Complete Test Bank | Ethics First . . . then Customer – Ch.2

ABC's of Relationship Selling, 13e (Futrell)

Chapter 2 Ethics First . . . then Customer Relationships

1) The ethical behavior of an employee is influenced by managers, co-workers, and the organization.

2) The world views and belief systems of employees from the same country are typically identical.

3) An individual in the pre-conventional stage of morality asks, "What can I get away with?"

4) Individuals at the principled moral level base ethical decisions on laws and consequences.

5) Most sales people operate at the conventional level of moral development.

6) Sales representatives at the preconventional moral development level would most likely be unconcerned about lying to customers if getting caught was unlikely.

7) Morals refer to people's adherence to right or wrong behavior and right or wrong thinking.

8) At the preconventional moral development level, an individual conforms to the expectations of others.

9) Based on levels of moral development, a professional salesperson is in the minority among sales personnel.

10) The Core Principles of Professional Selling require people whose personal character is at level 2.

11) A fixed point of reference must be separate from you.

12) Multiple world religions adhere to the Core Principles.

13) Ethical behavior refers to conducting yourself in the proper manner and treating others fairly.

14) An ethical dilemma arises in a situation when each alternative choice has some undesirable elements due to potentially negative ethical consequences.

15) An ethical sales manager should set realistic and obtainable goals.

16) If management decides to increase the number of territories in a state, there is a possibility the earnings of the salespeople working that state will decrease.

17) Josh Damon sells industrial-sized heating and cooling systems. His territory includes Illinois, Iowa, and Missouri. Management at Damon's firm has decided to increase the number of territories in each sales region. Damon will most likely be excited about the opportunity this presents for him to earn more money.

18) If a salesperson has a drug or alcohol problem, a manager has the ethical responsibility to fire the individual based on right-to-work laws.

19) Today employers have the right to terminate salespeople for poor performance, excessive absenteeism, unsafe conduct, and poor organizational citizenship.

20) Cooperative acceptance means that employees cannot be discriminated against in employment practices and they have the right to be free of sexual and racial harassment.

21) Although several federal laws influence record keeping, they are primarily directed at private employers.

22) Although discrimination on the basis of a person's sex is illegal, there are no laws against sexual harassment.

23) To prevent sexual harassment, companies rely on top management support, training for all employees, and clear procedures for filing grievances.

24) The most often misused company assets are automobiles, expense accounts, samples, and damaged-merchandise credits.

25) It is easy to distinguish between a gift and a bribe.

26) A salesperson who exaggerates about product capabilities may be guilty of misrepresentation.

27) Generally, the more knowledgeable the customer, the greater the chances the court will interpret an incorrect statement by a salesperson as an actionable misrepresentation rather than as sales puffery.

28) A salesperson should thoroughly educate all customers before making a sale to avoid future legal problems.

29) Regardless of whether a buyer is knowledgeable about a product or not, he/she does not have a duty to look beyond the assertions of a salesperson and investigate the product individually.

30) Durham Building Supplies requires anyone who wants to use its product to purchase only from it; this contractual arrangement is called an exclusive dealership.

31) Reciprocity occurs when Mario trades a load of firewood for an oil change for his Toyota Tacoma.

32) A cooling-off law gives the buyer three weeks to cancel the contract, return any merchandise, and obtain a full refund.

33) A code of ethics formally states a company's values regarding social and ethical issues.

34) The single most important factor in improving the climate for ethical behavior in a sales force is the existence of a detailed code of ethics.

35) Control systems that monitor and penalize the ethical behavior of salespeople are a useful tool in creating an ethical work environment.

36) A person with integrity is honest without compromise or corruption.

37) Integrity, trust, and character are the building blocks of a professional salesperson's values.

38) Which term refers to the different beliefs people have about the world?

A) Multiculturalism

B) Social morals

C) World ethics

D) Worldview

E) Citizenship

39) Which of the following factors has the LEAST influence on an individual's core belief system?

A) physical appearance

B) religious background

C) family upbringing

D) life experiences

E) personality

40) Which of the following questions would most likely be asked by a person at the preconventional level of moral development?

A) What can I get away with?

B) What does my family want me to do?

C) What am I legally required to do?

D) What is the right thing to do?

E) What does society expect from me?

41) Which of the following questions would most likely be asked by a person at the principled level of moral development?

A) What does society expect from me?

B) What is the right thing to do?

C) What am I legally required to do?

D) What does my family want me to do?

