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NIGP CPP Module A EXAM With Verified
Answers 2025
Administrative Law -correct answer-Rules, regulations and executive orders,
promulgated by governmental administrative or regulatory entities. Generally
enacted to make statutes and ordinances more specific. Has the force and effect
of law.
Statutes -correct answer-The written laws approved by legislatures, parliaments,
or house of assembly. Also known as legislation.
Ordinance -correct answer-A law passed by a local government.
Corporate Charter -correct answer-A written document by the founders of a
business detailing the business' major components, e.g. structure, objectives,
planned operations. In the U.S. it is filed with the Secretary of State, and in
Canada it is filed with the registrar.
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Price Fixing -correct answer-Explicit agreements among producers regarding the
prices at which goods are to be sold.
Tying Arrangement -correct answer-A supplier imposed restraint in which the
purchaser is forced to buy an unwanted item to acquire the desired one.
Bid Rigging -correct answer-The agreement among potential competitors to
manipulate the competitive bidding process, for example, by agreeing not to bid,
to bid a specific price, to rotate bidding, or to give kickbacks to purchasers.
Dumping -correct answer-Occurs when a business or country exports a large
quantity of goods at a lower price in a foreign market than the price in the home
market.
three primary sources of procurement laws in any governmental jurisdiction. -
correct answer-1. Statutory laws, ordinances, and charters.
2. Administrative laws
3. Common law
Statutory Laws -correct answer-Statutory laws are based on statutes or laws
passed by governments. State or provincial statutes provide state/provincial-
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directed legislative law. Ordinances and charters provide for local and municipal
governments.
Administrative laws -correct answer-Are written rules, regulations, and entity
policy, developed and promulgated by administrative and regulatory
governmental entities. Administrative Law, provided by the applicable regulatory
entity, has equal force and effect as legislative law, as long as it does not
supersede the context of legislative law.
Common law -correct answer-is based on customs and traditions and codified
through the legal system by court decision; i.e., a collection of court decisions.
Federal Legislation -correct answer-At the highest level, the federal government
passes regulations that affect all procurement departments either directly or
indirectly
State Regulations -correct answer-Procurement professionals are responsible for
ensuring the entity practices and individual purchases are compliant with their
particular and applicable state statutes. States have varying procurement
thresholds, procurement practices, and procurement programs.
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Local Regulations -correct answer-Finally, each locality has the ability to pass local
regulations through the governing political body (such as local city councils and
local county boards).
List 6 types of risk every procurement action should be evaluated for: -correct
answer-Proposal Risk
Surety/Liability Risk
Schedule Risk
Contractual Risk
Performance Risk
Price Risk
Risk Analysis Stages in Procurement Cycle -correct answer-Stage 1: Identify a need
for Procurement
Stage 2: Create Procurement Strategy
Stage 3: Prepare the Quotation or Procurement
NIGP CPP Module A EXAM With Verified
Answers 2025
Administrative Law -correct answer-Rules, regulations and executive orders,
promulgated by governmental administrative or regulatory entities. Generally
enacted to make statutes and ordinances more specific. Has the force and effect
of law.
Statutes -correct answer-The written laws approved by legislatures, parliaments,
or house of assembly. Also known as legislation.
Ordinance -correct answer-A law passed by a local government.
Corporate Charter -correct answer-A written document by the founders of a
business detailing the business' major components, e.g. structure, objectives,
planned operations. In the U.S. it is filed with the Secretary of State, and in
Canada it is filed with the registrar.
,2|Page
Price Fixing -correct answer-Explicit agreements among producers regarding the
prices at which goods are to be sold.
Tying Arrangement -correct answer-A supplier imposed restraint in which the
purchaser is forced to buy an unwanted item to acquire the desired one.
Bid Rigging -correct answer-The agreement among potential competitors to
manipulate the competitive bidding process, for example, by agreeing not to bid,
to bid a specific price, to rotate bidding, or to give kickbacks to purchasers.
Dumping -correct answer-Occurs when a business or country exports a large
quantity of goods at a lower price in a foreign market than the price in the home
market.
three primary sources of procurement laws in any governmental jurisdiction. -
correct answer-1. Statutory laws, ordinances, and charters.
2. Administrative laws
3. Common law
Statutory Laws -correct answer-Statutory laws are based on statutes or laws
passed by governments. State or provincial statutes provide state/provincial-
,3|Page
directed legislative law. Ordinances and charters provide for local and municipal
governments.
Administrative laws -correct answer-Are written rules, regulations, and entity
policy, developed and promulgated by administrative and regulatory
governmental entities. Administrative Law, provided by the applicable regulatory
entity, has equal force and effect as legislative law, as long as it does not
supersede the context of legislative law.
Common law -correct answer-is based on customs and traditions and codified
through the legal system by court decision; i.e., a collection of court decisions.
Federal Legislation -correct answer-At the highest level, the federal government
passes regulations that affect all procurement departments either directly or
indirectly
State Regulations -correct answer-Procurement professionals are responsible for
ensuring the entity practices and individual purchases are compliant with their
particular and applicable state statutes. States have varying procurement
thresholds, procurement practices, and procurement programs.
, 4|Page
Local Regulations -correct answer-Finally, each locality has the ability to pass local
regulations through the governing political body (such as local city councils and
local county boards).
List 6 types of risk every procurement action should be evaluated for: -correct
answer-Proposal Risk
Surety/Liability Risk
Schedule Risk
Contractual Risk
Performance Risk
Price Risk
Risk Analysis Stages in Procurement Cycle -correct answer-Stage 1: Identify a need
for Procurement
Stage 2: Create Procurement Strategy
Stage 3: Prepare the Quotation or Procurement
