test 3 Study_Guide

test 3 Study_Guide - Study Guide # 3 SCM 355 2008 SP 35...

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Study Guide # 3 SCM 355 2008 SP 35 Multiple Choice Questions: 15 True/False: 50 Total Important Concepts Documents for Chapters14-19: Types of Contracts (Exhibit 14.1 Risk) See Essay question Cost, Fixed and Incentive Role of managers as representatives of organizations Quiz: “The role of managers as individual representatives acting on behalf of the organization is defined by the AGENCY LAW” Quiz: “A person who has been authorized to work on behalf of another person or entity is called AN AGENT in legal terms.” The role managers play is a representative role called an Agent – is a person or entity authorized to act on behalf of some other person or entity. A Principal – is the corresponding person or entity that the agent is acting on the behalf. Purchasing managers generally have final authority over purchasing decisions within their firms. The purchasing manager is generally considered the general agent because in the end someone has to sign the contract. Personal Liability Quiz: “All of the following activities of a purchasing manager lead to personal liability except NONE OF THE ABOVE ARE EXCEPTIONS.” A concept of apparent versus actual authority. Actual authority – stems from the actual instructions and guidelines given to the purchasing manager. Apparent Authority is that level of authority perceived by the seller to be available to the purchasing manager. Areas of activity for Purchasing Manager leading to personal liability: deception for personal gain while behaving as an agent violating the lawful protection of items owned by other, such as patents misuse of proprietary information Violation of anti trust laws Unlawful transportation of hazardous materials and toxic waste Ethical infractions for buyers Types of unethical purchasing behavior: Reciprocity – this refers to the action of “I’ll buy from you if you buy from me” which is restricting the buying market and very much illegal. Personal Buying – this occurs when a purchasing department purchases materials for the personal needs of their employees. There are some exceptions to this law like buying safety glasses, hats, etc. . but most companies know the difference. Accepting Supplier Favors accepting gifts and favors from a supplier is the most common ethical infraction involving buyers. The problem with this infraction is deciding when the line is crossed form a friendly gesture to a persuasive gift. Financial Conflicts of interest – when a buyer awards business to a supplier because the buyer, the buyer’s family, or relatives of the buyer have a direct financial interest in a supplier ( considered major unethical behavior ) Sharp Practices – is any misrepresentation by a buyer that falls just short of actual fraud. Sharp practices occurs whenever a buyer “plays games” with a
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supplier and operates in an underhanded manner. Examples include: o Requesting quotes on inflated volumes and the placing smaller orders
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This note was uploaded on 06/24/2008 for the course SCM 355 taught by Professor Pearson during the Spring '08 term at ASU.

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test 3 Study_Guide - Study Guide # 3 SCM 355 2008 SP 35...

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