Business Law, Ethics & International Trade Flashcards
6 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 6 Business Law, Ethics & International Trade flashcards as text
Which of the following is a key element required to form a legally binding contract?
Answer: Consideration
A legally binding contract must include an offer, acceptance, consideration, and the intent to create legal obligations. Consideration is essential—it represents the value exchanged between parties.
What is the primary purpose of business ethics in procurement?
Answer: To ensure fair and responsible purchasing practices
Business ethics in procurement helps ensure fairness, transparency, and accountability in supplier relationships and decision-making, ultimately supporting long-term success and legal compliance.
Which U.S. law prohibits companies from bribing foreign officials to obtain or retain business?
Answer: Foreign Corrupt Practices Act
The Foreign Corrupt Practices Act (FCPA) makes it illegal for U.S. companies and citizens to bribe foreign government officials, helping combat global corruption in international trade.
In international trade, what is a 'tariff'?
Answer: A tax on imported goods
A tariff is a tax imposed on imported goods. Governments use tariffs to protect domestic industries or to generate revenue from foreign imports.
What is the primary function of the Uniform Commercial Code (UCC)?
Answer: To harmonize commercial law across states
The UCC standardizes business laws across U.S. states to facilitate consistent and fair commercial transactions, particularly in the sale of goods.
Which ethical issue arises when a buyer accepts gifts from a supplier?
Answer: Conflict of interest
Accepting gifts from suppliers can create a conflict of interest, leading to biased decision-making and damage to the organization’s integrity.