Law Homework Solutions
Problem
#162133

Determining Violation of either a 'Major Fraud Act' or 'Fraud & False Statements Act'

A contractor receives an un-priced change order on a $500,000 fixed price contract. The contractor incurs $50,000 in additional labor costs in performing the change. In its request for equitable adjustment, the contractor "pads" the claim and requests to be reimbursed for $60,000 in additional labor. To support its claim, the contractor includes records purporting to document the extra $10,000 worth of hours worked, but these extra hours were actually spent on a different contractual effort unrelated to the contract for which an adjustment is sought. What statute has the contractor violated? [Personal note: I think it is between 'B' & 'D', but I seem to favor 'D'...please assist]


    A) Sherman Anti-Trust Act

    B) Major Fraud Act

    C) Bribery of Public Officials

    D) Fraud and False Statements Act


Solution Summary

What is the major fraud act and what is the Fraud and False Statement Act and how to tell when each applies

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