Louisiana Contractors License Practice Exam 2025 – Comprehensive All-in-One Guide for Exam Success

Question: 1 / 400

What does bid rigging refer to?

A collaborative pricing strategy

An agreement to set prices among competitors

Bid rigging refers to an agreement among competing parties to establish predetermined prices, thereby thwarting the principles of fair competition in the bidding process. When competitors collude to set prices, it undermines the integrity of the bidding system, leading to inflated costs and a lack of genuine competition. This practice is illegal and is classified as a form of fraud, as it manipulates the outcomes to benefit certain parties at the expense of others.

In the context of the available choices, the answer highlighting an agreement to set prices among competitors accurately captures the essence of bid rigging. Such collusion results in an unfair advantage in the procurement process and can have significant legal ramifications for those involved. Understanding bid rigging is essential for ensuring transparency and fairness in competitive bidding environments.

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A legal method of ensuring fair bidding

A practice of submitting random bids

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