Deck 4: Ethical and Legal Issues in Relationship Selling

Question 1

An unethical climate is the result of:

A)Unfair corporate policies.
B)Corporate culture.
C)Cultural differences.
D)Abuse of salesperson rights.

Answer 1

B

Question 2

The reason salespeople offer gifts and bribes to customers is:

A)It works.
B)It is part of the company sales strategy.
C)They are lazy and want to get the sale completed.
D)There are no laws against it.

Answer 2

A

Question 3

Don is the sales manager for a new computer software company.He wants to motivate and reward his salespeople.To do so,his sales goals need to be:

A)Realistic.
B)High.
C)Reciprocative.
D)Socially responsible.

Answer 3

A

Question 4

Janice is evaluated on the number of sales calls she makes each week.In order to meet her quota,she lists a few calls she intends to make next week.Janice is:

A)Borrowing.
B)Leaking confidentiality.
C)Cheating.
D)Culturally different.

Question 5

A gift is different from a bribe in that,a gift:

A)Involves money.
B)Is a nonfinancial present
C)Is worth more than money.
D)All of the choices are correct.

Question 6

Which of the following is an area of ethical concern for management when dealing with salespeople?

A)Sales pressure.
B)Cultural differences.
C)Unfair corporate polices.
D)Unethical corporate climate.

Question 7

In many areas of the world,other than the United States,___________ are an accepted part of business practices.

A)Bribes.
B)Reciprocity.
C)Slander.
D)Codes of ethics

Question 8

Sometimes a customer will signal that they want a bribe by asking for:

A)A meeting with their corporate managers.
B)Special consideration.
C)Sexual overtures.
D)Letter confirming the payment.

Question 9

When dealing with customers,salespeople encounter ethical concerns in the area of:

A)Cheating.
B)Misuse of company resources.
C)Breaking confidentiality.
D)Inappropriate relations with other employees.

Question 10

Salespeople who provide complete information that presents the company in a less than favorable light

A)Can create a high degree of credibility with the customer.
B)Always lose customer trust.
C)Are unethical.
D)Are inexperienced.

Question 11

As a sales manager one of the most difficult decisions is to terminate an employee.Frequently,sales managers make mistakes of ___________ when following termination procedure.

A)Commission.
B)Omission.
C)Mission.
D)Submission.

Question 12

When dealing with employers,salespeople encounter ethical concerns in the area of:

A)Cheating.
B)Misuse of company resources.
C)Inappropriate relations with other employees.
D)All of the choices are correct.

Question 13

Salespeople encounter pressure,challenging their behavior,from:

A)Primarily government rules.
B)Primarily competing salespeople.
C)Production managers.
D)Customers,managers,and outsiders.

Question 14

In American business,one of the areas most affected by the focus on ethics is:

A)Production.
B)Distribution.
C)Selling.
D)Technology

Question 15

The Latin phrase,"caveat emptor" means

A)Let be free.
B)What will be,will be.
C)Let the buyer beware.
D)All other things being equal.

Question 16

Ethical practices:

A)Vary by region.
B)Can vary from country to country.
C)Vary with cultural norms.
D)All of the choices are correct.

Question 17

Karen has a salesperson who,is not performing well.She tries to discuss the matter but does not directly address the issue.Karen is struggling with an issue of:

A)Deception
B)Sales pressure.
C)Salespeople's rights.
D)All of the choices are correct.

Question 18

Which of the following criteria is NOT one of the criteria used for rating business ethics?

A)Environment.
B)Total sales.
C)Employee relations.
D)Diversity.

Question 19

The moral principles and standards that define right and wrong and guide behavior in the world of business are called:

A)Corporate standards.
B)Business ethics.
C)Sarbanes-Oxley law
D)Uniform Commercial Code

Question 20

Which of the following is an area of ethical concern for management when dealing with company policies?

A)Sales pressure.
B)Cultural differences.
C)Unfair corporate polices.
D)Deception.

