Question 1

In order for a firm to recover lost profits in a breach of contract, the firm must produce credible evidence that it would have made such profits.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not one of the essential elements to an enforceable contract?

Accepted Answer

A) Offer. 
B) Acceptance. 
C) Consideration. 
D) Due diligence. 
E) None of these answers. 
A) Offer. 
B) Acceptance. 
C) Consideration. 
D) Due diligence. 
E) None of these answers.

Question 3

The purchasing agent is generally considered to be a general agent for the buying firm with broad authority to change prices, terms, and conditions.

Accepted Answer

A) True 
 B)False

Question 4

_____ stems from the instructions and granting of authority to the purchasing manager via the job description provided by the employer.

Accepted Answer

A) Apparent authority 
B) Fiduciary responsibility 
C) Mutual assent 
D) Personal liability 
E) Actual authority 
A) Apparent authority 
B) Fiduciary responsibility 
C) Mutual assent 
D) Personal liability 
E) Actual authority

Question 5

The use of force or coercion to reach an agreement is acceptable in signing a contract, because both parties do not have to enter into the agreement on their own free will.

Accepted Answer

A) True 
 B)False

Question 6

_____ is money the plaintiff actually paid to the defendant in connection with the contract.

Accepted Answer

A) Reliance 
B) Restitution 
C) Expectancy 
D) Due diligence 
E) None of these answers. 
A) Reliance 
B) Restitution 
C) Expectancy 
D) Due diligence 
E) None of these answers.

Question 7

Purchasing managers cannot be held personally liable for their damaging and illegal activities even if they perform them with the authority of their firm.

Accepted Answer

A) True 
 B)False

Question 8

The concept of damages in the UCC is based on the remedy of a party being "made whole."

Accepted Answer

A) True 
 B)False

Question 9

_____ are those expenses incurred by the purchaser because the goods were not delivered when expected or as specified.

Accepted Answer

A) Incidental damages 
B) General damages 
C) Consequential damages 
D) Specific damages 
E) None of these answers. 
A) Incidental damages 
B) General damages 
C) Consequential damages 
D) Specific damages 
E) None of these answers.

Question 10

The costs and penalties for patent infringement are so mild that most standard purchasing agreements do not contain an appropriate patent indemnification clause.

Accepted Answer

A) True 
 B)False

Question 11

A breach of contract may entitle the offended party to certain remedies or damages.

Accepted Answer

A) True 
 B)False

Question 12

_____ indicates that the supplier is responsible for transportation, and the purchaser assumes title of the goods at his or her own shipping dock.

Accepted Answer

A) F.O.B.origin 
B) F.O.B.shipping point 
C) F.O.B.destination 
D) F.O.B.carrier 
E) None of these answers. 
A) F.O.B.origin 
B) F.O.B.shipping point 
C) F.O.B.destination 
D) F.O.B.carrier 
E) None of these answers.

Question 13

According to the UCC, which of the following is not one of the buyer's rights?

Accepted Answer

A) Reject defective goods that the seller cannot repair within a reasonable time. 
B) Unilaterally cancel a purchase contract for any reason. 
C) Revoke acceptance of goods if the buyer discovers latent defects. 
D) Sue for breach of contract. 
E) Retain the right to recover costs and expenses caused by a breach of warranty. 
A) Reject defective goods that the seller cannot repair within a reasonable time. 
B) Unilaterally cancel a purchase contract for any reason. 
C) Revoke acceptance of goods if the buyer discovers latent defects. 
D) Sue for breach of contract. 
E) Retain the right to recover costs and expenses caused by a breach of warranty.

Question 14

Either buyers or sellers can arbitrarily cancel or default on their contracts with impunity.

Accepted Answer

A) True 
 B)False

Question 15

_____ is something of value in the formation of the contract that gives it legal validity.

Accepted Answer

A) Apparent authority 
B) Actual authority 
C) Implied authority 
D) Acceptance 
E) Consideration 
A) Apparent authority 
B) Actual authority 
C) Implied authority 
D) Acceptance 
E) Consideration

Question 16

_____ essentially indicates that the supplier warrants that it has title to the goods and that they are not stolen or subject to any security interest or liens.

Accepted Answer

A) Warranty of infringement 
B) Implied warranty of merchantability 
C) Implied warranty of fitness for use 
D) Warranty of title 
E) None of these answers. 
A) Warranty of infringement 
B) Implied warranty of merchantability 
C) Implied warranty of fitness for use 
D) Warranty of title 
E) None of these answers.

