SCM CH 15, SCM CH 16, SCM CH 17
[A/An] _____ is any misrepresentation by a buyer that falls just short of actual fraud. a. Ethics b. sharp practice c. Bribery d. conflict of interest e. None of the above.
B
A/An _____ serves the transportation requirements of the party with which it has a legal agreement and provides only those services that have been negotiated with the shipper at a mutually agreed upon price. a. intermodal carrier b. private carrier c. common carrier d. exempt carrier e. contract carrier
A
A/An _____ system provides status alerts, via e-mail, fax, pager, and so on, to a buyer or salesperson that a particular shipment has been delayed and that this may affect other entities in the supply chain. a. event-based b. MRP c. ERP d. DRP e. None of the above.
A
A/An _____ system takes a period-by-period set of master production schedule requirements (anticipated or booked customer orders) and produces a time-phased set of material, component, and subassembly requirements timed to support an expected build schedule. a. kanban b. DRP c. just-in-time d. perfect order e. MRP
A
After the point of acceptance, the supplier's rights _____ and the purchaser's rights _____. a. increase....decrease b. increase....increase c. decrease....increase d. decrease....decrease e. There is no change in either sets of rights before or after the point of acceptance.
A
All of the following action support reduced order-cycle time with suppliers except _____. a. expanded global sourcing b. expanded electronic capability c. supplier development support d. order-cycle time measurement e. focus on second- and third-tier suppliers
A
All of the following are categories of inventory except _____. a. lean inventory b. raw material and semifinished item inventory c. work-in-process inventory d. MRO supplies inventory e. pipeline/in-transit inventory
A
All of the following are common signaling methods used in a kanban system except _____. a. single-card system b. color coding of containers c. designated storage spaces d. computerized bar coding systems e. verbal notification
A
All of the following are criteria used to measure transportation performance except _____. a. speed b. reliability c. capability d. accessibility e. operator hours of service
A
All of the following are important barriers to lean supply except _____. a. large warehouses b. dispersed supply base c. historic buyer-supplier relationships d. number of suppliers e. supplier quality performance
A
All of the following are requirements to receive trade secret protection under law except _____. a. almost every one outside the company is aware of it b. the organization must take steps to minimize or preclude the distribution of sensitive information c. it is economically valuable d. it is not generally known e. it is kept as a secret
A
All of the following are types of information a 3PL should provide to the buyer except _____. a. choice of mode b. number of carriers providing inbound, intraorganizational, and outbound transportation services c. total transportation expenditures by specific carrier and mode of transportation d. breakdowns of volumes by commodity or type of material e. percentage of shipments arranged by suppliers versus by buyers
A
In order for _____ to work, both the buyer and the logistics service provider must explicitly agree as to what the buyer's desired outcomes, goals, and objectives are and how the logistics service provider can help meet them. a. PBL b. MRO c. TQM d. TCO e. KPIs
A
Motor carriers are characterized by _____ variable costs, while rail carriers have comparatively _____ fixed costs. a. higher....high b. lower....high c. higher....low d. lower....low e. There is no difference in variable and fixed costing between motor and rail carriers.
A
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. a. bill of lading b. implied warranty of transportation c. freight bill d. acknowledgment e. implied warranty of merchantability
A
The _____ is typically considered a _____ for the buying firm. a. purchasing manager/buyer.....general agent b. sales representative.....general agent c. purchasing manager/buyer.....special agent d. All of the above. e. None of the above.
A
The downside of poor forecasting includes all of the following except _____. a. higher inventory volumes b. poor customer service as inventory is misallocated across locations and products c. higher inventory carrying charges d. excessive safety stock levels e. decreased customer service costs
A
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. fitness for use b. merchantability c. express warranty d. general warranty e. warranty of infringement
A
The presence of _____ ensures a supply of available transportation in markets where only one-way traffic exists. a. exempt carriers b. one-way carriers c. common carriers d. motor carriers e. All of the above
A
Under the UCC, [the] _____ applies to contracts for goods worth more than $500 or any contract that cannot be fully performed in one year. a. Statute of Frauds b. FCPA c. Clayton Act d. boilerplate e. CISG
A
When a non-agent, such as a maintenance supervisor, engineer, or finance analyst makes a commitment with a supplier, this is termed _____. a. implied authority b. actual authority c. apparent authority d. limited authority e. None of the above.
