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 sellers 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
_____ is the sum of the understandings that govern human interaction in a society.
a. Values
b. Beliefs
c. Language
d. Behavior
e. Culture
The RFI constitutes a binding agreement by both the supplier and the purchaser.
a. True
b. False
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
An e-RA is an offline, static auction between a buying organization and a group of
pre-qualified suppliers who compete against each other to win the business to supply
goods or services that have ill-defined specifications for design, quantity, quality,
delivery, and related terms and conditions.
a. True
b. False
Overall, future purchasing and supply mission and goals will be narrower and less
aligned with the strategic objectives of the firm.
a. True
b. False
The use of cross-functional sourcing teams guarantees a successful outcome to a project
or assignment.
a. True
b. False
After the point of acceptance, the suppliers rights _____ and the purchasers 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.
The popularity of JIT and quick replenishment systems favor using fewer local
suppliers.
a. True
b. False
In supply management, the cost/price benefits associated with sourcing in developing
countries are an insignificant motivation for remaining competitive in an increasingly
global environment.
a. True
b. False
According to JIT, inspection is a waste of both time and personnel caused by defects.
a. True
b. False
_____ is the process of determining the appropriate number and mix of suppliers to
maintain.
a. Make-buy analysis
b. Competitive bidding
c. Supply base optimization
d. Portfolio analysis
e. Price analysis
When a key commodity is purchased by many major business units, use of [a] _____ is
beneficial.
a. joint global strategy
b. purchasing cards
c. decentralized purchasing structure
d. corporate purchasing council
e. lead division buying
_____ is a situation that occurs when sellers seek to go around purchasing and instead
directly contact and attempt to sell directly to end users (stakeholders).
a. Insourcing
b. Bidding
c. Maverick buying and selling
d. Negotiating
e. Outsourcing
FTZs allow an importing company to delay, eliminate, or decrease its duty payments on
foreign-sourced goods that enter the zone site.
a. True
b. False
_____ 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
Purchasers should set minimum acceptable performance requirements for a supplier to
meet before they become part of the supply base.
a. True
b. False
All of the following are possible risks of maintaining fewer suppliers except _____.
a. supplier dependency
b. supply disruption
c. overaggressive supply reduction
d. maintaining an all-foreign supply base
e. absence of competition
Ethics have their basis in the field of philosophy and identify common principles
associated with appropriate versus inappropriate actions, moral duty, and obligation.
a. True
b. False