Chapter 15
Supply officers can be held accountable by the employer when they are (multiple answers) A) exercising actual authority B) properly documenting purchases C) at active fault D) negligent
C, D
Match the warranty to the definition When the goods fit the ordinary purpose for which goods of that description are used in the trade
Implied Warranty of Merchantability
Match the warranty to the definition When the seller knows or has reason to know that the buyer is relying on the seller's skill or judgment to select a product that is suitable for the particular purpose
Implied Warranty of fitness for a particular purpose
For all areas of service contracts, clear _____________ for the buyer and supplier must be clarified.
accountability
Arbitration is used to ___________ litigation
avoid
The ______________ is the owner of goods upon acceptance.
buyer
Under a termination for clause, provisions are provided to define what constitutes cause for the ___________ to terminate the contract.
buyer
A purchase order contains the ___________ offer
buyer's
With open contracts and the threat of price changes, ______________ should be written in the contract to prevent cancellation.
clauses
When purchasing services, ____________ law governs the contracts
common
_____________ of interest is based on issue perception.
conflict
Alternative Dispute Resolution (ADR) helps settle disputes outside of the _____________
courtroom
It is often __________ to estimate damages caused from a sellers breach of contract
difficult
______________ signature is used generically to mean electronic authorization.
digital
_________ electronic signatures may not apply across borders
electronic
Copyrights give owners _________ rights to reproduce, distribute, perform, display, and license his or her work.
exclusive
________________ indicator is a sign of origin for good.
geographical
The UCC does not cover ___________ activities
illegal
Match the clause with the definition states the contractor is responsible for filing his or her own taxes
independent contractor clause
If payment is made prior to ______________, this does not constitute acceptance on behalf of the buyer.
inspection
Match the clause with the definition must seek customer approval prior to transferring personnel assigned to a project
key personnel
If a buyer specifies a carrier, the seller _____________ follow those instructions.
must
Rights under the renegotiation provisions should be ____________
mutual
Match the clause with the definition confidential information or date cannot be shared
non disclosure clause
A ____________ is an exclusive right granted for an invention, which is a product or a process that provides, in general, a new way of doing something, or offers a new technical solution to a problem.
patent
The UCC does not apply to ____________
services
Match the clause with the definition expands or restricts a supplies use of subcontractors
subcontractor clause
A supply professional can have which forms of actual authority? (multiple answers) A) implied B) express C) apparent D) delegated
A, B
The important features of the Electronic Signatures in Global and National Commerce Act are (multiple answers) A) technology neutrality B) party autonomy C) specific technology D) global requirements
A, B
Which activities can place an organization at legal risk? (multiple answers) A) Employees purchasing goods without seeking guidance from the supply personnel. B) Purchasing goods that are not part of a contract from a supplier. C) Employees who request guidance from supply personnel before making purchases. D) Following contractual guidelines when making all purchases from a supplier.