E) What can I get away with?

42) According to the text, why do most employees in organizations succumb to questionable ethical standards or only follow formal policies?

A) Most people are in the conventional and principled levels of moral development.

B) Few organizations develop and enforce very stringent codes of ethics.

C) Most people are in the preconventional and conventional levels of moral development.

D) Few people in an organization are considered stakeholders or stockholders.

E) Most people exhibit behavior that is close to the principled level of moral development.

43) According to a survey of adult Americans, people are most likely to base ethical and moral decisions on the:

A) legal outcome.

B) current situation.

C) principle of justice.

D) historical culture.

E) religious standard.

44) A Barna Research study finds that all of the following are primary influences on the ethical and moral decision-making process of Americans EXCEPT:

A) religion

B) books

C) the Internet

D) television

E) family

45) According to the text, your conscience is usually not the best guide for making moral and ethical decisions because it:

A) is at the conventional level

B) remains too stationary

C) changes based on the situation

D) is too distant from the circumstances

E) relies on conflicting belief systems

46) All of the following may eliminate the need for additional laws governing right and wrong in business settings EXCEPT:

A) stringent codes of ethics.

B) moral organizational cultures.

C) ethical examples from top management.

D) standardization of fixed points of reference.

E) support for corporate social responsibility programs.

47) All of the following are characteristics of ethical behavior EXCEPT:

A) being honest with customers.

B) following company policies.

C) showing loyalty to co-workers.

D) treating customers and peers fairly.

E) maintaining personal sales goals.

48) All of the following are involved in the majority of sales people's ethical issues EXCEPT:

A) co-workers.

B) managers.

C) customers.

D) friends.

E) employers.

49) Which of the following is LEAST likely one of the ethical issues faced by most sales managers?

A) Employee rights

B) Sales territories

C) Sales pressure

D) Benefits flexibility

E) Personnel substance abuse

50) Which of the following terms refers to an extra-large customer that generates significantly more revenue for a salesperson than other customers?

A) Balanced account

B) Outsourced account

C) Retail account

D) House account

E) Key account

51) Sharon, a salesperson for a greeting card company, is responsible for sales in the northern part of California. Sharon's manager has decided to change Sharon's key account in the territory to a house account. Why would Sharon most likely dislike this decision?

A) Sharon will have to monitor the key account for less pay than she usually earns.

B) Sharon will be demoted from her position in the territory for losing the key account.

C) Sharon will have to share commissions from the key account with the home office.

D) Sharon will lose the commission for the key account.

E) Sharon will have to work from the firm's home office.

52) Which term refers to the rights desired by employees regarding their job security and treatment by employers?

A) Cultural acceptance

B) Human rights

C) Affirmative action

D) Employee rights

E) Workers' compensation

53) Suzanne, a sales representative at MedEx, a pharmaceutical firm, was being sexually harassed by her manager, Phil. After Suzanne refused to submit to Phil's advances, he threatened to fire her. Suzanne can most likely sue MedEx based on which type of sexual harassment?

A) Hostile environment

B) Cooperative acceptance

C) De facto termination

D) Quid pro quo

E) Employment-at-will

54) An act of sexual harassment violates a victim's civil rights if it is unwelcome and "sufficiently severe" and ________.

A) Creates abusive working environment

B) Sets unfair labor standards

C) Interferes with employees' privacy

D) Empowers only selected few employees

E) Creates role ambiguity for employees

55) How can an employer reduce its liability in sexual harassment complaints?

A) Requiring thorough background checks

B) Encouraging cross-cultural training exercises

C) Implementing effective internal grievance procedures

D) Monitoring the social environment of employees

E) Utilizing effective recruitment and selection practices

56) Most federal laws regarding personnel files are directed at:

A) large corporations.

B) private firms.

C) government employers.

D) small businesses.

E) publicly-traded companies.

57) Two major influences on the ethical behavior of sales personnel are:

A) the organization's employees and the organization itself.

B) the organization's production and finance departments.

C) internal and external organizational environments.

D) national and international policies.

E) the organization's customers and stockholders.

58) On the job, Gary acts purely in his own best interests. He follows the company's rules only to avoid being fired. At what level of moral development is Gary functioning?

