chap 3

mChapter Multiple choice questions In order to produce perfect products, manufacturers need to have a product insurance b quality assurance programs c customer satisfaction d defect liability period Quality assurance and customer satisfaction are the same issues for customers _ a in domestic market b in overseas markets c both a and b d neither a nor b Negotiation of specifications between the exporter and the importer can be a an effortless process b a difficult process c done by an intermediary d a simple process In negotiating specifications, conflicts can arise _ a within the importer’s own team b between the importer and the exporter c within the exporter’s own team d all of the above What can protect both the exporter and the importer in an export contract? a A well-designed set of specifications b An itemized set of specifications c A plain set of specifications d None of these What kind of inspection is particularly important for sophisticated items or capital goods? a Customs inspection b Carrier’s inspection c Pre-delivery inspection d SGS’s inspection When the goods arrive, if they are , the importer can reject them but if they _ specifications, he is obliged to accept them a defective/conform to b perfect/conform to c defective/differ from d perfect/differ from Which countries require that all goods imported to their countries are inspected by the SGS immediately before shipment? a The USA b Vietnam c Indonesia d The UK Inspection by reveals discrepancies in quality a customs officers b the carrier c the exporter d the importer 10 Inspection by the _ is call “open package inspection” a customs officers b the carrier c the exporter d the importer 11 Defects that come to light after buyer’s acceptance are called _ a patent defects b latent defects c inherent defects d apparent defects 12 Defects such as wrong items, broken or missing parts, scratches, and so on are called a patent defects b latent defects c inherent defects d concealed defects 13 The final quality hurdle is the _ during which the exporter is liable to cure defects that come to light in the goods a guarantee period b defect liability period c correction methods d quality assurance requirements 14 In some legal systems, the buyer has the right _ duty to inspect delivered goods a and b or c and/or d but 15 If the buyer can make certain assumptions about goods – even if the exporter gives no express warranty, these assumptions are called _ a explicit warranties b exotic warranties c unspoken warranties d implied warranties 16 How many types of implied warranties are there? a two b three c four d five 17 In principle the buyer can reject delivered goods if they not conform to the contract This is called a Implied Warranty of suitability b Implied warranty of conformity c Implied warranty of merchantability d Implied warranty of fitness for intended purpose 18 The buyer can reject goods that are not of saleable quality This is called a Implied Warranty of suitability b Implied warranty of conformity c Implied warranty of merchantability d Implied warranty of fitness for intended purpose 19 If the exporter knew the buyer’s intended purpose; and if the buyer relied on the exporter’s knowledge and expertise, the buyer can reject goods that are not suitable for their intended purpose This is called a Implied Warranty of suitability with intended purpose b Implied warranty of fitness for intention c Implied warranty of fitness for objective d Implied warranty of fitness for intended purpose 20 Different legal systems regulate that rejection of delivered goods must be total can be partial a or b and c and/or d nor 21 The exporter’s right to “cure” any defects in his delivery is _ a out of question b advantageous to him c disadvantageous to him d detrimental to him 22 According to the UCC, if the goods fail in any respect to conform to the contract, the buyer may a reject the whole b accept the whole c accept any commercial unit and reject the rest d All the above 23 Another name for warranty is a guarantee b defect liability c legal responsibility d warrantee 24 There are _ parties to a warranty and _ in a guarantee a three/two b three/three c two/three d two/two 25 The guarantor is usually a a bank b insurance company c both a and b d neither a nor b 26 To avoid confusion, many contract drafters