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Regulatory Compliance Flashcards

7 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Regulatory Compliance flashcards as text

  1. A buyer pressures a supplier into offering a lower price than competitors receive, knowing the discount is not cost-justified. Which law could expose the BUYER to liability?

    Answer: Robinson-Patman Act Section 2(f)

    Section 2(f) of the Robinson-Patman Act makes it unlawful for a buyer to knowingly induce or receive a discriminatory price.

  2. Three suppliers agree among themselves which one will submit the lowest bid on each upcoming tender. How do U.S. antitrust courts treat this conduct?

    Answer: As a per se violation of Section 1 of the Sherman Act

    Bid rigging is a form of horizontal collusion that is per se illegal under Sherman Act Section 1 and can be prosecuted criminally.

  3. A procurement agent pays a small fee to a foreign customs clerk to speed up routine processing of already-approved paperwork. Under the FCPA, this payment is most likely treated as:

    Answer: A facilitating payment for routine governmental action

    The FCPA excepts facilitating payments made to expedite routine, non-discretionary governmental actions, though many companies ban them anyway.

  4. Which federal agency administers the Export Administration Regulations (EAR) that control dual-use items?

    Answer: Department of Commerce, Bureau of Industry and Security

    The Bureau of Industry and Security (BIS) within the Department of Commerce administers the EAR and the Commerce Control List.

  5. Sharing controlled technical data with a foreign national employee working at a U.S. facility may require an export license because it is considered a:

    Answer: Deemed export

    Releasing controlled technology or source code to a foreign person inside the U.S. is a deemed export to that person's home country.

  6. Before awarding a contract, a buyer screens a new overseas supplier against the Specially Designated Nationals (SDN) list. Which agency maintains this list?

    Answer: Office of Foreign Assets Control

    OFAC, part of the Treasury Department, maintains the SDN list and administers U.S. economic sanctions programs.

  7. A supplier tells a buyer about a request to certify that its goods contain no components from a country targeted by an unsanctioned foreign boycott. Under U.S. antiboycott rules, the company should generally:

    Answer: Decline to comply and report the request to the Commerce Department as required

    Antiboycott regulations in EAR Part 760 forbid complying with unsanctioned foreign boycotts and require reporting boycott requests to BIS.