Deck 2: Managing Ethics in a Sales Environment

Question 1

Which of the following represent ethical behavior?

A) Misleading customers by leaving out important facts
B) Using guilt tactics such as telling older people they should have life insurance policies for many relatives
C) Disclosing all the advantages and disadvantages of a product being considered for sale
D) Using excessive jargon and fine print to make the terms of sale unclear

Answer 1

Disclosing all the advantages and disadvantages of a product being considered for sale

Question 2

_______________ consists of the shared values, norms, and artifacts that provide the blueprint for behavior (within firms).

A) Sales ethics subcompliance culture
B) Sales management ethics
C) Organizational culture
D) Sales subculture

Answer 2

Organizational culture

Question 3

Ethics are

A) something that is basically irrelevant to business
B) the study of what is right and wrong or good and bad and honest and dishonest
C) rules clearly outlined in the bible
D) simply complying with the law

Answer 3

the study of what is right and wrong or good and bad and honest and dishonest

Question 4

Which of the behaviors below is least likely to be unethical?

A) Revealing confidential information to a prospect about their competitors.
B) Taking a prospect or customer to dinner, to play golf, or to attend a sports event.
C) Promising an unrealistic delivery date in order to make a sale
D) Shifting sales orders from one period to another to win a sales contest

Question 5

All of the following are common unethical practices committed by salespeople except

A) special gifts and overpromising
B) showing favoritism and disclosing confidential information
C) manipulating order forms and misrepresenting the facts.
D) getting another salesperson to help them make a sale in their territory

Question 6

Which of the following are ethical sales practices?

A) Expense account padding
B) Competitive snooping
C) making positive statements about the competition
D) Showing favoritism among customers

Question 7

Which of the following is not considered an unethical sales practice?

A) Discussing how your product can help make the buyer's firm more productive
B) Disparaging competitors
C) Manipulating order forms
D) Tampering with competitors' products

Question 8

__________ refer to the "specific component of business ethics that deals with ethically managing the sales function."

A) marketing management ethics
B) Sales management ethics
C) moral ethics
D) business ethics

Question 9

Which of the following statements about ethics is false?

A) Ethics constitute the moral content of behavior governing individuals and societies
B) Ethics deal with things as they should be, not necessarily as they are
C) Ethics are an obligation to consider not only our own personal actions but also that of other human beings
D) Ethics does not embody the moral content of behavior of organizations towards society

Question 10

With regard to business ethics, which of the following statement is false?

A) ethics pertain to the moral content of behavior
B) Professional ethics stress the norms or values of a profession
C) Individual, organizational, and professional ethics should always be in conflict so that the check and balance system can operate most effectively to prevent any one ethic-no matter how noble-from dominating.
D) Salespeople who find a particular sales strategy unethical should be allowed to voice dissenting opinions instead of being pressured into unwilling conformity

Question 11

Customer vulnerability is manifested in the following ways except:

A) Ignorance-a lack of some vital knowledge, often product knowledge, needed to participate in a fair exchange
B) Complacency-lack of motivation to do anything meaningful
C) Powerlessness-a lack of either competition within a marketplace or sufficient assets with which to be persuasive
D) Naiveté-a lack of experience or the ability to conduct a transaction or negotiate terms of a fair deal

Question 12

_________ refer to written expression of a firm's values, listing specific behaviors that are consistent or inconsistent with those values.

A) Code of ethics
B) Sales management ethics
C) moral ethics
D) business ethics

Question 13

Several types of ethical codes exist in American enterprise. Which of the following is not one of these ethical codes?

A) professional codes-for occupational groups such as doctors, lawyers, accountants, marketing researchers, advertisers, or sales representatives.
B) advisory group codes-suggested by government agencies or other special interest groups.
C) consultative codes-for professional consultants to business, government, and not-for-profit organizations.
D) business association codes-for companies engaged in the same line of activity, e.g., the American Association of Advertising Agencies.

Question 14

The discipline dealing with moral duty and obligation; a set of moral principles or values; the principles of conduct governing an individual or group deal with:

A) social responsibility
B) professional judgments
C) morals
D) ethics

Question 15

The following behaviors are generally prohibited in sales-related codes of ethics:

A) Bribes, gifts, kickbacks
B) Illegal political payments
C) Violation of laws in general
D) all the above

Question 16

According to sales-related codes of ethics, the following practices are generally not acceptable:

A) Violation of antitrust laws
B) Fraud and deception
C) Illegal payments abroad
D) all the above

Question 17

___________ represents a rule that should always be applied with no exceptions or excuses.

A) Idealism
B) moral absolute
C) deontological process
D) Moral philosophy

Question 18

In dealing with their own companies, which of the following is not an ethical issue for most salespeople?

