#Inspection and #DefectsLiability

Question 1

Why do companies have quality assurance programs?

Answer 1

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

Question 2

Why may conflicts arise in negociating specifications?

Answer 2

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

Question 3

What is benefit of well-designed set of specifications?

Answer 3

protect both size:

• improter: prevent receiving inferior goods
• exporter: buyer can’t make excuse for rejection/ exxagerated warranty claims

Question 4

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

Answer 4

All

Especially sophisicated and capital equipment.

Question 5

What are the functions of independent inspection?

Answer 5

• 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

Question 6

What does customs inspection reveal?

Answer 6

The discrepancies in weight, size, and description

Question 7

What is real inspection for goods?

Answer 7

inspection by the buyer or “open package” inspection

Question 8

What counts as a patent defect?

Answer 8

defects easily found through appearance

Eg: wrong items, broken or missing parts, scratches

Question 9

What counts as latent defects? Ex

Answer 9

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

Question 10

What are Implied Warranties?

Answer 10

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

Question 11

What are 3 types of Implied Warranty?

Answer 11

Defective workmanship
Defective materials
Defective design

Question 12

What is a Product Warranty?

Answer 12

a promise by the exporter to cure defects in his products

Question 13

What is a Product Guarantee?

Answer 13

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

Question 14

What are 3 types of defects? Give ex

Answer 14

• in workmanship
• in materials
• in design

Question 15

What are 5 options for curing defects?

Answer 15

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