Choose the best definition from the list below of bid
rigging
An external document used to request a supplier to sell and
deliver the products in the quantities and for the prices specified
A supplier generated document, which shows quantities and
descriptions of items delivered to the receiving department at the specified
warehouse location
A documents that shows the descriptions and quantities of
goods received from vendors
Vendors collude with one another and reach advance agreement
as to the winning bidder for a particular contract. The winning bidder agrees
to compensate the other vendors in some manner
The correct answer is "Vendors collude with one another
and reach advance agreement as to the winning bidder for a particular contract.
The winning bidder agrees to compensate the other vendors in some manner."
Bid rigging is an illegal practice where vendors collude
with each other to determine the winning bidder for a particular contract in
advance. This may involve the submission of artificially high bids from
competing vendors to make the pre-determined winning bid appear more
competitive. In some cases, the winning bidder may agree to compensate the
other vendors in some manner, such as by awarding them a separate contract or
by providing them with subcontracts. Bid rigging is typically considered a
violation of antitrust laws and can result in civil or criminal penalties.
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