PK0-004 Question #217: Real Exam Question with Answer & Explanation

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.

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.

Explanation

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.

Common mistakes.

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

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

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