NASPO CPPB Prep Exam Preparation Newest 2025/2026 Complete
100 Questions And Correct Answers (Verified Answers)|Already
Graded A+
Cost Plus Percentage of Cost Contracts - CORRECT ANSWER=An
agreement on a construction project in which the contractor is provided a
specified percentage profit over and above the actual costs of
construction. These contracts are considered poor business practice
because the contractor has little incentive to hold down costs. The type
of costing method is prohibited in Federal purchasing.
Procurement - CORRECT ANSWER=Includes purchasing, contract
administration, inventory, receiving and disposal.
Integrity - CORRECT ANSWER=The value of one's words and actions.
Competition - CORRECT ANSWER=Provides an incentive to reduce
cost and increase quality.
Laws - CORRECT ANSWER=Define and control what public agencies
may do.
ABA - CORRECT ANSWER=American Bar Association
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,ABL - CORRECT ANSWER=Approved Brands List, also Approved
Products List [APL]
ABA Model Procurement Code for State and Local Government (U S
Law) - CORRECT ANSWER=Developed by the ABA and adopted in
1979, it is a collection of statutory principles and policies that provides
guidance to public policy managers who wish to responsibly manage
public procurement. Stat and large local governments have individually
codified it into procurement law and policy to effectively guide their
procurement organizations. The code was updated in 2000 and contained
enhancements in the following areas: Electronic Commerce,
Cooperative Purchasing, Flexibility in Purchasing Methods and
Processes for Delivery of Infrastructure Facilities and Services. Also
called the Model Procurement Code.
Anti Trust Laws - CORRECT ANSWER=State and federal laws
enacted to ensure free, fair and open competition by prohibiting
monopolies or conspiracies in restraint of trade in interstate and foreign
commerce. The Sherman and Clayton Acts are examples of Federal
AntiTrust Laws.
Oligopoly - CORRECT ANSWER=A market in which few firms
produce all or most of the market supply of a particular good or service.
Also Imperfect Competition.
Implied authority occurs when?
a) Inferences and reasonable deductions based on conduct are made.
b) Explicit language grants authority;
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,c) Codified language is used to delegate responsibility and authority to a
given party;
d) The illusion of authority is allowed - CORRECT ANSWER=a)
Inferences and reasonable deductions based on conduct are made.
Apparent authority occurs when?
a) An individual functions in the capacity that leads others to believe
he/she is an authorized agent of the principle.
b) Explicit language grants authority.
c) A logical extension of expression authority conferred upon a given
party.
d) Codified language delegating responsibility and authority to a given
party. - CORRECT ANSWER=a) An individual functions in the
capacity that leads others to believe he/she is an authorized agent of the
principle.
In 1890, Congress passed this Antitrust Act. It has been the linchpin of
antitrust law. In Section 1 of this Act, it states: Every contract,
combination in the form of trust or otherwise, or conspiracy, in restraint
of trade or commerce among the several States, or with foreign nations,
is declared to be illegal. Every person who shall make any contract or
engage in any combination or conspiracy hereby declared to be illegal
shall be deemed guilty of a felony, and, on conviction thereof, shall be
punished by fine not exceeding $100,000,000 if a corp., or, if any
person, $1,000,000, or by imprisonment not exceeding 10 years, or by
both said punishments, in the discretion of the court. Section 2 of this
Act, makes interstate monopolies a felony. This Act is:
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, a) The Clayton Act
b) The Federal Trade Commission Act
c) The Sherman Act
d) The Robinson-Patman Price Discrimination Act - CORRECT
ANSWER=c) The Sherman Act
The procurement officer has noticed several suspicious pricing patterns
and supplier behaviors, including identical bids and a lack of bids from
some expected bidders for an open solicitation. On detecting this
suspicous activity, the procurement officer should immediately:
a) alert all suppliers that the solicitation will be canceled and resolicited
b) alert their superiors and the antitrust lawyers in the state attorney
general's office
c) alert the suppliers in question about potential violations
d) alert the DOJ about potential antitrust violations - CORRECT
ANSWER=b) alert their superiors and the antitrust lawyers in the state
attorney general's office
Which of the following procurement laws are not considered one of the
primary sources used in governmental jurisdictions?
a) Administrative Law
d) Federal Law
c) Common Law
d) Legislative Law - CORRECT ANSWER=d) Federal Law
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100 Questions And Correct Answers (Verified Answers)|Already
Graded A+
Cost Plus Percentage of Cost Contracts - CORRECT ANSWER=An
agreement on a construction project in which the contractor is provided a
specified percentage profit over and above the actual costs of
construction. These contracts are considered poor business practice
because the contractor has little incentive to hold down costs. The type
of costing method is prohibited in Federal purchasing.
