Preview

Legal Authority of Purchasing Agent

Powerful Essays
Open Document
Open Document
2641 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Legal Authority of Purchasing Agent
One of the first things that is taught upon entering an acquisition career field is who has the authority to make purchases. Depending on the organization the requirements that these chosen individuals need to meet may vary greatly. The ones given this authority are typically held in the upmost trust and are required to have additional training to better prepare themselves for this responsibility. Unfortunately not everyone knows and understands who may and who may not have the authority to enter into binding contracts with that particular company or that organization, furthermore they may not understand what their responsibilities are. To confuse a situation even further, there are times when one may either express or imply they have the authority when they truly don’t causing unauthorized purchases to be made. In situations like this these purchases would need to be ratified. The additional work involved in ratifying unauthorized commitments or purchases is why it is important that people know who is authorized to make purchases for an organization. The purchasing officer is someone who has been given the power to act on behalf of some other person or some institution in a loyal, honest, and careful manner. (Goodale, 2003) This is the basic role that every purchasing officer holds. It’s their duty to act on behalf of a person or a company to purchase goods or services. A purchasing officer’s decisions must be legally and economically sound. It is their basic responsibility to conduct purchases using the instructions given to them by their employer while avoiding any legal issues. The basic understanding of contract or acquisition law can help the purchasing officer in the long run by equipping them with the general knowledge to avoid issues that can lead to legal involvements. At the very least it allows them to recognize when they may need to seek legal counsel. The person chosen for this position does not need to fall within a demographic and


References: Goodale, B. (2003). Legal aspects of purchasing. Retrieved from http://polaris.umuc.edu/ ~bgoodale/admn626/0309/Lesson10.html Mote, D. (2011). Contracts. In Reference for business: Encyclopedia for business (2nd ed.). Retrieved from http://www.referenceforbusiness.com/encyclopedia/Con-Cos/ Contracts.html Federal Acquisition Regulation. (2011). Retrieved from http://farsite.hill.af.mil/vffara.htm. Johnson, E. Air Education and Training Command, Air Force Institute for Advanced Distributed Learning Air University. (2009). Contracting journeyman: Volume1 basic fundamentals. Gunter Annex: US. Government Printing. Randal, S. U.S. Air Force, Warner Robbins Air Logistics Center. (2010). Air force contracting officer warrant procedures. Retrieved from website: http://intranet.ncmahq.org/ middlegeorgia/Education/CO%20Warrant%20Process_NCMA20Jan10.pptx Contracting officer representative desk guide . (2011). Retrieved from https:// www.acquisition.gov/comp/seven_steps/library/ARMYcor-deskguide.pdf

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Dq1 How might a purchasing manager use his or her position to defraud the company? What can be done to prevent it? Where could an auditor look to find evidence of losses on purchase commitments and unrecorded liabilities to vendors?…

    • 865 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    Law 421 Week 3

    • 599 Words
    • 3 Pages

    Since buying online generally only requires a credit card and a little information regarding identity, it can only take a few clicks of the mouse to buy nearly anything available via e-business. That is why contracts are vital to the transaction. Before anything is bought or sold, both parties understand the terms and agreements regarding the transaction. That way if any issues arise…

    • 599 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Sarah’s company relies on contracts with suppliers to keep her business running efficiently. Shippers, vendors, and financial institutions etc. all require a high level of contract management to maintain efficient relationships with all of them. Understanding the effect of a good contract administration is essential in business making decisions that would maximize revenues and minimize risks. A contract is drawn up to create the guidelines for a business relationship. When parties abide by the terms of a contract, the company gains from the benefits that it has to offer. But poor contract administration can cause businesses to violate terms of the contract, which can lead to penalties, fines and a potential lawsuit. Good contract management is to prevent the high cost of the contract penalty clause, should dictate each move made with a contracted entity. Part of effective contract management is developing comprehensive training programs that inform employees of the benefits of following the terms of the contract. For example, in my company the purchasing people are informed of the various ways that an agreement with a vendor can benefit the company and how it will save the company money.…

