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: 1. The Company A needs to investigate functioning of its purchase, production and quality control departments. 2. The Company A should inspect all the valves rejected by Company X. 3. 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: 1. The Company A needs to investigate functioning of its purchase, production and quality control departments. 2. The Company A should inspect all the valves rejected by Company X. 3. The Company A should inform Company X that steps have been taken for improvement and renegotiate schedule of supply.
A.	Only I and II follow
B.	Only II follows
C.	II, and either I or III follow
D.	All I, II and III follow
E.	None of these
Answer» B. Only II follows

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