Question 1

Contract law is concerned with governing the relationship of principals and agents.

Accepted Answer

A) True 
 B)False

Question 2

_____ is defined as the power that somebody has to affect other people's thinking or actions by means of argument, example, or force of personality.

Accepted Answer

A) Negotiation 
B) Influence 
C) Ethics 
D) Sharp practice 
E) Reciprocity 
A) Negotiation 
B) Influence 
C) Ethics 
D) Sharp practice 
E) Reciprocity

Question 3

_____ is that level of authority perceived by the seller to be available to the purchasing manager.

Accepted Answer

A) Actual authority 
B) Apparent authority 
C) Consideration 
D) Personal liability 
E) Transparent authority 
A) Actual authority 
B) Apparent authority 
C) Consideration 
D) Personal liability 
E) Transparent authority

Question 4

_____ refers the standard terms and conditions that are usually preprinted on the back of forms used by the purchaser (and the seller).

Accepted Answer

A) RFQ 
B) PO 
C) RFI 
D) Boilerplate 
E) None of these answers. 
A) RFQ 
B) PO 
C) RFI 
D) Boilerplate 
E) None of these answers.

Question 5

_____ indicates that the purchaser is responsible for payment of transportation costs and assumes title of the goods at the supplier's shipping dock.

Accepted Answer

A) F.O.B.origin 
B) F.O.B.delivered 
C) F.O.B.carrier 
D) F.O.B.intermediate storage point 
E) F.O.B.destination 
A) F.O.B.origin 
B) F.O.B.delivered 
C) F.O.B.carrier 
D) F.O.B.intermediate storage point 
E) F.O.B.destination

Question 6

Which of the following is a rule of ethical behavior in purchasing?

Accepted Answer

A) Buyers must commit their attention and energies for the organization's benefit rather than personal enrichment at the expense of the organization. 
B) A buyer must act ethically toward suppliers or potential suppliers. 
C) Buyers must uphold the ethical standards set forth by both their organization and the purchasing profession. 
D) All of these answers. 
E) None of these answers. 
A) Buyers must commit their attention and energies for the organization's benefit rather than personal enrichment at the expense of the organization. 
B) A buyer must act ethically toward suppliers or potential suppliers. 
C) Buyers must uphold the ethical standards set forth by both their organization and the purchasing profession. 
D) All of these answers. 
E) None of these answers.

Question 7

When the contract is reduced to writing, the written document itself is the actual contract and not simply hard evidence of the existence of the underlying contractual relationship.

Accepted Answer

A) True 
 B)False

Question 8

Acceptance of the contracted goods by the purchaser means that ownership of the goods has been transferred.

Accepted Answer

A) True 
 B)False

Question 9

_____ is money the plaintiff lost because he or she was relying on the contract, depending on the defendant to live up to his or her obligations under the contract.

Accepted Answer

A) Expectancy 
B) Restitution 
C) Due diligence 
D) Mutual assent 
E) Reliance 
A) Expectancy 
B) Restitution 
C) Due diligence 
D) Mutual assent 
E) Reliance

Question 10

Accepting gifts and favors from a supplier is the most common ethical infraction involving buyers.

Accepted Answer

A) True 
 B)False

Question 11

If the primary purpose of the contract is legal, but some terms contained within the contract are not, then the contract may or may not itself be illegal depending on the seriousness of the illegal terms and the degree to which the legal and illegal terms can be separated.

Accepted Answer

A) True 
 B)False

Question 12

According to the UCC, any affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain creates a/an _____ that the goods shall conform to the affirmation or promise.

Accepted Answer

A) implied warranty 
B) express warranty 
C) general warranty 
D) warranty of merchantability 
E) warranty of title 
A) implied warranty 
B) express warranty 
C) general warranty 
D) warranty of merchantability 
E) warranty of title

Question 13

Purchasing activities are concerned with the laws regarding contracts and the laws regarding agency, the majority of which concern contract laws.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is not one of the benefits that the UCC provides to buyers?

Accepted Answer

A) If a seller makes an offer in writing, the seller has to live up to it for the stated time period. 
B) Verbal agreements, when confirmed in writing and if no objection is made, are valid. 
C) The conflict between a buyer's purchase order terms and a seller's acknowledgement terms will generally be resolved according to the two firms' prior conduct. 
D) As far as warranties are concerned, the purchasing manager can legally rely on the supplier to provide the item needed to do the job. 
E) None of these answers. 
A) If a seller makes an offer in writing, the seller has to live up to it for the stated time period. 
B) Verbal agreements, when confirmed in writing and if no objection is made, are valid. 
C) The conflict between a buyer's purchase order terms and a seller's acknowledgement terms will generally be resolved according to the two firms' prior conduct. 
D) As far as warranties are concerned, the purchasing manager can legally rely on the supplier to provide the item needed to do the job. 
E) None of these answers.

Question 15

If both parties mutually agree to terminate the contract, then they have, in effect, created another contract with the intent of nullifying the first agreement.

Accepted Answer

A) True 
 B)False

Question 16

When the goods delivered by the supplier are actually rejected by the purchaser because of nonconformance, the purchaser must provide notice to the supplier within 24 hours.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is false regarding the acceptance and rejection of goods?

