SCM 371 EXAM 4

The political situation in the country of interest is questionable

A U.S. buyer may be discouraged from sourcing offshore if:

True

A company's boilerplate or framework agreement includes the complete terms and conditions that apply to any transaction.

Letter of credit

A document which is drawn by the buyer's bank at the buyer's request, and guaranteed that the bank will pay the agreed-on amount when all prescribed conditions, such as satisfactory delivery, have been completed, is called a:

Asks the supplier to declare at what price and what terms they are prepared to supply

A request for quotation (RFQ):

May be useful if they are of similar size and objectives as the buyer's organization

A supplier's references:

The buyer behaves as if the seller no longer owns the goods and the buyer fails to reject after a reasonable opportunity to inspect

Acceptance of goods occur when:

Are valid in most countries

Electronic or digital signatures for contractural purposes:

False

Environmental sustainability in supply chain management includes product and process issues that affect human safety and welfare, community development, and protection from harm

Is exercised in bad faith, it may mean the termination is a breach of contract

If a termination for convenience clause is included in a services contract:

Is encouraged by the rapid rate of technological change, growth in international trade, and the need to extract competitive advantage from supply chains.

Reverse marketing:

Social sustainability

SA8000 certification is for:

Often provide the greatest responsiveness and flexibility

Small suppliers:

True

Some organizations have found that when entering a new market, purchasing products and/or services, before trying to sell into the market, provided several advantages

Use tax and business incentives to attract foreign investment and technology as a means of supporting economic growth.

Special economic zones of China (SEZs)

Requires listing off-balance sheet items such as long-term purchase agreements

The Sarbanes-Oxley Act:

Is automatically applied if both nations have adopted the CISG unless another body of law is agreed upon in the contract

The United Nations Convention for the International Sale of Goods (CISG):

Implied authority

The authority that is necessary, usual, and proper to carry through to completion the express authority conferred, is called:

INCOTERMS (international Commercial Terms)

The governing convention on shipping terms and responsibilities involved in international transportation is called:

To solicit orders and get ratification and acceptance from his or her employer.

The legal authority of a salesperson normally is:

Better overall value

The most-cited reason for international trade is:

Quality, quantity, delivery, price and service

The traditional supplier evaluation criteria are:

China

The world's leading exporter of manufactured goods is:

Hedge in a commodities market, require bid or performance bonds and decide not to do business in certain countries.

To avoid risk, a buyer can:

Sourcing defects, design defects, and manufacturing defects

Under U.S. product liability law, relevant product defects are:

May decide to deal in international currency options

When dealing with an international supplier, a knowledgeable buyer:

Lowers risk by ensuring that suppliers deliver defect-feee goods

When it comes to product liability, supply management:

Offset arrangement.

When on condition of a countertrade agreement is that government and/or military-related exports be purchased, this is called

The buyer should learn about the culture, customs, norms, taboos, and history of the supplier's cluntry

When sourcing offshore:

Implied warranty of merchantability

When the goods fit the ordinary purpose for which goods of that description are used in the trade, there is a(n)

A global commodity management organization

When there is a large number of common requirements across facilities or business units, and the supply base is dispersed geographically, an appropriate global sourcing structure is:

Competent parties

Which of the following is a factor in determining the validity of a contract?

Concerns exist about supplier capacity for future volume

Which of the following statements support multiple sourcing:

The use of just-in-time production, stock less buying, or systems contracting.

Which of the following statements supports single sourcing:

The need to develop export markets for new products

Which of the following would encourage countertrade?

May yield substantial opportunities for negotiating favorable terms for both buying and selling organizations.

Assessment of a potential supplier's financial situation.

Often flourishes although it is outlawed in almost every country in the world.

Commercial bribery:

False

Commercial letters of credit (CLCs) are the least actively used structured payment instruments in global trade

May be useful in making effective supplier selection decisions if probabilities of success and failure are assessed for each option.

Decision trees:

May be included if success depends on specific individuals

In a contract for services, a key personnel clause:

Internal escalation

In a contractural dispute between buyer and seller, the process of elevating the discussion from buyer and sales representative to their supervisors and up through the organization before the other forms of dispute resolution are pursued.

Import merchant

In international buying, the entity that makes a contract with the buyer and then buys the product in its name from the foreign supplier, takes title, delivers to the place agreed on with the buyer for the agreed-on price, is a(n):

Competitive supply market, substitution is possible, price per unit is important.

In the portfolio matrix, characteristics of goods and services in the leverage quadrant are:

True

One services contracting method is a service level agreement (SLA) which is a document that details the means, method, organization, and processes along with material requirements.

Expanding because supplier's can influence the ability to achieve the goal of zero environmental impact.

Supply management's role in environmental sustainability is:

The combination of environment and social performance

Sustainability is: