Purchasing Law Quiz
Robert Menard, Certified Purchasing Professional, Certified Professional Purchasing Consultant
Please score your answers to this Purchasing Law Quiz. Each correct answer is worth 5 points. If you don’t know whether your answer is correct, it probably isn’t. For a list of the correct answers, email RobertMenard@RobertMenard.com. If you do indeed have them all correct, send me your answers and I’ll send you a free copy of my book, You’re the Buyer – You Negotiate It.
Answer 1 through 5 with True or False
1 The Uniform Commercial Code (UCC) is a federal law.
2 The UCC does not generally apply to the sale of services.
3 Prescribed forms of contract must be used in transactions for the purchase and sale of goods.
4 The Price term must appear for a Purchase & Sales contract to be valid.
5 A sells good belonging to B to third party C. B can recover the good from C
6 B obtains a Writ of Replevin to confiscate his goods from C. What is a Writ of Replevin?
7 Assume that Supplier has breached the contract agreement where buyer has not accepted the goods or has justifiably revoked acceptance and vendor has not cured any breaches. Which are legitimate remedies under the UCC? Answer True or False
a. Cancellation
b. Recover payments
c. Sell vendor’s good in buyer’s possession
d. Recover money from Supplier
8 What is/are liquidated damages?
9 What is meant by warranty of title?
Answer 10 through 13 with True or False
10 Sellers’ warranties under the UCC include the following.
a. A merchant provides an implied warranty of merchantability that goods are fit for the ordinary (not particular) purpose for which they are used
b. A buyer may not rely upon the implied warranty of merchantability if he has or should have examined the goods
11 Every contract within the UCC imposes the obligation of good faith (including honesty and ethical behavior) in its performance which may not be disclaimed.
12. Remedies provided by the UCC generally are intended to put the aggrieved party in as good a position as if the other party had fully performed.
13 Generally, the sales representative has the authority to negotiate the deal?
14 A contracts to sell certain goods to B, reserving a security interest until the entire purchase price is paid. Third party C negligently destroys these goods. Who has a right of action against C?
A B Both Neither
15 In general, whose T’s & C’s govern?
Buyer Seller Offeror Offeree
16 For contract negotiation purposes, define “Offeror” and Offeree”
EXTRA CREDIT
17 Generally, a buyer has the authority to negotiate the purchase? True or False
18 How are a Take or Pay and a Cost Plus Fixed Fee contract different?
19 What is or are the CISG?
SCORING If you do not know for sure, give no credit
Add the extra credit points to your score, unless you got them all correct!
00 to 40 Wow, my bad
45 to 85 Needs work
90 to 115 Bravo!
If you do not know as much as you thought you should, you are not alone! Education and training is not what it should be in the purchasing profession. One convenient way to improve is online courses. Here are some recomendations on Essential Law for Buyers and Sellers, Contract Law, and Types of Contracts.
Credit is given to the Purchasing Manager’s Desk Book of Purchasing Law (Prentice Hall) for the source of this legal information. The Desk Book is a must-have reference for everyone in the purchasing profession.
See more information on the frame work and definitions of warranties under the UCC at this link. For examples of warranties under the UCC, see this link.