Certified Professional Public Buyer (CPPB) Practice Test

Which of the following is NOT a type of remedy for defects mentioned?

1. Price reduction

2. Acceptance of minor nonconformities

3. Implied obligation

4. Correction of defects by an owner

The correct answer is: Implied obligation

The correct answer highlights a concept that does not fit within the conventional framework of remedies for defects in procurement and contract management. Remedies for defects typically include various means of addressing issues that arise within the scope of a contract, such as price adjustments, acceptance of minor discrepancies, or allowing the original provider to correct the flaws. Price reduction serves as a remedy by adjusting the financial terms to reflect the value of the contract amidst the presence of defects. Acceptance of minor nonconformities allows parties to acknowledge that small issues may not warrant drastic actions, thereby still fulfilling a degree of contractual obligation. Correction of defects by an owner refers to the right of the contracting party or owner to undertake repair work themselves or hire others to do so if the contractor fails to meet the prescribed standards within the contract. However, the concept of an "implied obligation" does not function as a remedy for defects. Instead, it suggests a legal responsibility that may be inferred from the actions or relationship of the parties involved. It does not directly address how a defect is remedied within the context of a contract, which distinguishes it from the other provided options that specifically outline methods for rectifying issues arising from defects.