Legal & Ethics ch10
Terms in this set (12)
Legal Authority of Buyer
Principle agent theory
Agent delegated the "authority"
however, agent only has "right" to bind principle within assigned limits (congress "authorization bill" and "funding bill")
Types of Actual Authority
Express Authority - Acts purchasing agent is explicitly authorized to perform.
Implied Authority - all other authority that is necessary, usual , and proper
Appearance of authority is created when words or actions of principle lead a reasonable person to believe authority has been granted. (However agent may still not have "right" to bind principle)
Supply Officer Personal Liability
Making False Statements with intent to deceive.
Performing damaging acts without authority
Performing illegal acts
A set of rules for the parties of the exchange
Provide an efficient way to exchange good /services
Four Factors of Valid Contract
1. Competent Parties
2. Legal subject matter or purpose
3. An offer and acceptance
4. Consideration (bargained for exchange)
4 Types of Warranties
1. Express Warranty
2. Implied Warranty
3. Implied warrant of fitness for purpose
4. Warranty of title
Legal assurance of gurantee that certain facets of an article is as factually stated
Goods are fit for "ordinary use"
Implied warranty for purpose
Supplier has knowledge of buyer's need
Assurance or gurantee that good is suitable for that need
Warranty of title
Good are free from intellectual property infringement
Title is free of liens
Ethical supply management conduct
Follow lawful instructions of the employer using reasonable care and granted authority.
Handle confidential or proprietary info with due care.
Avoid activities that create a conflict between personal and professional interest.