Reference no: EM132304097

1. The CISG is a treaty that governs international sales transactions. It was ratified by the U.S. Senate in 1986 and by ten countries in 1988 the year CISG came into force. Which of the following statements is not true regarding the CISG?

a. In CISG-ratified countries, parties make an explicit agreement and can opt out of the law’s coverage.

b. The CISG is not intended to cover the sale of services. Hence, the law does not apply to contracts in which the provision of labor or other services outweighs the supply of manufactured goods.

c. In the U.S., the CISG has the force of federal law and supersedes the UCC (Uniform Commercial Code) based state law under the supremacy clause of the U.S. Constitution.

d. For international contrasts for the sale of goods between a U.S. entity and an entity of a non-contracting country where the contract will be adjudicated by a U.S. court, CISG still applies.

2. When considering contract profitability, one of the key areas to examine is

a. contract term.

b. express warranty obligations.

c. the durability of the goods.

d. All of the above.

3. As you saw in the Contract Exercise, if you extend the term of a contract you will see larger monetary profits.

True

False

4. One of your suppliers has been providing LED lights for your facilities for several years. One of the new hires on the maintenance staff reports that he noticed a discrepancy between the model numbers of the LEDs he has been replacing in the fixtures and the model numbers cited in the work orders. When you call the maintenance director, she assures you the specifications are the same for both models with regard to luminous emittance (lux measurement). She is an engineer so you should ignore the lower ranking, inexperienced person's report (especially since he isn't in your chain of command).

True

False

5. Breaching a contract may result in positive or negative:

a. results.

b. consequences.

c. business returns.

d. All of the above.

6. All of the following can be identified as likely market risks for supply management professionals, except?

a. A high number of qualified suppliers for a good or service presents increased risks due to excessive “cut throat” price competition.

b. A growing economy may challenge a supplier’s ability to meet the demand for goods and services.

c. Efforts to reduce costs by using suppliers in low costs countries.

d. Buying organizations that struggle with forecasting price changes.

7. The fact that services can be inventoried is an important charcateristic, which distinguishes them from manufacturing ?

True

False