Chapter 15 Final

Chapter 15 Final - TEST BANK Sourcing and Supply Chain...

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TEST BANK Sourcing and Supply Chain Management – 4th edition Handfield, Monczka, Giunipero, and Patterson Chapter 15 True or False 1. The majority of purchasing law is derived primarily from the laws regarding contracts. a. True (p. 541) b. False 2. Contracts between two or more parties do not allow the shifting of risk between the entities and constitute the foundation and fabric for every type of supply chain relationship. a. True b. False (p. 541) 3. The laws of contracts are concerned with governing the relationship of principals and agents. a. True b. False (p. 541) 4. The purchasing manager/buyer is typically considered to be a general agent for the buying firm. a. True (p. 541) b. False 5. In most cases, the sales representative is a general agent who can solicit orders and change price terms or conditions as well. a. True b. False (p. 542) 6. The purchasing agency relationship is created between the employer and employee when the company hires an individual to perform the purchasing job. a. True (p. 542) b. False 7. From a legal perspective, purchasing managers have no fiduciary obligation to act in the best interests of their employer. a. True b. False (p. 542) This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher.
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8. In agreeing to perform the purchasing duties for the employer, purchasing managers do not imply that they will never make a mistake. a. True (p. 542) b. False 9. Exceeding both actual and apparent authority can have dire consequences; an individual may be held directly liable by the supplier or other third party. a. True (pp. 542-543) b. False 10. Purchasing managers cannot be held personally liable for their damaging and illegal activities even if they perform them without the authority of their firm. a. True b. False (p. 543) 11. A good rule of thumb is to remember that purchasers must always act in the best interests of their employer. a. True (p. 544) b. False 12. When terms of an order and acceptance conflict, the conflicting terms are simply disregarded and are not part of the resulting contract. a. True (p. 546) b. False 13. The use of force or coercion to reach an agreement is always acceptable in signing a contract because both parties must enter into the agreement on their own free will. a. True b. False (p. 546) 14. If the primary purpose of the contract is legal, but some terms contained within the contract are not, then the contract may or may not itself be illegal depending on the seriousness of the illegal terms and the degree to which the legal and illegal terms can be separated. a.
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This note was uploaded on 04/21/2011 for the course MGT 01 taught by Professor Gad during the Spring '11 term at Tanta University.

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Chapter 15 Final - TEST BANK Sourcing and Supply Chain...

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