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

 

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.