Question 1

Dmitri is trying to establish a long-term relationship with the purchasing agent at Longwood Publishing, Inc. Over lunch, Dmitri told the agent that he accidentally saw a confidential memo on the CEO's desk that discussed the hostile takeover of Longwood's major competitor. What do you think of Dmitri's business behavior?

Accepted Answer

Dmitri's behavior is unethical as he breached the confidentiality of the CEO's memo, which could harm Longwood's reputation and relationship with its competitors. The purchasing agent may also feel uncomfortable with the disclosure of this information and may view Dmitri as untrustworthy. Therefore, his actions may have jeopardized his chances of building a long-term relationship with the agent.

Question 2

Claiborne used to work for a law office. He was forced to quit because one of the partners kept rubbing against him, telling him dirty jokes, and making it an environment in which he could not work. Claiborne experienced:

Accepted Answer

Claiborne experienced sexual harassment, as his interactions with the partner created a hostile work environment and crossed over into inappropriate behavior.

Question 3

The _____ is the most active regulatory agency in developing administrative laws affecting salespeople.

Accepted Answer

The Federal Trade Commission (FTC) is the most active regulatory agency in developing administrative laws affecting salespeople, particularly in regard to truth in advertising, consumer protection, and antitrust regulation. The other options listed focus on specific industries or areas of regulation that are not as directly related to salespeople.

Question 4

Salespeople engage in _____ when they ignore a purchasing agent's (PA) policy against contacting other employees without the PA's permission, go around the PA's back, and contact other people involved in the purchasing decision directly.

Accepted Answer

Backdoor selling is when a salesperson contacts people involved in the purchasing decision without going through the designated purchasing agent or department. This is often against company policy and can damage relationships between the salesperson and the organization.

Question 5

Statutory laws:

Accepted Answer

Statutory laws are laws that are passed by either state legislatures or by Congress, making choice D the correct answer. Regulations developed by the Federal Trade Commission and the Better Business Bureau, as well as laws established by local, state, and federal regulatory agencies, are not considered statutory laws. Court decisions that establish legal precedent are sometimes known as common law, which is distinct from statutory law.

Question 6

_____ laws are established by local, state or federal regulatory agencies.

Accepted Answer

Administrative laws are established by agencies authorized by local, state or federal government to regulate specific industries or areas of public interest. These agencies are responsible for enforcing and implementing these laws.

Question 7

Sexual harassment involves:

Accepted Answer

Sexual harassment can involve any or all of the behaviors listed, as well as other types of unwanted or inappropriate sexual behavior. It can include physical contact, verbal comments or jokes of a sexual nature, requests for sexual favors, and unwelcome advances.

Question 8

What is the source of all common law?

Accepted Answer

The source of all common law is court decisions, which are based on precedent set in previous cases. Common law is developed and refined over time as courts make rulings and judgments on various legal issues. The other options listed (Uniform Commercial Code, federal regulations, Better Business Bureau regulations, and laws passed by Congress) may be sources of other types of law, but not common law.

Question 9

When leaving the employment of one company and moving to another company, what is the ethical approach to leaving?

Accepted Answer

The ethical approach to leaving an employment should involve giving ample notice to the old company, avoiding speaking ill of individuals, helping your replacement transition smoothly, and refraining from sharing confidential information with your new employer. All the options listed in the question are important ethical considerations when leaving a job, and doing all of these is the best choice.

Question 10

The accounting of sales and costs of many new technology products has resulted in many ethical and legal controversies. Often, the use life of the new product is difficult to assess and therefore how to allocate sales and costs are debatable. A court decision provides guidelines to address these issues. The court decision is an example of:

Accepted Answer

The court decision is an example of common law, which is based on judicial decisions and precedent rather than legislation or administrative regulations. UCC codification and statutory law are both legislative forms of law, while administrative law involves regulations set by administrative agencies. None of these are directly applicable to a court decision on sales and costs for new technology products.

Question 11

The UCC is the legal guide to commercial practices in the United States. The letters UCC are an acronym for:

Accepted Answer

The UCC stands for Uniform Commercial Code, which is a standardized set of laws and regulations that govern commercial transactions in the United States. It was created to provide uniformity and consistency across all states in regards to things like sales and contracts. None of the other options accurately reflect what the UCC is or stands for.

Question 12

Which of the following acts may be considered sexual harassment?

Accepted Answer

All the actions described can create a hostile work environment or be unwelcome conduct of a sexual nature, which are key elements of sexual harassment.

Question 13

Did Kim make a mistake when she told a potential customer that her competitor's products were flimsy and poorly made?

Accepted Answer

Criticizing a competitor's products can be seen as an attack on the competitor and the potential customer's judgment, which can be unprofessional and drive customers away. It's important to focus on the benefits of your own products rather than disparaging your competitors.

Question 14

How can a salesperson protect him or herself from being sexually harassed by a customer?

Accepted Answer

By not becoming too dependent on one single customer, a salesperson can maintain professional boundaries and reduce the risk of harassment.

Question 15

Ed sells holiday decorations used by mall owners. When Ed promises his company will deliver Christmas elves by Thanksgiving, even if he doesn't put the promise in writing, Ed is acting as a(n):

Accepted Answer

Ed is acting as an agent because he is representing the company and making promises on their behalf.

Question 16

Common law:

Accepted Answer

Common law refers to the body of law that is derived from court decisions, rather than statutes or regulations passed by legislative bodies or regulatory agencies. Therefore, B is the correct answer as it states that common law grows out of court decisions. The other answer choices are incorrect as they refer to regulations and legislation passed by regulatory agencies and legislative bodies.

Question 17

Which of the following would be LEAST likely to be an ethical problem area in the salesperson-company relationship?

Accepted Answer

Accurately making sales quotes to customers is not an ethical problem area as it involves providing truthful information to customers. The other options have potential ethical implications such as conflict of interest in switching jobs, dishonesty in reporting work-time information or expense accounts, and possibly misrepresenting sales activities.

Question 18

Assuming company policies do not prohibit gift giving, which of the following gifts would be most appropriate for a salesperson selling earthmoving equipment to give a potential retail customer?

Accepted Answer

A coffee mug with the company name, logo, and telephone number imprinted on it would be the most appropriate gift as it is a low-cost, useful item that helps to promote the brand and keep the company top of mind for the potential customer. The other options either have little relevance to the customer or are too expensive, which could be seen as an attempt to buy the customer's business.

Question 19

Marvin is an inexperienced sales rep for a manufacturer of kitchen appliances. He is afraid he is misusing his expense account and has asked you to tell him how to use an expense account ethically. What do you tell him?

Accepted Answer

Using the expense account as if you were spending your own money is the most ethical approach. This means being frugal and only submitting expenses that are necessary and reasonable for conducting business. It also means keeping accurate records of all expenses and providing receipts as proof. It is important to remember that an expense account is not a personal slush fund and misusing it can damage your reputation and hurt the company.

Question 20

Which of the following is an example of backdoor selling?

Accepted Answer

Backdoor selling involves bypassing the usual purchasing process or personnel, such as when Billy contacted the president directly after the purchasing agent wouldn't see him.

Quiz 2: Ethical and Legal Issues in Selling