A) cheating in sales contests
B) falsification of sales records
C) misuse of company assets
D) all the above are ethical issues for most salespeople

Question 19

Salespeople must be aware that the saying "all is fair in love and war" does not necessarily apply to ethical selling and dealing with competition. Which of the following is considered to be an unethical practice?

A) snooping on competitors
B) calling upon a competitor's customer
C) attending civic meetings when your competitors are in attendance
D) all of the above are unethical

Question 20

__________, as a moral philosophy, is a process by which individuals reach moral decisions based more on the actions they perceive to be acceptable given a particular situation

A) Relativism
B) deontologism
C) Idealism
D) Absolutism

Question 21

________ is a philosophy that defines morality based on the consequences of the behavior. It allows some indiscretion based on the argument that the "good" that results is more important than the harm caused. In other words, the end justifies the means.

A) Idealism
B) Relativism
C) Teleology
D) Absolutism

Question 22

____________ represents a situation with alternate courses of action, each having different moral implications.

A) ethical dilemma
B) Acceptability dilemma
C) Contractual dilemma
D) Obligational dilemma

Question 23

____________ refers to the inherent fairness or justice in a situation.

A) Acceptability
B) Moral equity
C) Contractualism
D) teleology

Question 24

____________ describes how culturally or socially acceptable we perceive an action to be.

A) Acceptability
B) Moral equity
C) Contractualism
D) teleology

Question 25

____________ is the extent to which an act is consistent with stated or implied contracts and/or laws.

A) Acceptability
B) Moral equity
C) Contractualism
D) teleology

Question 26

Which of the following research findings are incorrect?

A) Sales managers and salespeople are not more likely to engage in unethical practices than are people with other marketing and management jobs
B) Relatively high levels of relativism are associated with less ethical decision making among sales managers
C) Age is negatively related to ethical behavior among sales managers-younger sales managers tend to make more ethical decisions than older sales managers
D) Relatively high levels of idealism are associated with a lower likelihood of hiring a controversial job candidate

Question 27

Which of the following are not dimensions of the ethical climate?

A) policies and rules
B) trust and responsibility
C) accountability
D) peer behavior

Question 28

When sales managers and salespeople internalize the _________ that govern selling and marketing conduct within the firm, they are more likely to behave ethically.

A) policies and rules
B) bottom-line sales emphasis
C) trust and responsibility
D) peer behavior

Question 29

The _______________ dimension defines how far people are trusted to behave in a responsible way and are held personally responsible for their actions.

A) policies and rules
B) bottom-line sales emphasis
C) trust and responsibility
D) peer behavior

Question 30

______________, as a dimension of ethical climate, is the extent to which employees view coworkers as having high moral standards.

A) policies and rules
B) bottom-line sales emphasis
C) trust and responsibility
D) peer behavior

Question 31

As a dimension of ethical climate, ______________ refers to the extent to which employees feel pressured to prioritize increased revenues, profits, margins, or other financial returns over all other concerns.

A) policies and rules
B) bottom-line sales emphasis
C) trust and responsibility
D) peer behavior

Question 32

Laws protecting companies from each other, thus ensuring that a competitive marketplace exists include all except:

A) Robinson-Patman Act
B) Textile Labeling Act
C) Clayton Act
D) Sherman Antitrust Act

Question 33

Which of the following is not a law protecting companies from each other to ensure healthy competition?

A) Wheeler-Lea Act
B) Lanham Trademark Act
C) Consumer Goods Pricing Act
D) Meat Inspection Act

Question 34

The following are laws and policies protecting consumers and society from unfair business practices except:

A) Federal Trade Commission Act
B) Pure Food and Drug Act
C) Automobile Information Disclosure Act
D) Kefauver-Harris Drug Amendments

Question 35

Which of the following is not a law protecting consumers and society from unfair business practices?

A) National Traffic and Motor Vehicle Safety Act
B) Fair Credit Reporting Act
C) Robinson-Patman Act
D) Consumer Goods Pricing Act

Question 36

Laws protecting consumers and society from unfair business practices include all except:

A) National Environmental Policy Act
B) Equal Credit Opportunity Act
C) Nutrition Label and Education Act
D) all the above

Question 37

Federal regulations have had a major impact on business organizations in areas such as collusion, price-cutting, and the restraint of trade. Which of the following regulations address the issue of pricing?