Question 21

In addition to the Uniform Commercial Code,a number of federal laws have been passed that affect selling,including:

A)The Sherman Anti-Trust Act.
B)The Clayton Act.
C)The Robinson-Patman Act.
D)All of the choices are correct.

Question 22

As a result of the recent scandals at Enron,WorldCom and other American businesses,laws have been passed to mandate ________________ for people who break them.

A)Financial penalties.
B)Jail time.
C)Financial penalties and jail time
D)Corporal punishment.

Question 23

Warren,a sales rep for a heavy-duty equipment company,told his customer that the fork lift could handle the 10,000 pound loads the customer needs to lift.Warren's statement constitutes a (n):

A)Expressed warranty.
B)Implied warranty.
C)Good-faith estimate.
D)Sales closing attempt.

Question 24

Gerry quickly left his new position when he saw how salespeople ignored the company guidelines mislead customers.Gerry was responding to the company's unethical:

A)Cultural differences.
B)Sales pressure.
C)Corporate culture.
D)Collusion.

Question 25

Harry,a sales rep for a collectible doll company,is a good friend of the advertising manager for the major collectible doll magazine.Harry asks his friend not to take ads from a competing firm.Harry is engaged in:

A)Collusion
B)Restraint of trade.
C)Slander.
D)Competitor obstruction.

Question 26

Mariana,a sales rep for a construction materials company,is faced with a tough ethical decision.She is comfortable making her decision because her company:

A)Has been consistent with regard to their corporate code of conduct.
B)Reinforces ethical principles in their training.
C)Enforces their ethical policies.
D)All of the choices are correct.

Question 27

Leah switched companies because the new one was significantly more ethical than her old company.An ethical climate will likely improve Leah's:

A)Organizational commitment.
B)Satisfaction.
C)Willingness to stay with the company.
D)All of the choices are correct.

Question 28

Legally,any statement,promise,or action by a salesperson is:

A)Puffery.
B)A legal commitment.
C)Subject to negotiation.
D)All of the choices are correct.

Question 29

Terry tells a customer that she must stop carrying competing products if she wants to have Terry's company's products.Terry is engaged in:

A)Collusion
B)Restraint of trade.
C)Slander.
D)Competitor defamation.

Question 30

Under the UCC any sale over ____________ requires a written agreement.

A)$1.00
B)$100
C)$500
D)$1000

Question 31

Ryan,an international sales rep for an oil-drilling services company,is approached by a local political leader,asking for a bribe.Ryan should remember the:

A)Federal Bribery Act.
B)International Corruption Act
C)Foreign Business-dealings Act
D)Foreign Corrupt Practices Act.

Question 32

The one way in which Chinese and Americans approach the negotiation process the same is:

A)Nontask sounding.
B)Information exchange.
C)Terms of agreement.
D)None of the above

Question 33

Senior management style (do their actions match their words?")often defines a company's:

A)Mission statement.
B)Corporate culture.
C)Legal liability.
D)Code of ethics.

Question 34

The most significant set of laws affecting selling are defined in the:

A)Uniform Commercial Code.
B)Foreign Corrupt Practices Act.
C)Racketeer Influenced Corrupt Organization Act
D)Caveat Emptor Doctrine.

Question 35

Statements,made by salespeople,about the performance of their products constitute an:

A)Implied warranty.
B)Expressed warranty.
C)Obligation the salesperson must prove.
D)None of the choices are correct.

Question 36

Bribes are an example of:

A)Globally accepted illegal behavior.
B)Globally accepted legal behavior.
C)Differences in business culture.
D)The pressure to succeed in sales.

Question 37

The UCC considers an oral commitment from a salesperson to be:

A)A promise affecting relationship selling.
B)A sales pitch.
C)Legally binding.
D)All of the choices are correct.

Question 38

Collusion is any effort that:

A)Defames competitors.
B)Deceives customers.
C)Violates a code of ethics.
D)Lessens competition.

