NIGP CPP CERTIFICATION EVALUATION
2026 STUDY GUIDE QUESTIONS AND
ANSWERS
◉ Statutory Law
Answer: The written law established by enactments of government,
expressing the will of the legislature.
◉ Administrative Law
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
Answer: The written laws approved by legislatures, parliaments, or
house of assembly. Also known as legislation.
◉ Ordinance
Answer: A law passed by a local government.
◉ Corporate Charter
,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.
◉ Price Fixing
Answer: Explicit agreements among producers regarding the prices
at which goods are to be sold.
◉ Tying Arrangement
Answer: A supplier imposed restraint in which the purchaser is
forced to buy an unwanted item to acquire the desired one.
◉ Bid Rigging
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
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.
Answer: 1. Statutory laws, ordinances, and charters.
2. Administrative laws
3. Common law
◉ Statutory Laws
Answer: Statutory laws are based on statutes or laws passed by
governments. State or provincial statutes provide state/provincial-
directed legislative law. Ordinances and charters provide for local
and municipal governments.
◉ Administrative laws
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
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
, Answer: At the highest level, the federal government passes
regulations that affect all procurement departments either directly
or indirectly
◉ State Regulations
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.
◉ Local Regulations
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:
Answer: Proposal Risk
Surety/Liability Risk
Schedule Risk
2026 STUDY GUIDE QUESTIONS AND
ANSWERS
◉ Statutory Law
Answer: The written law established by enactments of government,
expressing the will of the legislature.
◉ Administrative Law
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
Answer: The written laws approved by legislatures, parliaments, or
house of assembly. Also known as legislation.
◉ Ordinance
Answer: A law passed by a local government.
◉ Corporate Charter
,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.
◉ Price Fixing
Answer: Explicit agreements among producers regarding the prices
at which goods are to be sold.
◉ Tying Arrangement
Answer: A supplier imposed restraint in which the purchaser is
forced to buy an unwanted item to acquire the desired one.
◉ Bid Rigging
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
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.
Answer: 1. Statutory laws, ordinances, and charters.
2. Administrative laws
3. Common law
◉ Statutory Laws
Answer: Statutory laws are based on statutes or laws passed by
governments. State or provincial statutes provide state/provincial-
directed legislative law. Ordinances and charters provide for local
and municipal governments.
◉ Administrative laws
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
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
, Answer: At the highest level, the federal government passes
regulations that affect all procurement departments either directly
or indirectly
◉ State Regulations
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.
◉ Local Regulations
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:
Answer: Proposal Risk
Surety/Liability Risk
Schedule Risk
