Part I: Multiple Choice (2 points each)
1. Sources of contract law include __________.
a. executive orders issued by the president
b. the U.S. Constitution
c. statutes enacted by Congress
d. all of the above
2. Fiscal
a.
b.
c.
d.
law is derived from __________.
general statutory provisions
legislation authorizing the appropriation
the terms of the Appropriations Act
all of the above
3. Which of the following are types of appropriations?
a. military pay
b. experimental research
c. operations and maintenance
d. both A and C
4. __________ authority is, as the wording indicates, created by explicit language,
conveyed either orally or in writing.
a. Implied
b. Express
c. Apparent
d. none of the above
5. Which of the following contracts must be in writing?
a. contracts for the sale of land
b. promises to answer for the debt of another
c. promises made upon the consideration of marriage
d. all of the above
6. The Authorization Act for FY 1998 amended 10 USC 2410a to allow Department of
Defense (DoD) agencies to obligate funds in the current year to finance any
severable service contract with a period of performance not exceeding __________.
a. 6 months
b. 12 months
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c. 36 months
d. 48 months
7. Each year, four key pieces of legislation pertaining to military spending are passed,
including the __________.
a. Military Construction Authorization Act
b. Appropriations Act
c. Authorization Act
d. all of the above
8. What decisions have the force and effect of law?
a. executive decisions
b. legislative decisions
c. judicial decisions
d. none of the above
9. Which of the following is a contractual document that supports an obligation?
a. hand-written receipt
b. purchase order
c. travel request
d. all of the above
10. The principle of sovereign immunity holds that __________.
a. the government may not be sued or otherwise be subject to legal process
unless it expressly agrees to submit to the authority of the courts
b. the executive branch is immune from the statutory enactments of Congress
c. Congress may not pass any law that affects the federal judiciary
d. "it’s good to be king"
11. Which of the following is a type of patent?
a. pro bono
b. environmental
c. utility
d. none of the above
12. A breach of contract is a form of __________.
a. civil action
b. criminal action
c. legal action
d. none of the above
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Part II: Fill-in-the-Blank (2 points each)
13. A(n) _________________ is a lawsuit brought by one party against another party to
recover compensation or enforce some private right.
14. A(n) _________________ is a promise or set of promises that, if breached, the law will
remedy; the law will recognize a duty to carry out the promise(s).
15. The _________________ is the primary regulation for use by all federal executive
agencies in the acquisition of supplies and services with appropriated funds.
16. According to the appropriations clause of the Constitution, no money can be paid out
of the Treasury unless it has been appropriated by an act of _________________.
17. At its most basic level, Congress can decree the _________________, _________________,
and _________________ of funding that is legally available.
18. Procurement is a proprietary function of government, so _________________ can apply
to government contracting; most actions of government contracting personnel are
within the scope of their authority, even when they make mistakes.
19. List the six basic steps of contract formation.
1.
2.
3.
4.
5.
6.
20. A(n) _________________ results when an offeror asks for a promise as the agreed-upon
exchange for another promise. An offeror who makes a promise without getting a
reciprocal promise is entering a _________________
21. The established rule of fiscal policy is that the expenditure of public funds is proper
only when _________________ by Congress, and not that public funds may be expended
unless prohibited by Congress.
22. A(n) _________________ can be defined as one who represents another person, called a
principal, in contractual matters.
23. The relationship created by the association of a principal and an agent is called
_________________. The relationship arises when the principal authorizes the agent to
act as his or her representative with respect to another person (a third party), and
the agent consents to do so.
24. In our federal government, according to the separation of powers doctrine, the
_________________ is considered an independent and equal branch of government
along with the executive and judicial branches.
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25. What three elements must be present before apparent authority becomes effective to
bind the principal?
1.
2.
3.
26. The government obtains _________________ if the data pertains to an item or process
developed exclusively with private funding.
27. The first step in the life cycle of an appropriation is the long and exhaustive
administrative process of _________________ and _________________, a process that may
well take place several years before the budget for a particular fiscal year is ready to
be submitted to Congress.
28. The first ten amendments of the Constitution, also known as the _________________,
were added immediately upon ratification to protect rights that many feared would
be lost under the Constitution.
29. According to Federal Acquisition Regulation (FAR) 1-602-2(b), the _________________
must "ensure that contractors receive impartial, fair, and equitable treatment" due to
the disproportionate power the government has in dictating the terms of a contract.
30. A(n) _________________ is an original creative work.
31. _________________ authority is not recognized in federal contracting.
32. Knowingly and willfully violating the _________________ Act can result in the receipt of
a fine up to $5,000 and imprisonment for two years.
33. _________________ appropriations are available for new obligations for a definite period
in excess of one fiscal year.
34. An expenditure is permissible if it is _________________ for accomplishing the objective
of an appropriation, or if it will contribute materially to the accomplishment of that
objective.
35. _________________ rights are a combination of trade secrets and copyright laws.
36. After the House passes individual appropriations bills, they are sent to the
_________________.
37. A(n) _________________ or _________________ is a delegation of authority to agency
officials that allows them to incur obligations within the scope and terms of the
delegation.
Part III: True-or-False (1 point each)
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38. Government employees who make an invention on government time using
government equipment may still have a patent filed on that invention. It is the
individual, not the agency, who obtains the title to the invention.
a. true
b. false
39. An appropriation is available only for a certain time period, after which the authority
to obligate expires.
a. true
b. false
40. Unless Congress has expressly forbidden expenditure of funds for a particular
purpose, commanders are free to spend money for that purpose.
a. true
b. false
41. Copyrights protect original works from being reproduced without the author’s
permission, generally for the life of the author plus 50 years.
a. true
b. false
42. When the contractor delivers data to the government, it must mark each piece of
data on which it asserts restrictions with a marking or legend indicating the level of
rights it believes the government should have in the data.
a. true
b. false
43. An officer or employee of the United States may not make or authorize an
expenditure or obligation in advance of an appropriation unless authorized by law.
a. true
b. false
44. There are two federal acts related to trade secrets: one makes it a crime to steal
trade secrets, and the other makes it a crime for a federal employee to release
confidential or proprietary information gained during the course of employment.
a. true
b. false
45. There is a 10-year time limit on how long a trade secret can last.
a. true
b. false
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46. The government obtains unlimited rights if the technical data pertains to an item or
process developed exclusively with government funding.
a. true
b. false
47. If a computer buy is primarily for an interconnected system (a number of components
designed mainly to function within the context of the whole), and the total cost of the
system exceeds $250,000, an agency must use procurement dollars.
a. true
b. false
48. The first user of a unique mark has the right to continue to make use of that mark for
as long as it desires and to restrict others from making use of that mark on similar
products and services so long as that first user continues to use the mark.
a. true
b. false
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