CCNP Contract Law & Regulatory Compliance 5

Question 1

Under UCC Article 2, when a merchant offeror makes a written, signed offer assuring it will be held open, the offer is irrevocable for the stated period without consideration. This is known as a:

Accepted Answer

Firm offer

Answer

UCC Section 2-205 provides that a merchant's signed, written offer assuring it will be held open is a firm offer irrevocable for up to three months without requiring consideration.

Question 2

The Buy American Act in US government procurement requires federal agencies to give preference to:

Accepted Answer

Domestic end products for use inside the United States

Answer

The Buy American Act generally requires federal agencies purchasing supplies for use in the US to buy domestic end products, subject to exceptions and waivers.

Question 3

When a party to a contract anticipates the other party's future breach and treats the contract as immediately terminated, this is called:

Accepted Answer

Anticipatory repudiation

Answer

Anticipatory repudiation occurs when one party clearly indicates before performance is due that they will not perform, entitling the other party to treat the contract as breached immediately.

Question 4

HIPAA's 'minimum necessary' standard requires covered entities and business associates to:

Accepted Answer

Limit access to and disclosure of PHI to the minimum needed to accomplish the intended purpose

Answer

The HIPAA minimum necessary standard requires organizations to make reasonable efforts to use, disclose, or request only the PHI needed for the specific purpose.

Question 5

In contract negotiations, a 'limitation of liability' clause typically caps a party's maximum exposure to damages at:

Accepted Answer

A specified cap such as the total fees paid under the contract

Answer

Limitation of liability clauses commonly cap a party's exposure at an agreed ceiling—often the contract value—to allocate and bound risk between the parties.

(CCNP) Certified Contract Negotiation Professional Practice Test

(CCNP) Certified Contract Negotiation Professional Practice Test

CCNP Contract Law & Regulatory Compliance 5