nerdexam
CompTIA

PK0-004 · Question #217

A vendor was removed from a company due to non-performance but continues to submit invoices for work that was not completed. Which of the following should the project manager do to stop the vendor…

The correct answer is A. Draft a C&D letter and send it to vendor. When a terminated vendor continues to submit fraudulent invoices, the appropriate legal remedy is a cease and desist letter, which formally demands the vendor stop the offending behavior. This provides a documented legal warning before escalating to litigation.

Tools and documentation

Question

A vendor was removed from a company due to non-performance but continues to submit invoices for work that was not completed. Which of the following should the project manager do to stop the vendor from sending invoices?

Options

  • ADraft a C&D letter and send it to vendor.
  • BReview the MOU with the vendor.
  • CAsk the legal departments to draft a non-complete agreement for the vendor to sign.
  • DMeet with the finance department to prevent the vendor from sending invoices.

How the community answered

(22 responses)
  • A
    77% (17)
  • B
    5% (1)
  • C
    5% (1)
  • D
    14% (3)

Why each option

When a terminated vendor continues to submit fraudulent invoices, the appropriate legal remedy is a cease and desist letter, which formally demands the vendor stop the offending behavior. This provides a documented legal warning before escalating to litigation.

ADraft a C&D letter and send it to vendor.Correct

A cease and desist (C&D) letter is a formal legal document sent to a party demanding they immediately stop a specific action - in this case, submitting invoices for work not performed. It creates a legal record that the company has put the vendor on notice, which is a necessary step before pursuing further legal remedies. This directly addresses the specific misconduct of continued billing after contract termination.

BReview the MOU with the vendor.

A Memorandum of Understanding outlines a general agreement between parties but does not carry the legal authority to compel a vendor to stop sending invoices.

CAsk the legal departments to draft a non-complete agreement for the vendor to sign.

A non-compete agreement restricts a party from competing in a market and is unrelated to stopping fraudulent invoice submission.

DMeet with the finance department to prevent the vendor from sending invoices.

The finance department can block payment internally but cannot legally stop the vendor from continuing to send invoices, which requires a formal legal action.

Concept tested: Vendor contract termination and cease and desist

Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok

Topics

#cease and desist#vendor management#contract termination#procurement

Community Discussion

No community discussion yet for this question.

Sign up to join the discussion
Full PK0-004 Practice