Procurement - CORRECT ANSWER=Includes purchasing, contract
administration, inventory, receiving and disposal.
Integrity - CORRECT ANSWER=The value of one's words and actions.
Competition - CORRECT ANSWER=Provides an incentive to reduce
cost and increase quality.
Laws - CORRECT ANSWER=Define and control what public agencies
may do.
ABA - CORRECT ANSWER=American Bar Association
1|Page
,ABL - CORRECT ANSWER=Approved Brands List, also Approved
Products List [APL]
ABA Model Procurement Code for State and Local Government (U S
Law) - CORRECT ANSWER=Developed by the ABA and adopted in
1979, it is a collection of statutory principles and policies that provides
guidance to public policy managers who wish to responsibly manage
public procurement. Stat and large local governments have individually
codified it into procurement law and policy to effectively guide their
procurement organizations. The code was updated in 2000 and contained
enhancements in the following areas: Electronic Commerce,
Cooperative Purchasing, Flexibility in Purchasing Methods and
Processes for Delivery of Infrastructure Facilities and Services. Also
called the Model Procurement Code.
Anti Trust Laws - CORRECT ANSWER=State and federal laws
enacted to ensure free, fair and open competition by prohibiting
monopolies or conspiracies in restraint of trade in interstate and foreign
commerce. The Sherman and Clayton Acts are examples of Federal
AntiTrust Laws.
Oligopoly - CORRECT ANSWER=A market in which few firms
produce all or most of the market supply of a particular good or service.
Also Imperfect Competition.
Implied authority occurs when?
a) Inferences and reasonable deductions based on conduct are made.
b) Explicit language grants authority;
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,c) Codified language is used to delegate responsibility and authority to a
given party;
d) The illusion of authority is allowed - CORRECT ANSWER=a)
Inferences and reasonable deductions based on conduct are made.
Apparent authority occurs when?
a) An individual functions in the capacity that leads others to believe
he/she is an authorized agent of the principle.
b) Explicit language grants authority.
c) A logical extension of expression authority conferred upon a given
party.
d) Codified language delegating responsibility and authority to a given
party. - CORRECT ANSWER=a) An individual functions in the
capacity that leads others to believe he/she is an authorized agent of the
principle.
In 1890, Congress passed this Antitrust Act. It has been the linchpin of
antitrust law. In Section 1 of this Act, it states: Every contract,
combination in the form of trust or otherwise, or conspiracy, in restraint
of trade or commerce among the several States, or with foreign nations,
is declared to be illegal. Every person who shall make any contract or
engage in any combination or conspiracy hereby declared to be illegal
shall be deemed guilty of a felony, and, on conviction thereof, shall be
punished by fine not exceeding $100,000,000 if a corp., or, if any
person, $1,000,000, or by imprisonment not exceeding 10 years, or by
both said punishments, in the discretion of the court. Section 2 of this
Act, makes interstate monopolies a felony. This Act is:
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, a) The Clayton Act
b) The Federal Trade Commission Act
c) The Sherman Act
d) The Robinson-Patman Price Discrimination Act - CORRECT
ANSWER=c) The Sherman Act
The procurement officer has noticed several suspicious pricing patterns
and supplier behaviors, including identical bids and a lack of bids from
some expected bidders for an open solicitation. On detecting this
suspicous activity, the procurement officer should immediately:
a) alert all suppliers that the solicitation will be canceled and resolicited
b) alert their superiors and the antitrust lawyers in the state attorney
general's office
c) alert the suppliers in question about potential violations
d) alert the DOJ about potential antitrust violations - CORRECT
ANSWER=b) alert their superiors and the antitrust lawyers in the state
attorney general's office
Which of the following procurement laws are not considered one of the
primary sources used in governmental jurisdictions?
a) Administrative Law
d) Federal Law
c) Common Law
d) Legislative Law - CORRECT ANSWER=d) Federal Law
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