Legally Speaking About Customer-Supplier Relationships

Article

Ardagna, Ned   (1994, ASQC)   Southwestern College, Chula Vista, CA 91910

Annual Quality Congress, Las Vegas NV    Vol. 48    No. 0
QICID: 10061    May 1994    pp. 1-5
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Article Abstract

The Uniform Commercial Code (UCC) defines the responsibilities of a Quality Engineer and serves as the ultimate legal authority regarding external customer-supplier relationships. This paper presents many basic terms and concepts regarding the UCC and focuses specifically on Article 2, "Sales," which applies to all transactions in goods (but not services).

"All" is broadly defined, giving the court authority over transactions by Fortune 500 companies as well as transactions between private parties, and "goods" is defined as "all things which are movable." The term "merchant" is also important; it pertains to a seller or buyer who, "by his occupation holds himself out as having knowledge or a skill peculiar to the practices or goods involved in the transaction.

"This paper illustrates four areas impacted by Article 2 of the UCC; each of these 4 areas relates to activities within the quality function: (1) formation of the buyer-seller (customer-supplier) relationship, (2) performance of the agreed-upon contractual obligations, (3) the rights of the parties when a breach occurs, and (4) remedies for a breach of contract.

Keywords

Business plans,External customer,Uniform Commercial Code (UCC),Quality compliance,Inspection


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