APP Regulatory Compliance & Standards 3 — Questions and Answers
Question 1: Which environmental regulation requires purchasing professionals to track and report substances of concern in purchased products sold in the European market?
- ISO 14001
- REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) (Correct answer)
- RoHS Directive
- WEEE Directive
Correct answer: REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals)
REACH requires companies to register chemical substances, evaluate their risks, and authorize use of substances of very high concern (SVHCs) in products placed on the EU market.
Question 2: The Dodd-Frank Act Section 1502 requires U.S. public companies to disclose the use of 'conflict minerals.' Which of the following is NOT classified as a conflict mineral under this act?
- Tantalum
- Tin
- Tungsten
- Titanium (Correct answer)
Correct answer: Titanium
The conflict minerals covered under Dodd-Frank Section 1502 are the '3TG' minerals: Tantalum, Tin, Tungsten, and Gold — titanium is not included.
Question 3: When evaluating supplier compliance with ISO 9001:2015, a purchasing professional should verify that the supplier has implemented:
- A prescriptive quality manual following the exact ISO template
- A risk-based thinking approach integrated into quality management processes (Correct answer)
- Annual third-party certification audits by ISO headquarters
- A minimum of five corrective actions per quarter
Correct answer: A risk-based thinking approach integrated into quality management processes
ISO 9001:2015 introduced risk-based thinking as a core concept, requiring organizations to identify and address risks and opportunities throughout their quality management system.
Question 4: Under the Defense Federal Acquisition Regulation Supplement (DFARS), the Cybersecurity Maturity Model Certification (CMMC) primarily requires defense contractors to:
- Encrypt all purchase orders sent to suppliers
- Demonstrate adequate cybersecurity practices to protect Controlled Unclassified Information (CUI) (Correct answer)
- Submit annual cybersecurity reports to Congress
- Use only government-approved procurement software systems
Correct answer: Demonstrate adequate cybersecurity practices to protect Controlled Unclassified Information (CUI)
CMMC requires defense contractors handling CUI to demonstrate cybersecurity practices at various maturity levels as a condition of contract award.
Question 5: A purchasing professional working with an international supplier should verify that export-controlled items comply with:
- The Sherman Antitrust Act
- The Export Administration Regulations (EAR) and International Traffic in Arms Regulations (ITAR) (Correct answer)
- The Foreign Corrupt Practices Act only
- The Trade Agreements Act only
Correct answer: The Export Administration Regulations (EAR) and International Traffic in Arms Regulations (ITAR)
EAR (administered by BIS) and ITAR (administered by State Department) govern the export of dual-use goods/technology and defense articles respectively.
Question 6: Which U.S. law prohibits purchasing professionals from offering or receiving gifts, kickbacks, or other improper benefits in connection with federal contracts?
- The Procurement Integrity Act (PIA)
- Anti-Kickback Act of 1986
- Federal Anti-Kickback Statute (41 U.S.C. § 8702)
- Both B and C, as they address the same prohibition (Correct answer)
Correct answer: Both B and C, as they address the same prohibition
The Anti-Kickback Act of 1986 and 41 U.S.C. § 8702 both prohibit kickbacks in federal contracting; the latter is the current codification of those protections.
Question 7: The California Transparency in Supply Chains Act (SB 657) requires large retailers and manufacturers doing business in California to disclose their efforts to:
- Reduce carbon emissions in their supply chains
- Eradicate slavery and human trafficking from their supply chains (Correct answer)
- Ensure supplier diversity and minority-owned business inclusion
- Maintain fair pricing practices across all distribution channels
Correct answer: Eradicate slavery and human trafficking from their supply chains
California SB 657 requires qualifying companies to disclose on their websites what steps they are taking to address slavery and human trafficking in their supply chains.
APP Regulatory Compliance & Standards 3
Which environmental regulation requires purchasing professionals to track and report substances of concern in purchased products sold in the European market?