Statement The company X has rejected first lot of valves supplied by company A and has cancelled its entire huge order quoting use of inferior quality material and por 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 X that steps have been taken for improvement and renegotiate the schedule of supply.

Statement The company X has rejected first lot of valves supplied by

1.	Statement The company X has rejected first lot of valves supplied by company A and has cancelled its entire huge order quoting use of inferior quality material and por 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 X that steps have been taken for improvement and renegotiate the schedule of supply.
A.	I and II follow
B.	Only II follows
C.	II and either I or III follow
D.	All I, II and III follows
Answer» E.

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