Legal Aspects in Purchasing and Supply Chain Management MCQs
Legal Aspects in Purchasing and Supply Chain Management MCQs
These Legal Aspects in Purchasing and Supply Chain Management multiple-choice questions and their answers will help you strengthen your grip on the subject of Legal Aspects in Purchasing and Supply Chain Management. You can prepare for an upcoming exam or job interview with these Legal Aspects in Purchasing and Supply Chain Management MCQs.
So scroll down and start answering.
1: Agency is a Implies a relationship between three parties in which one is empowered to perform certain functions or business transactions for the other.
A. True
B. False
2: Promissory estoppels is the illegal principle that a promise is enforceable by law, even if made with formal consideration when a promisor has made a promise to a promise who then relies on that promise to his subsequent detriment.
A. True
B. False
3: Authorizing document for provision of goods or services from a supplier; becomes a legally binding contract on acceptance by the supplier is known as ______
A. Seller
B. Buyer
C. Provider
D. Purchase order
4: Specific pricing and delivery information on listed products or services is known as?
A. Request for quotation (RFQ)
B. Uniform Commercial Code (UCC)
C. Competitive advantage
D. Independent demand
5: A codification of law that clarifies and regulates the rights and obligations of buyers and sellers engaging in commercial transactions. It has been adopted by all states except Louisiana is known as ___.
A. Request for quotation (RFQ)
B. Uniform Commercial Code (UCC)
C. Competitive advantage
D. Independent demand
6: What do legal aspects in purchasing and supply chain management primarily focus on?
A. Financial management of the supply chain
B. Ethical considerations in sourcing decisions
C. Ensuring compliance with laws and regulations
D. Negotiating favorable contracts with suppliers
7: Which of the following legal documents is commonly used to formalize the relationship between a buyer and a supplier?
A. Purchase order
B. Marketing brochure
C. Employee handbook
D. Customer satisfaction survey
8: What is the significance of including clear terms and conditions in purchasing contracts?
A. To increase the complexity of the contract
B. To create opportunities for disputes
C. To avoid misunderstandings and ensure both parties' obligations are understood
D. To discourage suppliers from participating in the bidding process
9: Which legal aspect is crucial when dealing with international suppliers in purchasing and supply chain management?
A. Intellectual property rights
B. Import and export regulations
C. Employment laws of the supplier's country
D. Trademark registration
10: Why is it important for purchasing professionals to have knowledge of contract law?
A. To exploit suppliers and secure the lowest prices
B. To avoid legal implications and potential disputes
C. To draft long and complex contracts
D. To reduce the involvement of legal experts in the procurement process
11: Which legal concept grants the original creator of a product or idea exclusive rights to its use and distribution?
A. Patent
B. Trademark
C. Copyright
D. Trade secret
12: How can supplier audits contribute to addressing legal aspects in supply chain management?
A. Supplier audits are not related to legal aspects
B. Supplier audits ensure compliance with ethical standards
C. Supplier audits help assess and monitor supplier compliance with laws and regulations
D. Supplier audits lead to the termination of supplier contracts
13: What is the significance of adhering to anti-corruption laws in purchasing and supply chain management?
A. Adhering to anti-corruption laws facilitates bribery and unethical practices
B. Adherence to anti-corruption laws ensures transparency and ethical sourcing practices
C. Adherence to anti-corruption laws is optional and does not impact the supply chain
D. Adhering to anti-corruption laws delays the procurement process
14: How can organizations ensure compliance with legal aspects in purchasing and supply chain management?
A. By ignoring legal regulations and focusing on cost reduction
B. By regularly conducting training and awareness programs for purchasing professionals
C. By minimizing communication with legal experts
D. By overlooking supplier practices and actions
15: What is the primary goal of having a code of conduct in supply chain management?
A. To dictate the pricing and payment terms to suppliers
B. To ensure all suppliers are audited regularly
C. To set forth ethical and legal expectations for suppliers and the organization
D. To restrict supplier options and limit competition
Legal Aspects in Purchasing and Supply Chain Management MCQs
