Explain the legal and ethical considerations of purchasing.

Explanation should include

• laws governing or related to purchasing
• ethical reasons for the use of a competitive, fair, bid-based purchasing system
• reasons why a purchasing system should be open to all prospective, reputable purveyors.

Process/Skill Questions:

Thinking

• Why should purchase specifications be consistently followed within a food service operation and by its suppliers?
• What are the legal ramifications of involvement in price fixing, kickbacks, and embezzlement?

Communication

• Why are purchase orders used?

Leadership

• How can a food service employee determine whether a supplier is reputable?

Management

• What purchasing practices might be deemed unethical?
• What controls can be put into place to guarantee legal and ethical purchasing?
• Why is record keeping so important to purchasing?
• How long should purchase orders and other purchase records be kept?