GOVERNMENT POLICY INSURES CONTRACT PERFORMANCE BY ESTABLISHING A SPECIFIC CONTRACTUAL RIGHT TO CONDUCT OR REQUIRE INTENSIVE AND COMPREHENSIVE INSPECTION AND TESTING OVER THE DURATION OF THE CONTRACT. IN EXCHANGE FOR THIS BROAD RIGHT OF INSPECTION, THE GOVERNMENT FORFEITS ALMOST ALL NONWARRANTY RIGHTS AND REMEDIES FOR DEFECTIVE WORK DISCOVERED AFTER ACCEPTANCE. HOWEVER, IT RETAINS THE RIGHT TO SEEK REDRESS FOR LATENT DEFECTS, OR DEFECTS WHICH WERE ACCEPTED UNDER MISLEADING CONDITIONS OF FRAUD OR GROSS MISTAKES AMOUNTING TO FRAUD. THE STATED EXCEPTIONS TO FINALITY OF ACCEPTANCE HAVE BEEN A CONTINUOUS SOURCE OF CONTROVERSY BETWEEN THE GOVERNMENT AND ITS CONTRACTORS. THE NATURE AND MEANING OF LATENT DEFECTS, FRAUD, AND GROSS MISTAKES AMOUNTING TO FRAUD IS EXAMINED THROUGH THE DECISIONS ESTABLISHED IN BOARDS AND COURSES IN FIXED-PRICE SUPPLY AND CONSTRUCTION CONTRACTS. IN ADDITION, THE EFFECTIVENESS OF THE GOVERNMENT PROCESS IS EVALUATED, WITH AN OVERVIEW OF FREQUENTLY UTILIZED REMEDIES IN WHICH EXCEPTIONS TO FINALITY OF ACCEPTANCE WERE INVOKED. A PROPOSAL TO ADD A NEW EXCEPTION FOR PATENT DEFECTS THAT REFLECT THE CONTRACTOR'S FAILURE TO ADEQUATELY COMPLY WITH THE QUALITY-ASSURANCE PROVISION OF THE CONTRACT IS EXPLAINED ALONG WITH SEVERAL OTHERS BEING PROPOSED TO ASSURE GOVERNMENT CONTRACT COMPLIANCE. RECOMMENDATIONS SUGGEST THAT THE TRADITIONAL POSTACCEPTANCE REMEDIES PROVIDED BY COMMON LAW SHOULD BE REESTABLISHED FOR THE GOVERNMENT. AN APPENDIX PROVIDES THE TEXTS FOR STANDARD INSPECTION CLAUSES. CASE STUDIES AND FOOTNOTES ACCOMPANY THE TEXT.