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A supply manager for XYZ, Inc. visits a manufacturer's plant and research division for a general inspection and product review. The supply manager is required to sign in at the registration desk and must acknowledge acceptance of the standard terms of visiting. After the visit, which includes very encouraging discussions, the supply manager returns to XYZ with a sample of a new product-an expensive item of complex design with innovative features. The supply manager must take specific precautions to protect the sample because
Correct Answer: C
When a supply manager visits a manufacturer's plant and signs in at the registration desk, acknowledging standard terms of visiting, there may be non-disclosure requirements involved. Specific precautions are necessary to protect the sample: * Truth-in-Lending Law requirements: Not relevant in this context as it pertains to lending and credit. * Evaluation of the sample might consume company resources: While true, it is not the primary concern regarding the sample's protection. * The plant sign-in may have established non-disclosure requirements: The most critical concern as violating non-disclosure agreements can have legal and competitive implications. * Damage to it may result in a charge for repair: Important but secondary to confidentiality concerns. Therefore, the supply manager must take specific precautions because the plant sign-in may have established non-disclosure requirements. References: * Legal considerations in supply chain management. * Non-disclosure agreements and their implications in business visits.