A) Principled

B) Consensual

C) Conventional

D) Discretionary

E) Preconventional

59) In Turkey, a salesperson wants to sell a block of 75 symphony tickets to an Armenian senior citizen center to hand out to its members. If he can sell these remaining tickets, he will receive a $500 bonus. When the center director asks him if there will be adequate security at the event, the Turk assures her the arena has doubled its security force for the event even though no special security arrangements have been made in spite of recent threats made against Armenians. The Turkish salesperson is most likely functioning at the ________ stage of moral development.

A) postconventional

B) principled

C) conventional

D) discretionary

E) preconventional

60) Tina perceives herself to be a responsible person because she does not misuse company assets, she is always truthful, and she treats others fairly. She upholds moral and legal laws and conforms to the expectations of others. At which level of moral development is Tina operating?

A) Consensual

B) Principled

C) Conventional

D) Discretionary

E) Preconventional

61) A salesperson asks, "What am I legally required to do with this?" when deciding whether to return competitive intelligence that was gathered by stealing company data. At which level of moral development is this salesperson operating?

A) Economically

B) Principled

C) Conventional

D) Restricted

E) Preconventional

62) Courtney Lee works for a travel agency. The company has spent several hundred dollars promoting a trip to a country that is undergoing a great deal of political unrest. Lee has been told that if she wants to keep her job, she needs to get at least three couples to sign up for this trip. Instead, Lee handed in her letter of resignation because she refused to sell a potentially dangerous trip to her customers. Lee is functioning at the ________ level of moral development.

A) biblical

B) principled

C) conventional

D) discretionary

E) preconventional

63) "I don't care what the boss said. It's wrong and I'm not going to do it. If I get fired, then that's just the way it'll have to be." The salesperson who just made this statement to a co-worker is apparently working at the ________ level of moral development.

A) nondiscriminatory

B) principled

C) conventional

D) consensual

E) preconventional

64) Most salespeople operate at what level of moral development?

A) Consensual

B) Principled

C) Conventional

D) Discretionary

E) Responsive

65) The Core Principles of Professional Selling require people whose personal character is at level:

A) 0.

B) 1.

C) 2.

D) 3.

E) 4.

66) According to the text, a(n) ________ refers to something that provides the correct action to take in any situation and never gets tailored to fit a situation.

A) ethical continuum

B) situational compass

C) ethical talisman

D) fixed point of reference

E) situational barometer

67) According to the text, a ________ would tell Rob Loughton he should return the stolen competitive information to its owner without examining it even though the information would more than likely result in a large commission for Loughton.

A) fixed point of reference

B) frame of conventional reference

C) compass point

D) moral sextant

E) directional code of ethics

68) According to the text, businesses use the ________ to serve as a universal, practical, and helpful standard for businesspeople.

A) Hindu Mahabharata

B) sayings of Confucius

C) Core Principles of Professional Selling

D) Beatitudes

E) Torah

69) ________ are the codes of moral principles and values that govern the behaviors of a person or a group with respect to what is wrong.

A) Laws

B) Ethics

C) Principled heuristics

D) Sociocultural norms

E) Governing norms

70) Ethical behavior:

A) assumes that an economic level of social responsibility exists in the organization.

B) assumes that the individual is operating at an unrestricted moral level.

C) refers to following the rules and treating others fairly.

D) assumes that human interaction is reciprocal.

E) refers to adhering to a generic religious principle.

71) Which of the following statements about ethical dilemmas is true?

A) Ethical dilemmas occur because many ethical standards are not classified.

B) Friends and family are never the cause of an ethical dilemma.

C) Cultural differences are never the source of ethical dilemmas.

D) Ethical dilemmas occur when right and wrong are clearly identified.

E) Ethical dilemmas are rare when the available choices all have unethical elements.

72) Your brother Craig sells art collectibles. He knows that your boss collects early 20th century baseball memorabilia and he has asked that you introduce him to your boss and to endorse his background as an ethical antiques dealer. You know that in the past Craig has sold some items that were not what he claimed they were and you suspect that some of his baseball memorabilia might be forgeries. Your mother is pressuring you to help your brother make this sale. This is an example of a(n):

A) social impasse.

B) discretionary responsibility.

C) ethical dilemma.

D) policy-based moral development.

E) sales dilemma.

73) Which of the following questions is LEAST relevant to the level of pressure a manager places on a salesperson?

A) What are the sales group goals?

B) What motivates the salesperson?

C) What is the industry standard?

D) How big is the territory?

E) What goals are realistic?

74) Linda Moore is a commission salesperson whose territory for the last nine years has been the entire state of Virginia. Through hard work she has greatly increased her company's business in the region. Now her manager has decided to split the state into two territories. Moore can most likely expect to:

A) receive additional key accounts.

