CORRECT ANSWERS
The Purchasing cycle has been recognized as the six R's because goods and services - must be
obtained: - CORRECT ANSWER In the Right Quality Right Quantity at the Right Time Right
Price from the Right Source and in the Right Manner
Methods of Disposition - CORRECT ANSWER Sealed bids, Public Auctions, Transfers,
Trade-ins, Sales to other Contracting Units
Dillons Rule provides for strict construction approach of State Supremelacy over local government.
Municipal Corporations possess those powers granted by state legislatures - CORRECT ANSWER
False
Value Analysis is a balance of performance, cost and supply used to: - CORRECT ANSWER
Maintain Rising Costs, Keep up technology, Satisfy Customers, Lower Cost of Ownership,
Improve Quality
The use of the mandatory Pre-Bid meetings and/or Site Visitation by Local Contracting Units is
strongly recommended, but voluntary. - CORRECT ANSWER False
List Three of the traditional forms of Municipal Government - CORRECT ANSWER
Boroughs, Townships, Villages, Towns, Cities
In public purchasing all contracts for the provision of goods or performance of services shall be in
writing - CORRECT ANSWER True
List five (5) types of contracts that public entities can use: - CORRECT ANSWER Firm Fixed-
Price Agreements, Agreement with Escalation Provisions, Time and Material Agreements, Open-End
Agreements, Lease Agreements, Lease with and Option to Purchase Agreements
Under the New Jersey Open Public Records Act (OPRA) all records are made or kept in the course of
official business are public unless they are specifically made exempt - CORRECT ANSWER
True
,The State of New Jersey has Five types of levels of local government, list them "Creatures of the
State" - CORRECT ANSWER Counties, Municipalities, School Districts, Local Authorities
and Special Districtsd
When a business has received in any calendar year $55,000 or more in public contracts with public
entities, it must file report with ELEC (on forms provided by the ELEC) - CORRECT ANSWER
FALSE - they must file if they have received $50,000 in any calendar year
Green Product - CORRECT ANSWER Any commodity or service that has a lessor or reduced
negative effect on human health and the environment when compared with competing commodities or
services.
ie packaging, reuse, production, disposal
Implied Warranty - CORRECT ANSWER an unwritten guarantee that the product is of
sufficient quality to fulfill the purpose for which it was designed
Battle of the Forms (UCC) - CORRECT ANSWER UCC rule stating that if both parties are
merchants, then additional terms contained in the acceptance may become part of the sales contract if
certain requirements are met
List four basic "elements" that must be present in any contractual situation, the absence of any which
will prevent the creation of an enforceable contract - CORRECT ANSWER Capable, Mutual,
Lawful, Cause
What are the three acts in the formation of a contract? - CORRECT ANSWER Offer,
Acceptance, Consideration
What are the four "Types" of contracts that Public Entities can use? - CORRECT ANSWER
Firm Fixed-Price Agreement, Agreements with Escalation Provisions, Time and Material
Agreements, Open-End Agreements, Lease Agreements, Lease with an Option to Purchase Agreement
List three major methods that Public Entities use for the vendor selection process? - CORRECT
ANSWER Competitive Sealed Bidding, Competitive Contracting, Competitive Quotations,
Proprietary Purchases, Emergency Purchases
, List three local "cooperative systems" that Public Entities use? - CORRECT ANSWER
Cooperative Pricing System, Joint Purchasing, Commodity Resale System, County
Cooperative Contract Purchasing, Regional Cooperative Pricing
Bid Rigging - CORRECT ANSWER an illegal, anticompetitive practice in which two or more
firms agree in advance which one will submit the lowest bid for a contract offered through a
competitive bidding process
Examples of Bid Rigging - CORRECT ANSWER Bid Suppression, Complementary Bidding,
Bid Rotation, Subcontracting, Market Division
The NJ Prevailing Wage Act is administered by which State Department? - CORRECT ANSWER
Department of Labor & Workforce Development
In addition to local cooperative purchasing systems, a contracting unit may, without advertising for
bids or having rejected all bids, purchase any goods or services under any contract or contracts for
such goods or services entered into on behalf of which State Division - CORRECT ANSWER
Division of Purchase and Property
In a sales transaction, the seller implies that they are conveying a clear title to the goods and warrants
that they have the right to sell the product, and that there are no encumbrances to the title. This is
known under UCC Article 2 - Sales - CORRECT ANSWER Good Title
The NJ Prevailing Wage Act law is administered by which State department? - CORRECT ANSWER
Department of Labor and Workforce Development
In addition to local cooperative purchasing systems, a contracting unit may, without advertising for
bids or having rejected all bids, purchase any goods or services under any contract or contracts for
such goods or services entered into on behalf of which State division - CORRECT ANSWER
Division of Purchase and Property
Good Title - CORRECT ANSWER In a sales transaction, the seller implies that they are
conveying a clear title to the goods and warrants that they have the right to sell the product, and that
there are no encumbrances to the title. This is known under UCC Article 2 - Sales as the following