A
When firms produce goods in response to a customer order, they are operating in a/an _____ environment. a. make-to-order b. make-to-stock c. make-to-forecast d. WIP e. None of the above.
A
Which of the following is an example of WIP inventory? a. Waiting to be moved to another process. b. Currently being worked on at a work center. c. Lining up at a processing center due to a capacity bottleneck or machine breakdown. d. All of the above. e. None of the above.
A
Which of the following is falseregarding the risks of unethical behavior by a purchaser? 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
Which of the following is not an advantage of centralizing professional service procurement? a. Increase the accountability of outside consultants to the buyer by increasing the monitoring and auditing of services provided. b. Lead to the ability to reduce the number of professional service providers. c. Reduce service provider redundancy. d. Reduce the likelihood of unnecessary charges. e. Improve the working relationship between internal user and professional service provider.
A
Which of the following is not one of the actions a firm can take to enhance ethical behavior? a. Wiretapping and security cameras. b. Developing a statement of ethics. c. Closer buyer-seller relationships. d. Internal reporting of unethical behavior. e. Commodity rotation and limits of authority.
A
Which of the following is not one of the advantages of motor carrier over other modes of transportation? a. High flexibility. b. Good reliability. c. Good for JIT delivery. d. Good speed. e. Low cost.
A
Which of the following is not one of the disadvantages of rail carrier over other modes of transportation? a. Seasonal availability. b. Limited access to rail line. c. Longer in-transit lead times. d. Less flexible - may not have rails to all locations. e. Limited access to rail spur.
A
Which of the following is not one of the disadvantages of water carrier over other modes of transportation? a. Limited flexibility. b. Seasonal availability. c. Very long lead times. d. Poor reliability. e. Cannot be used for large volumes.
A
Which of the following is not one of the key principles of the lean concept? a. Maximize the use of people. b. Simplify first, and only then apply new technology. c. Focus on gradual, but continuous, improvement. d. Minimize waste (including poor quality). e. All of the above.
A
Which of the following is not one of the major transportation service linkages throughout a typical supply chain? a. Production planning. b. Inbound logistics c. Intraorganizational movements. d. Outbound logistics. e. Recovery and recycling.
A
Which of the following is not one of the policies used to improve design simplification and reduce complexity? a. Increase the number of suppliers. b. Establish premium pricing for customization. c. Establish geographic-specific options and standards. d. Do not eliminate frequently requested options. e. Utilize business modeling and TCO tools to support complexity reduction decisions.
A
_____ 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. a. General damages b. Consequential damages c. Liquidated damages d. Incidental damages e. Specified damages
A
_____ inventory includes the items purchased from suppliers or produced internally to directly support production requirements. a. Work-in-process b. Finished-goods c. MRO suppliers d. Pipeline/in-transit e. Raw material and semifinished items
A
_____ inventory is in transit to a customer or is located throughout distribution channels. a. Pipeline/in-transi b. MRO c. WIP d. Raw materials and semifinished items e. Just-in-time
A
_____ means that customer orders start the work process, which ripples down through the supply chain. a. Make-to-stock b. Push c. MRP d. DRP e. Pull
A
_____ means that supply chains must have perfect quality. a. DRP b. Flow c. Pull d. Push e. Striving for excellence
A
_____ can be defined as failure of one of the parties to live up to the terms and conditions of the contract. 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
_____ can be defined as how easy the professional service provider is to do business with. a. Wavelength b. Collaboration c. Cooperation d. Preference e. None of the above.
A
_____ can be defined as that amount of an organization's total procurement budget that is purchased from unauthorized sources. a. Indirect spend b. Direct spend c. PBL d. E-commerce e. Maverick spend
A
_____ indicates that the purchaser is responsible for payment of transportation costs and assumes title of the goods at the supplier's shipping dock. a. F.O.B. origin b. F.O.B. delivered c. F.O.B. carrier d. F.O.B. intermediate storage point e. F.O.B. destination
A
_____ of inventory refers to the amount of inventory that a firm owns at any given time. a. Volume b. Velocity c. Value d. Vigor e. None of the above.
A
_____ refers to the accuracy and on-time consistency of the transportation service, arriving neither late nor early. a. Reliability b. Capability c. Accessibility d. Total cost e. Speed
A
_____ takes place when the offeree incurs a legal detriment in response to the offeror's offer. a. Consideration b. Acceptance c. Rejection d. Anticipatory breach e. None of the above.
