Corrective action

When a manufacturer sells the goods domestically, which options is the most economical method to cure the defect

• Reduce the price

• Replace

• Repair

• Reduce cost

Which of the following factors should be considered when determining the option for curing defects?

• The distance between the parties

• The characteristics of the goods

• The payment method

• All of the above

If the option “buyer repair at exporter’s cost” is included, the exporter protects himself by allowing "repair by the buyer" only in exceptional cases and then only with the exporter's express approval.

• True

• False

Which of the following is NOT a common performance figure used in liquidated damages clauses?

• Output

• Consumption

• Efficiency

• None of the above

If the contract is silent on consequential damage and loss, will the exporter always be held responsible for this cost?

• Yes

• No

Which of the following is the direct cost for a defect in a manufacturing machine

• Loss of profit

• Repair cost

• Loss of canceled orders

• Loss of job