Question 1

A/An _____ provision stipulates the mechanism to be used in determining any costs and damages to the injured party in the event of a breach of contract.

Accepted Answer

A) mutual assent 
B) restitution 
C) liquidated damages 
D) reliance 
E) expectancy 
A) mutual assent 
B) restitution 
C) liquidated damages 
D) reliance 
E) expectancy C

Question 2

_____ are those that result if the terms of the contract are not fulfilled and must be defined prior to the breach under the terms of the contract.

Accepted Answer

A) Consequential damages 
B) General damages 
C) Incidental damages 
D) Reliance damages 
E) Liquidated damages 
A) Consequential damages 
B) General damages 
C) Incidental damages 
D) Reliance damages 
E) Liquidated damages E

Question 3

From a legal perspective, purchasing managers do not have a fiduciary obligation to act in the best interests of their employer.

Accepted Answer

A) True 
 B)False  False

Question 4

A/An _____ is designed to afford protection for persons who create original works such as books, software, songs, and films.

Accepted Answer

A) patent 
B) trademark 
C) trade secret 
D) copyright 
E) None of these answers. 
A) patent 
B) trademark 
C) trade secret 
D) copyright 
E) None of these answers.

Question 5

A/An _____ is a person or entity who has been authorized to act on behalf of some other person or entity.

Accepted Answer

A) principal 
B) manager 
C) agent 
D) employee 
E) sales representative 
A) principal 
B) manager 
C) agent 
D) employee 
E) sales representative

Question 6

_____ are equal to the difference between the value of the purchased goods at the time of delivery and the goods' value at the time of specified delivery.

Accepted Answer

A) General damages 
B) Consequential damages 
C) Liquidated damages 
D) Incidental damages 
E) Specified damages 
A) General damages 
B) Consequential damages 
C) Liquidated damages 
D) Incidental damages 
E) Specified damages

Question 7

Which of the following is not a form of sharp practice?

Accepted Answer

A) Willful use of misinformation. 
B) Exaggerating problems. 
C) Sharing information on competitive quotations. 
D) Knowingly withholding information during a negotiation. 
E) Taking unfair advantage of a supplier's financial situation. 
A) Willful use of misinformation. 
B) Exaggerating problems. 
C) Sharing information on competitive quotations. 
D) Knowingly withholding information during a negotiation. 
E) Taking unfair advantage of a supplier's financial situation.

Question 8

_____ is defined as that body of the law that refers to how business firms (parties) enter into contracts with each other, execute contracts, and remedy problems that arise in the process.

Accepted Answer

A) Civil law 
B) Agency law 
C) Commercial law 
D) All of these answers. 
E) None of these answers. 
A) Civil law 
B) Agency law 
C) Commercial law 
D) All of these answers. 
E) None of these answers.

Question 9

_____ involves giving preferential treatment to suppliers that are also customers of the buying organization.

Accepted Answer

A) Personal buying 
B) Reciprocity 
C) Sharp practices 
D) Accepting supplier favors 
E) Conflicts of interest 
A) Personal buying 
B) Reciprocity 
C) Sharp practices 
D) Accepting supplier favors 
E) Conflicts of interest

Question 10

A/An _____ is a set of promises between two or more parties the performance of which the law expects, the breach of which the law provides remedies.

Accepted Answer

A) offer 
B) agreement 
C) acceptance 
D) contract 
E) breach 
A) offer 
B) agreement 
C) acceptance 
D) contract 
E) breach

Question 11

Generally, honest mistakes by a single party to the contract will void the contract.

Accepted Answer

A) True 
 B)False

Question 12

A firm should not encourage suppliers to report instances of unethical behavior by anyone within the buying firm.

Accepted Answer

A) True 
 B)False

Question 13

On _____, the freight bill is presented on the effective date of the shipment.

Accepted Answer

A) FOB origin shipments 
B) collect shipments 
C) prepaid shipments 
D) FOB destination shipments 
E) None of these answers. 
A) FOB origin shipments 
B) collect shipments 
C) prepaid shipments 
D) FOB destination shipments 
E) None of these answers.

Question 14

The purchasing agency relationship is created between the employer and employee when the company hires an individual to perform the purchasing job.

Accepted Answer

A) True 
 B)False

Question 15

Copyright is automatically assumed.

Accepted Answer

A) True 
 B)False

Question 16

Betty goes into Mimi's Wholesale Video Store and says to Mimi, "I want to buy 500 DVDs of the Last Vegas movie from you.I will pay you $10 for each DVD." This is an example of [a/an] _____.

Accepted Answer

A) acceptance 
B) breach 
C) offer 
D) due diligence 
E) conditional offer 
A) acceptance 
B) breach 
C) offer 
D) due diligence 
E) conditional offer

Question 17

The UCC allows the purchaser to reject the entire shipment, but not a part of the shipment, for cause.

Accepted Answer

A) True 
 B)False

Question 18

_____ can be defined as failure of one of the parties to live up to the terms and conditions of the contract.

Accepted Answer

A) Cancellation for default 
B) Cancellation for convenience of the seller 
C) Cancellation for convenience of the purchaser 
D) Cancellation by mutual assent 
E) None of these answers. 
A) Cancellation for default 
B) Cancellation for convenience of the seller 
C) Cancellation for convenience of the purchaser 
D) Cancellation by mutual assent 
E) None of these answers.