A
_____ is that level of authority perceived by the seller to be available to the purchasing manager. a. Actual authority b. Apparent authority c. Consideration d. Personal liability e. Transparent authority
B
A/An _____ is a manufacturer or distributor that controls and manages its own transportation equipment, whether owned or leased. a. common carrier b. private carrier c. contract carrier d. intermodal carrier e. exempt carrier
B
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. a. implied warranty b. express warranty c. general warranty d. warranty of merchantability e. warranty of title
B
According to the UCC, which of the following is not one of the buyer's rights? 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.
B
All of the following are considered to be the right reasons for investing in inventory except _____. a. avoid disruptions in operational performance b. Unreliable supplier delivery c. support customer service requirements d. hedge against marketplace uncertainty e. take advantage of order quantity discounts
B
In _____, demand for an item is not directly dependent upon the demand for any other item that is produced. a. dependent demand b. independent demand c. codependent demand d. Six Sigma e. just-in-time
B
The _____ is an attempt by the United Nations to facilitate international trade by removing legal barriers. a. U.C.C. b. CISG c. FCPA d. FTCA e. UNICEF
B
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. a. caveat emptor b. promissory estoppel c. anticipatory breach d. consideration e. None of the above.
B
When freight is shipped _____, the buyer, or consignee, is responsible for choosing the carrier, arranging for the physical movement of the goods, paying the freight bill, and filing loss and damage claims. a. FOB destination b. FOB origin c. FOB delivered d. FOB supplier e. None of the above.
B
Which of the following is false regarding the acceptance and rejection of goods? a. Once the purchaser accepts the goods, there is only one recourse - to make a claim against the supplier. b. The purchaser has the right to send the rejected goods back even if the supplier does not consent to this action. c. The UCC specifies that the purchaser does not have the legal right to withhold payment from the supplier once acceptance has been made. d. Purchasers have a legitimate right to inspect contracted goods before accepting or rejecting them. e. A purchaser may revoke a prior acceptance if a problem is discovered that substantially impairs the value of the goods.
B
Which of the following is not one of the advantages of rail carrier over other modes of transportation? a. Lower cost. b. Good for expediting/emergency situations. c. Can handle a wide range of items. d. Piggyback service can increase flexibility. e. Direct between major cities.
B
Which of the following is not one of the advantages of water carrier over other modes of transportation? a. Good for bulk commodities (inland). b. High flexibility. c. Good for heavy, large items (international). d. Can handle most types of freight. e. Low cost.
B
Which of the following is not one of the benefits of simplified designs? a. Fewer suppliers. b. Increased number of manual transactions. c. Reduced transactions to support the inventory. d. Fewer part numbers. e. Lower inventory management costs.
B
_____ involves giving preferential treatment to suppliers that are also customers of the buying organization. a. Personal buying b. Reciprocity c. Sharp practices d. Accepting supplier favors e. Conflicts of interest
B
_____ 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. a. Negotiation b. Influence c. Ethics d. Sharp practice e. Reciprocity
B
_____ is defined by CSCMP as that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption to meet customers' requirements. a. Supply management b. Logistics management c. Purchasing d. Transportation management e. None of the above.
B
[A/An] _____ is created by buyers from various businesses to pool their buying power together in order to reduce prices. a. kanban b. purchasing consortium c. collaborative buyer-supplier relationship d. reverse auction e. zero-based budgeting
B
_____ essentially determines the nature of agreements that are enforceable and create legal rights between the parties. a. Agency law b. Contract law c. Civil law d. Litigation e. None of the above.
B
_____ inventory includes completed items or products that are available for shipment or future customer orders. a. WIP b. Finished-goods c. MRO d. Pipeline/in-transit e. Raw materials and semifinished items
B
_____ involves frequent deliveries of smaller quantities directly to the point of use at the purchaser. a. Lean supply b. Lean transportation c. Lean warehousing d. Lean ordering e. None of the above.
B
_____ involves the buyer seeking a court order forcing the seller to deliver the goods. a. Arbitration b. Specific performance c. An implied warranty of merchantability d. An express warranty e. None of the above.
B
_____ is money the plaintiff actually paid to the defendant in connection with the contract. a. Reliance b. Restitution c. Expectancy d. Due diligence e. None of the above.
B
_____ of inventory refers to how quickly raw material and work-in-process inventory transform into finished goods that the customer accepts. a. Volume b. Velocity c. Value d. Vigor e. None of the above.