A) Consumer Goods Pricing Act (1975)
B) Clayton Act (1914)
C) Automobile Information Disclosure Act (1958)
D) all of the above

Question 38

The Federal Trade Commission Act of 1914 seeks to control which of the following

A) monopolies
B) acts that significantly reduce competition
C) unfair methods of competition in commerce
D) brands and trademarks

Question 39

Collusion refers to:

A) agreements in which a manufacturer grants one dealer exclusive rights to sell a product in a certain trading area
B) competitors who do not conspire to set or maintain uniform prices and profit margins
C) competitors who conspire to set prices or join together to act to the detriment of another competitor
D) all of the above

Question 40

Price fixing refers to:

A) competitors colluding to divide a market into noncompetitive territories or to restrict competition in a market
B) competitors who conspire to set prices or join together to act to the detriment of another competitor
C) Agreements in which a manufacturer or wholesaler grants one dealer exclusive rights to sell a product in a certain trading area or insists that the dealer not carry competing lines
D) Competitors who conspire to set or maintain uniform prices and profit margins

Question 41

Exclusive dealing refers to:

A) competitors colluding to divide a market into noncompetitive territories or competition in a market
B) competitors who conspire to set prices or join together to act to the detriment of another competitor
C) Agreements in which a manufacturer or wholesaler grants one dealer exclusive rights to sell a product in a certain trading area or insists that the dealer not carry competing lines
D) Competitors who conspire to set or maintain uniform prices and profit margins

Question 42

Restraint of trade refers to:

A) competitors colluding to divide a market into noncompetitive territories or to restrict competition in a market
B) competitors who conspire to set prices or join together to act to the detriment of another competitor
C) Agreements in which a manufacturer or wholesaler grants one dealer exclusive rights to sell a product in a certain trading area or insists that the dealer not carry competing lines
D) Competitors who conspire to set or maintain uniform prices and profit margins

Question 43

About reciprocity as a business practice, it can accurately be said that:

A) most buyers and purchasers believe it should be illegal
B) most salespeople like it because is helps them sell
C) reciprocity is increasing sharply as a result of a lack of enforcement of antitrust laws
D) it is legal

Question 44

Reciprocity refers to:

A) selling substitute goods different from those ordered, intentionally misrepresent delivery dates, fail to actually fill an order, and not fill an order in a reasonable time
B) Selecting only suppliers who will also purchase from the buyer-"You buy from me and I'll buy from you"
C) buying an unwanted item or items in return for being allowed to purchase a product in heavy demand
D) shipping unordered goods or shipping larger amounts than ordered, hoping the buyer will pay for them

Question 45

Tie-in sales refers to:

A) selling substitute goods different from those ordered, intentionally misrepresent delivery dates, fail to actually fill an order, and not fill an order in a reasonable time
B) Selecting only suppliers who will also purchase from the buyer-"You buy from me and I'll buy from you"
C) buying an unwanted item or items in return for being allowed to purchase a product in heavy demand
D) shipping unordered goods or shipping larger amounts than ordered, hoping the buyer will pay for them

Question 46

Unordered goods refers to:

A) selling substitute goods different from those ordered, intentionally misrepresent delivery dates, fail to actually fill an order, and not fill an order in a reasonable time
B) Selecting only suppliers who will also purchase from the buyer-"You buy from me and I'll buy from you"
C) buying an unwanted item or items in return for being allowed to purchase a product in heavy demand
D) shipping unordered goods or shipping larger amounts than ordered, hoping the buyer will pay for them

Question 47

Orders and terms of sale refers to:

A) selling substitute goods different from those ordered, intentionally misrepresent delivery dates, fail to actually fill an order, and not fill an order in a reasonable time
B) Selecting only suppliers who will also purchase from the buyer-"You buy from me and I'll buy from you"
C) buying an unwanted item or items in return for being allowed to purchase a product in heavy demand
D) shipping unordered goods or shipping larger amounts than ordered, hoping the buyer will pay for them

Question 48

Business defamation can include each of the following offenses except

A) business slander
B) business libel
C) product disparagement
D) all of the above

Question 49

Which of the following is an example of business slander?

A) an untrue comparison is made concerning a competitor's product
B) an untrue written statement made about a competitor
C) an unfair and untrue oral statement made about a competitor
D) unfair pricing

Question 50

Business slander refers to:

A) when an unfair and untrue oral statement is made about a competitor
B) when an unfair and untrue statement about a competitor is made in writing (usually a letter, sales literature, advertisement, or company brochure)
C) false or deceptive comparisons or distorted claims are made concerning a competitor's product, services, or property
D) injury to a competitor can result from the false advertising of one's own product, misrepresentation of the qualities or characteristics of the product, or related unfair or deceptive trade practices

Question 51

Business libel refers to:

A) when an unfair and untrue oral statement is made about a competitor
B) when an unfair and untrue statement about a competitor is made in writing (usually a letter, sales literature, advertisement, or company brochure)
C) false or deceptive comparisons or distorted claims are made concerning a competitor's product, services, or property
D) injury to a competitor can result from the false advertising of one's own product, misrepresentation of the qualities or characteristics of the product, or related unfair or deceptive trade practices

Question 52

Unfair competition refers to:

A) when an unfair and untrue oral statement is made about a competitor
B) when an unfair and untrue statement about a competitor is made in writing (usually a letter, sales literature, advertisement, or company brochure)
C) false or deceptive comparisons or distorted claims are made concerning a competitor's product, services, or property
D) injury to a competitor can result from the false advertising of one's own product, misrepresentation of the qualities or characteristics of the product, or related unfair or deceptive trade practices

Question 53

With regard to "cooling off" rules, which of the following is correct?

