CMFO - Public Purchasing Verified Multiple Choice
and Conceptual Actual Emended Exam Questions
With Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update
1. What is the legal relationship called where one party acts on behalf of another?
ANSWER: Agency
2. What type of authority exists when an agent is given written or spoken
permission to act?
ANSWER: Express Authority
3. Which type of authority is assumed based on actions that are reasonably
necessary to perform duties?
ANSWER: Implied Authority
4. Apparent authority protects which of the following?
a) The principal only
b) The agent only
c) The third party
d) The governing body
ANSWER: c) The third party
5. Which of the following is NOT a required element of apparent authority?
a) Third party receives a written contract
b) Principal holds the agent out as authorized
c) Third party reasonably relies
,d) Contract is entered
ANSWER: a) Third party receives a written contract
6. What is required under N.J.S.A. 40A:11-14 for public contracts for goods or
services?
ANSWER: All contracts must be in writing
7. Which of the following best defines "mutual consent"?
ANSWER: A voluntary agreement between parties free of force or coercion
8. A contract that is neither oral nor written but based on actions is called:
ANSWER: Implied Contract
9. Which group is typically NOT considered capable to contract?
ANSWER: Minors or individuals declared legally incompetent
10. Which of the following is required for a valid contract?
a) Writing
b) Legal objective
c) Surety bond
d) Municipal seal
ANSWER: b) Legal objective
11. What term describes the “something of value” exchanged in a contract?
ANSWER: Consideration
,12. What is the function of a guarantee in a procurement contract?
ANSWER: To reduce buyer’s sense of risk by providing assurance against
failure
13. A warranty primarily protects the buyer from:
ANSWER: Poor workmanship and material defects
14. What is one key difference between a warranty and a guarantee?
ANSWER: A warranty is a legal promise; a guarantee is more of a reassurance
15. What is the remedy of rescission in contract law?
ANSWER: Cancelling the contract and releasing both parties from obligations
16. A court order to force one party to carry out the contract is called:
ANSWER: Specific Performance
17. What is the most common monetary remedy for breach of contract?
ANSWER: Damages
18. What is Alternate Dispute Resolution (ADR)?
ANSWER: Non-judicial resolution process agreed upon by both parties
19. Which of the following is NOT a form of ADR?
a) Mediation
b) Arbitration
c) Litigation
, d) Negotiation
ANSWER: c) Litigation
20. When a contract is silent on dispute resolution, where is the default venue for
resolution?
ANSWER: Civil court
21. If a public contract is not approved by the governing body, what is its legal
status?
ANSWER: Void or unenforceable
22. Which law governs public contracts in New Jersey municipalities?
ANSWER: Local Public Contracts Law (N.J.S.A. 40A:11)
23. A public officer exceeding their authority may expose the municipality to:
ANSWER: Claims based on apparent authority
24. What must a third party prove to enforce a contract based on apparent
authority?
ANSWER: Reasonable reliance on the agent’s representation
25. What type of contract is created when both parties act in a way that indicates
mutual intent?
ANSWER: Implied-in-fact contract
and Conceptual Actual Emended Exam Questions
With Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update
1. What is the legal relationship called where one party acts on behalf of another?
ANSWER: Agency
2. What type of authority exists when an agent is given written or spoken
permission to act?
ANSWER: Express Authority
3. Which type of authority is assumed based on actions that are reasonably
necessary to perform duties?
ANSWER: Implied Authority
4. Apparent authority protects which of the following?
a) The principal only
b) The agent only
c) The third party
d) The governing body
ANSWER: c) The third party
5. Which of the following is NOT a required element of apparent authority?
a) Third party receives a written contract
b) Principal holds the agent out as authorized
c) Third party reasonably relies
,d) Contract is entered
ANSWER: a) Third party receives a written contract
6. What is required under N.J.S.A. 40A:11-14 for public contracts for goods or
services?
ANSWER: All contracts must be in writing
7. Which of the following best defines "mutual consent"?
ANSWER: A voluntary agreement between parties free of force or coercion
8. A contract that is neither oral nor written but based on actions is called:
ANSWER: Implied Contract
9. Which group is typically NOT considered capable to contract?
ANSWER: Minors or individuals declared legally incompetent
10. Which of the following is required for a valid contract?
a) Writing
b) Legal objective
c) Surety bond
d) Municipal seal
ANSWER: b) Legal objective
11. What term describes the “something of value” exchanged in a contract?
ANSWER: Consideration
,12. What is the function of a guarantee in a procurement contract?
ANSWER: To reduce buyer’s sense of risk by providing assurance against
failure
13. A warranty primarily protects the buyer from:
ANSWER: Poor workmanship and material defects
14. What is one key difference between a warranty and a guarantee?
ANSWER: A warranty is a legal promise; a guarantee is more of a reassurance
15. What is the remedy of rescission in contract law?
ANSWER: Cancelling the contract and releasing both parties from obligations
16. A court order to force one party to carry out the contract is called:
ANSWER: Specific Performance
17. What is the most common monetary remedy for breach of contract?
ANSWER: Damages
18. What is Alternate Dispute Resolution (ADR)?
ANSWER: Non-judicial resolution process agreed upon by both parties
19. Which of the following is NOT a form of ADR?
a) Mediation
b) Arbitration
c) Litigation
, d) Negotiation
ANSWER: c) Litigation
20. When a contract is silent on dispute resolution, where is the default venue for
resolution?
ANSWER: Civil court
21. If a public contract is not approved by the governing body, what is its legal
status?
ANSWER: Void or unenforceable
22. Which law governs public contracts in New Jersey municipalities?
ANSWER: Local Public Contracts Law (N.J.S.A. 40A:11)
23. A public officer exceeding their authority may expose the municipality to:
ANSWER: Claims based on apparent authority
24. What must a third party prove to enforce a contract based on apparent
authority?
ANSWER: Reasonable reliance on the agent’s representation
25. What type of contract is created when both parties act in a way that indicates
mutual intent?
ANSWER: Implied-in-fact contract
