In One of the Case Studies in the Textbook, the General

question 28

Multiple Choice

In one of the case studies in the textbook, the General Services Administration (GSA) , the federal government's bookkeeping agency, purchased more than $200 million worth of defective and useless furniture from a New Jersey furniture manufacturer. After reviewing the books of the furniture manufacturer, it was clear that the company was paying off GSA inspectors. The investigators eventually focused on one particular regional inspector because:

• A) He vacationed in Europe with the vendor and charged the trip back to the government as a business related trip.
• B) He paid cash for a new home on the Jersey shore.
• C) He purchased eleven race horses.
• D) He had credit card charges of more than twice his annual salary during a six-month period.

---

Definitions:

Authority

The power or right to give orders, make decisions, and enforce obedience.

Agency Relationship

A connection between two parties where one, the agent, is authorized to act on behalf of the other, the principal, in dealings with third parties.

Rescission

The termination of a contract.

Consensual Relationship

A mutual agreement between parties or individuals without coercion or duress, often used in the context of personal or workplace relationships.