A) requires door-to-door salespeople to give written notice to customers placing orders of $25 or more that they can cancel their purchase within three days
B) it came after years of complaints about high pressure tactics in business-to-business selling
C) it came after managers complained about business-to-business salespeople who gained entrance to their firms and then gave a sales pitch
D) all door-to-door salespeople post a $100,000 bond with city authorities before making sales call in the city

Question 54

"Green River" ordinances require that

A) all salespeople who seek professional certification submit qualifying credentials to Green River, Wisconsin for verification
B) all non-residents who attempt to sell goods or services directly to consumers be registered with city authorities and obtain a license to sell goods or services direct to consumers in that vicinity
C) all salespeople with health problems obtain a validated health exam before being permitted to call on consumers in their homes
D) all door-to-door salespeople post a $1,000 bond with city authorities before making sales call in the city

Question 55

Among the various differences in selling abroad, probably the major adjustment for most salespeople and sales managers is in developing sensitivity to the ____________ of the foreign country.

A) laws
B) distribution pattern
C) culture
D) pricing system

Question 56

In selling to international markets, sales managers will need to recognize the truth of all of the following statements except

A) France prohibits door-to-door selling
B) United States allows American companies to trade with some foreign countries such as Cuba and North Korea
C) Germany laws hold that bribes are legal and tax deductible as long as they are made outside Germany
D) United Nations and the European Union are standardizing commercial codes, such as environmental and product safety standards, that are binding on all companies whose nations consent.

Question 57

Sales management ethics is the specific component of business ethics that deals with ethically managing the sales function.

Question 58

Code of ethics refer to written expression of a firm's values, listing specific behaviors that are consistent or inconsistent with those values.

Question 59

The mere existence of a code of ethics alone does not guarantee a more ethical environment.

Question 60

Idealism deals with the systematic ways that individuals recognize and resolve decisions having moral content.

Question 61

Strict idealism is associated with universal standards, meaning they should be applied in all relevant situations regardless of context.

Question 62

A deontological process is not based on rules, but on a person's whim.

Question 63

Salespeople should be taught that it is seldom "smart" to conduct unethical practices with customers, even when the customer is the instigator.

Question 64

Customer vulnerability refers to a state in which the selling company is at a disadvantage relative to the buyers.

Question 65

Relativism is sometimes called situational ethics, meaning that a behavior acceptable in one situation can be unacceptable in another.

Question 66

According to situational ethics, behavior acceptable in one situation may be acceptable in another.

Question 67

Relativism rejects the notion of "absolutes" or moral imperatives. Hence, acceptability could be based on the cultural context. For instance, a bribe may be unacceptable in the U.S., but may be acceptable in, say, Nigeria.

Question 68

Teleology is a philosophy that defines morality based on the consequences of the behavior. It allows some indiscretion based on the argument that the "good" that results is more important than the harm caused. In other words, the end justifies the means.

Question 69

A moral judgment is a person's evaluation of the situation from an ethical perspective.

Question 70

Contractualism describes how culturally or socially acceptable we perceive an action to be.

Question 71

Acceptability is the extent to which an act is consistent with stated or implied contracts and/or laws.

Question 72

The ethical work climate is a specific aspect of the organizational climate. Specifically, it's the way employees view their work environment on moral dimensions.

Question 73

The uniform commercial code is a basic set of guidelines adopted by most states that set forth the rules of contracts and the law pertaining to sales. The code regulates the performance of goods, sellers' warranties, and the maximum allowable rates of interest and carrying charges.

Question 74

Collusion refers to competitors who do not conspire to set or maintain uniform prices and profit margins.

Question 75

Price fixing refers to agreements in which a manufacturer or wholesaler grants one dealer exclusive rights to sell a product in a certain trading area or insists that the dealer not carry competing lines.

Question 76

Restraint of trade refers to competitors colluding to divide a market into noncompetitive territories or to restrict competition in a market.

Question 77

Reciprocity refers to selecting only suppliers who will also purchase from the buyer-"You buy from me and I'll buy from you."

Question 78

Tie-in sales refers to shipping unordered goods or shipping larger amounts than ordered, hoping the buyer will pay for them.

Question 79

Unordered goods refers to selling substitute goods different from those ordered, intentionally misrepresent delivery dates, fail to actually fill an order, and not fill an order in a reasonable time.

Question 80

Business slander occurs when an unfair and untrue oral statement is made about a competitor.