Accepted Answer

A) Once the purchaser accepts the goods, there is only one recourse - to make a claim against the supplier. 
B) The purchaser has the right to send the rejected goods back even if the supplier does not consent to this action. 
C) The UCC specifies that the purchaser does not have the legal right to withhold payment from the supplier once acceptance has been made. 
D) Purchasers have a legitimate right to inspect contracted goods before accepting or rejecting them. 
E) A purchaser may revoke a prior acceptance if a problem is discovered that substantially impairs the value of the goods. 
A) Once the purchaser accepts the goods, there is only one recourse - to make a claim against the supplier. 
B) The purchaser has the right to send the rejected goods back even if the supplier does not consent to this action. 
C) The UCC specifies that the purchaser does not have the legal right to withhold payment from the supplier once acceptance has been made. 
D) Purchasers have a legitimate right to inspect contracted goods before accepting or rejecting them. 
E) A purchaser may revoke a prior acceptance if a problem is discovered that substantially impairs the value of the goods.

Question 18

The doctrine of _____ holds that if one or more parties made a promise, even orally, he or she cannot renege on that promise if the other party acted on reliance on the promise.

Accepted Answer

A) caveat emptor 
B) promissory estoppel 
C) anticipatory breach 
D) consideration 
E) None of these answers. 
A) caveat emptor 
B) promissory estoppel 
C) anticipatory breach 
D) consideration 
E) None of these answers.

Question 19

The _____ describes the origin of the shipment, provides specific directions for the carrier, delineates the transportation contract terms, and functions as a receipt for the shipment.

Accepted Answer

A) bill of lading 
B) implied warranty of transportation 
C) freight bill 
D) acknowledgment 
E) implied warranty of merchantability 
A) bill of lading 
B) implied warranty of transportation 
C) freight bill 
D) acknowledgment 
E) implied warranty of merchantability

Question 20

Accepting a supplier's outside gifts and favors in exchange for special treatment is not a form of corruption.

Accepted Answer

A) True 
 B)False

Contract law is concerned with governing the relationship of principals and agents.

_____ is defined as the power that somebody has to affect other people's thinking or actions by means of argument, example, or force of personality.

_____ is that level of authority perceived by the seller to be available to the purchasing manager.

_____ refers the standard terms and conditions that are usually preprinted on the back of forms used by the purchaser (and the seller).

_____ indicates that the purchaser is responsible for payment of transportation costs and assumes title of the goods at the supplier's shipping dock.

Which of the following is a rule of ethical behavior in purchasing?

When the contract is reduced to writing, the written document itself is the actual contract and not simply hard evidence of the existence of the underlying contractual relationship.

Acceptance of the contracted goods by the purchaser means that ownership of the goods has been transferred.

_____ is money the plaintiff lost because he or she was relying on the contract, depending on the defendant to live up to his or her obligations under the contract.

Accepting gifts and favors from a supplier is the most common ethical infraction involving buyers.

If the primary purpose of the contract is legal, but some terms contained within the contract are not, then the contract may or may not itself be illegal depending on the seriousness of the illegal terms and the degree to which the legal and illegal terms can be separated.

According to the UCC, any affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain creates a/an _____ that the goods shall conform to the affirmation or promise.

Purchasing activities are concerned with the laws regarding contracts and the laws regarding agency, the majority of which concern contract laws.

Which of the following is not one of the benefits that the UCC provides to buyers?

If both parties mutually agree to terminate the contract, then they have, in effect, created another contract with the intent of nullifying the first agreement.

When the goods delivered by the supplier are actually rejected by the purchaser because of nonconformance, the purchaser must provide notice to the supplier within 24 hours.

Which of the following is false regarding the acceptance and rejection of goods?

The doctrine of _____ holds that if one or more parties made a promise, even orally, he or she cannot renege on that promise if the other party acted on reliance on the promise.

The _____ describes the origin of the shipment, provides specific directions for the carrier, delineates the transportation contract terms, and functions as a receipt for the shipment.

Accepting a supplier's outside gifts and favors in exchange for special treatment is not a form of corruption.

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

Contract law is concerned with governing the relationship of principals and agents.

_____ is defined as the power that somebody has to affect other people's thinking or actions by means of argument, example, or force of personality.

_____ is that level of authority perceived by the seller to be available to the purchasing manager.

_____ refers the standard terms and conditions that are usually preprinted on the back of forms used by the purchaser (and the seller).

_____ indicates that the purchaser is responsible for payment of transportation costs and assumes title of the goods at the supplier's shipping dock.

Which of the following is a rule of ethical behavior in purchasing?

When the contract is reduced to writing, the written document itself is the actual contract and not simply hard evidence of the existence of the underlying contractual relationship.

Acceptance of the contracted goods by the purchaser means that ownership of the goods has been transferred.

_____ is money the plaintiff lost because he or she was relying on the contract, depending on the defendant to live up to his or her obligations under the contract.

Accepting gifts and favors from a supplier is the most common ethical infraction involving buyers.

If the primary purpose of the contract is legal, but some terms contained within the contract are not, then the contract may or may not itself be illegal depending on the seriousness of the illegal terms and the degree to which the legal and illegal terms can be separated.

According to the UCC, any affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain creates a/an _____ that the goods shall conform to the affirmation or promise.

Purchasing activities are concerned with the laws regarding contracts and the laws regarding agency, the majority of which concern contract laws.

Which of the following is not one of the benefits that the UCC provides to buyers?

If both parties mutually agree to terminate the contract, then they have, in effect, created another contract with the intent of nullifying the first agreement.

When the goods delivered by the supplier are actually rejected by the purchaser because of nonconformance, the purchaser must provide notice to the supplier within 24 hours.

Which of the following is false regarding the acceptance and rejection of goods?

The doctrine of _____ holds that if one or more parties made a promise, even orally, he or she cannot renege on that promise if the other party acted on reliance on the promise.

The _____ describes the origin of the shipment, provides specific directions for the carrier, delineates the transportation contract terms, and functions as a receipt for the shipment.

Accepting a supplier's outside gifts and favors in exchange for special treatment is not a form of corruption.

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