Question 1

Which of the following statements about ethics is true?

Accepted Answer

Ethical principles establish appropriate behavior. Ethics guide individuals and organizations in making decisions and acting in a responsible and moral way. These principles may evolve over time as societal values change and may differ across cultures and contexts. Personal codes of ethics can also help individuals make ethical decisions and hold themselves accountable for their actions. Just because an act may be unethical does not necessarily mean it is illegal, as some actions may be morally unjust but not explicitly prohibited by law.

Question 2

Which of the following is the BEST example of a salesperson engaging in deliberate deception?

Accepted Answer

The swimming pool salesperson deliberately withheld important information about the additional cost for preparing the ground, which is an act of intentional deception. The other examples involve exaggeration or offering incentives, which may not be entirely truthful but are not necessarily intentional lies.

Question 3

Mimi is an inexperienced sales rep for an office supply company. She has asked your advice on giving gifts to office managers to whom she is trying to make a sale. You tell her to:

Accepted Answer

The answer of Mimi is an inexperienced sales rep for...

Question 4

The opening profile about HP states that the two chief sources of sales liability when dealing with the Federal government are the __________________ and the ________________ which provide civil and potentially criminal penalties on contractors who engage in unethical sales behavior.

Accepted Answer

The False Statements Act and the False Claims Act are both laws that impose penalties on contractors who engage in unethical sales behavior with the Federal government. The False Statements Act prohibits making false statements in connection with federal contracts, while the False Claims Act imposes liability on those who submit false or fraudulent claims for payment to the government.

Question 5

The manager of the linen section of the department store, purchases towels from the Bona Fide Textile Company salesperson. If the salesperson gave him a payment of five percent of the total sale once the order was placed, it would be an example of a:

Accepted Answer

A kickback is a form of bribery where a salesperson gives a portion of the sale to the buyer as an incentive to make the purchase.

Question 6

Which of the following is an example of a kickback?

Accepted Answer

A kickback is a form of bribery in which one party offers a payment or other incentive to another party in exchange for favorable treatment or illegal activity. In this case, Chantal is offering a percentage of sales to the department store buyer in exchange for more orders, which is a form of kickback. The other choices involve bribery or unethical behavior but not necessarily kickbacks.

Question 7

When making a checklist for personal code of ethics to determine which behaviors he will engage in as a salesperson, Lew would likely ask himself all of the following EXCEPT:

Accepted Answer

All of the other options (A, B, C, and D) involve personal accountability and potential consequences for one's own behavior. Option E, on the other hand, asks whether society as a whole would benefit from engaging in a particular activity. This is less likely to be a consideration when determining one's personal code of ethics as a salesperson.

Question 8

In the opening profile HP representative Patricia Geitl argues, whether a firm conducts business ethically or not impacts:

Accepted Answer

The opening profile of the HP representative Patricia Geitl argues that a firm's ethical conduct impacts coworkers, customers, and partners. It indirectly affects the family members of these respective stakeholders as well. Therefore, the correct answer is E, all of the above.

Question 9

Research comparing the level of customer behavior and the level of gift given indicated:

Accepted Answer

The research indicates that customers who received more expensive gifts tend to make greater re-purchases, suggesting a positive relationship between the level of gift given and customer behavior. The other options are not supported by the research.

Question 10

When Madison was selling bingo equipment to the American Legion officer, she admitted that other companies sold much more technologically advanced equipment than her company. She concluded by saying that her company produced some of the most durable equipment on the market today. Why would Madison make this statement about competitors' products?

Accepted Answer

Madison's admission of other companies selling more technologically advanced equipment may have decreased her credibility as a salesperson. By stating that her company produces some of the most durable equipment on the market, she is attempting to bolster her credibility and show that her products have a strength that other companies may not have.

Question 11

Ryan really wants to make his monthly quota. He has only two sales calls scheduled for the last day of the month. Ethical selling principles suggest Ryan should attempt to __________ but not ___________ his customers.

