#Inspection and #DefectsLiability Flashcards Preview

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Flashcards in #Inspection and #DefectsLiability Deck (15):

Why do companies have quality assurance programs?

to ensure customers get what they pay for/ ensure customer satisfation


Why may conflicts arise in negociating specifications?

- b/c of the disagreement b/t the marketing team and production one
- avoid over-optimistic & to agree to impossible specifications


What is benefit of well-designed set of specifications?

protect both size:
- improter: prevent receiving inferior goods
- exporter: buyer can't make excuse for rejection/ exxagerated warranty claims


Which kind of goods need pre-delivery inspection?Give ex

Especially sophisicated and capital equipment.


What are the functions of independent inspection?

- report on weight size value of goods to prevent shipment
- prevent agreement on unrealistically low invoice price to avoid custom duties
- prevent shipment of patently defective goods


What does customs inspection reveal?

The discrepancies in weight, size, and description


What is real inspection for goods?

inspection by the buyer or "open package" inspection


What counts as a patent defect?

defects easily found through appearance
Eg: wrong items, broken or missing parts, scratches


What counts as latent defects? Ex

Defects only come to light after buyer's acceptance pr hidden defects
Eg: structural weaknesses, failure to operate at low or high temp, high fuel consumption


What are Implied Warranties?

Assumptions that Buyers can make ab goods even if the exporter gives no express warranty


What are 3 types of Implied Warranty?

Defective workmanship
Defective materials
Defective design


What is a Product Warranty?

a promise by the exporter to cure defects in his products


What is a Product Guarantee?

Guarantor promises to paymoney to the beneficary if teh principal breaks its promise


What are 3 types of defects? Give ex

- in workmanship
- in materials
- in design


What are 5 options for curing defects?

- repair
- allow buyer/ third prty to repair at seller's expense
- discount contract price
- replace
- return and refund