use “ _” instead of “warranty” a guarantee b warrantee c legal responsibility d defect liability 27 The warrantor is always a a bank b insurance company c both a and b d neither a nor b 28 Most contracts contain an assurance that the exporter will any defects in his products a make good b take away c alter d modify 29 A warranty protects a the exporter b the importer c neither the exporter nor the importer d both the exporter and the importer 30 Defects include: a mistake b misuse c fair wear and tear d workmanship 31 Defects include: a mistake b materials c fair wear and tear d misuse 32 It is to identify latent defect than patent defect a easier b more complicated c more effective d better 33 “A radio lacks the wires connecting the loudspeaker to the amplifier” is an example of: a Defective design b Defective materials c Defective workmanship d Misuse by the buyer 34 “A voltmeter that is specified as accurate within millivolt is accurate within only millivolt” is an example of: a Defective design b Defective materials c Defective workmanship d Misuse by the seller 35 The defects liability clause should state: a the date of acceptance b exporter’s duty if a defect comes to light c both a and b d only ‘a’ 36 The Disclaimer of warranty means: a the seller is liable for the goods b the buyer is denied of some of his normal rights c the seller will make good any defect d contract prices would be far higher 37 Disclaimer of warranty often accompanies: a Contracts for hardware b Contracts for footwear c Contracts for glassware d Contracts for software 38 How many timing problems are there in the defects liability period? a one b two c three d four 39 For the exporter, the option to repair a defective item abroad _ a is negligent b can be costly c is always the best choice d is always the worst choice 40 Allowing the buyer to repair the equipment at the exporter’s cost a is always the best choice for the exporter b is always the worst choice for the exporter c is often safe for the exporter d is often unsafe for the exporter 41 “Repair by the buyer” provision is often a welcomed by the seller b beneficial to the seller c avoided by the seller d imposed by the buyer 42 Exporters prefer: a the return of the defective item to the replacement of it b the replacement of the defective item to the return of it c the return of the goods and refund of the price d none of these 43 Replacing a defective product helps to keep the _of the customer a goodwill b good image c good business d wellbeing 44 With defective heavy equipment, it is usually the case that: a the whole product is replaced b the whole product is returned c just a defective part is replaced d just a defective part is returned 45 To cure the defective goods, the best option for the exporter is: a Taking back the defective goods and giving back the money b reducing the price c replacing the goods d dependent on the type of goods 46 Returned shipment to the exporter’s country means: a the deal is a total loss for the exporter b the exporter takes back the whole shipment c the exporter makes a small profit d the deal is a total loss for the importer 47 A liquidated damages clause protects _ a the exporter rather than the importer b the importer rather than the exporter c both sides d neither the exporter nor the importer 48 The “exporter’s wording” and the “buyer’s wording” in the defects liability provision represent: a A major contract issue b A minor contract issue c nonsense d profit and loss of each party 49 Who usually pays for curing defects? a The importer b The exporter c Both parties d A third party 50 As the consequences of a defect can be expensive, the question of who pays for the consequential loss or damage is often a agreeable b controversial c nonnegotiable d amicable 51 Which of the following is the objective aimed at by the exporter to minimize the risk of the goods being rejected or of heavy defects liability claims? a Winning buyer’s goodwill b Keeping his promise c Negotiating detailed specifications d Making profit 52 All of the following are objectives that the exporter tries to achieve to minimize the risk of the goods being rejected or of heavy defects liability claims EXCEPT: a The quality specified b The confidence in the buyer c On-time delivery 53 Which of the following is essential to successful