Question 19

Which of the following is not one of the actions a firm can take to enhance ethical behavior?

Accepted Answer

A) Wiretapping and security cameras. 
B) Developing a statement of ethics. 
C) Closer buyer-seller relationships. 
D) Internal reporting of unethical behavior. 
E) Commodity rotation and limits of authority. 
A) Wiretapping and security cameras. 
B) Developing a statement of ethics. 
C) Closer buyer-seller relationships. 
D) Internal reporting of unethical behavior. 
E) Commodity rotation and limits of authority.

Question 20

Contractual mistakes are covered under the UCC.

Accepted Answer

A) True 
 B)False

A/An _____ provision stipulates the mechanism to be used in determining any costs and damages to the injured party in the event of a breach of contract.

_____ are those that result if the terms of the contract are not fulfilled and must be defined prior to the breach under the terms of the contract.

From a legal perspective, purchasing managers do not have a fiduciary obligation to act in the best interests of their employer.

A/An _____ is designed to afford protection for persons who create original works such as books, software, songs, and films.

A/An _____ is a person or entity who has been authorized to act on behalf of some other person or entity.

_____ are equal to the difference between the value of the purchased goods at the time of delivery and the goods' value at the time of specified delivery.

Which of the following is not a form of sharp practice?

_____ is defined as that body of the law that refers to how business firms (parties) enter into contracts with each other, execute contracts, and remedy problems that arise in the process.

_____ involves giving preferential treatment to suppliers that are also customers of the buying organization.

A/An _____ is a set of promises between two or more parties the performance of which the law expects, the breach of which the law provides remedies.

Generally, honest mistakes by a single party to the contract will void the contract.

A firm should not encourage suppliers to report instances of unethical behavior by anyone within the buying firm.

On _____, the freight bill is presented on the effective date of the shipment.

The purchasing agency relationship is created between the employer and employee when the company hires an individual to perform the purchasing job.

Copyright is automatically assumed.

Betty goes into Mimi's Wholesale Video Store and says to Mimi, "I want to buy 500 DVDs of the Last Vegas movie from you.I will pay you $10 for each DVD." This is an example of [a/an] _____.

The UCC allows the purchaser to reject the entire shipment, but not a part of the shipment, for cause.

_____ can be defined as failure of one of the parties to live up to the terms and conditions of the contract.

Which of the following is not one of the actions a firm can take to enhance ethical behavior?

Contractual mistakes are covered under the UCC.

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policies and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Supply Management and Commodity Strategy Development

Supplier Evaluation and Selection

Supplier Quality Management

Supplier Management and Development: Creating a World-Class Supply Base

Worldwide Sourcing

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Lean Supply Chain Management

Purchasing Services

Supply Chain Information Systems and Electronic Sourcing

Performance Measurement and Evaluation

Purchasing and Supply Strategy Trends

Filters

Exam 15: Purchasing Law and Ethics

A/An _____ provision stipulates the mechanism to be used in determining any costs and damages to the injured party in the event of a breach of contract.

_____ are those that result if the terms of the contract are not fulfilled and must be defined prior to the breach under the terms of the contract.

From a legal perspective, purchasing managers do not have a fiduciary obligation to act in the best interests of their employer.

A/An _____ is designed to afford protection for persons who create original works such as books, software, songs, and films.

A/An _____ is a person or entity who has been authorized to act on behalf of some other person or entity.

_____ are equal to the difference between the value of the purchased goods at the time of delivery and the goods' value at the time of specified delivery.

Which of the following is not a form of sharp practice?

_____ is defined as that body of the law that refers to how business firms (parties) enter into contracts with each other, execute contracts, and remedy problems that arise in the process.

_____ involves giving preferential treatment to suppliers that are also customers of the buying organization.

A/An _____ is a set of promises between two or more parties the performance of which the law expects, the breach of which the law provides remedies.

Generally, honest mistakes by a single party to the contract will void the contract.

A firm should not encourage suppliers to report instances of unethical behavior by anyone within the buying firm.

On _____, the freight bill is presented on the effective date of the shipment.

The purchasing agency relationship is created between the employer and employee when the company hires an individual to perform the purchasing job.

Copyright is automatically assumed.

Betty goes into Mimi's Wholesale Video Store and says to Mimi, "I want to buy 500 DVDs of the Last Vegas movie from you.I will pay you $10 for each DVD." This is an example of [a/an] _____.

The UCC allows the purchaser to reject the entire shipment, but not a part of the shipment, for cause.

_____ can be defined as failure of one of the parties to live up to the terms and conditions of the contract.

Which of the following is not one of the actions a firm can take to enhance ethical behavior?

Contractual mistakes are covered under the UCC.

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policies and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Supply Management and Commodity Strategy Development

Supplier Evaluation and Selection

Supplier Quality Management

Supplier Management and Development: Creating a World-Class Supply Base

Worldwide Sourcing

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Lean Supply Chain Management

Purchasing Services

Supply Chain Information Systems and Electronic Sourcing

Performance Measurement and Evaluation

Purchasing and Supply Strategy Trends

Filters