CPSM Contract Management & Negotiation Flashcards
6 cards from real CPSM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CPSM Contract Management & Negotiation flashcards as text
A 'termination for convenience' clause in a contract primarily benefits:
Answer: The buyer, allowing cancellation without cause
A termination for convenience clause allows the buyer to end the contract at any time for any reason, typically compensating the supplier only for work completed and reasonable wind-down costs.
What does the Uniform Commercial Code (UCC) Article 2 govern in US supply contracts?
Answer: Sale of goods transactions
UCC Article 2 governs contracts for the sale of goods in the United States, providing default rules for formation, performance, and breach when contract terms are silent.
In contract negotiation, a 'should-cost' analysis is used to:
Answer: Estimate what a product or service should cost based on materials, labor, and overhead
Should-cost analysis deconstructs a product's expected cost using components like materials, labor, overhead, and profit to give buyers a fact-based negotiation target.
Which of the following best describes a 'battle of the forms' scenario in contract law?
Answer: Conflicting terms between buyer's purchase order and supplier's order acknowledgment
The 'battle of the forms' occurs when a buyer's purchase order and a supplier's acceptance contain different or conflicting terms, creating ambiguity about which terms govern the contract.
What is the key difference between a warranty of merchantability and a warranty of fitness for a particular purpose under the UCC?
Answer: Merchantability guarantees goods are fit for ordinary use; fitness guarantees goods meet a buyer's specific stated need
UCC implied warranty of merchantability guarantees goods work for their ordinary purpose, while warranty of fitness for a particular purpose applies when a buyer relies on the seller's expertise for a specific need.
In CPSM contract administration, a formal change order process is critical because:
Answer: It ensures scope changes are documented, priced, and authorized before work proceeds
A formal change order process prevents unauthorized scope creep by requiring that all modifications be documented, agreed upon, and signed before additional work begins.