Accepted Answer

Ethical selling principles suggest that Ryan should attempt to persuade his customers but not manipulate them. Persuasion involves presenting the benefits and features of the product or service in a truthful and informative manner to help the customer make an informed decision. Manipulation, on the other hand, involves using underhanded tactics to influence the customer's decision, which is unethical.

Question 12

U.S. salespeople are subject to U.S. laws, regardless of the country they are selling in.

Accepted Answer

U.S. laws apply to U.S. citizens, even when they are selling in foreign countries. Therefore, U.S. salespeople are subject to U.S. laws wherever they are conducting business.

Question 13

In a successful partnering relationship, purchasing agents:

Accepted Answer

Purchasing agents can ethically accept a free meal from the salesperson as long as it is a reasonable business expense and not an extravagant or frequent occurrence. However, they should not accept small or lavish gifts from their sales reps to avoid the appearance of impropriety or bias in the purchasing process. Refusing inappropriate gifts or offers can help establish and maintain a trustworthy partnering relationship.

Question 14

Which of the following statements accurately describes how ethics and legal principles impact selling?

Accepted Answer

Legal principles serve as a framework for market exchange relationships and govern various aspects of selling such as contracts, agreements, and transactions. Ethical principles also impact selling as they guide the behavior of parties involved and help build trust and long-term relationships. However, unethical or illegal behavior can undermine buyer-seller relationships and lead to negative consequences for both parties involved. The other statements are not accurate or incomplete.

Question 15

A textbook publishing company advertises to college faculty, offering to pay several thousand dollars (much more than they typically pay for book reviews) if the professor will review the company's textbook. Before completing the contract agreement, the publisher asks if the professor will adopt the text for their classes while reviewing it for the publisher. When the professor decides to reject the arrangement, she is primarily influenced by:

Accepted Answer

The professor's rejection of the arrangement is likely due to her personal code of ethics. Accepting payment for a book review and agreeing to adopt the text for her classes could be seen as a conflict of interest and undermine her credibility as an unbiased reviewer. This decision aligns with the ethical principle of professionalism and integrity in academia.

Question 16

Ivan sells customized computer software and hardware to small businesses. To make the sale to Newport Nursery, he has offered to give the owner a reduced price if she will buy today. He initially quoted her a price $100 more than his company's list price; his bargain price is the list price. Ivan has:

Accepted Answer

Ivan has used deception by initially quoting a price that is $100 more than his company's list price and then offering a "reduced price" that is actually the list price. This tactic is misleading and can undermine the customer's trust in the salesperson and the company.

Question 17

Larry, an inexperienced sales rep, has asked you to suggest ways to deal with potential ethical problems. What is your advice?

Accepted Answer

Developing and maintaining a personal code of ethics is the best choice because it ensures that ethical considerations are made in all business decisions, regardless of what others may do or what may be legal. This will help Larry to make ethical decisions even in situations where there may not be a clear answer.

Question 18

Which of the following would be the most ethically correct gift for a salesperson of fire equipment to give a purchasing agent?

Accepted Answer

The most ethically correct gift for a salesperson to give a purchasing agent would be a modest gift that does not give the impression of attempting to influence the purchasing decision. An imprinted pen would be a practical gift without a high perceived value and would promote the salesperson's company's brand. The other options have a higher perceived value and could potentially influence the purchasing decision or create an appearance of impropriety.

Question 19

A purchasing agent taking a bribe can harm their firm if:

Accepted Answer

Accepting a bribe can lead to purchasing poor-quality products, which can harm the firm's reputation, customer satisfaction, and financial performance.

Question 20

Which of the following factors is LEAST likely to influence the ethical behavior of salespeople?

Accepted Answer

Tax policies are unlikely to have a significant impact on the ethical behavior of salespeople. The other factors listed - company policies, social norms, personal goals, and the legal system - are all more directly related to promoting ethical behavior in sales.

Quiz 2: Ethical and Legal Issues in Selling