A, B
Utility patents are issued for machines, (multiple answers) A) processes B) compositions of matter C) manufacturers D) design of functional products
A, B, C
What are the three types of product defects? (multiple answers) A) design defects B) manufacturing defects C) defects in marketing D) defective sourcing
A, B, C
What are the four US pieces of federal legislation for environmental regulations? (multiple answers) A) Clean Air Act B) Comprehensive Environmental Response, Compensation and Liability Act C) Toxic Substances Control Act D) Water Resources Act E) Resource Conservation and Recovery Act
A, B, C, E
Liability on products includes (multiple answers) A) the manufacturer B) the retail store owner C) the consumer D) the wholesaler
A, B, D
What are some consequences of commercial bribery? (multiple answers) A) defects in quality are hidden B) buyers will pay higher prices than normal C) total cost of ownership decreases D) total cost of ownership rises
A, B, D
When does acceptance of goods occur? (multiple answers) A) When the buyer has a reasonable time to inspect and accept or reject the goods. B) The buyer fails to reject after the opportunity to inspect. C) as soon as the buyer receives the goods D) the buyer behaves as if they own the goods
A, B, D
A termination for convenience cannot be (multiple answers) A) exercised in bad faith B) used when a change of circumstances occurs C) used to avoid paying the balance on the contract
A, C
Copyright law protects original works that are (multiple answers) A) registered B) non original C) not registered
A, C
Purchase agreements for services are also called a (multiple answers) A) contract for services B) particular contract C) service contract D) service agreement
A, C
Sustainability includes respect for (multiple answers) A) people B) the organization C) the natural environment D) financial status
A, C
What are some options in the event of a breach of contract? (multiple answers) A) request a price adjustment for sub par goods B) keep sub par goods and refuse to pay the invoice C) request replacement goods D) warn the supplier of a non-serious breach
A, C, D
What must be considered when determining the provisions for a services contract? (multiple answers) A) strategic or nonstrategic B) types of materials to be used C) repetitive or nonrepetitive spend D) a short-term or long-term agreement
A, C, D
What options do buyers have for goods that do not conform to delivery or the contract? (multiple answers) A) reject the entire shipment B) refuse to make payment on the accepted parts C) accept partial shipment and reject the rest D) accept the entire shipment
A, C, D
Organizations rely on which approaches to manage supplier sustainability practices? (multiple answers) A) third party certifications B) bank certifications C) corporate codes of conduct D) supplier audits E) industry standards
A, C, D, E
Intellectual property is divided into (multiple answers) A) copyright B) protections C) creations D) industrial property
A, D
What concerns do those in the software industry have in regards to provisions in software contracts? (multiple answers) A) nondisclaimable warranty B) opportunities for upgrades C) intellectual property rights D) perceived limitations on negotiating terms of software licenses
A, D
What makes a purchase order a legal contract? A) the buyer offering to make a purchase B) the advertisement of goods or services C) acceptance by the supplier D) an offer made by the seller
C
A salesperson for ABC manufacturing is working with a new organization, they are unsure of a buyer's authority. What action can they take? A) request documentation on the individual's level of authority B) do nothing, the buying organization accepts all legal responsibility C) accept the information from the individual on their authority
A
Common law is based on A) law of the courts as guidance B) written rules of law C) laws for the purchase of goods D) verbal agreements between buyers and sellers of goods
A
Cost and Cost plus contracts are generally used when A) a firm contract price is not available B) material cost is expected to change C) milestones must be met D) work and level of services are structured
A
How often under the Dodd-Frank Act must publicly traded companies confirm their supply chains are free from conflict minerals? A) annually B) quarterly C) weekly D) monthly
A
Question Mode Multiple Choice Question What is the first step for a SLA? A) define variables and metrics B) agreeing to the SLA C) writing the SLA D) delivering services described in the SLA
A
What is the most common error when drafting contracts for services? A) vagueness B) delivery dates C) quality requirements D) pricing requirements
A
Who should be responsible to determine if orders solicited by a salesperson are valid? A) the supply officer B) the courts C) the buyer D) the salesperson
A
Arbitration results and opinions A) are public record B) are not public record C) will be reported to the court system
B
The Uniform Commercial Code (UCC) was developed to A) provide all legal rules for contracts B) facilitate fair and efficient transactions C) allow each organization to develop rules that are beneficial to them D) provide laws for prosecuting contractual agreements
B
Under copyright laws, what is illegal in one country A) is illegal in the US B) may be acceptable in another C) is legal if the copyright owner allows it D) is illegal in all countries
B
What allows a buyer to obtain goods now and pay in the future? A) possession sales contract B) conditional sales contract C) current sales contract D) future billing contract
B
What authority is created when a purchaser leads a supplier to think that they have authority by making a purchase, accepting delivery of the purchase, and paying the invoice? A) express B) apparent C) third-party D) implied
B
What is the ornamental or aesthetic aspect of an article? A) geographical indication B) industrial design C) copyright D) patent
B
What is the practice of giving preferential treatment to suppliers who are also customers? A) copyright B) reciprocity C) variance buying D) customer preference
B
Cancellations are the direct result of the buyer trying to (multiple answers) A) avoid a price increase B) avoid losing money C) take advantage of a price decline D) live up to the contract
B, C
Sound business relationships should stress (multiple answers) A) pricing B) courtesy C) honesty D) fairness
B, C, D
ADR provides a chance to (multiple answers) A) reach mandated court settlements B) reach negotiated settlements C) eliminate working relationships D) maintain working relationships
B, D
Even when a breach of contract on the sellers part occurs, (multiple answers) A) the buyer will have many alternatives B) the buyer typically still wants the goods C) the buyer will not want the goods D) the buyer may not have alternatives
B, D
Authority to do what is necessary to accomplish what has been expressly authorized. A) scope authority B) apparent authority C) implied authority D) express authority
C
If a seller desires for a good to perform a specific role, they must provide A) dimensional drawings B) material specifications only C) material specifications and the purpose of the equipment or goods. D) nothing more than verbal instructions, it is the sellers responsibility to meet demand.