B
_____ refers to a mode's or carrier's ability to provide the proper equipment and provide the appropriate services for a given product movement. a. Accessibility b. Capability c. Speed d. Total cost e. Reliability
B
_____ occurs when a purchasing department purchases materials for the personal needs of its employees. a. Reciprocity b. Sharp practice c. Personal buying d. Conflict of interest e. Influence
C
A _____ details the components or subassemblies and the quantity required to produce a final part number or end item. a. kanban b. perfect order c. bill of material file d. DRP system e. RFID system
C
A/An _____ involves picking smaller amounts of materials from a series of nearby suppliers to be used in a just-in-time or lean manufacturing environment. a. common carrier b. exempt carrier c. milk run d. private carrier e. contract carrier
C
A/An _____ is a person or entity who has been authorized to act on behalf of some other person or entity. a. principal b. manager c. agent d. employee e. sales representative
C
A/An _____ provision stipulates the mechanism to be used in determining any costs and damages to the injured party in the event of a breach of contract. a. mutual assent b. restitution c. liquidated damages d. reliance e. expectancy
C
According to the APICS Dictionary, _____ is defined as the process of a supplier placing goods at a customer location without receiving payment until after the buyer uses the goods. a. Kanban b. Just-in-time c. Consignment d. MRO e. None of the above.
C
Betty goes into Mimi's Wholesale Video Store and says to Mimi, "I want to buy 500 DVDs of the Last Vegas movie from you. I will pay you $10 for each DVD." This is an example of [a/an] _____. a. acceptance b. breach c. offer d. due diligence e. conditional offer
C
By law, a/an _____ must serve the general public without discrimination based on published rates for specific goods. a. contract carrier b. private carrier c. common carrier d. motor carrier e. intermodal carrier
C
Freight shipped _____ means the supplier retains title to the goods and controls the shipment until it is physically received and off-loaded at the consignee's dock. a. FOB carrier b. FOB origin c. FOB destination d. FOB in transit e. None of the above
C
On _____, the freight bill is presented on the effective day of the shipment. a. FOB origin shipments b. collect shipments c. prepaid shipments d. FOB destination shipments e. None of the above.
C
When firms produce goods in anticipation of future customer orders, they are operating in a/an _____ environment a. assemble-to-order b. make-to-order c. make-to-stock d. just-in-time e. None of the above.
C
Which of the following is not a key part of a project's scope? a. Project deliverables. b. Milestones and guidelines. c. Service provider's background and experience. d. Budget. e. Rewards and penalties.
C
Which of the following is not an advantage of using a 3PL? a. Economies of scale and increased flexibility. b. Improve service performance levels. c. Loss of dedicated in-house managed staff. d. Release capital from sale of assets. e. Concentrate on core business activities.
C
Which of the following is not one of the disadvantages of air carrier over other modes of transportation? a. Very high cost. b. Location of large airports limits shipping points. c. Seasonal availability. d. Cannot be used for large, bulky, or hazardous shipments. e. None of the above.
C
Which of the following is not one of the disadvantages of motor carrier over other modes of transportation? a. High cost. b. Limited to domestic or regional transportation. c. Very long lead times. d. Cannot be used for large volumes. e. None of the above.
C
Which of the following is not one of the wrong reasons for investing in inventory? a. Poor quality and material yield. b. Extended order-cycle times from global sourcing. c. Hedge against marketplace uncertainty. d. Specifying custom items for standard applications. e. Inefficient manufacturing processes.
C
[The] _____ refers to the supplier's guarantee that the goods being exchanged do not illegally violate another party's patent protection. a. Warranty of title b. Express warranty c. Warranty of infringement d. Implied warranty of fitness for use e. Implied warranty of merchantability
C
____ are calculated as Average Inventory in Units x Unit Price x Carrying Cost per Year. a. Quality costs b. Ordering costs c. Inventory carrying costs d. MRO costs e. Cycle counting costs
C
_____ can be defined as the sum of all purchased goods and services that are not a direct part of products or services delivered to the customer. a. Direct spend b. MRO c. Indirect spend d. Consignment inventory e. Kanban
C
_____ 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. a. Civil law b. Agency law c. Commercial law d. All of the above. e. None of the above.
C
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. 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.
C
In order to be valid, freight claims must be filed within _____ of the date of actual or reasonable date of delivery. a. 10 days b. 30 days c. 9 months d. 2 years e. There is no time limit for filing freight claims.
