Nigel Is the Owner of a Small Drapery Manufacturing Business

question 8

Multiple Choice

Nigel is the owner of a small drapery manufacturing business.He has several contracts with three fabric suppliers.Nigel believes the only obligations he owes to his suppliers are recited in the contracts.Which of the following circumstances would immediately let Nigel know his assumption was wrong?

• A) a situation whereby a supplier's misconduct adversely affects his business interests
• B) a situation enabling one party to eliminate application of the Sale of Goods Act
• C) an entire contract clause forestalling suppliers' arguments relating to his guarantee
• D) a price-variation clause that doesn't allow a supplier to offset increased costs

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Definitions:

Democratic

Pertaining to or characterized by the principles of democracy, involving fair and equal participation and representation of the people in the decision-making process.

Laissez-Faire

A leadership or management style characterized by a minimal amount of direct supervision, allowing individuals or teams considerable freedom in their work.

Transactional Leader

A leadership style focused on the exchange between leader and followers, where compliance is exchanged for specified rewards.

Transformational Leader

A leadership approach that causes change in individuals and social systems, by creating a vision to guide the change through inspiration, and executing the change in tandem with committed members of a group.