Practice Test Geeks(APP) Accredited Purchasing Practitioner Certification Practice Test
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Business Law, Ethics & International Trade Flashcards

7 cards from real APP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Business Law, Ethics & International Trade flashcards as text

  1. When a supplier fails to deliver goods on the agreed date without legal excuse, the buyer's legal remedy of 'cover' under the UCC means:

    Answer: The buyer purchases substitute goods and recovers the price difference from the breaching seller

    Under UCC §2-712, cover allows the buyer to purchase reasonable substitute goods and recover the difference between the cover price and the contract price from the seller.

  2. The ethical principle of 'conflict of interest' in purchasing is BEST described as a situation where:

    Answer: A purchasing professional's personal interests could improperly influence their professional decisions

    A conflict of interest arises when a purchasing professional has personal, financial, or other interests that could bias their procurement decisions.

  3. Under CISG (UN Convention on Contracts for the International Sale of Goods), an offer becomes irrevocable when:

    Answer: It states it is firm or the offeree reasonably relied on it being irrevocable

    Under CISG Article 16, an offer cannot be revoked if it indicates it is firm or if the offeree reasonably acted in reliance on its irrevocability.

  4. A purchasing professional who accepts kickbacks from suppliers in exchange for contract awards may face liability under which U.S. federal law?

    Answer: Anti-Kickback Act

    The Anti-Kickback Act prohibits the solicitation or acceptance of kickbacks in government contracting and can result in criminal penalties.

  5. A tariff-rate quota (TRQ) in international trade allows:

    Answer: A specified quantity of imports at a lower duty rate, with higher duties applied to imports above that quantity

    A TRQ sets a lower in-quota tariff rate up to a specified import volume and applies a higher out-of-quota tariff on additional imports.

  6. Which contract clause allocates risk for events beyond either party's control, such as natural disasters or pandemics?

    Answer: Force majeure

    A force majeure clause excuses a party's non-performance when extraordinary events beyond their control prevent contract fulfillment.

  7. In international purchasing, 'dumping' refers to:

    Answer: Selling goods in a foreign market at prices below the home market or below cost

    Dumping occurs when a company exports goods at prices lower than those charged in its home market or below production cost, potentially harming domestic industries.