Product Risks in Commerce

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Questions and Answers

What are product risks primarily associated with?

  • The marketing strategy of the seller
  • The seller's warranty agreements
  • The financial stability of the seller
  • Conditions in the buyer's country (correct)

Which of the following is least likely to be a product risk caused by the buyer's operating conditions?

  • Restrictions in the buyer's country
  • Negligence concerning operating procedures
  • Inadequate advertising by the seller (correct)
  • Lack of current maintenance

Which factor could contribute to product risk due to environmental conditions?

  • Careful treatment during transport
  • High standards of maintenance
  • Climate-related damage to the product (correct)
  • Thorough training of operators

What aspect is NOT considered a product risk concerning the agreed delivery?

<p>Unexpected buyer demand (B)</p> Signup and view all the answers

How do unexpected working conditions in the buyer's country typically affect product performance?

<p>By potentially reducing the performance of the delivered goods (C)</p> Signup and view all the answers

Product risks are inherent to the seller's commitment and can include performance warranties.

<p>True (A)</p> Signup and view all the answers

Negligence regarding operating procedures is a known cause of reduced performance of delivered goods.

<p>True (A)</p> Signup and view all the answers

Environmental factors cannot affect product performance after delivery.

<p>False (B)</p> Signup and view all the answers

Buyer's lack of current maintenance is irrelevant to product risks.

<p>False (B)</p> Signup and view all the answers

Reduced performance due to working conditions is solely attributed to seller's mishandling.

<p>False (B)</p> Signup and view all the answers

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Study Notes

Product Risks

  • Product risks are inherent risks that sellers must accept as part of their commitment to deliver a product or service.
  • These risks revolve around the product's performance and the obligations outlined in warranties, maintenance, and service agreements.

Impact of External Conditions

  • New and unexpected working conditions in the buyer's country can negatively affect the performance of the delivered goods.
  • Factors leading to reduced product performance may include:
    • Negligence in following proper operating procedures.
    • Carelessness in handling or treating the product.
    • Inadequate maintenance efforts by the buyer.
    • Environmental and climate-related damage, which impacts product efficacy.

Product Risks

  • Product risks are inherent risks that sellers must accept as part of their commitment to deliver a product or service.
  • These risks revolve around the product's performance and the obligations outlined in warranties, maintenance, and service agreements.

Impact of External Conditions

  • New and unexpected working conditions in the buyer's country can negatively affect the performance of the delivered goods.
  • Factors leading to reduced product performance may include:
    • Negligence in following proper operating procedures.
    • Carelessness in handling or treating the product.
    • Inadequate maintenance efforts by the buyer.
    • Environmental and climate-related damage, which impacts product efficacy.

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