EFG uses specialized components from Supplier A in the manufacture of state-of-the-art testing equipment.

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EFG uses specialized components from Supplier A in the manufacture of state-of-the-art testing equipment. Supplier A has been very successful in meeting EFG's stringent quality specifications, which has been critical for EFG.

EFG learns that Supplier A plans to acquire a smaller firm which makes components similar to those under contract with EFG. EFG is concerned that the supplier may transfer its contract to the new subsidiary, leading to compromises in quality. Given this situation, which of the following is the BEST course of action for EFG to take?

Negotiate with Supplier A to remove the changes clause from the contract

Negotiate with Supplier A to strengthen the indemnification clause in the contract

Negotiate with Supplier A to add a consent of assignment clause to the contract

Take no action, as Supplier A must supply the chips at the same quality level no matter who manufactures them

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Vendor: ISM
Product: CORE
Update on: Oct 18, 2025
Questions: 312

Price: $52.5 ~~$149.99~~

A supply manager Is planning for negotiations with a sole-source supplier of an essential part.

A supply manager Is leading a project to implement a change from a common grade...

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EFG uses specialized components from Supplier A in the manufacture of state-of-the-art testing equipment.

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Explanation:

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