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?
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