In Acceptance Sampling, When the Random Sample Passes the Buyer's

question 185

Multiple Choice

In acceptance sampling, when the random sample passes the buyer's incoming test (low number of defects found) , the next action taken is to:

• A) accept the entire lot of incoming materials.
• B) do additional testing to reduce the risk of accepting a bad-quality lot.
• C) place the lot on hold and wait for additional lots from this seller to be tested to assure consistent good quality.
• D) 100% inspect the lot because some defects were found.

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Definitions:

Bailment Relationships

Legal relationships arising when one party (the bailor) temporarily hands over control, but not ownership, of a property to another (the bailee) under an agreement.

Seventh Circuit

The Seventh Circuit refers to a division of the U.S. federal courts that covers parts of the Midwest, including states like Illinois, Indiana, and Wisconsin.

Conversion

Permanent interference with another’s use and enjoyment of his or her personal property.

Innkeepers

Entities that are regularly in the business of making lodging available to the public.