CPP Contract Negotiation & Management 3

Question 1

A supplier submits a Request for Equitable Adjustment (REA) claiming additional costs due to a buyer-directed change. Under the Changes clause, the buyer is MOST responsible for:

Accepted Answer

Negotiating fair compensation for costs directly caused by the directed change

Answer

The Changes clause obligates the buyer to equitably adjust the contract price and schedule for costs directly resulting from authorized directed changes.

Question 2

Which of the following BEST describes a 'standstill agreement' in procurement negotiations?

Accepted Answer

An agreement to pause negotiations while both parties gather additional information

Answer

A standstill agreement temporarily halts negotiations, giving both parties time to reassess positions, gather data, or allow cooling-off without losing their negotiating standing.

Question 3

An evergreen contract is one that:

Accepted Answer

Automatically renews at the end of each term unless notice of cancellation is given

Answer

An evergreen contract automatically renews for successive periods unless one party provides timely notice of termination, which can create unintended long-term obligations.

Question 4

During a negotiation, the supplier's team suddenly requests a recess and returns with significantly changed positions. This is MOST likely an example of:

Accepted Answer

The limited authority tactic

Answer

The limited authority tactic involves one negotiating team claiming they need to consult a higher authority, often used to gain time, reset expectations, or introduce new demands.

Question 5

A contract's 'warranty of merchantability' provision primarily protects the buyer by ensuring that goods:

Accepted Answer

Are fit for the ordinary purposes for which such goods are used

Answer

The implied warranty of merchantability, under UCC Article 2, guarantees that goods are fit for the ordinary purposes for which they are normally used.

(CPP) Certified Purchasing Professional Practice Test

(CPP) Certified Purchasing Professional Practice Test

CPP Contract Negotiation & Management 3