Wayne,
1. You validate the scope to gain formal acceptance of the deliverables from the customer. This is often done with the customer to ensure that you met all of their requirements. Validation and verification are often used interchangeably, though we will often use the term verification to refer to internal validation of the scope before presenting the product to the customer. You must perform Validate Scope before you can perform Close Project/Phase.
2. On the actual exam, it will be clear what the answers are to the ethical questions. Choose the answer that is most ethical and conforms best to the PMI Code of Ethics. In this case, rejecting the bid entirely is appropriate.
- Steven