APP Business Law, Ethics & International Trade 1

Question 1

Which of the following is a key element required to form a legally binding contract?

Accepted Answer

Consideration

Answer

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.

Question 2

What is the primary purpose of business ethics in procurement?

Accepted Answer

To ensure fair and responsible purchasing practices

Answer

Business ethics in procurement helps ensure fairness, transparency, and accountability in supplier relationships and decision-making, ultimately supporting long-term success and legal compliance.

Question 3

Which U.S. law prohibits companies from bribing foreign officials to obtain or retain business?

Accepted Answer

Foreign Corrupt Practices Act

Answer

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.

Question 4

In international trade, what is a 'tariff'?

Accepted Answer

A tax on imported goods

Answer

A tariff is a tax imposed on imported goods. Governments use tariffs to protect domestic industries or to generate revenue from foreign imports.

Question 5

What is the primary function of the Uniform Commercial Code (UCC)?

Accepted Answer

To harmonize commercial law across states

Answer

The UCC standardizes business laws across U.S. states to facilitate consistent and fair commercial transactions, particularly in the sale of goods.

(APP) Accredited Purchasing Practitioner Certification Practice Test

(APP) Accredited Purchasing Practitioner Certification Practice Test

APP Business Law, Ethics & International Trade 1