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CPPB Exam Prep Quizzes & Correct Verified Answers
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What does enabling legislation include? - -constitutions -statutes -ordinances and charters -rules and regulations -policy -procurement procedures
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CPPB Exam Prep Quizzes & CorrectVerified Answers
Is Governmental power inherent? - ✔✔Yes, they are inherent powers that are granted by
a constitution, charter or act.
Does a government official have inherent power? - ✔✔No, for purposes of public procurement,
there must be a specific authorization from officials in the executive branch of government to enter into
contracts. Without that authority, the officials may not do so. The existence of such authority is the
foundation of any public procurement system.
Who passes laws and/or ordinances to generally define the scope of authority and identifies who
may exercise that authority? - ✔✔Legislative bodies.
What are the most effective procurement statutes and ordinances? - ✔✔Those that establish the
general parameters of an official's contracting or procurement authority and authorize that official
to promulgate rules, regulations or policies to implement it.
Is Government procurement restricted to activities that are authorized by law? - ✔✔Yes, the
authority of the central procurement department is limited by what has been included in the enabling
legislation.
How is the private sector restricted in procurement? - ✔✔They may do whatever the law does
not prohibit.
,What does enabling legislation include? - ✔✔-constitutions
-statutes
-ordinances and charters
-rules and regulations
-policy
-procurement procedures
What are the three primary sources of procurement laws in any entity? - ✔✔-Statutory Laws
-Administrative Laws
-Common Law
What are Statutory Laws? - ✔✔These include constitutions, statutes, ordinances and charters.
Statutory Laws are based on statutes or laws passed by governments. State or provincial statutes
provide state/provincial-directed legislative law. Ordinances and charters provide for local and municipal
governments.
What are Administrative Laws? - ✔✔These are written rules and regulations and entity policy
(developed and promulgated by administrative and regulatory governmental agencies). Administrative
Law, provided by the applicable regulatory entity, has equal force and effect as legislative law as long
as it does not supersede the context of legislative law.
What is Common Law? - ✔✔These are based on customs and traditions and codified through the
legal system. Common Law is based on custom and usage or confirmed by court decisions, i.e., a
collection of court decisions. Access to published judicial decisions is available through volumes
called "reporters" in major law libraries.
What social and economic problems have policy makers enacted because of the magnitude of state and
local government spending which require contractors to do what? - ✔✔-maintain fair employee
practices
-provide safe and healthy working conditions
-pay fair wages
-refrain from polluting the air and waters
,-give preference to contractors from the same state/province or locality
-award to small or women owned businesses
-promote the rehabilitation of prisoners and the disabled
What other laws are applicable to public procurement? - ✔✔-Criminal Law
-Tort Law
-Budget/Finance Laws
Define Criminal Law - ✔✔Imposes punishment such as imprisonment or fines for an act deemed to
be criminal
Define tort law - ✔✔Permits parties to sue each other for damage to a person or property.
Define Budget/Finance Laws - ✔✔These laws prohibit an entity from spending funds beyond
those that the legislative body appropriates.
What is authority? - ✔✔The right to perform certain acts or prescribe rules governing the conduct of
others.
What is Law of Agency? - ✔✔The law of agency states that an agent is someone who acts on behalf
of a principal. A product of common law that focuses not only on the creation of agent relationships but
also the liability for losses suffered by others who deal with agents.
What are the two ways an agency relationship by created? - ✔✔-by agreement between
principal and agent or
-by law
What is a principal? - ✔✔A principal is one who employs an agent. A person who authorized
another to act for him/her.
, What is an agent? - ✔✔An agent is a person authorized by a superior, i.e., principal, to act for him
or her. Individuals who act on behalf of an entity, such as a corporation, partnership, or any level of
government as that entity conducts business. In public procurement, this designation is usually
incorporated into statute and ordinance.
What is express authority? - ✔✔Express authority is the authority that is explicitly given in direct
language rather than inferred from conduct. It can be in writing or oral. Express authority can be very
specific; for example, "the chief procurement officer is authorized to enter into a contract for less
than $25,000." Express authority may also be generalized; for example, "the chief procurement officer
has the authority to enter into all contracts according to the procurement needs of his/her
government entity."
What is implied authority? - ✔✔Implied authority is not defined expressly, but is only determined
by inferences and reasonable deductions that are necessary to perform the expressly authorized acts.
Can consider the conduct of the principal regarding the historical actions of the agent.
What is apparent authority? - ✔✔Apparent authority is the reasonable impression that an agent
is permitted to act on their principal's authority even though that authority has not been granted.
What is inherent authority? - ✔✔Inherent authority is based on an entity's sovereignty, to enter
into contracts, although not explicitly authorized.
What are some of the technologies that are currently available to procurement? - ✔✔-E-
Commerce; more specifically-e-sourcing, e-procurement, e-purchasing, e-auctions, e-tender
-Electronic payment solutions
-Marketplaces/Business exchanges
-Contract registers/databases
-Knowledge portals/supplier databases
-Business intelligence
-E-invoicing/e-payables
-ERP (Enterprise Resource Planning) systems
-MRP (Materials Resource Planning) inventory systems
-EPOS (Electronic Point of Sales)
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