Asked by Jordan Canales on Jul 04, 2024
Verified
Darius is a purchasing manager for a large auto manufacturer. The contract with the company's steel provider is just about to expire, so Darius is negotiating the terms and condition of a new contract with his supplier. Darius is satisfied with the negotiations, so he takes the next step of drawing up a legal obligation to buy the negotiated amount of steel at the price and delivery date agreed upon by himself and his supplier. This legal obligation is otherwise known as
A) the cost of goods sold.
B) an agreement.
C) a bill of sale.
D) a purchase order.
E) a contract amendment.
Legal Obligation
A requirement by law for an entity or person to adhere to certain behaviors or standards.
Contract Amendment
A change or addition to the terms of an existing contract, agreed upon by all parties involved.
Purchase Order
A formal document sent from a buyer to a seller specifying the type, quantity, and price of products or services ordered.
- Comprehend the process and significance of negotiating contracts and placing purchase orders in materials management.
Verified Answer
ZK
Zybrea KnightJul 05, 2024
Final Answer :
D
Explanation :
A purchase order is a document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services. It serves as a buyer's legal offer to purchase and becomes a legal obligation once the seller accepts it.
Learning Objectives
- Comprehend the process and significance of negotiating contracts and placing purchase orders in materials management.
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