The _____ clause in a contract establishes where bills, invoices, notices, and other
documents should be sent, as well as the key contact person at the buying and supplying
companies to whom all questions and issues concerning the relationship.
a. severability
b. notices
c. governing law
d. supply and delivery
e. intellectual property
A contract can exist only when there is an agreement resulting from both an offer and
an acceptance.
a. True
b. False
A major complaint about Americans is our ignorance of other cultures.
a. True
b. False
Full-service carriers, in addition to picking up and delivering goods, may consolidate
shipments, provide simplified billing, ship just-in-time from local storage points, handle
complex overseas shipments, coordinate shipments with other carriers or modes, or
configure final products for direct shipment to end customers.
a. True
b. False
All of the following are examples of topics discussed in legal contract procedures
except _____.
a. essential elements of the contract
b. execution and administration of agreements
c. compliance with contract terms and performance assessment
d. legal definitions
e. analysis of competitive quotations
Many purchasers prefer to focus on suppliers who have the capability to do the job
regardless of size.
a. True
b. False
If each division or unit is responsible for developing its own e-purchasing system or
data gathering and part-numbering system, the result will be a compatible purchasing
system.
a. True
b. False
Multiple sourcing can add quality variability to the sourced product because of the use
of different materials, manufacturing techniques, and processes.
a. True
b. False
In order for _____ to work, both the buyer and the logistics service provider must
explicitly agree as to what the buyers 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 cost-based approach to determining price is clearly appropriate for all purchased
items.
a. True
b. False
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
Progressive supply managers work with their legal group to develop pre-established
contract language that can be cut and pasted during a supplier negotiation.
a. True
b. False
The suppliers selection of a production process does little to define its required
technology, human resource skills, and capital equipment requirements.
a. True
b. False
There is a minimal gap between real leadership and what we traditionally think of as
management or supervision.
a. True
b. False
A/An _____ is a minor departure from an intended level of performance, or a
nonconformance that is easily resolved and does not materially affect the required
output.
a. discrepancy
b. problem
c. defect
d. unacceptable outcome
e. deficiency
An inverted tariff means that no duties or quota charges will be placed on goods that are
reexported from the FTZ.
a. True
b. False
The effective use of information in a negotiation does not necessarily mean open and
complete sharing.
a. True
b. False
Which of the following is not one of the examples of Porters threat of new entrants?
a. Capital markets.
b. Economies of scale.
c. Supplier concentration.
d. Product life cycles.
e. Brand equity and customer loyalty.