CCM Regulatory Framework & Compliance 3

Question 1

Under Export Administration Regulations (EAR), an 'Export Control Classification Number' (ECCN) is used to:

Accepted Answer

Determine whether a product requires an export license

Answer

ECCNs classify items on the Commerce Control List and determine whether a license is needed to export specific products to certain destinations.

Question 2

A 'liquidated damages' clause in a commercial contract serves what primary purpose?

Accepted Answer

To pre-establish damages for a specific breach

Answer

Liquidated damages clauses establish in advance a specific amount payable upon breach, particularly useful when actual damages would be difficult to calculate.

Question 3

Which U.S. regulation requires contractors with federal contracts above $750,000 to disclose credible evidence of fraud, conflicts of interest, or overpayments?

Accepted Answer

FAR 52.203-13 Contractor Code of Business Ethics

Answer

FAR 52.203-13 mandates mandatory disclosure of credible evidence of certain violations to the contracting officer and the Office of Inspector General.

Question 4

The 'Buy American Act' in federal procurement primarily requires:

Accepted Answer

Preference for domestically manufactured goods in U.S. government purchases

Answer

The Buy American Act gives preference to domestic end products in federal government purchases unless exceptions apply.

Question 5

In the context of anti-money laundering (AML) compliance, what is a 'Suspicious Activity Report' (SAR)?

Accepted Answer

A report filed with FinCEN when a financial transaction raises AML concerns

Answer

SARs are filed with the Financial Crimes Enforcement Network (FinCEN) when institutions detect transactions that may involve money laundering or other illicit activity.

(CCM) Certified Commercial Manager Practice Test

(CCM) Certified Commercial Manager Practice Test

CCM Regulatory Framework & Compliance 3