Ch3 Jigsaw Legal Aspects Of Purchasing 1

Decent Essays
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
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Wikipedia -

3. Request for Proposal (RFP) is a solicitation made, often through a bidding process, by an agency or company interested in procurement of a commodity, service or valuable asset, to potential suppliers to submit business proposals. The RFP process brings structure to the procurement decision and is meant to allow the risks and
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