C
_____ are those expenses incurred by the purchaser because the goods were not delivered when expected or as specified. a. Incidental damages b. General damages c. Consequential damages d. Specific damages e. None of the above.
C
_____ indicates that the supplier is responsible for transportation, and the purchaser assumes title of the goods at his or her own shipping dock. a. F.O.B. origin b. F.O.B. shipping point c. F.O.B. destination d. F.O.B. carrier e. None of the above.
C
_____ is the idea that organizations and institutions have an obligation to society that extends beyond compliance with regulations in considering the broader effects of their actions. a. Ethics b. Influence c. Corporate social responsibility d. Mutual assent e. Warranty of infringement
C
_____ of inventory pertains to the unit cost of the inventory. a. Volume b. Velocity c. Value d. Virtue e. None of the above.
C
A/An _____ is a set of promises between two or more parties the performance of which the law expects, the breach of which the law provides remedies. a. offer b. agreement c. acceptance d. contract e. breach
D
A _____ is a key individual or unit that controls substantial indirect spending and typically has a position of great responsibility within the organization. a. purchasing consortium b. maverick spender c. 3PL d. power spender e. kanban
D
A _____ system is a production control approach that uses containers, cards, or visual cues to control the production and movement of goods through the supply chain a. MRP b. DRP c. lean supply d. JIT kanban e. lean transportation
D
A repeatable lean transportation schedule, also called a _____, moves goods from supplier to purchaser and then from purchaser back to supplier with return material. a. MRO system b. pull system c. push system d. closed-loop system e. None of the above.
D
A/An _____ is designed to afford protection for persons who create original works, such as books, software, songs, and films. a. patent b. trademark c. trade secret d. copyright e. None of the above.
D
In its most basic form, a _____ is defined as a promise or representation made by the seller, which, if necessary, can be legally enforced. a. statement of fact b. verbal agreement c. verbal agreement d. warranty e. buyer's right of rejection
D
On _____, the freight bill is presented on the effective day of delivery. a. prepaid shipments b. FOB origin shipments c. FOB destination shipments d. collect shipments e. all shipments, regardless of terms
D
Record integrity is the result of various activities and procedures designed to ensure that the amount of _____ is equal to the computerized record of _____. a. MRP....kanban b. DRP....MRP c. ROH....POH d. POH....ROH e. None of the above.
D
The _____ is one that is delivered on time, accurately, and in perfect condition. a. kanban order b. MRO order c. consignment order d. perfect order e. MRP order
D
The total cost structure of _____ is similar to _____ as the equipment, rights-of-way, and physical structure have a high fixed cost and a low variable operating cost. a. motor carriers....air carriers b. motor carriers....pipelines c. water carriers....rail carriers d. pipelines....rail carriers e. Cannot determine from the above information.
D
Which of the following is a component of carrying cost? a. Cost of capital. b. Cost of storage. c. Cost of obsolescence, deterioration, and loss. d. All of the above. e. None of the above.
D
Which of the following is a rule of ethical behavior in purchasing? a. Buyers must commit their attention and energies for the organization's benefit rather than personal enrichment at the expense of the organization. b. A buyer must act ethically toward suppliers or potential suppliers. c. Buyers must uphold the ethical standards set forth by both their organization and the purchasing profession. d. All of the above. e. None of the above.
D
Which of the following is not a category of contract cancellation? a. Cancellation for default. b. Cancellation for convenience of the purchaser. c. Cancellation by mutual assent. d. Liquidated damages. e. Liquidated damages.
D
Which of the following is not a disadvantage of using a 3PL? a. Relinquish control, ownership, and expertise. b. Loss of integration between sales and supply. c. Loss of dedicated in-house managed staff d. Concentrate on core business activities. e. Sacrifice key business service differentiation.
D
Which of the following is not a form of sharp practice? 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.
D
Which of the following is not an advantage of using a 3PL? a. Economies of scale and increased flexibility. b. Improve service performance levels. c. Loss of dedicated in-house managed staff. d. Release capital from sale of assets. e. Concentrate on core business activities.
D
Which of the following is not one of the advantages of air carrier over other modes of transportation? a. Quick and reliable. b. Good for light/small, high-value shipments. c. Good for expediting/emergency situations. d. Low cost. e. None of the above.
