Contracts are always sufficient to govern supplier transactions and prevent supplier opportunism.

Question

Quizplus · Accepted Answer

While contracts are crucial in outlining the terms and conditions of supplier transactions, they may not always be sufficient to prevent supplier opportunism. This is because suppliers may find loopholes in the contract or engage in unethical behavior that goes against the spirit of the agreement. Therefore, it is important for both buyers and suppliers to establish a trusting relationship and engage in ongoing communication and monitoring to ensure compliance and prevent opportunistic behavior.

Contracts Are Always Sufficient to Govern Supplier Transactions and Prevent