Exam PMP topic 1 question 538 discussion

Isn't it the team's job to manage contracts? It is possible that the legal team will not know the details of the contract without the team's request. The team is well aware of the current contract details. The PM should have proactively worked with the legal team when reviewing the contract.

In this scenario, the auditors have identified that the current version of the contract violates a new law that was passed last year. This indicates that the project team was not aware of this new law or its implications when renewing the contract this year. The responsibility for disseminating legal updates and ensuring compliance typically falls under the legal department's domain within an organization. Therefore, the issue lies in the legal department not effectively communicating or disseminating the new law to all relevant staff, including the project team responsible for contract renewal

The situation described indicates that **A. The contract has not been appropriately reviewed by the project team**. When a contract is renewed, it should be reviewed to ensure that it complies with all current laws and regulations. In this case, a new law was passed last year, but the renewed contract violates this law. This suggests that the project team did not properly review the contract in light of the new law before renewing it. It's important for project teams to stay up-to-date with relevant laws and regulations to avoid such issues.

C. The legal department has not disseminated the law correctly to all staff. Here's why: A. Contract not reviewed by project team: While the project team might not have reviewed the contract in detail, it's more likely that a legal violation, especially something as blatant as a new law, would have been flagged by legal professionals. B. Stakeholder engagement plan not implemented: A stakeholder engagement plan typically focuses on communication and collaboration, not legal compliance. This wouldn't directly explain the contract violation. D. Project manager lacks legal knowledge: While project managers don't need to be legal experts, they often rely on internal legal resources like the legal department for guidance. Assuming they consulted with legal, the responsibility for dissemination likely lies with that department.

Law is passed last year...project team may not be aware of the law until communicated by legal team which can happen only when stakeholder engagement plan is implemented correctly to engage with legal team. So, best option is B.

Agree with SteAle: Selected Answer: B The legal Department is an important stakeholder and should have been engaged in the project

The scenario states that the project's contract is renewed annually and that the latest version of the contract violates a new law passed the previous year. This indicates that when the contract was renewed this year, it wasn't thoroughly reviewed or updated to ensure compliance with the new law.

A. The contract has not been appropriately reviewed by the project team

A or B are the only real answers, and A seems best.

The legal Department is an important stakeholder and should have been engaged in the project

Complacency on the part of the project team since the project has been going for 6 years. The project team needs to properly review each contract and check for applicable laws.

Agree on A, because legal department normally does not proactively check every law relates to projects every day. PM should review it with legal department instead.

This question is highly flawed or missing something important. How can we determine what has happened based solely on the information provided in the question? Many participants are suggesting C as the answer, but how can we deduce from the given scenario that the "legal department has not disseminated" the information? It could be "legal department has disseminated". Then it was due to A, or D could also be a possibility. Additionally, B could be the answer as well. Ultimately, based on the sentences provided in this question, we cannot infer anything. Therefore, I consider it a highly flawed question, and any of the options could be the answer or none of them could be the answer.

I'll go with C

C is ans

I will go with A, reviewing the contract is PM job and he should add the right stakeholder to review the contract including the Legal team which is always a part of contracting.

I will go with C. The team should not have any knowledge on the legality of the contracts