APP Business Law, Ethics & International Trade 2

Question 1

Under the Uniform Commercial Code (UCC), when does title to goods typically pass from seller to buyer in a shipment contract?

Accepted Answer

When the seller delivers goods to the carrier

Answer

In a shipment contract under the UCC, title passes to the buyer when the seller delivers the goods to the carrier.

Question 2

A purchasing professional discovers that a supplier has offered a gift exceeding company policy limits. The BEST ethical course of action is to:

Accepted Answer

Decline the gift and document the incident

Answer

Declining and documenting the gift maintains integrity and creates a record that protects the professional and the organization.

Question 3

Which international trade term (Incoterm) makes the seller responsible for all costs and risks until goods are delivered to the buyer's named destination?

Accepted Answer

DDP (Delivered Duty Paid)

Answer

DDP places maximum responsibility on the seller, who bears all costs and risks including import duties until delivery at the named destination.

Question 4

A contract clause that limits a party's liability for consequential damages is called a:

Accepted Answer

Limitation of liability clause

Answer

A limitation of liability clause contractually caps or excludes certain types of damages, such as consequential or indirect damages.

Question 5

The World Trade Organization's Agreement on Government Procurement (GPA) primarily requires member countries to:

Accepted Answer

Use competitive bidding for all government purchases above threshold values

Answer

The GPA requires signatory governments to open their procurement markets above specified thresholds to international competitive bidding.

(APP) Accredited Purchasing Practitioner Certification Practice Test

(APP) Accredited Purchasing Practitioner Certification Practice Test

APP Business Law, Ethics & International Trade 2