    • 370 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Marketing 301 essay

    • 931 Words
    • 3 Pages

    In a business buying center there are five different roles. The first role are the users. These are the people who will be use the good or product. They influence the buying decisions because ultimately they will be the ones using the product. The second role are the gatekeepers. These personnel are the ones that give product data. They control what information the members of the buying center will review. The third role are the influencers. They are usually specialized staff that break down what the “pros” and “cons” are for a product. The fourth role are the deciders. These aren’t necessarily the ones that have the formal authority about what product is going to get bought. The last member is the buyer. This is the one that has the formal authority to buy a product.…

    • 931 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    You run a successful paper mill and send out your three best personnel to secure new wood pulp sources using due diligence and skill. Applying the agency principles outlined in this chapter, answer the following questions. Delilah, does not return with wood pulp, but brings back three contracts. Acting within the scope of her authority, she contracted with Evon, who knew your identity at the time; Felipe, who knew that Delilah was acting on behalf of someone but not whom; and Giorgio, who did not know that Delilah was acting on anyone’s behalf. For which contracts, if any, are you liable? For which contracts, if any, is Delilah liable? Explain.…

    • 404 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    When Tim turned 21, as a birthday present, his father gave him the family's vacation cabin, which included several acres of surrounding land. There are no outstanding debts on the property, and the title is clean.…

    • 201 Words
    • 1 Page
    Satisfactory Essays
  • Best Essays

    Ethics and Contracting

    • 1393 Words
    • 5 Pages

    As previously stated within the Abstract section of this paper, the question, “Does Business and Ethics Still Exist?” has generally caused honest business owners and also government agencies to ponder this notion. Even though the Federal Acquisition Regulation (FAR) is established in order to prevent unethical practices by contractors and government agencies failing to abide by this regulation, does not mean everyone it pertains to will adhere? The Federal Acquisition Regulation (FAR), is the principal set of rules in the Federal Acquisition Regulation System. This system consists of sets of regulations issued by agencies of the Federal government of the United States to govern what is called the "acquisition process"; this is the process through which the government purchases ("acquires") goods and services. That process consists of three phases: (1) need recognition and acquisition planning, (2) contract formation, and (3) contract administration. The FAR System regulates the activities of government personnel in carrying out that process. It does not regulate the purchasing…

    • 1393 Words
    • 5 Pages
    Best Essays
  • Good Essays

    Buying centers and buying situations have an important influence on organizational purchasing. A buying center consists of a group of individuals who share common goals, risks, and knowledge important to a purchase decision. A buyer or purchasing manager is almost always a member of a buying center. However, other individuals may affect organizational purchasing due to their unique roles in a purchase…

    • 671 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Purchasing Process

    • 403 Words
    • 2 Pages

    In Jack’s purchasing process, several issues need to be pay attention to reduce the risk of fraud or errors.…

    • 403 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    When people or business deal with contracting as a means of Procurement for their company, there may be issues regarding who the company will deal with. Procurement Management conducted correctly can be a valuable tool when combating this problem.…

    • 1308 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    * Integrated marketing communications- communication programs that coordinate the use of various vehicles (I.P., P.P., I.UP., P.UP) to maximize the total impact of the programs on customers.…

    • 3823 Words
    • 16 Pages
    Powerful Essays
  • Good Essays

    Purchase and Sales Cycle

    • 2183 Words
    • 9 Pages

    Purchase requisitions were issued by various departments when the departments need certain goods and services. It contain information such as description of items, quantity, price range, payment terms, required delivery date, names and address of suggested suppliers, and other relevant information. Purchase requisitions are often used as a proposal to the purchasing department in order to decide whether the purchase is necessary and worthy.…

    • 2183 Words
    • 9 Pages
    Good Essays
  • Powerful Essays

    2 | ISMM Assignment U201 Understanding Laws and Ethics of Selling – Kim de Casseres P a g e…

    • 1889 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    purchase management

    • 698 Words
    • 4 Pages

    Purchasing management is the management of purchasing process, and related aspects in an organization. Becauseof production companies purchase nowadays about 70% of their turnover, and service companies purchase approximately 40% of their turnover.[1]…

    • 698 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    The purchasing department is a control on the purchase of items to be paid for by the company. It…

    • 349 Words
    • 2 Pages
    Good Essays

Related Topics