B) earn more sales revenue.

C) earn less sales revenue.

D) gain more customers.

E) be fired from her job.

75) All of the following statements about employee termination are true EXCEPT:

A) many early 20th century courts strictly applied the termination-at-will rule.

B) many 1980s courts ruled in favor of employees by limiting the termination-at-will rule.

C) employers have the right to terminate sales personnel for poor performance.

D) employers have the right to terminate sales personnel for excessive absenteeism.

E) employers have the right to terminate sales personnel for union participation.

76) Under current U.S. laws regarding termination-at-will, it is illegal to terminate an employee for:

A) excessive absenteeism.

B) poor organizational citizenship.

C) unsatisfactory performance.

D) unsafe conduct.

E) union activities.

77) Termination-at-will:

A) is a modern judicial term that came from court decisions in the 1980s.

B) refers to a firm's inability to terminate an employee without just cause.

C) was designed to protect the rights of the employees.

D) was designed to protect the rights of the employers.

E) supports the strategy of downsizing.

78) Which of the following statements about employee rights is true?

A) Employee rights are based on what the employer deems is fair and equitable.

B) The terminate-at-will rule first came about during a 1940 court case.

C) Cooperative acceptance is an employee right referring to fair treatment.

D) Privacy is only an employee right with private firms not public entities.

E) Reciprocity is an employee right guaranteed by federal laws.

79) ________ refers to the right of employees to be treated fairly and with respect regardless of race, sex, national origin, physical disability, age, or religion while on the job.

A) Discretionary approval

B) Hire-at-will

C) Discrimination

D) Cooperative acceptance

E) Terminate-at-will

80) Which of the following corporate actions would LEAST likely prevent racial and sexual harassment?

A) Getting the active support of top management in preventing workplace harassment

B) Establishing compensation policies that reward anti-harassment behavior

C) Establishing harassment grievance procedures

D) Providing anti-harassment training to employees

E) Eliminating cooperative acceptance

81) All of the following are employer benefits of respecting employee rights EXCEPT:

A) creating a positive work environment.

B) reducing employee turnover.

C) attracting good employees.

D) reducing legal fees and fines.

E) minimizing union control.

82) Which of the following would be an example of a salesperson who is moonlighting unethically?

A) A retail sales clerk who works Monday through Friday and is taking a weekend MBA program.

B) A building supply salesperson who sells vacation real estate on company time.

C) A travel agent who sells antiques on the Internet during the weekends.

D) A fire equipment salesperson who demonstrates her equipment to prospects by setting real fires.

E) A retail ad salesperson who tells his wife when store sales are scheduled before they are announced to the public.

83) Clark is a soft drink salesperson who is enrolled in a vocational technology program that meets at night. From time to time, he takes off most of the day before his night class meets in order to prepare assignments that are due that evening. From an ethical standpoint, it is correct to say that Clark is:

A) guilty of misrepresentation.

B) misusing company assets.

C) cheating.

D) moonlighting.

E) acting quite ethically.

84) Which of the following sales personnel activities is considered ethically acceptable behavior?

A) Splitting commissions with fellow employees to win a sales contest.

B) Taking the family to Disneyworld and writing it off on the expense account.

C) Attending a college course on company time.

D) Attending college in the evening but taking an afternoon off to prepare for class.

E) Giving a $10 dollar gift to a $10,000 customer.

85) Which of the following statements about bribery is most likely true?

A) Bribes always involve money.

B) Bribery accounts for more than half of all white-collar crimes in the U.S.

C) Commissioned salespeople cannot be bribed because of the commission system.

D) The difference between a business gift and a bribe is quite clear.

E) Bar bills, meals, and entertainment are always considered bribes.

86) While buying some land, Mike asked the seller's solicitor if there were any restrictive covenants on the land; the solicitor said he did not know of any. What the solicitor failed to mention was that he had not bothered to read the documents. This failure on the part of the solicitor to disclose the state of affairs to Mike amounts to:

A) misuse of relationship marketing.

B) sales puffery.

C) misrepresentation.

D) a warranty of fact.

E) a statement of fact.

87) A computer dealer induced a finance company to enter into a hire-purchase agreement by contributing false information about the amount of deposit paid by the customer unknowingly, who later defaulted and sold the computer to a third party. This is an example of:

A) misuse of relationship marketing.

B) sales puffery.

