Question 1

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 2

A purchase order can be an offer, acceptance, or counteroffer, depending on the circumstances.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A)  Consideration 
B)  Acceptance 
C)  Rejection 
D)  Anticipatory breach 
E)  None of the above. 
A)  Consideration 
B)  Acceptance 
C)  Rejection 
D)  Anticipatory breach 
E)  None of the above.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) True 
 B)False

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

_____ 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 9

If the carrier has refused to pay a freight claim, then the claimant has _____ from the time the claim was disallowed to file for legal relief in the courts.

Accepted Answer

A)  10 days 
B)  1 month 
C)  2 years 
D)  10 years 
E)  There is no time limit for pursuing freight claims in the courts. 
A)  10 days 
B)  1 month 
C)  2 years 
D)  10 years 
E)  There is no time limit for pursuing freight claims in the courts.

Question 10

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.

Accepted Answer

A) True 
 B)False

Question 11

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 12

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

Accepted Answer

A)  Reciprocity 
B)  Sharp practice 
C)  Personal buying 
D)  Conflict of interest 
E)  Influence 
A)  Reciprocity 
B)  Sharp practice 
C)  Personal buying 
D)  Conflict of interest 
E)  Influence

Question 13

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

Question 14

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 15

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

Accepted Answer

A) True 
 B)False

Question 16

The purchasing agent is a general agent with broad authority to change prices, terms, and conditions.

Accepted Answer

A) True 
 B)False

Question 17

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.

Accepted Answer

A) True 
 B)False

Question 18

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 19

_____ essentially indicates that the supplier warrants that it has ownership of 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 the above. 
A)  Warranty of infringement 
B)  Implied warranty of merchantability 
C)  Implied warranty of fitness for use 
D)  Warranty of title 
E)  None of the above.

Question 20

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 the above. 
A)  Offer. 
B)  Acceptance. 
C)  Consideration. 
D)  Due diligence. 
E)  None of the above.

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

A purchase order can be an offer, acceptance, or counteroffer, depending on the circumstances.

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

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

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

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

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.

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

If the carrier has refused to pay a freight claim, then the claimant has _____ from the time the claim was disallowed to file for legal relief in the courts.

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.

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.

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

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

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

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

The purchasing agent is a general agent with broad authority to change prices, terms, and conditions.

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.

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

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

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

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policy and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Category 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

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

A purchase order can be an offer, acceptance, or counteroffer, depending on the circumstances.

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

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

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

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

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.

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

If the carrier has refused to pay a freight claim, then the claimant has _____ from the time the claim was disallowed to file for legal relief in the courts.

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.

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.

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

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

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

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

The purchasing agent is a general agent with broad authority to change prices, terms, and conditions.

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.

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

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

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

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policy and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Category 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