Deck 4: Ethics,the Law,and Sales Leadership

Question 1

The Protestant ethic,if applied in a certain way,mirrors:

A)the Golden Rule
B)the conventionalist ethic
C)the market imperative
D)the Libertine ethic
E)the utilitarian ethic

Answer 1

B

Question 2

The essence of the Protestant ethic is answer the question:

A)Is this the most moral path?
B)Was this action predestined by a Higher Power?
C)Could I satisfactorily explain this choice to a committee of my peers?
D)Is this choice commonly accepted in the present time and place?
E)Does might always make right?

Answer 2

B

Question 3

What is a boundary spanner in terms of sales?

A)an idea that replaces one discipline with another discipline
B)an idea that crosses two disciplines
C)a person who measures the distance from one property line to another
D)a person who works for one company but contracts with another company
E)a person who works with two different organizations

Answer 3

E

Question 4

Which of the following phrases would be an example of the conventionalist approach?

A)Everyone else is doing it,so why not us?
B)Leave your campsite better than you found it.
C)Do unto others as you would have them do unto you.
D)Why fix what isn't broken?
E)At the end of the day,the customer is always right.

Question 5

The Golden Rule is:

A)simple,but doesn't have a way to account for situations in which groups are in conflict
B)simple,and provides a theoretical framework for making decisions through conflict
C)simple,while appearing to be more complex
D)complex,and does not apply to situations involving only two parties
E)complex,but is simple to apply to conflicts involving three or more parties

Question 6

The inherent problem with the conventionalist approach to making ethical decisions is that:

A)what's allowed may slowly have changed over a period of time
B)what's allowed is not able to be decided by the salesperson
C)what's allowed may not have anything to do with what's ethical
D)what's allowed varies within a company and within a sales team
E)what's allowed is usually not written down in a formal code

Question 7

Which of the following is a weakness of the Golden Rule?

A)Despite your best efforts,you may not be able to treat others as you'd like to be treated.
B)The way you want to be treated may not be the way others want to be treated.
C)The way you want to be treated may not be the best possible way to treat someone else.
D)The way you want to be treated may cost too much in time and resources to be a practical way to treat others.
E)Others may not realize that you've treated them the way you want to be treated.

Question 8

Which of the following actions would most likely be permissible according to the conventionalist approach to ethics but impermissible according to the utilitarian approach to ethics?

A)failing to disclose purchase terms and conditions that make one's product less desirable than competing products
B)selling legal products that are addictive and substantially damage the customer's health
C)offering superior pricing and servicing policies to select customers who make a purchase within a specific period of time
D)misleading the customer about the features and benefits of a product or service
E)discontinuing product models that are successful in the marketplace but harmful to the environment

Question 9

The utilitarian ethic states that an action is ethical:

A)as long as it is done with good intentions
B)as long as the salesperson gets to decide what the outcome is
C)as long as the positive consequences of the action outweigh the negative consequences of the action
D)only if the salesperson does not attempt to influence the company's competitors
E)only inasmuch as it produces results for the company

Question 10

Adam Smith's approach to capitalism influences which of the following approaches to ethics?

A)the utilitarian ethic
B)the Libertine ethic
C)the conventionalist approach
D)the Protestant ethic
E)the market imperative

Question 11

What makes salespeople unique in the ethical situations they find themselves in?

A)Salespeople are less likely to encounter ethical dilemmas than workers in other professions.
B)Salespeople are less honest than are psychologists,preachers,and professors.
C)Salespeople have extensive training in dealing with ethical questions and decisions.
D)Salespeople encounter ethical dilemmas both in the companies they work for and with the customers they sell to.
E)Salespeople have different approaches to choose from when considering an ethical decision.

Question 12

The Libertine approach seems to make sense in a sales situation,EXCEPT that:

A)it is difficult to choose actions that hurt no one involved in a situation
B)doing only what is accepted by society can limit a salesperson's actions
C)bribery and other forms of ethical breaches are not always discovered
D)two parties cannot always reconcile their needs,and a third party may need to intervene
E)"what the market will bear" is not always easy to determine

Question 13

The market imperative expresses itself in many different courses of action.Adam Smith would argue that this is because:

A)consumers,labor,and companies are fighting over who wins
B)the market imperative is a limited model that can't cover many situations
C)these courses of action appear different but all result in the same outcome
D)the salesperson has not understood the market forces well enough to choose ethically
E)the salesperson has acted in his or her own interest

Question 14

Behavior that is considered ethical varies across all of the following EXCEPT:

A)cultures
B)countries
C)industries
D)time
E)teams

Question 15

Who do salespeople represent primarily?

A)their managers
B)the boundaries between customer and company
C)the customers they sell to
D)the company they work for
E)their competitors

Question 16

Which of the following would be LEAST likely to be regarded as "puffery"?

A)"We serve the world's finest coffee."
B)"We have everything you need to deliver successful sales presentations."
C)"Our sneakers are worn by top competitive athletes."
D)"Our syrup provides the longest-lasting relief from flu symptoms."
E)"Impress your friends with an engagement ring from Xirces Jewelers."

