Contract Management and Negotiation Flashcards
7 cards from real CCM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contract Management and Negotiation flashcards as text
A contract contains both an arbitration clause and a choice-of-law clause specifying New York law. Which clause determines how disputes are resolved?
Answer: The arbitration clause governs the dispute resolution process while New York law governs substantive issues
These clauses serve different functions: the arbitration clause dictates the forum and process for resolving disputes, while the choice-of-law clause determines which jurisdiction's substantive law applies to those disputes.
When a contract price is subject to economic price adjustment (EPA), the adjustment is typically tied to:
Answer: A published index such as the Consumer Price Index or Producer Price Index
EPA clauses use objective published indices like the CPI or PPI to adjust contract prices, removing the need to audit actual cost changes.
Which of the following best describes 'contract privity'?
Answer: The legal relationship between parties who have formed a direct contract
Contract privity is the direct legal relationship between contracting parties, which traditionally meant only those parties could sue or be sued under the contract.
A subcontractor 'flow-down' clause is used to:
Answer: Pass relevant prime contract obligations down to subcontractors
Flow-down clauses incorporate specific prime contract terms (such as FAR clauses in government contracting) into subcontracts to ensure compliance throughout the supply chain.
In negotiation theory, your BATNA is best used as:
Answer: A benchmark to evaluate proposed agreements and decide whether to walk away
Your Best Alternative to a Negotiated Agreement defines the point at which you should prefer no deal, giving you a standard against which all proposed terms can be measured.
A 'novation' agreement in contract management refers to:
Answer: Substituting a new party for an original party with all parties' consent
Novation replaces an original contracting party with a new one, extinguishing the original party's obligations, and requires the consent of all three parties involved.
Under FAR Part 15, the 'competitive range' determination in a negotiated federal procurement is used to:
Answer: Identify offerors whose proposals have a reasonable chance of being selected
The competitive range narrows the field to those offerors whose proposals are technically acceptable and price-competitive enough to warrant further negotiations or discussions.