business? a Quality b Customer satisfaction c Correct marking and packaging d On-time delivery 54 A well-designed set of specifications protects: a The exporter b The importer c Both parties d Neither of these 55 Inspection of the goods by the buyer in the manufacturer’s factory is referred to as: a Inspection by inspection service 56 57 58 59 60 61 62 63 64 b Pre-delivery inspection c Post-delivery inspection d Customs inspection Inspection by the buyer is called: a Independent inspection b Inspection of goods prior to shipment c Open package inspection d Customs inspection The defects liability period is also called: a Warranty period b Guarantee period c Correction action period d Legal action period Which of the following examples is a patent defect? a Crushed or stained garments b The flooring shows signs of deterioration c High fuel consumption d Inadequately tightened nuts and bolts Which of the following examples is a latent defect? a Missing parts b Structural weaknesses c Wrong items d Broken items The answers to the questions of implied warranties are supplied by: a The contract provisions b The UCC c Most laws d The contract Which of these allow(s) rejection of only defective or non-conforming goods? a English law b German law and the Vienna Sales Convention c The UCC d Vietnamese contract law Which of the following concepts is best used to avoid confusion when we mean an assurance that the exporter will make good defects in his goods? a Warranty b Guarantee c Defects liability d Warrantee Which of these counts as a defect? a Defective design b Fair wear and tear c Misuse d Missing items Which of these does not count as a defect? a Defective design b Misuse c Defective materials 65 66 67 68 69 70 71 72 73 d Defective workmanship Which of these is rarely regulated by contracts? a The legal action period b The length of the defects liability period c The notification period d The rectification period Which of the following is left to the applicable law to regulate? a The notification period b The rectification period c The legal action period d The length of the defect liability period The legal action period varies greatly from law to law Which of these defines this period that is equal to and concurrent with the defects liability period? a The UCC b The BGB c Continental law d English law manufacturer(s) produce(s) perfect products all the time a All b Few c No d Many Which of these requires prior inspection by SGS? a Indonesia b Malaysia c Thailand d Vietnam Which of these does not require prior inspection by SGS? a The Philippines b Indonesia c The United Kingdom d All a, b and c Under most laws, a buyer can make certain assumptions about goods These assumptions are called (by lawyers): a Express warranties b Negotiable warranties c Implied warranties d Implied guarantee refer(s) to the questions of implied warranties a Most contracts b Most laws c The UCC d The Vienna Sales Convention The question of warranty is disposive This means: a It is fixed b The exporter can usually exclude all warranties c The exporter must include it in the contract d It is non-existent 74 Defects may be which of the following? a Defects in materials b Defects in workmanship c Both d None of these 75 Which of the following is the least desirable option for the exporter? a Allow the buyer to repair at the exporter’s cost b Reduce the price c Return the goods and refund the price d Replace the defective items 76 Which of these is the cheapest option for the exporter? a Repair b Replace (part or whole item) c Reduce the price d Return the goods 77 The fact that manufacturer often tempted to be over-optimistic and to agree to impossible specifications is in business a lucrative b risky c advantageous d common 78 A well-designed set of specifications protects buyer against products a advanced b dented c inferior d superior 79 With a well-designed set of specifications, the seller can protect its and avoid costs a b c d Reputation Production Resolution profitability 80 Independent inspection reports on a the weight of the goods b the size of the goods c Both a and b d None of these 81 Open package inspection is synonymous with: a Buyer’s inspection b Independent inspection c Customs inspection d Pre-delivery inspection 82 A promise by the exporter to cure defects in his product is called: a A product guarantee b A product warranty c A product insurance d A product certification 83 A guarantee is aimed at: a High quality products b Enhancing product value c Good conduct or honesty of a person d Making profit 84 A warranty is aimed at: a Obtaining loans b Assurance of product performance c Credit purchase d Profit making 85 An endlessly renewed liability for defects is called: a Eternal warranty b Ephemeral warranty c External warranty d Explicit warranty 86 How many timing problems are involved in Defects Liability Period? a Three b Four c Two d Five 87 The period during which the buyer can begin a legal action is legally called: a Notification period b Rectification period c Legal action period d Defect liability period 88 Which corrective method is least favourable for the seller? a Replace the wrong items b Reduce the price c Return the goods and refund the price d Repair the goods 89 The goods became deteriorated as a result of normal use This process is called: a Fair play b Fair wear and tear c Faults not present on delivery d Farewell 90 A guarantee is: a Unilateral b Tripartite c Bilateral d Multilateral 91 Inspection by carrier on dispatch is often carried out: a In seller’s country b In buyer’s country c At sea d At customs area 92 In a guarantee, a guarantor is often: a The buyer b The seller c The bank d The manufacturer 93 Failure to meet specifications is a: a Defect in workmanship b Defect in material c Defect in design d Defect in quantity 94 A disclaimer of Warranty often accompanies delivery of: a Software b Hardware c Footwear d Chinaware 95 “The Buyer shall notify the Seller of defects without undue delay” This is an example of: a Defects liability period b Notification period c Rectification period d Legal action period 96 “The Seller shall make good the defect or damage as soon as practicable and at his own cost” This is an example of: a Legal action period b Notification period c Rectification period d Defect liability period 97 Who usually has to pay for curing defects? a The buyer b The seller c Both the buyer and the seller d The manufacturer 98 According to the UCC, how long is the legal action period? a Two years b Three years c Four years d One year 99 “Nuts and bolts are inadequately tightened” represents: a Defective materials b Defective design c Defective workmanship d Misuse 100 “A machine that consumes more fuel than specifications” is an example of a Latent defect b Patent defect c Inherent defect d Apparent defect B 11.B 21.B 31.B 41.C 51.C 61.B 71.C 81.A 91.A 2.C 12.A 22.D 32.B 42.B 52.B 62.C 72.B 82.B 92.C 3.B 13.B 23.B 33.C 43.A 53.B 63.A 73.B 83.C 93.C 4.D 14.C 24.C 34.A 44.C 54.C 64.B 74.C 84.B 94.A 5.A 15.D 25.C 35.C 45.D 55.B 65.A 75.C 85.A 95.B 6.C 16.B 26.D 36.B 46.A 56.C 66.C 76.A 86.B 96.C 7.A 17.B 27.D 37.D 47.C 57.A 67.B 77.B 87.C 97.B 8.C 18.C 28.A 38.D 48.A 58.A 68.C 78.C 88.C 98.C 9.D 19.D 29.D 39.B 49.B 59.B 69.A 79.A 89.B 99.C 10.D 20.A 30.D 40.D 50.B 60.C 70.C 80.C 90.B 100.A [...]... 21.B 31 .B 41.C 51.C 61.B 71.C 81.A 91.A 2.C 12.A 22.D 32 .B 42.B 52.B 62.C 72.B 82.B 92.C 3. B 13. B 23. B 33 .C 43. A 53. B 63. A 73. B 83. C 93. C 4.D 14.C 24.C 34 .A 44.C 54.C 64.B 74.C 84.B 94.A 5.A 15.D 25.C 35 .C 45.D 55.B 65.A 75.C 85.A 95.B 6.C 16.B 26.D 36 .B 46.A 56.C 66.C 76.A 86.B 96.C 7.A 17.B 27.D 37 .D 47.C 57.A 67.B 77.B 87.C 97.B 8.C 18.C 28.A 38 .D 48.A 58.A 68.C 78.C 88.C 98.C 9.D 19.D 29.D 39 .B... on dispatch is often carried out: a In seller’s country b In buyer’s country c At sea d At customs area 92 In a guarantee, a guarantor is often: a The buyer b The seller c The bank d The manufacturer 93 Failure to meet specifications is a: a Defect in workmanship b Defect in material c Defect in design d Defect in quantity 94 A disclaimer of Warranty often accompanies delivery of: a Software b Hardware...c A product insurance d A product certification 83 A guarantee is aimed at: a High quality products b Enhancing product value c Good conduct or honesty of a person d Making profit 84 A warranty is aimed at: a Obtaining loans b Assurance of product performance... 16.B 26.D 36 .B 46.A 56.C 66.C 76.A 86.B 96.C 7.A 17.B 27.D 37 .D 47.C 57.A 67.B 77.B 87.C 97.B 8.C 18.C 28.A 38 .D 48.A 58.A 68.C 78.C 88.C 98.C 9.D 19.D 29.D 39 .B 49.B 59.B 69.A 79.A 89.B 99.C 10.D 20.A 30 .D 40.D 50.B 60.C 70.C 80.C 90.B 100.A