Question 1

When a purchasing agent bought an order of sheet aluminum (used to make cans)from a new supplier,the salesperson specified the details of the product's quality.However,when the purchasing agent received the order,he noticed that the aluminum sheets were of inferior quality.The salesperson had violated the _____ that the salesperson had made.

Accepted Answer

The salesperson specified the details of the product's quality, which indicates that there was an expressed warranty made by the salesperson. However, the product did not meet the specified quality, which means that the expressed warranty was violated. Choices A, B, and C are not applicable in this scenario.

Question 2

How does a sale differ from a contract to sell?

Accepted Answer

A contract to sell is an agreement where the transfer of ownership is to occur at a future date, while a sale is the actual transfer of ownership when the title passes from the seller to the buyer.

Question 3

When James sold the protective window bars for the nursing home complex,he specified in the contract that the bars would be shipped FOB factory.According to the UCC,this means that:

Accepted Answer

FOB (free on board) factory means the buyer assumes responsibility, cost, and risk for shipping of the goods from the factory to the destination. The seller's responsibility ends when the bars are loaded onto the truck at the factory.

Question 4

According to UCC,a sale is made:

Accepted Answer

According to UCC (Uniform Commercial Code), a sale is made when the contract is completed and the title exchanges hands. This means that ownership of the goods passes from the seller to the buyer, and the buyer becomes responsible for the goods. Therefore, option D is the correct answer. Option A is incorrect because an offer is not the same as a sale. Option B is incorrect because while the client's acceptance is a necessary condition for a sale, it is not sufficient to complete the transaction. Option C is incorrect because ownership has not yet been transferred. Option E is incorrect because the signing of the contract is only a step towards completing the sale, but it is not the sale itself.

Question 5

Marvin is an inexperienced sales rep for a manufacturer of kitchen appliances.He requests you to advise him on handling an expense account ethically.What should you tell him?

Accepted Answer

Using the expense account as if it's their own money means making responsible choices and not going overboard. This is the most ethical way of using the expense account. Choices A, B, and E are all unethical and encourage dishonesty and abusing the expense account. Choice C is unreliable and may lead to inaccurate records.

Question 6

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, as its primary role is to protect consumers and promote fair competition. The FTC closely monitors advertising and sales practices to ensure they are truthful, not deceptive or unfair, and comply with all legal requirements. This includes enforcing laws such as the Federal Trade Commission Act, the Truth in Advertising Act, and the CAN-SPAM Act, among others.

Question 7

Which of the following is true of an agent?

Accepted Answer

An agent is a person who acts on behalf of another party, such as a company. They have the authority to make decisions and take actions that bind the company, and this authorization can be established either in writing or through implied consent. Therefore, choice A is incorrect. The statements and actions of an agent can legally bind their company, so choice B is also incorrect. Lastly, the actions of an agent can have financial impact on the company, making choice D incorrect as well.

Question 8

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

Accepted Answer

Administrative laws are established by local, state, or federal regulatory agencies, such as the Environmental Protection Agency (EPA) or the Federal Trade Commission (FTC). These laws govern specific industries or areas of activity and are enforced by these agencies.

Question 9

The accounting of sales and costs of many new technology products has resulted in many ethical and legal controversies.Often,the shelf life of a new product is difficult to assess and therefore how to allocate sales and costs is 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 refers to legal principles and rules derived from court decisions and precedent rather than from statutes or constitutions. The UCC codification and statutory law refer to laws enacted by legislative bodies, while administrative law deals with regulations made by administrative agencies. While the court decision may have some overlap with these legal categories, it is primarily an example of common law.

Question 10

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.This is an example of

Accepted Answer

The situation described is an example of sexual harassment, which is a form of discrimination prohibited by law. The behavior of the partner in question created a sexually hostile working environment for Claiborne, leading to his resignation.

Question 11

Which of the following could be a problem area in the salesperson-company relationship?

Accepted Answer

All of these options could potentially cause problems in the salesperson-company relationship. Switching jobs could lead to the loss of a skilled salesperson and disrupt the company's sales strategy. Reporting work time and sales activities accurately is crucial for both the salesperson and the company to monitor performance and set goals. Expense accounts require trust between the salesperson and the company to ensure that expenses are legitimate and within budget.

Question 12

If the terms of the contract specify FOB (free on board)destination,then:

Accepted Answer

In an FOB (Free On Board) destination contract, the seller retains the risk and responsibility for loss or damage until the goods are delivered to the buyer's specified location.

Question 13

Kevin purchased a lawn mower.The blades were so dull that the mower could not cut the grass in his backyard.Due to the existence of _____ warranties,Kevin can return the mower and expect to receive a replacement that will cut grass.

Accepted Answer

The sentence suggests that Kevin did not explicitly check for warranties when he purchased the lawn mower, but there exists an implied warranty that the mower should be able to perform its basic function of cutting grass. Therefore, option D, implied, best fits the sentence.

Question 14

Statutory laws:

Accepted Answer

Statutory laws are laws that are based on legislation passed either by state legislatures or by Congress. They are different from common law, which grows out of court decisions. Regulations developed by agencies like the Federal Trade Commission and the Better Business Bureau are administrative laws, established by regulatory agencies.

Question 15

If the terms of the contract specify FOB (free on board)factory,then:

Accepted Answer

FOB factory means that the buyer assumes responsibility and risk for any loss during transportation. The seller's responsibility ends when the goods are loaded onto the carrier at the factory. Therefore, the buyer is responsible for any damages or loss that may occur during transport.

Question 16

According to UCC,orders become contracts to sell when:

Accepted Answer

The answer of According to UCC,orders become contracts to sell...

Question 17

Which of the following acts may be considered sexual harassment?

Accepted Answer

All of the acts listed may be considered sexual harassment. Making lewd comments, showing obscene materials, telling pornographic jokes, and commenting on someone's sexual reputation are examples of behaviors that create a hostile work environment and can be considered sexual harassment.

Question 18

The Uniform Commercial Code (UCC):

Accepted Answer

The UCC defines numerous terms related to sales, including the rights and obligations of buyers and sellers.

Question 19

A(n)_____ is not actually stated but is still an obligation defined by law.

Accepted Answer

An implied warranty is an obligation that is not actually stated but is still defined by law. It is not explicitly written or verbalized but is understood to be a part of a product's sale or purchase.

Question 20

A(n)_____ is an oral or written statement by the seller about how a product will perform.

Accepted Answer

An expressed warranty is a statement by the seller about the performance of the product, either orally or in writing. It is a guarantee provided by the seller that the product will perform as per the specifications mentioned.

Quiz 2: Ethical and Legal Issues in Selling