CPCM Certified Professional Contract Manager: Contract Law and Legal Frameworks 3

Question 1

In federal procurement, what statute governs disputes between contractors and the government after contract award?

Accepted Answer

The Contract Disputes Act of 1978

Answer

The Contract Disputes Act of 1978 (41 U.S.C. §§7101-7109) establishes the mandatory process for resolving claims between contractors and executive agencies.

Question 2

The 'battle of the forms' under UCC §2-207 applies when:

Accepted Answer

An acceptance or confirmation contains additional or different terms from the offer

Answer

UCC §2-207 addresses the common commercial situation where an acceptance or written confirmation includes terms that differ from those in the original offer.

Question 3

Which principle limits a non-breaching party's recovery to losses that were foreseeable at the time of contract formation?

Accepted Answer

The Hadley v. Baxendale rule

Answer

The rule from Hadley v. Baxendale (1854) limits consequential damages to those arising naturally from the breach or reasonably contemplated by both parties at contract formation.

Question 4

A contract clause requiring disputes to be submitted to an arbitrator rather than a court is enforceable under which federal statute?

Accepted Answer

The Federal Arbitration Act

Answer

The Federal Arbitration Act (9 U.S.C. §§1-16) declares arbitration agreements valid and enforceable and requires courts to stay litigation in favor of arbitration when a valid clause exists.

Question 5

What is the primary distinction between a 'waiver' and a 'modification' in contract law?

Accepted Answer

A modification requires new consideration while a waiver is a voluntary relinquishment without consideration

Answer

A modification changes contract terms and generally requires new consideration under common law, while a waiver is a voluntary, unilateral relinquishment of a known right that requires no consideration.

CPCM Exam Practice Test

CPCM Exam Practice Test

CPCM Certified Professional Contract Manager: Contract Law and Legal Frameworks 3