CFCM Legal Compliance 3

Question 1

The Trade Agreements Act (TAA) restricts the purchase of end products from non-designated countries. Which agency administers the list of designated countries eligible for TAA coverage?

Accepted Answer

Office of the United States Trade Representative

Answer

The USTR administers trade agreements that determine which countries qualify as designated countries under the TAA for federal procurement.

Question 2

Under FAR Part 31, which cost is unallowable when incurred in connection with a federal contract?

Accepted Answer

Entertainment costs for client events

Answer

FAR 31.205-14 makes entertainment costs unallowable, including costs of amusement, diversion, and social activities and related costs.

Question 3

When a contractor submits certified cost or pricing data that is later found to be defective, the government is entitled to a price reduction under which statute?

Accepted Answer

Truth in Negotiations Act (TINA)

Answer

TINA (now codified at 10 U.S.C. § 3702 and 41 U.S.C. § 3502) requires accurate, complete, and current cost or pricing data and allows price reduction for defective data.

Question 4

Which clause requires contractors to flow down cybersecurity requirements to subcontractors handling Controlled Unclassified Information (CUI)?

Accepted Answer

DFARS 252.204-7012

Answer

DFARS 252.204-7012 (Safeguarding Covered Defense Information) requires contractors to flow down cybersecurity requirements to subcontractors processing CUI.

Question 5

A contractor's employee reports suspected fraud to the agency inspector general. Under the National Defense Authorization Act whistleblower provisions, the employee is protected from reprisal for how long after the protected disclosure?

Accepted Answer

Protection is indefinite as long as the employee is employed

Answer

Whistleblower protections under 41 U.S.C. § 4712 are indefinite and prohibit reprisal against contractor employees for protected disclosures throughout their employment.

(CFCM) Certified Federal Contracts Manager Practice Test

(CFCM) Certified Federal Contracts Manager Practice Test

CFCM Legal Compliance 3