Exam 15: Purchasing Law and Ethics

For the most part, the UCC is a "gap filler" and is only pertinent if the parties themselves do not supply a contract term or the term is left open.

_____ occur[s] when either party fails to perform the obligations due under the contract (without a valid or legal justification).

_____ essentially describe who is responsible for the selection of a carrier, payment of the freight bill, and the method in which the title of goods passes between the purchaser and the supplier.

[The] _____ refers to the supplier's guarantee that the goods being exchanged do not illegally violate another party's patent protection.

[A/An] _____ is any misrepresentation by a buyer that falls just short of actual fraud.

Price fixing, dividing territories among competitors, and agreements that limit the supply of a commodity are violations of the Foreign Corrupt Practices Act.

Contracts between two or more parties do not allow the shifting of risk between the entities and do not constitute the foundation and fabric for every type of supply chain relationship.

The _____ is an attempt by the United Nations to facilitate international trade by removing legal barriers.

The Federal Trade Commission Act makes price discrimination illegal and prohibits sellers from exclusive arrangements with purchasers or product distributors.

If the terms of the buyer's purchase order and the supplier's acceptance or acknowledgement conflict, all of the terms of both the purchase order and the acceptance become part of the resulting contract including the conflicting terms and conditions.

_____ include expenses reasonably incurred in inspection, receipt, transportation, and the care and custody of goods appropriately rejected by the purchaser.

A/An _____ is a proposal or expression by one person that he or she is willing to do something for certain terms.

Executive management sets the ethical code of behavior within a firm.

_____ deals with the role of managers as individual representatives acting on behalf of their organizations.

On _____, the freight bill is presented on the effective day of delivery.

_____ takes place when the offeree incurs a legal detriment in response to the offeror's offer.

Which of the following is falseregarding the risks of unethical behavior by a purchaser?

_____ is the idea that organizations and institutions have an obligation to society that extends beyond compliance with regulations in considering the broader effects of their actions.

Buyers should avoid the practice of routinely tolerating suppliers that breach purchase contracts because doing so may result in the buyer forfeiting the right to legal action.

The implied warranty of _____ means when the seller at the time of contracting has reason to know of any particular purpose for which the goods are required, and the buyer is relying on the seller's skill or judgment to select or furnish suitable goods.