CPCM Practice Test Questions with Correct Answers

CPCM Practice Test Questions with Correct Answers Competitive negotiation - Answer-A method of contracting involving a RFP that states: -The buyer's requirements and criteria for evaluation -Submission of timely proposals by a maximum number of offerors -discussion with those offerors found to be within the competitive range -award of a contract to the one offeror whose offer, price and other consideration factors are most advantageous to the buyer R&D Contract - Answer-A contract for basic research applied research, or development SBIR - Answer-Small Business Innovation Research Program-Agencies over $100M required to set aside a fixed percent of their budget for small business Basic Research - Answer-primary aim to gain a fuller understanding of subject rather than application of that knowledge Applied Research - Answer-1. Follows basic research 2. Attempts to find improvements in technology, materials processes, methods, devices, or techniques Development - Answer-The use of scientific and technical knowledge in the design, dev, testing or evaluation of a potential new product or service - or improvement. INCLUDES: Design engineering prototyping Engineering testing Technical sourcing Cooperative Development - Answer-Any method by which GOVERNMENTS together make use of their collective R&D resources to include: Technical information Harmonizing of requirements Co-development Interdependent R&D Agreement on Standards Government R&D - Answer-Purpose: To achieve agency and national goals Commercial R&D - Answer-Future -oriented, long-term activities for profit Uniform Commercial Code (UCC) - Answer-Primary source of commercial contract Law -adopted as law by each state -Adopted by all but Louisiana -Governs the sale of any kind of goods -General Principles of contract law Statutory Law - Answer--Laws passed by legislation -Common Law-judge decision -May require some contracts to be in writing and executed using specific procedures Private Law - Answer-Includes the terms of the agreement between parties who have exchanged promises for consideration General principles of Contract Law (article 2 of the UCC) - Answer--Contract Formation -Seller/Buyer contractual obligations -contract performance Remedies for breach of contract Written contract - Answer-3 requirements -provide evidence of a contract for the sale of goods -signed by the party to be charged -specify a quantity -Contract for the sale of goods over$500 must be in writing to be enforceable Sarbanes-Oxley Act - Answer--Requirements to prevent companies from accounting for profits not realized in effort to portray value where none exists -Signed into law on July 30, 2002 Government Contract Law - Answer--Authority from the U.S. Constitution -Govt has the implied power to use contracts to fulfill its responsibiities Commercial Contract Law - Answer--States are primary source of law on commercial transactions -Statutory Law -Private Law Article 2 of the UCC - Answer-Current law governing contracts for the sale of goods between corporations Case Law - Answer-Legal principles derived from judicial decisions that are determined by applying statutory and regulatory requirements and interpreting the law as it applies to the case Common Law - Answer-a body of law common to the whole population, produced by the efforts of the judiciary to harmonize their decisions with precedent decisions and changes in law or regulation Contract Formation elements - Answer--Demonstration of mutual agreement through and offer and acceptance -consideration (something of value-money) -Legal purpose -capacity of the parties Contracts Interpretation - Answer--Course of performance -course of dealing -usage of trade Course of performance - Answer-Acts in the performance of the contract by either party that are not objected to. Consistent with the express terms Course of dealing - Answer-A series of previous conduct between the parties to a transaction that can be regarded as establishing a common basis of understanding for the terminology and conduct Usage of Trade - Answer-Practices or methods of dealing that are regularly observed and justify an expectation that they will apply to the transaction Acceptance - Answer-The act of an authorized buyer by which the buyer assents to ownership of existing and identified supplies or specific services rendered as partial or complete performance of a contract Offer - Answer-A legally binding promise, made by one party to another, to enter into a contractual agreement if accepted