Business Law, Ethics & International Trade Flashcards
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Read the first 7 Business Law, Ethics & International Trade flashcards as text
The legal doctrine of 'respondeat superior' means that an employer can be held liable for:
Answer: Tortious acts committed by employees within the scope of their employment
Respondeat superior holds employers vicariously liable for employees' wrongful acts committed while performing their job duties.
When evaluating international suppliers, which certification indicates adherence to a globally recognized environmental management system standard?
Answer: ISO 14001
ISO 14001 specifies the requirements for an environmental management system that organizations can use to enhance environmental performance.
A buyer includes a 'time is of the essence' clause in a purchase order. This clause means that:
Answer: Delivery deadlines are material contract terms and failure to meet them is a breach
A 'time is of the essence' clause makes schedule compliance a material term, so late delivery constitutes a breach entitling the buyer to remedies.
The 'battle of the forms' doctrine under UCC §2-207 addresses situations where:
Answer: Parties use different contract templates with conflicting terms
UCC §2-207 governs contract formation when buyers and sellers exchange forms (like purchase orders and acknowledgments) containing different or additional terms.
Which trade bloc agreement eliminates tariffs among member nations while allowing each member to set its own tariff rates with non-members?
Answer: Free trade area
A free trade area removes tariffs among members but each country retains its own external tariff policy toward non-member countries.
Under the Sarbanes-Oxley Act (SOX), purchasing and procurement departments are most directly affected by requirements related to:
Answer: Internal controls over financial reporting and accurate record-keeping
SOX requires public companies to maintain strong internal controls over financial reporting, which directly impacts procurement documentation, approvals, and audit trails.
A purchasing manager who shares a competitor's pricing information obtained from a supplier violates which ethical and legal principle?
Answer: Confidentiality and antitrust law
Sharing competitor pricing information can breach confidentiality agreements and may constitute anticompetitive behavior under antitrust laws such as the Sherman Act.