C
The UETA allows for electronic to be A) inadmissible in electronic format B) less comprehensible C) admissible in electronic format
C
Who is responsible for ensuring supply transactions are conducted ethically? A) purchasers only B) suppliers only C) suppliers and purchasers D) local law enforcement
C
_______________ is when a manufacturer fails to exercise due care to make a product safe, they can be sued for negligence by an injured user. A) copyright B) Dispute Liability C) product liability D) intellectual property
C
What authority is created when a purchaser leads a supplier to think that they have authority by making a purchase, accepting delivery of the purchase, and paying the invoice? A) third-party B) implied C) apparent D) express
C: apparent authority is what a person appears to have
Match the method of service contracting with the definition. Cost reimbursement contracts that provide for payment of allowable incurred costs
Cost and Cost Plus
ABC manufacturing has produced parts that can only be sold to a single buyer, the buyer has refused to make additional payment for the remaining goods. What exception can ABC manufacturing seek help to validate the entire contract? A) acceptance purchases B) substantial manufacturing C) promise purchases D) promissory estoppel
D
Who can exercise the option to void a contract if false statements were made about the merchandise to be purchased? A) the courts B) the salesperson C) the seller D) the buyer
D
Match the warranty to the definition When the seller affirms that the product will perform in a certain manner
Express Warranty
True or false: Buyers and sellers have the same legal authority.
False
True or false: Supply officers are not held personally responsible for supply purchases.
False
True or false: The supply manager for ABC manufacturing is writing a service contract, all rules under the UCC will protect his organization.
False: There are no particular rules for service contracts; supply managers should ensure that every performance requirement is clearly defined.
Match the method of service contracting with the definition. Specific activities must be completed by prescribed dates
Milestone Deliverables
Match the method of service contracting with the definition. Details the means, method, organization, and processes along with material requirements
Service Level Agreement (SLA)
Match the method of service contracting with the definition. Services are based on fixed rates and materials are based on a specified cost
Time & Materials (T&M)
True or false: If a service is provided on the purchasers premises, several clauses may be required.
True
True or false: In practice, abuse of reciprocal buying is practically certain.
True
True or false: Supply professionals should refuse any gratuities or tokens of appreciation beyond insignificant amounts.
True
True or false: Under the UCC electronic signatures are considered valid.
True
True or false: When unauthorized purchases are sanctioned, apparent authority is created.
True: Each time a company ratifies an unauthorized purchase, a valid contract is created and apparent authority is created.
Match the method of service contracting with the definition. Predetermined services provided at specified times
Volume of Services (VoS)
Match the warranty to the definition Ensures there are no liens against the title of the goods and they are free from patent or copyright infringement
Warranty of title and against infringement
A _____________ is a recognizable sign, design, or expression which identifies products or services of a particular source from those of others.
trademark
The Model Uniform Products Liability Act (MUPLA) is ___________ for state use.
voluntary
In order to exclude implied warranties, they must be in ______________
writing