Question 17

A salesperson lies about the product he sells and claims it can do things it cannot do.Which ethical breach is the salesperson committing?

A)bribery
B)puffery
C)misrepresentation
D)rogue purchasing
E)business defamation

Question 18

A salesperson who believes that she needs to act in a way that helps as many of the people involved as possible subscribes to:

A)the Golden Rule
B)the Conventionalist Approach
C)the Utilitarian Ethic
D)the Libertine Ethic
E)the Protestant Ethic

Question 19

Salespeople and sales managers must make ethical decisions on a daily basis.There are:

A)no standard approaches to ethical decisionmaking,so no employee can be held accountable for adhering to ethical standards
B)no standard approaches to ethical decisionmaking,so salespeople and sales managers must make decisions in the moment
C)many different approaches to ethical decisionmaking,none of which is absolutely correct
D)many different approaches to ethical decisionmaking,several of which are correct
E)many different approaches to ethical decisionmaking,and only one of them is correct

Question 20

Ethical problems occur when:

A)rules conflict with values
B)values conflict with behavior
C)behavior conflicts with culture
D)culture conflicts with norms
E)norms conflict with rules

Question 21

The majority of the US laws affecting sales departments:

A)levy monetary fines on individual salespeople who violate them
B)are designed to protect consumers from deceitful practices and privacy violations
C)are passed by state governments,not the federal government
D)deal with electronic communication,both content and method
E)only become effective when cash sales are involved

Question 22

What is the major flaw of both compliance investigation and punishment systems and grievance and arbitration systems?

A)They do not have any representatives from labor,only from management.
B)They are both slow and expensive to administer.
C)The managers may not have any experience with conducting an investigation into conduct.
D)They do not take into account the appropriateness of the policies set by the company.
E)It may be impossible for the parties to reach consensus.

Question 23

Which of the following is NOT a way in which a salesperson can steal from the company?

A)taking office supplies home
B)taking a day off without telling anyone
C)padding the records of sales calls to cover several hours of personal errands
D)manipulating expense records to receive compensation for non-reimbursable expenses
E)taking a personal day to go shopping

Question 24

What is a way a company can ensure that there is no ethical ambiguity around the issue of gifts and bribery from their vendors?

A)require salespeople to deal with purchasing agents,not individual employees
B)prohibit employees from accepting anything,no matter how small,from a salesperson
C)exclude employees who have not been cleared by an ethics committee from contacting salespeople
D)forbid sales managers from contacting purchasing agents
E)examine the corporate code of ethics

Question 25

What helps determine if something is a bribe or a legitimate gift?

A)A bribe gives a reason for an individual person to buy from that salesperson instead of others,while a gift is a thank-you or a standard incentive for the individual's company.
B)A bribe gives a reason for a an individual to recommend that a salesperson be added to the approved vendor list,while a gift secures an undue advantage for the salesperson.
C)A bribe is an incentive for the company to purchase from a particular salesperson,while a gift is given to celebrate the close of a sale.
D)A bribe is something a customer requests from a salesperson in order for the salesperson to make the sale,while a gift is given voluntarily form the salesperson to the customer.
E)A bribe is a hypothetical incentive to purchase from a salesperson,while a gift is an actual incentive from the salesperson.

Question 26

Which of the following due process systems is fastest and least expensive to administer?

A)a compliance investigation and punishment system
B)a grievance and arbitration system
C)a CRT system
D)a mediator/counselor system
E)an employee-board system

Question 27

Which of the following is NOT an outcome of the Caux Round Table?

A)reducing trade tensions between countries
B)reducing social and economic threats
C)facilitating imbalances in trade and economic power
D)encouraging companies to sell products at a price commensurate with quality
E)asking businesses to respect international and domestic rules

Question 28

Which of the following types of contact would violate the CAN-SPAM Act?

A)calling customers repeatedly to sell them new products
B)blocking telephone numbers so customers cannot see the telephone number displayed on a caller ID unit
C)sending a monthly newsletter by email to current customers
D)sending mass email to a person who has never done business with the company
E)putting customer email addresses in the bcc line of a mass email

Question 29

All of the following are due process systems used to respond to ethical breaches EXCEPT:

A)investigation and punishment systems
B)grievance and arbitration systems
C)mediator/counseling systems
D)compliance department systems
E)employee-board systems

Question 30

The Federal Sentencing Guidelines primarily protect:

A)consumers
B)salespeople
C)companies
D)corporate buyers
E)managers

Question 31

Selling product to customers in your territory who then ship it on to customers in another sales representative's territory:

A)is a legal way to hit your quota
B)is illegal and is punishable by fines and jail time
C)is unethical,but is permissible if the customer requests it
D)is unethical and is a form of stealing
E)is accepted and encouraged at the end of the sales quarter

Question 32

A customer may ask a salesperson for information on the customer's competition.If the salesperson gives the customer information about the competitor,that is an ethical breach regarding:

A)purchasing
B)misrepresentation
C)collusion
D)privacy
E)positioning

Question 33

Of the common ethical issues salespeople have with their customers,which one is legal?

