Ch3 Jigsaw Legal Aspects Of Purchasing 1 
1. What are the three types of, “Purchasing Authority?” Give one example of each.
2. Express Authority- authority of the purchasing manager. Express authority is given to the purchasing manager automatically and should be in writing in the company bylaws. Ex.- in most states, real estate contacts must be in writing.
3. Implied Authority- Implied authority is implied by the law at the time the principal grants express authority to the purchasing agent. It gives the purchasing agent the legal authority to carry out the duties for which he or she was appointed. Ex- it the purchasing agent is given the express authority to make a contract, he has the implied authority to negotiate the terms including: quantity, quality, delivery conditions, price, and payment.
4. Emergency Authority- Emergency authority is used only when the purchasing manager must protect the principal’s rights or property when a consultation with the principal is impossible at the time. Even if the purchaser has no implied or express authority, he or she can still take action.
What is the document at a workplace where it is most common to find the, “Expressed Authority,” given to the buyer?
In the Job Description.
If you become a buyer, what requirements should you make sure are met so that you are not held liable for purchases made by you?
1. .
2.
The four components of an enforceable contract are (make sure that you can explain what they mean also):
1. The parties must be capable. The parties know what they are doing. They are not impaired in any way. 2. The subject of the matter must be legal and valid. The product or service must be legal and not against public policy.
3. There must be mutual consideration. Consideration means that something of value passes from one party to a second party in exchange for a promise of the second party. The value must be consistent with the second party’s promise.
4. The parties must reach an agreement by offer and
2. Express Authority- authority of the purchasing manager. Express authority is given to the purchasing manager automatically and should be in writing in the company bylaws. Ex.- in most states, real estate contacts must be in writing.
3. Implied Authority- Implied authority is implied by the law at the time the principal grants express authority to the purchasing agent. It gives the purchasing agent the legal authority to carry out the duties for which he or she was appointed. Ex- it the purchasing agent is given the express authority to make a contract, he has the implied authority to negotiate the terms including: quantity, quality, delivery conditions, price, and payment.
4. Emergency Authority- Emergency authority is used only when the purchasing manager must protect the principal’s rights or property when a consultation with the principal is impossible at the time. Even if the purchaser has no implied or express authority, he or she can still take action.
What is the document at a workplace where it is most common to find the, “Expressed Authority,” given to the buyer?
In the Job Description.
If you become a buyer, what requirements should you make sure are met so that you are not held liable for purchases made by you?
1. .
2.
The four components of an enforceable contract are (make sure that you can explain what they mean also):
1. The parties must be capable. The parties know what they are doing. They are not impaired in any way. 2. The subject of the matter must be legal and valid. The product or service must be legal and not against public policy.
3. There must be mutual consideration. Consideration means that something of value passes from one party to a second party in exchange for a promise of the second party. The value must be consistent with the second party’s promise.
4. The parties must reach an agreement by offer and