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NIGP CPP Module A EXAM With Verified
Answers 2025-2026
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
| | | | | |
|e
NIGP CPP Module A EXAM With Verified
Answers 2025-2026
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 || |P |a |g
|e
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 || |P |a |g
|e
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 || |P |a |g
|e
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
| | | | | |