Question 39

When interacting with a customer,a good rule of thumb when you encounter a competitor's product is to:

A)Deride it as much as possible.
B)Steer clear of the competitor's product.
C)Offer constructive suggestions regarding how it could be improved.
D)All of the choices are correct.

Question 40

Laws affecting buyer-seller relationships are enacted at the_________ level.

A)Federal.
B)State.
C)Local.
D)All of the choices are correct.

Question 41

Price discrimination laws are designed to ensure:

A)Profits.
B)Control of profits.
C)Fair treatment of customers.
D)All of the choices are correct.

Question 42

The Latin phrase,"caveat emptor" means let the buyer beware.

Question 43

"Do their actions match their words?" refers to the management style of senior managers.

Question 44

Sometimes,policies written by the human resources department create problems in the sales area.

Question 45

Libel is unfair or untrue

A)Warrantees.
B)Written statements.
C)Oral statements.
D)All of the choices are correct.

Question 46

The Foreign Corporate Pricing Act dictates penalties for U.S.businesses engaged in bribery.

Question 47

The most important set of laws affecting sales is the Uniform Commercial Code.

Question 48

Slander is unfair or untrue:

A)Warrantees.
B)Written statements.
C)Oral statements.
D)All of the choices are correct.

Question 49

Research indicates that salespeople are more successful when their personal code of ethics:

A)Is as strong as possible.
B)Is weak so as to avoid conflict.
C)Is neither weak nor strong.
D)Is consistent with the company's code.

Question 50

Ethical practices are universal.

Question 51

A personal code of ethics begins with:

A)The industry association's code of ethics.
B)The company code of ethics.
C)What you consider right and wrong.
D)The business culture you are part of.

Question 52

Misrepresenting business expenses to generate additional income is employee theft.

Question 53

If companies expect their salespeople to act ethically,they must behave ethically.

Question 54

Ethics are the principles that guide you as you make decisions.

Question 55

A corporate code of ethics defines what a salesperson should do in each potential situation.

Question 56

Cease-and-desist orders can be ordered against companies that engage in:

A)Price gouging.
B)Price discrimination.
C)Competitor defamation.
D)Caveat emptor behavior.

Question 57

It is perfectly legal to charge a lower price to a customer who buys more.

Question 58

Ethical norms do not change over time.

Question 59

Olivia always compares her company's products to those of competitors.She sometimes stretches the comparison,making unfair statements about competing products.Olivia is engaged in:

A)Collusion
B)Restraint of trade.
C)Reciprocity
D)Competitor defamation.

Question 60

Companies that create strong codes of ethics but do not follow them are said to:

A)Slander.
B)Let caveat emptor reign.
C)"Take to and hit to right."
D)"Talk the talk" but not "walk the walk."

Question 61

What are the four major areas of ethical concern salespeople have when dealing with customers?

Question 62

What is an ethical checklist?

Question 63

What rule of thumb should a salesperson use regarding the use of company resources for traveling and entertainment?

Question 64

What problems are associated with unfair or special treatment of customers by salespeople?

Question 65

What is the difference between slander and libel?

Question 66

What is the difference between a gift and a bribe?

Question 67

What is price discrimination? When can companies legally engage in price discrimination?

Question 68

What are collusion,restraint of trade,and reciprocity,and how do laws regarding these practices affect salespeople?

Question 69

What rights do salespeople have?

Question 70

What three ethical issues do managers often have to deal with in their relationship with salespeople?

Question 71

How can a company help salespeople make tough ethical decisions?

Question 72

What conflict do salespeople face when corporate policies conflict with local cultural practices?

Question 73

Summarize the most important aspects of the UCC affecting salespeople.

Question 74

What are the three major areas of ethical concern salespeople have when dealing with employers?

Question 75

Discuss the pros and cons of the following statement: "The higher a sales manager sets sales goals,the more motivated his sales force will be."?