A)kickbacks
B)misrepresentation
C)bribery
D)privacy
E)puffery

Question 34

What is the primary way companies discover breaches of policy?

A)A computer program flags suspicious patterns.
B)An employee reports inappropriate behavior.
C)The compliance department identifies unethical actions.
D)The CRT principles guide companies through the discovery process.
E)Violators turn themselves in to Human Resources.

Question 35

Why do corporate codes of ethics often focus on salespeople?

A)Salespeople have more varied contacts,so they have more opportunities for ethical choices.
B)Salespeople tend to be less honest than other employees in the company.
C)Codes of ethics tend to be written by sales executives.
D)Professional organizations do not focus on salespeople,so corporate codes of ethics need to.
E)Non-sales positions do not have opportunities to make ethical choices in their work.

Question 36

An airline traveler discovers that the passenger in the seat next to hers paid 70% of the price she paid for her ticket.Is this a violation of the Robinson-Patman Act on the part of the airline?

A)No,because the traveler only discovered the price difference accidentally.
B)No,because the traveler could have gotten that same fare by booking on a different day.
C)Yes,because all the seats arrive at the same destination,so they should be priced equally.
D)Yes,because the other passenger's discount must have been negotiated illegally.
E)Yes,because any difference in the fares must be based on the location of the seat on the plane.

Question 37

All of the following are forms of sexual harassment EXCEPT:

A)telling off-color jokes to coworkers in the workplace
B)making sexual advances to a customer
C)talking about a coworker's body in public
D)making sexual advances to a coworker
E)dating a former customer

Question 38

Puffery is:

A)legal exaggeration about a product
B)legal exaggeration about a company
C)illegal exaggeration about a product
D)illegal exaggeration about a company
E)illegal exaggeration about a person

Question 39

Bribery is:

A)legal in all countries
B)legal in some companies but not in others
C)legal in North America but not Europe
D)illegal in almost every country
E)illegal in the United States and Canada only

Question 40

Mediator/counselor systems and employee-board systems both have which focus?

A)making an example of violators to prevent other employees from committing ethical breaches
B)streamlining a due process system to make it widely available to all employees
C)involving both labor and management in the discipline process
D)preventing ethical wrongdoing by creating watchdog groups within the company
E)determining how the organization can change to better support ethical behavior

Question 41

The Golden Rule is an ethical model that is most appropriate in situations involving only two people or groups.

Question 42

What do the utilitarian ethic,the Libertine ethic,and the Golden Rule have in common? What differentiates them?

Question 43

What are some ways that managers can use technology to uncover ethical breaches?

Question 44

Management can use technology to help identify and prove ethical violations by employees.

Question 45

Define misrepresentation.How is it different from puffery? What are the legal penalties for each?

Question 46

What is rogue purchasing? Why is it bad for a company?

Question 47

A code of ethics is a written outline of standards that workers are expected to adhere to.

Question 48

The laws that affect sales and sales ethics communication apply to in-person and written communication,but not telephone and electronic communication.

Question 49

When an employee commits an ethical breach,there are four different systems to respond to the violation.Some of these systems involve management only,while others involve fellow employees.

Question 50

Define "ethics." Are ethics constant? In what way?

Question 51

Describe three common ethical issues that involve a salesperson's company?

Question 52

The Caux Round Table (CRT)was developed to set guiding ethical principles for companies operating in the United States and Canada.

Question 53

What does "boundary spanner" mean? How are salespeople boundary spanners? What ethical issues do boundary spanners face in particular?

Question 54

What is a code of ethics? What does a code of ethics do?

Question 55

The Utilitarian ethic states that it is ethical to make a choice as long as you can defend that choice to your peers.

Question 56

What is the purpose of the Caux Round Table? What are the CRT principles?

Question 57

Bribery,puffery,and misrepresentation are all ethical problems involving a salesperson's customers.

Question 58

The Conventionalist approach to ethical decisions assumes that if a practice has always been done that way,it is ethical to continue in that manner.

Question 59

What is the difference between a bribe and a gift? How can salespeople give appropriate gifts to customers?

Question 60

Ethics refers to a codified list of moral rules that salespeople must adhere to.

Question 61

Discuss the differences between misrepresentation and business defamation.What are some possible legal penalties for each?

Question 62

Discuss some of the US laws that govern the actions of salespeople and sales managers.What types of situations do these laws apply to?

Question 63

What are the four different due process systems? What is the benefit and weakness of each one?

Question 64

Salespeople and sales managers can be confronted with ethical choices.Discuss the possible ramifications of refusing to violate ethics,and some choices salespeople and sales managers can make that do not violate ethics.

Question 65

What is price discrimination? What are some measures that are in place to prevent or punish price discrimination?