Exam 15: Purchasing Law and Ethics

Contractual mistakes are covered under the UCC.

Buyers should avoid the practice of routinely tolerating suppliers that breach purchase contracts because doing so may result in the buyer forfeiting the right to legal action.

Ethics have their basis in the field of philosophy and identify common principles associated with appropriate versus inappropriate actions, moral duty, and obligation.

Accepting a supplier's outside gifts and favors in exchange for special treatment is not a form of corruption.

_____ include expenses reasonably incurred in inspection, receipt, transportation, and the care and custody of goods appropriately rejected by the purchaser.

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

According to the UCC, any affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain creates a/an _____ that the goods shall conform to the affirmation or promise.

The purchasing agency relationship is created between the employer and employee when the company hires an individual to perform the purchasing job.

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

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

The _____ describes the origin of the shipment, provides specific directions for the carrier, delineates the transportation contract terms, and functions as a receipt for the shipment.

_____ are equal to the difference between the value of the purchased goods at the time of delivery and the goods' value at the time of specified delivery.

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

If both parties mutually agree to terminate the contract, then they have, in effect, created another contract with the intent of nullifying the first agreement.

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

On _____, the freight bill is presented on the effective day of the shipment.

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

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

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

Which of the following is not one of the benefits that the UCC provides to buyers?