Exam 15: Purchasing Law and Ethics

The implied warranty of _____ means when the seller at the time of contracting has reason to know of any particular purpose for which the goods are required, and the buyer is relying on the seller's skill or judgment to select or furnish suitable goods.

A breach of contract may entitle the offended party to certain remedies or damages.

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

The doctrine of _____ holds that if one or more parties made a promise, even orally, he or she cannot renege on that promise if the other party acted on reliance on the promise.

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 defined as that body of the law that refers to how business firms (parties) enter into contracts with each other, execute contracts, and remedy problems that arise in the process.

_____ are those that result if the terms of the contract are not fulfilled and must be defined prior to the breach under the terms of the contract.