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.

• I and II follow
• Only II follows
• II and either I or III follow
• All I, II and III follows