Statement : The Company X has rejected first lot of values supplied by Company A and has cancelled its entire huge order quoting use of inferior quality material and poor craftsmanship.Courses of Action :I. The Company A needs to investigate functioning of its purchase, production and quality control departments.II. The Company A should inspect all the valves rejected by Company X.III. The Company A should inform Company X that steps have been taken for improvement and renegotiate schedule of supply.

Statement : The Company X has rejected first lot of values supplied by

1.	Statement : The Company X has rejected first lot of values supplied by Company A and has cancelled its entire huge order quoting use of inferior quality material and poor craftsmanship.Courses of Action :I. The Company A needs to investigate functioning of its purchase, production and quality control departments.II. The Company A should inspect all the valves rejected by Company X.III. The Company A should inform Company X that steps have been taken for improvement and renegotiate schedule of supply.
A.	nly I and II follow
B.	nly II follows
C.	I, and either I or III follow
D.	ll I, II and III follow
E.	one of these
Answer» B. nly II follows