Exam 15: Purchasing Law and Ethics

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.

Which of the following is not one of the actions a firm can take to enhance ethical behavior?

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

Suppliers seldom attempt to influence the decisions of supply professionals.

The _____ is an attempt by the United Nations to facilitate international trade by removing legal barriers.

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

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

The Federal Trade Commission Act makes price discrimination illegal and prohibits sellers from exclusive arrangements with purchasers or product distributors.

_____ deals with the role of managers as individual representatives acting on behalf of their organizations.

_____ 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.

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

A/An _____ is designed to afford protection for persons who create original works, such as books, software, songs, and films.

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

_____ involves the buyer seeking a court order forcing the seller to deliver the goods.

_____ 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.

Copyright is automatically assumed.

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

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

All of the following are requirements to receive trade secret protection under law except _____.

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