Question 1

In its most basic form, a _____ is defined as a promise or representation made by the seller, which, if necessary, can be legally enforced.

Accepted Answer

A)  statement of fact 
B)  Verbal agreement 
C)  verbal agreement 
D)  warranty 
E)  buyer's right of rejection 
A)  statement of fact 
B)  Verbal agreement 
C)  verbal agreement 
D)  warranty 
E)  buyer's right of rejection

Question 2

_____ 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 the above. 
A)  RFQ 
B)  PO 
C)  RFI 
D)  Boilerplate 
E)  None of the above.

Question 3

_____ 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 4

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

Accepted Answer

A) True 
 B)False

Question 5

_____ 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 6

_____ can be defined as failure of one of the parties to live up to the terms and conditions of the contract.

Accepted Answer

A)  Cancellation for default 
B)  Cancellation for convenience of the seller 
C)  Cancellation for convenience of the purchaser 
D)  Cancellation by mutual assent 
E)  None of the above. 
A)  Cancellation for default 
B)  Cancellation for convenience of the seller 
C)  Cancellation for convenience of the purchaser 
D)  Cancellation by mutual assent 
E)  None of the above.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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 9

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

Accepted Answer

A) True 
 B)False

Question 10

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 11

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 12

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

Accepted Answer

A)  The buyer pays too little for a purchased good or service. 
B)  Unethical behavior presents a personal risk to a buyer's reputation. 
C)  buyer who performs an unethical act runs the risk that the act is also illegal. 
D)  Sellers quickly become aware of buyers who are open to offers "on the side." 
E)  A buyer who makes purchase decisions based on factors other than legitimate business criteria risks the reputation of the entire firm. 
A)  The buyer pays too little for a purchased good or service. 
B)  Unethical behavior presents a personal risk to a buyer's reputation. 
C)  buyer who performs an unethical act runs the risk that the act is also illegal. 
D)  Sellers quickly become aware of buyers who are open to offers "on the side." 
E)  A buyer who makes purchase decisions based on factors other than legitimate business criteria risks the reputation of the entire firm.

Question 13

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

Accepted Answer

A)  consideration 
B)  habeas corpus 
C)  acceptance 
D)  clause 
E)  offer 
A)  consideration 
B)  habeas corpus 
C)  acceptance 
D)  clause 
E)  offer

Question 14

Exceeding both actual and apparent authority can have dire consequences; an individual may be held directly liable by the supplier or other third party.

Accepted Answer

A) True 
 B)False

Question 15

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 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 defects. 
D)  Sue for breach of contract. 
E)  Retain the right to recover costs and expenses caused by a breach of warranty.

Question 16

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

Accepted Answer

A)  Damages 
B)  Cancellation 
C)  Restitution 
D)  Expectancy 
E)  Breach of contract 
A)  Damages 
B)  Cancellation 
C)  Restitution 
D)  Expectancy 
E)  Breach of contract

Question 17

Which of the following is not a form of sharp practice?

Accepted Answer

A)  Willful use of misinformation. 
B)  Exaggerating problems. 
C)  Sharing information on competitive quotations. 
D)  Knowingly withholding information during a negotiation. 
E)  Taking unfair advantage of a supplier's financial situation. 
A)  Willful use of misinformation. 
B)  Exaggerating problems. 
C)  Sharing information on competitive quotations. 
D)  Knowingly withholding information during a negotiation. 
E)  Taking unfair advantage of a supplier's financial situation.

Question 18

The laws of contracts are concerned with governing the relationship of principals and agents.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)  Warranty of title 
B)  Express warranty 
C)  Warranty of infringement 
D)  Implied warranty of fitness for use 
E)  Implied warranty of merchantability 
A)  Warranty of title 
B)  Express warranty 
C)  Warranty of infringement 
D)  Implied warranty of fitness for use 
E)  Implied warranty of merchantability

Question 20

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

In its most basic form, a _____ is defined as a promise or representation made by the seller, which, if necessary, can be legally enforced.

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

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

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

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

_____ can be defined as failure of one of the parties to live up to the terms and conditions of the contract.

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

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.

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

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

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

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

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

Exceeding both actual and apparent authority can have dire consequences; an individual may be held directly liable by the supplier or other third party.

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

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

Which of the following is not a form of sharp practice?

The laws of contracts are concerned with governing the relationship of principals and agents.

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

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.

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

In its most basic form, a _____ is defined as a promise or representation made by the seller, which, if necessary, can be legally enforced.

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

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

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

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

_____ can be defined as failure of one of the parties to live up to the terms and conditions of the contract.

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

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.

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

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

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

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

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

Exceeding both actual and apparent authority can have dire consequences; an individual may be held directly liable by the supplier or other third party.

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

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

Which of the following is not a form of sharp practice?

The laws of contracts are concerned with governing the relationship of principals and agents.

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

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.

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