the sale of goods over$500 must be in writing to be enforceable
✔✔Sarbanes-Oxley Act - ✔✔-Requirements to prevent companies from accounting for
profits not realized in effort to portray value where none exists
-Signed into law on July 30, 2002
✔✔Government Contract Law - ✔✔-Authority from the U.S. Constitution
-Govt has the implied power to use contracts to fulfill its responsibiities
✔✔Commercial Contract Law - ✔✔-States are primary source of law on commercial
transactions
-Statutory Law
-Private Law
✔✔Article 2 of the UCC - ✔✔Current law governing contracts for the sale of goods
between corporations
✔✔Case Law - ✔✔Legal principles derived from judicial decisions that are determined
by applying statutory and regulatory requirements and interpreting the law as it applies
to the case
✔✔Common Law - ✔✔a body of law common to the whole population, produced by the
efforts of the judiciary to harmonize their decisions with precedent decisions and
changes in law or regulation
✔✔Contract Formation elements - ✔✔-Demonstration of mutual agreement through and
offer and acceptance
-consideration (something of value-money)
-Legal purpose
-capacity of the parties
✔✔Contracts Interpretation - ✔✔-Course of performance
-course of dealing
-usage of trade
✔✔Course of performance - ✔✔Acts in the performance of the contract by either party
that are not objected to.
Consistent with the express terms
,✔✔Course of dealing - ✔✔A series of previous conduct between the parties to a
transaction that can be regarded as establishing a common basis of understanding for
the terminology and conduct
✔✔Usage of Trade - ✔✔Practices or methods of dealing that are regularly observed
and justify an expectation that they will apply to the transaction
✔✔Acceptance - ✔✔The act of an authorized buyer by which the buyer assents to
ownership of existing and identified supplies or specific services rendered as partial or
complete performance of a contract
✔✔Offer - ✔✔A legally binding promise, made by one party to another, to enter into a
contractual agreement if accepted
✔✔Mutual assent - ✔✔Offer made by one party and the unconditional acceptance of
that offer by another
✔✔Arms Export Control Act - ✔✔Controls the export of defense articles and services
and charges the President to exercise the authority
✔✔Antideficiency Act - ✔✔Act prohibiting the obligation of government money in
advance of an appropriation or in excess of the amount of an available appropriation
✔✔Authorization Act - ✔✔Act of Congress that permits a federal program or activity to
begin or continue from year to year
✔✔Appropriation Act - ✔✔A statute that provides legal authority for federal agencies to
incur obligation and make payments out of the treasury for specific purposes.
✔✔Buy American Act - ✔✔Manufactured articles, materials, and supplies manufactured
in the US shall be acquired for public use
✔✔Contract Disputes Act - ✔✔Claims by a contractor against the government arising
under a contract shall be in writing and shall be submitted to the CO for a decision
✔✔Competition in Contracting Act - ✔✔Requires full and open competition unless
exceptions apply, as well as market research and acquisition planning. All responsible
sources may submit proposals or bids.
✔✔Service Acquisition Reform Act - ✔✔Establishes the civilian acquisition workforce
training fund, the position of chief acquisition officer from civilian agencies, and the
requirement for performance based service contracts.
,✔✔Federal Property and Administrative Services Act - ✔✔Provides for an economical
and efficient system for procurement and supply of personal property and nonpersonal
services
✔✔Procurement Integrity Act - ✔✔Established new rules regarding ethical behavior for
government and contractors including technical staff.
✔✔Federal Acquisition Reform Act - ✔✔Full and open competition must be pursued in a
manner that is consistent with the governments need to efficiently fulfill its requirements
✔✔Federal Acquisition Streamlining Act - ✔✔Changed over 200 existing statutes and
shifted the emphasis in federal procurement to using commercial practices, empowering
CO's to exercise business judgment and emphasizing the importance of past
performance
✔✔Walsh-Healy Public Contracts Act - ✔✔Contracts over $15,000
manufacturers pay workers federal minimum way and time 1/2 for all hours worked over
40
✔✔Contract Work Hours & safety Standards Act - ✔✔Established a 40 work week and
time 1/2 for hours worked over 40
✔✔Free Trade - ✔✔a concept that assumes international trade unhampered by govt
measures such as tariffs or nontariff barriers
✔✔Fair Trade Agreements - ✔✔Help level the international playing field and encourage
foreign govts to adopt open and transparent rulemaking procedures and
nondiscriminatory laws and regulations
✔✔Sherman Anti-trust Act - ✔✔prohibits monopolies
✔✔Clayton Act - ✔✔Prohibits certain forms of price discrimination
✔✔Robinson-Patman Act - ✔✔Amended the Clayton act
-Requires sellers to sell to everyone at the same price and requires buyers to buy from
a seller at the same price as everyone else.
✔✔Convention on Contracts for the international Sale of goods - ✔✔To provide a
modern, uniform, and fair regime for contracts for the international sale of goods
✔✔International Traffic in Arms Regulations (ITAR) - ✔✔The Govt views the sale,
export, and re-transfer of defense articles and defense services as an integral part of
safeguarding national security and furthering US foreign policy objectives
, ✔✔Principal - ✔✔An officer, director, owner or person having primary management or
supervisory responsibilities within a business entity.
✔✔Fiduciary - ✔✔A person who handles another person's money or property in a
capacity that involves confidence or trust
✔✔Agency - ✔✔A relationship that exists wheent there is a delegation of authority to
perform all acts connected within a particular trade, business, or company
✔✔Actual Authority - ✔✔An agent's specific authority that the principal intentionally
confers on the agent
-purpose: to affect legal relations of the principals with third persons
✔✔Apparent Authority - ✔✔The appearance of being a principal's agent with power to
act for the principal
✔✔Express authority - ✔✔Authority plainly granted, either verbally or in writing, to an
agent by a principal
Purpose: to do specific actions
✔✔Implied authority - ✔✔Given by a principal to an agent that is not actually expressed
or otherwise communicated
-Purpose: to perform all usual and necessary tasks to exercise the agent's expressed
authority
✔✔Market Research - ✔✔The process used for collecting and analyzing information
about the entire market available to satisfy the minimum agency needs to arrive at the
most suitable approach to acquiring, distributing, and supporting supplies and services
✔✔Market intelligence - ✔✔information on a company's competitors or competitive
teams operating the marketplace or industry
✔✔Market strategy - ✔✔The action plan of how a company will sell its services or
products
✔✔Market Survey - ✔✔Attempts to ascertain whether other qualified sources capable of
satisfying the government's requirements exist
✔✔Market surveillance - ✔✔Includes all the activities that acquisition personnel perform
continuously to keep themselves abreast of technology and product developments in
their areas of expertise
✔✔Fair and reasonable price - ✔✔A price that is fair to both parties considering the
agreed-upon conditions, promised quality, and timeliness of contract performance
