Practice Test Geeks(APP) Accredited Purchasing Practitioner Certification Practice Test
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Regulatory Compliance & Standards Flashcards

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Read the first 7 Regulatory Compliance & Standards flashcards as text

  1. Under the Sherman Antitrust Act, which purchasing activity would most likely constitute an illegal restraint of trade?

    Answer: Coordinating with competitors to collectively boycott a supplier

    Coordinating with competitors to boycott suppliers is a per se violation of the Sherman Act as a group boycott, which is an illegal horizontal restraint of trade.

  2. The Foreign Corrupt Practices Act (FCPA) applies to purchasing professionals primarily when they:

    Answer: Pay or authorize payments to foreign government officials to obtain or retain business

    The FCPA prohibits U.S. persons and companies from bribing foreign government officials to obtain or retain business, with serious criminal and civil penalties.

  3. When a supplier claims its product is 'RoHS compliant,' a purchasing professional should understand this means the product:

    Answer: Does not contain hazardous substances above maximum concentration values per EU Directive 2011/65/EU

    RoHS (Restriction of Hazardous Substances) Directive 2011/65/EU restricts specific hazardous substances like lead, mercury, and cadmium to maximum concentration values in electrical and electronic equipment.

  4. Which record retention requirement is most critical for purchasing professionals handling U.S. government contracts?

    Answer: Retain contract records for 3 years after final payment, per FAR 4.703

    FAR 4.703 generally requires contractor records related to government contracts to be retained for 3 years after final payment, though some records have longer retention periods.

  5. A purchasing manager at a food manufacturing company must ensure suppliers comply with which U.S. regulation enacted in 2011 that shifted food safety to a prevention-based framework?

    Answer: FDA Food Safety Modernization Act (FSMA)

    FSMA, signed in 2011, fundamentally changed U.S. food safety law by shifting from responding to foodborne illness to preventing it, with major implications for supply chain management.

  6. Under the Trade Agreements Act (TAA), a purchasing professional sourcing for U.S. federal contracts must verify that products are manufactured in:

    Answer: The United States or a TAA-designated country

    The TAA requires that products purchased for U.S. federal contracts be manufactured or substantially transformed in the U.S. or a TAA-designated country.

  7. ISO 45001:2018 is relevant to purchasing professionals because it sets standards for:

    Answer: Occupational health and safety management systems that suppliers must maintain

    ISO 45001:2018 specifies requirements for occupational health and safety (OH&S) management systems, which purchasing professionals may require suppliers to meet as a qualification criterion.