D
Which of the following is not one of the essential elements to an enforceable contract? a. Offer. b. Acceptance. c. Consideration. d. Due diligence. e. None of the above.
D
Which of the following is not one of the functions of a distribution resource planning system? a. Forecasting finished-goods inventory requirements. b. Establishing correct inventory levels at each stocking location. c. Determining the timing and replenishment of finished-goods inventories. d. Producing a time-phased set of material, component, and subassembly requirements timed to support an expected build schedule. e. Transportation planning and vehicle load scheduling.
D
____ represents the funds committed to operating a business, including the purchase and holding of inventory. a. Pipeline inventory b. WIP c. MRP d. Working capital e. None of the above.
D
_____ includes movement and handling of materials between production facilities within the same organization as well as movement into and out of intermediary storage facilities. a. Inbound logistics b. Recovery c. Outbound logistics d. Intraorganizational movement e. Recycling
D
_____ means that inventory moves through the supply chain continuously with minimal queueing or non-value-adding activity being performed. a. Pull b. WIP c. MRO d. Flow e. Push
D
_____ refers to a mode's or carrier's ability to provide service over a geographic area. a. Speed b. Capability c. Total cost d. Accessibility e. Reliability
D
_____ represents the link between a company and its customers. a. Inbound logistics b. Intraorganizational movement c. Reverse logistics d. Outbound logistics e. Recovery and recycling
D
_____ deals with the role of managers as individual representatives acting on behalf of their organizations. a. Contract law b. Civil law c. Mediation d. Agency law e. None of the above.
D
_____ 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. 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.
D
_____ inventory includes the items used to support production and operations and are not physically part of a finished product. a. Raw materials b. WIP c. Semifinished items d. MRO e. Pipeline/in-transit
D
_____ is money the plaintiff was hoping to gain from the contract. a. Reliance b. Restitution c. Restitution d. Expectancy e. None of the above.
D
_____ refers the standard terms and conditions that are usually preprinted on the back of forms used by the purchaser (and the seller). a. RFQ b. PO c. RFI d. Boilerplate e. None of the above.
D
A/An _____ is a proposal or expression by one person that he or she is willing to do something for certain terms. a. consideration b. habeas corpus c. acceptance d. clause e. offer
E
Rather than change existing contract law, in 1999 the _____ adapted existing "paper and pencil" concepts to the electronic age, meaning that it makes electronic records equivalent to written documents and electronic signatures similar to handwritten signatures for legal purposes. a. UCC b. Supreme Court c. HSPD-12 d. RFI e. UETA
E
Which of the following is not one of the benefits that the UCC provides to buyers? a. If a seller makes an offer in writing, the seller has to live up to it for the period of time stated. b. Verbal agreements, when confirmed in writing and if no objection is made, are valid. c. The conflict between a buyer's purchase order terms and a seller's acknowledgement terms will generally be resolved according to the two firms' prior conduct. d. As far as warranties are concerned, the purchasing manager can legally rely on the supplier to provide the item needed to do the job. e. None of the above.
E
Which of the following is not one of the common examples of indirect spend? a. Professional and consulting services. b. Employee benefits. c. Travel. d. Maintenance, repair, and operating supplies. e. Production components.
E
_____ 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. a. Expectancy b. Restitution c. Due diligence d. Mutual assent e. Reliance
E
_____ occur[s] when either party fails to perform the obligations due under the contract (without a valid or legal justification). a. Damages b. Cancellation c. Restitution d. Expectancy e. Breach of contract
E
_____ 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. a. Consequential damages b. General damages c. Incidental damages d. Reliance damages e. Liquidated damages
E
_____ essentially describe who is responsible for the selection of a carrier, payment of the freight bill, and the method in which the title of goods passes between the purchaser and the supplier. a. Freight bills b. Bills of lading c. Prepaid shipments d. Collect shipments e. Delivery terms
E
_____ include expenses reasonably incurred in inspection, receipt, transportation, and the care and custody of goods appropriately rejected by the purchaser. a. General damages b. Consequential damages c. Specified damages d. Freight claims e. Incidental damages
E
_____ is something of value in the formation of the contract that gives it legal validity. a. Apparent authority b. Actual authority c. Implied authority d. Acceptance e. Consideration
E
_____ stems from the instructions and granting of authority to the purchasing manager via the job description provided by the employer. a. Apparent authority b. Fiduciary responsibility c. Mutual assent d. Personal liability e. Actual authority
E
