The laws of contracts are concerned with governing the relationship of principals and
agents.
a. True
b. False
_____ 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.
In a firm fixed price contract, if the supplier increases its contract price in anticipation
of rising costs, and the anticipated conditions do not occur, then the purchaser has paid
too high a price for the good or service.
a. True
b. False
U.S. purchasers stuck with domestic suppliers that produce poor quality often begin to
source offshore components with the hope of improving end-product quality.
a. True
b. False
All of the following questions are important in considering new or existing suppliers for
integration except _____.
a. Is the supplier capable of hitting affordable targets regarding cost, quality,
conductivity, weight, and other performance criteria?
b. Does the supplier have sufficient marketing funds for promoting its new products?
c. Will the supplier be able to meet product introduction deadlines?
d. Will the supplier be able to increase capacity and production fast enough to meet our
market share requirements?
e. Do the suppliers personnel have the required training to start up required processes
and debug them?
_____ 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
If the terms of the buyers purchase order and the suppliers acceptance or
acknowledgement conflict, all of the terms of both the purchase order and the
acceptance become part of the resulting contract including the conflicting terms and
conditions.
a. True
b. False
Buyers should focus only on a suppliers physical output (the end result), never on the
supporting inputs, systems, and processes that created that output.
a. True
b. False
The way MRO items are typically dispersed throughout an organization makes
monitoring MRO inventory relatively simple.
a. True
b. False
Which of the following is not one of the popular definitions of negotiation as presented
in the text?
a. A negotiation is an interactive communication process that may take place whenever
we want something from someone else or another person wants something from us.
b. Negotiation is the process of communicating back and forth for the purpose of
reaching a joint agreement about differing needs or ideas.
c. Negotiating is the end game of the sales process.
d. Negotiation is to be used only to get the absolutely lowest price from a supplier.
e. Negotiation is a process of formal communication, either face-to-face or via
electronic means, where two or more people, groups, or organizations come together to
seek mutual agreement about an issue or issues.
Purchasings right to evaluate and select suppliers means that sales representatives are
not allowed to talk with non-purchasing personnel.
a. True
b. False
Providing ongoing purchase price and cost reduction, combined with quality and
delivery performance improvement, is the maximum contribution expected of
purchasing and supply.
a. True
b. False
A/An _____ is a formal request for the suppliers to prepare bids, based on the terms and
conditions set by the buyer.
a. RFQ
b. purchase order
c. RFI
d. supplier analysis
e. e-RA