Question

In: Operations Management

Acceptance test criteria and procedures are discussed in some detail. Such requirements are normally included in the buyer-seller contract.

Acceptance test criteria and procedures are discussed in some detail. Such requirements are normally included in the buyer-seller contract. From the seller's perspective, getting the buyer to accept one or more deliverables is critical because

A. It's evidence that the seller is doing its job under the contract. 

B. Acceptance by the buyer normally triggers the buyer's legal obligation to pay for that deliverable. 

C. The buyer can't sue the seller for deliverables that are accepted. 

D. None of the above


Solutions

Expert Solution

B. Acceptance by the buyer normally triggers the buyer's legal obligation to pay for that deliverable

There is an obligation of the buyer to pay the price for the deliverables accepted. Hence from the seller’s perspective, getting the buyer to accept one or more deliverables is critical because it provides a protection to the seller against the buyer towards any default of payments.


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