Exam 15: Purchasing Law and Ethics

In agreeing to perform the purchasing duties for the employer, purchasing managers imply that they will never make a mistake.

After the point of acceptance, the supplier's rights _____ and the purchaser's rights _____.

Unless the parties specify differently, the term "FOB" delineates the point at which the supplier is responsible for freight charges and where the purchaser assumes title to the shipment.

Copyright law requires a formal application, as does patent law.

Since people make agreements every day, every agreement can be considered a contract.

A contract can exist only when there is an agreement resulting from both an offer and an acceptance.

Under the UCC, [the] _____ applies to contracts for goods worth more than $500 or any contract that cannot be fully performed in one year.

_____ is money the plaintiff was hoping to gain from the contract.

Suppliers seldom attempt to influence the decisions of supply professionals.

Inventors seeking to expand their patent protection to other countries must file appropriate patent applications in each country in which protection is desired.

It is illegal for sellers to exaggerate the merits of their products during their sales pitch.

Under the UCC, the risk of loss is with the buyer until the title passes to the seller.

_____ occurs when a purchasing department purchases materials for the personal needs of its employees.

Rather than change existing contract law, in 1999 the _____ adapted existing "paper and pencil" concepts to the electronic age, meaning that it makes electronic records equivalent to written documents and electronic signatures the same as handwritten signatures for legal purposes.

When a non-agent, such as a maintenance supervisor, engineer, or finance analyst makes a commitment with a supplier, this is termed _____.

Cancellation by mutual consent indicates that the cancellation of a previously agreed-upon contract automatically leads to legal action.

The _____ is typically considered a _____ for the buying firm.

Which of the following is not a category of contract cancellation?

A good rule of thumb is to remember that purchasers must always act in the best interests of their employer.

In order to be valid, freight claims must be filed within _____ of the date of actual or reasonable date of delivery.