Question 1

When it comes to product liability, supply management:

Accepted Answer

A)  lowers risk by ensuring that suppliers deliver defect-free goods. 
B)  has little or no role since this is essentially a legal action. 
C)  has responsibility only to the internal customer, not the final customer. 
D)  is liable depending on the type of warranty agreed to in the contract. 
E)  is responsible for establishing the cost of the actual damage. 
A)  lowers risk by ensuring that suppliers deliver defect-free goods. 
B)  has little or no role since this is essentially a legal action. 
C)  has responsibility only to the internal customer, not the final customer. 
D)  is liable depending on the type of warranty agreed to in the contract. 
E)  is responsible for establishing the cost of the actual damage. A

Question 2

In many organizations, standards of conduct for purchasing personnel stress the need to avoid all appearances of impropriety.

Accepted Answer

A) True 
 B)False  True

Question 3

Mediation and arbitration are examples of alternative legal means of settling disputes.

Accepted Answer

A) True 
 B)False  True

Question 4

Under the Uniform Commercial Code, when the buyer has examined the goods as fully as he or she has desired, there is a warranty with regard to defects which an examination ought to have revealed to him or her.

Accepted Answer

A) True 
 B)False

Question 5

When an employee who is not a legal agent of the company agrees to buy something from a salesperson and the item is received and the company pays the invoice, the employee is exercising implied authority.

Accepted Answer

A) True 
 B)False

Question 6

The Sarbanes-Oxley Act:

Accepted Answer

A)  has no impact on the supply management process. 
B)  requires the Chief Purchasing Officer to sign off on every contract. 
C)  requires listing off-balance sheet items such as long-term purchase agreements. 
D)  requires supply management to report directly to the Chief Financial Officer. 
E)  affects internal accounting procedures of privately-held companies. 
A)  has no impact on the supply management process. 
B)  requires the Chief Purchasing Officer to sign off on every contract. 
C)  requires listing off-balance sheet items such as long-term purchase agreements. 
D)  requires supply management to report directly to the Chief Financial Officer. 
E)  affects internal accounting procedures of privately-held companies.

Question 7

Payment made to a supplier does not automatically constitute an acceptance of the goods.

Accepted Answer

A) True 
 B)False

Question 8

Normally, if an offer to buy or sell is made, the contract is completed once the legal documents are in the hands of both parties.

Accepted Answer

A) True 
 B)False

Question 9

The Uniform Commercial Code UCC) covers the purchase of goods and services, if the goods portion of the contract is more than 50 percent of the contract value.

Accepted Answer

A) True 
 B)False

Question 10

In a contractual dispute between buyer and seller, the process of elevating the discussion from buyer and sales representative up through the organization and out to an unbiased referee is called:

Accepted Answer

A)  arbitration. 
B)  mediation. 
C)  internal escalation. 
D)  negotiation. 
E)  adjudication. 
A)  arbitration. 
B)  mediation. 
C)  internal escalation. 
D)  negotiation. 
E)  adjudication.

Question 11

Commercial bribery:

Accepted Answer

A)  usually involves only one company offering bribes. 
B)  may become an industry practice. 
C)  is outlawed in very few countries. 
D)  is outlawed throughout the West, but not in Asia. 
E)  legal rulings rest on the doctrine of promissory estoppel. 
A)  usually involves only one company offering bribes. 
B)  may become an industry practice. 
C)  is outlawed in very few countries. 
D)  is outlawed throughout the West, but not in Asia. 
E)  legal rulings rest on the doctrine of promissory estoppel.

Question 12

In the U. S., product liability is generally considered a strict liability offense which means that the defendant is liable when it is shown that the product was defective.

Accepted Answer

A) True 
 B)False

Question 13

The authority that is necessary, usual, and proper to carry through to completion the express authority conferred, is called:

Accepted Answer

A)  apparent authority. 
B)  implied authority. 
C)  express authority. 
D)  direct authority. 
E)  performance authority. 
A)  apparent authority. 
B)  implied authority. 
C)  express authority. 
D)  direct authority. 
E)  performance authority.

Question 14

If a supplier fails to deliver goods which meet the contract agreement, one of the buyer's options is to reject the whole shipment.

Accepted Answer

A) True 
 B)False

Question 15

Corporate social responsibility:

Accepted Answer

A)  is another name for ethics. 
B)  is another name for supplier diversity programs. 
C)  requires sacrificing financial gain for the greater good of the community. 
D)  refers to individual, not corporate, decisions and actions. 
E)  extends beyond ethics to include community, environment, and human rights. 
A)  is another name for ethics. 
B)  is another name for supplier diversity programs. 
C)  requires sacrificing financial gain for the greater good of the community. 
D)  refers to individual, not corporate, decisions and actions. 
E)  extends beyond ethics to include community, environment, and human rights.

Question 16

When the goods fit the ordinary purpose for which goods of that description are used in the trade, there is an):

Accepted Answer

A)  implied warranty of merchantability. 
B)  express warranty. 
C)  warranty of title. 
D)  implied warranty of fitness for a particular purpose. 
E)  implicit warranty. 
A)  implied warranty of merchantability. 
B)  express warranty. 
C)  warranty of title. 
D)  implied warranty of fitness for a particular purpose. 
E)  implicit warranty.

Question 17

The legal authority of a salesperson normally is:

Accepted Answer

A)  the same as that of a buyer. 
B)  to make legally-binding contracts for $500 or less. 
C)  to make legally binding contracts for sales over $5,000. 
D)  to solicit orders and get ratification and acceptance from his or her employer. 
E)  based on the length of time the salesperson has been employed. 
A)  the same as that of a buyer. 
B)  to make legally-binding contracts for $500 or less. 
C)  to make legally binding contracts for sales over $5,000. 
D)  to solicit orders and get ratification and acceptance from his or her employer. 
E)  based on the length of time the salesperson has been employed.

