CCB Contract Compliance & Management 2

Question 1

A vendor consistently delivers goods two days late but within the contract's allowable variance window. What is the compliance team's most appropriate action?

Accepted Answer

Document the pattern and issue a formal notice of concern

Answer

Even when delays fall within allowable variance, a recurring pattern warrants documentation and a formal notice to prevent future material breaches.

Question 2

Which contract clause specifically defines what happens when a party cannot perform due to an unforeseeable event like a natural disaster?

Accepted Answer

Force majeure clause

Answer

A force majeure clause excuses a party's non-performance when extraordinary events beyond their control make performance impossible.

Question 3

During a contract audit, you discover the supplier billed for services not listed in the statement of work (SOW). This is best classified as:

Accepted Answer

Scope creep billing fraud

Answer

Billing for services outside the SOW without a formal change order constitutes scope creep and potentially fraudulent billing.

Question 4

What is the primary purpose of a contract's 'entire agreement' (merger) clause?

Accepted Answer

To state that the written contract supersedes all prior negotiations and agreements

Answer

A merger clause establishes that the written contract represents the complete and final agreement, invalidating prior oral or written negotiations.

Question 5

A subcontractor on a government contract fails to comply with the required labor standards. Who bears primary compliance responsibility?

Accepted Answer

The prime contractor

Answer

The prime contractor is responsible for ensuring all subcontractors comply with applicable labor standards and contract flow-down requirements.

(CCB) Certified Compliance and Business Specialist Practice Test

(CCB) Certified Compliance and Business Specialist Practice Test

CCB Contract Compliance & Management 2