Q. Statement: The Company Bentley has rejected the first load of valves supplied by Company Mercedes and has cancelled its entire huge order quoting use of inferior quality material and poor craftsmanship.

Assumptions:
(I) The Company Mercedes needs to investigate functioning of its purchase, production and quality control departments.
(II) The Company Mercedes should inspect all the valves rejected by Company Bentley.
(III) The Company Mercedes should inform Company Bentley that steps have been taken for improvement and renegotiate schedule of supply.

Only I and II

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Only I and III

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Only II and II

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All of I, II, III

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None

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Solution

The correct option is A Only I and II
First of all, company Mercedes should inspect the rejected valves to ensure if they are really substandard. If so, it should scrutinize its working thoroughly and fix its quality issues. III is not justified from the statement, because the quality errors have not been fixed and issuing a statement to Company Bentley to that effect would be a lie.

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Similar questions

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