Question 18

Which of the following is a factor in determining the validity of a contract?

Accepted Answer

A)  incompetent parties. 
B)  offer and acceptance. 
C)  employment in the purchasing department. 
D)  amount over $500. 
E)  due process. 
A)  incompetent parties. 
B)  offer and acceptance. 
C)  employment in the purchasing department. 
D)  amount over $500. 
E)  due process.

Question 19

If a termination for convenience clause is included in a services contract:

Accepted Answer

A)  its validity depends on whether the contract is in the private or public sector. 
B)  it is easy to determine if it is exercised in bad faith or an abuse of discretion. 
C)  if exercised in bad faith, it may mean the termination is a breach of contract. 
D)  specifically identifies events that will trigger termination. 
E)  it defines what constitutes sufficient cause to terminate. 
A)  its validity depends on whether the contract is in the private or public sector. 
B)  it is easy to determine if it is exercised in bad faith or an abuse of discretion. 
C)  if exercised in bad faith, it may mean the termination is a breach of contract. 
D)  specifically identifies events that will trigger termination. 
E)  it defines what constitutes sufficient cause to terminate.

Question 20

Reciprocity, the practice of requiring a supplier to purchase a set amount from the buying firm, is legal domestically, but not internationally.

Accepted Answer

A) True 
 B)False

When it comes to product liability, supply management:

In many organizations, standards of conduct for purchasing personnel stress the need to avoid all appearances of impropriety.

Mediation and arbitration are examples of alternative legal means of settling disputes.

Under the Uniform Commercial Code, when the buyer has examined the goods as fully as he or she has desired, there is a warranty with regard to defects which an examination ought to have revealed to him or her.

When an employee who is not a legal agent of the company agrees to buy something from a salesperson and the item is received and the company pays the invoice, the employee is exercising implied authority.

The Sarbanes-Oxley Act:

Payment made to a supplier does not automatically constitute an acceptance of the goods.

Normally, if an offer to buy or sell is made, the contract is completed once the legal documents are in the hands of both parties.

The Uniform Commercial Code UCC) covers the purchase of goods and services, if the goods portion of the contract is more than 50 percent of the contract value.

In a contractual dispute between buyer and seller, the process of elevating the discussion from buyer and sales representative up through the organization and out to an unbiased referee is called:

Commercial bribery:

In the U. S., product liability is generally considered a strict liability offense which means that the defendant is liable when it is shown that the product was defective.

The authority that is necessary, usual, and proper to carry through to completion the express authority conferred, is called:

If a supplier fails to deliver goods which meet the contract agreement, one of the buyer's options is to reject the whole shipment.

Corporate social responsibility:

When the goods fit the ordinary purpose for which goods of that description are used in the trade, there is an):

The legal authority of a salesperson normally is:

Which of the following is a factor in determining the validity of a contract?

If a termination for convenience clause is included in a services contract:

Reciprocity, the practice of requiring a supplier to purchase a set amount from the buying firm, is legal domestically, but not internationally.

Purchasing and Supply Management

Supply Strategy

Supply Organization

Supply Processes and Technology

Make or Buy, Insourcing, and Outsourcing

Need Identification and Specification

Quality

Quantity and Inventory

Delivery

Price

Cost Management

Supplier Selection

Supplier Evaluation and Supplier Relations

Global Supply Management

Other Supply Responsibilities

Supply Function Evaluation and Trends

Filters

Exam 15: Legal and Ethics

When it comes to product liability, supply management:

In many organizations, standards of conduct for purchasing personnel stress the need to avoid all appearances of impropriety.

Mediation and arbitration are examples of alternative legal means of settling disputes.

Under the Uniform Commercial Code, when the buyer has examined the goods as fully as he or she has desired, there is a warranty with regard to defects which an examination ought to have revealed to him or her.

When an employee who is not a legal agent of the company agrees to buy something from a salesperson and the item is received and the company pays the invoice, the employee is exercising implied authority.

The Sarbanes-Oxley Act:

Payment made to a supplier does not automatically constitute an acceptance of the goods.

Normally, if an offer to buy or sell is made, the contract is completed once the legal documents are in the hands of both parties.

The Uniform Commercial Code UCC) covers the purchase of goods and services, if the goods portion of the contract is more than 50 percent of the contract value.

In a contractual dispute between buyer and seller, the process of elevating the discussion from buyer and sales representative up through the organization and out to an unbiased referee is called:

Commercial bribery:

In the U. S., product liability is generally considered a strict liability offense which means that the defendant is liable when it is shown that the product was defective.

The authority that is necessary, usual, and proper to carry through to completion the express authority conferred, is called:

If a supplier fails to deliver goods which meet the contract agreement, one of the buyer's options is to reject the whole shipment.

Corporate social responsibility:

When the goods fit the ordinary purpose for which goods of that description are used in the trade, there is an):

The legal authority of a salesperson normally is:

Which of the following is a factor in determining the validity of a contract?

If a termination for convenience clause is included in a services contract:

Reciprocity, the practice of requiring a supplier to purchase a set amount from the buying firm, is legal domestically, but not internationally.

Purchasing and Supply Management

Supply Strategy

Supply Organization

Supply Processes and Technology

Make or Buy, Insourcing, and Outsourcing

Need Identification and Specification

Quality

Quantity and Inventory

Delivery

Price

Cost Management

Supplier Selection

Supplier Evaluation and Supplier Relations

Global Supply Management

Other Supply Responsibilities

Supply Function Evaluation and Trends

Filters