Question 17

Resources as diverse as formulas, supplier and customer lists, procedures, and training programs could all be regarded as trade secrets.

Accepted Answer

A) True 
 B)False

Question 18

Because the UCC calls for full compensation for a party that is a victim of breach of contract, attorney fees are collectible.

Accepted Answer

A) True 
 B)False

Question 19

In most cases, the sales representative is a general agent who can solicit orders and change price, terms, or conditions as well.

Accepted Answer

A) True 
 B)False

Question 20

_____ essentially determines the nature of agreements that are enforceable and create legal rights between the parties.

Accepted Answer

A) Agency law 
B) Contract law 
C) Civil law 
D) Litigation 
E) None of these answers. 
A) Agency law 
B) Contract law 
C) Civil law 
D) Litigation 
E) None of these answers.

In order for a firm to recover lost profits in a breach of contract, the firm must produce credible evidence that it would have made such profits.

Which of the following is not one of the essential elements to an enforceable contract?

The purchasing agent is generally considered to be a general agent for the buying firm with broad authority to change prices, terms, and conditions.

_____ stems from the instructions and granting of authority to the purchasing manager via the job description provided by the employer.

The use of force or coercion to reach an agreement is acceptable in signing a contract, because both parties do not have to enter into the agreement on their own free will.

_____ is money the plaintiff actually paid to the defendant in connection with the contract.

Purchasing managers cannot be held personally liable for their damaging and illegal activities even if they perform them with the authority of their firm.

The concept of damages in the UCC is based on the remedy of a party being "made whole."

_____ are those expenses incurred by the purchaser because the goods were not delivered when expected or as specified.

The costs and penalties for patent infringement are so mild that most standard purchasing agreements do not contain an appropriate patent indemnification clause.

A breach of contract may entitle the offended party to certain remedies or damages.

_____ indicates that the supplier is responsible for transportation, and the purchaser assumes title of the goods at his or her own shipping dock.

According to the UCC, which of the following is not one of the buyer's rights?

Either buyers or sellers can arbitrarily cancel or default on their contracts with impunity.

_____ is something of value in the formation of the contract that gives it legal validity.

_____ essentially indicates that the supplier warrants that it has title to the goods and that they are not stolen or subject to any security interest or liens.

Resources as diverse as formulas, supplier and customer lists, procedures, and training programs could all be regarded as trade secrets.

Because the UCC calls for full compensation for a party that is a victim of breach of contract, attorney fees are collectible.

In most cases, the sales representative is a general agent who can solicit orders and change price, terms, or conditions as well.

_____ essentially determines the nature of agreements that are enforceable and create legal rights between the parties.

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

In order for a firm to recover lost profits in a breach of contract, the firm must produce credible evidence that it would have made such profits.

Which of the following is not one of the essential elements to an enforceable contract?

The purchasing agent is generally considered to be a general agent for the buying firm with broad authority to change prices, terms, and conditions.

_____ stems from the instructions and granting of authority to the purchasing manager via the job description provided by the employer.

The use of force or coercion to reach an agreement is acceptable in signing a contract, because both parties do not have to enter into the agreement on their own free will.

_____ is money the plaintiff actually paid to the defendant in connection with the contract.

Purchasing managers cannot be held personally liable for their damaging and illegal activities even if they perform them with the authority of their firm.

The concept of damages in the UCC is based on the remedy of a party being "made whole."

_____ are those expenses incurred by the purchaser because the goods were not delivered when expected or as specified.

The costs and penalties for patent infringement are so mild that most standard purchasing agreements do not contain an appropriate patent indemnification clause.

A breach of contract may entitle the offended party to certain remedies or damages.

_____ indicates that the supplier is responsible for transportation, and the purchaser assumes title of the goods at his or her own shipping dock.

According to the UCC, which of the following is not one of the buyer's rights?

Either buyers or sellers can arbitrarily cancel or default on their contracts with impunity.

_____ is something of value in the formation of the contract that gives it legal validity.

_____ essentially indicates that the supplier warrants that it has title to the goods and that they are not stolen or subject to any security interest or liens.

Resources as diverse as formulas, supplier and customer lists, procedures, and training programs could all be regarded as trade secrets.

Because the UCC calls for full compensation for a party that is a victim of breach of contract, attorney fees are collectible.

In most cases, the sales representative is a general agent who can solicit orders and change price, terms, or conditions as well.

_____ essentially determines the nature of agreements that are enforceable and create legal rights between the parties.

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