C) a warranty of fact.

D) misrepresentation.

E) a statement of fact.

88) The salesperson promised the radio station manager that the new $30,000 computer system would be compatible with the equipment already used by the station. When the new computer system proved not to be compatible even after an additional $10,000 worth of new software, the station manager sued the salesperson and his company for:

A) misrepresentation and breach of warranty.

B) misuse of relationship marketing.

C) violation of Title VII.

D) violation of the Robinson-Patman Act.

E) failure to adhere to the rules of full disclosure.

89) Which of the following pricing tactics is LEAST likely to be a source of an ethical dilemma?

A) Tie-in sales

B) Reciprocity

C) Price discrimination

D) Seasonal discounts

E) Exclusive dealership

90) When the salesperson says to the new prospective customer, "I believe my company sells the best mattresses and that you can't find any better," it is an example of:

A) sales puffery.

B) an illegal act.

C) a statement of fact.

D) price discrimination.

E) a breach of warranty.

91) Which of the following statements about misrepresentation is most likely true?

A) When salespeople loosely describe their product or service in glowing terms, those statements can be relied upon by the potential buyer.

B) Generally, the more knowledgeable the customer, the greater the chances the court will interpret an incorrect statement by a salesperson as an actionable misrepresentation.

C) When a salesperson makes claims of a "factual nature" regarding a service's inherent capabilities, the law does not treat these comments as statements of fact and warranties.

D) A salesperson's opinion about the quality of the product being sold is known as sales puffery and is legally actionable.

E) Even if the salesperson misrepresentation statement is made innocently, many courts will award damages to the customer.

92) Which of the following statements about sales puffery is true?

A) The difference between sales puffery and statements of fact is easy to distinguish.

B) Misrepresentation cases are judged on the use of standardized words and phrases.

C) Generally, the less knowledgeable the customer, the greater the chances the court will interpret a statement as actionable.

D) A salesperson's statements of puffery should be taken at face value and considered factual.

E) Puffery typically occurs when a salesperson deliberately makes erroneous statements.

93) Which of the following statements about misrepresentation is false?

A) When salespeople loosely describe their goods or services in glowing terms, those statements cannot be relied upon by the potential buyer.

B) Courts tend to favor salespersons in misrepresentation cases when the customer lacks product knowledge.

C) When a salesperson makes claims of a "factual nature" regarding a service's inherent capabilities, the law treats these comments as statements of fact and warranties.

D) A salesperson's opinion of the quality of the product being sold is known as sales puffery and is not legally actionable.

E) To "stay legal" a salesperson needs to understand the difference between general statements of praise and statements of fact.

94) All of the following statements, if made by a salesperson, could have legally actionable consequences if the statement were incorrect EXCEPT:

A) "this refrigerator will preserve foods in the warmest weather."

B) "this is a safe, dependable helicopter."

C) "feel free to prescribe this drug to your patients, doctor. It's not addictive."

D) "this mace pen is capable of instantaneous incapacitation for a period of 15 to 20 minutes."

E) "this offer is valid only until the end of this month."

95) A salesperson can minimize exposure to costly misrepresentation and breach of warranty lawsuits if he/she:

A) never negotiates.

B) avoids win-win sales situations.

C) never sells the customer more than he/she wants.

D) thoroughly educates customers before making a sale.

E) offers opinions when the customer asks what result a product will accomplish.

96) Which of the following statements, if false, would most likely have legal consequences?

A) "You're going to love this new mattress!"

B) "We are the metropolitan area's low price leader."

C) "We offer a 100 percent order-fill rate; you'll never experience a back-order."

D) "Our employees have extensive training in how to pamper our customers."

E) "Your own mother can't care for you as well as our staff!"

97) Edna Wallace is a little worried concerning all the talk she has heard recently about lawsuits due to misrepresentation and breach of warranty. To help her "stay legal," her sales manager should advise her to do all of the following EXCEPT:

A) be accurate when describing her product's capabilities.

B) thoroughly educate all customers before making a sale.

C) avoid making exaggerated claims about product safety.

D) know the technical specifications of the products she sells.

E) make claims or promises of a factual nature.

98) Which term refers to giving some customers promotional allowances and support while not making other customers aware of such opportunities?

A) customer discrimination

B) selective discounting

C) price discrimination

D) exclusive dealing

E) functional discounting

99) Sheridan decides to buy his first car. The car salesperson promises to arrange a car loan for him if he also purchases the auto insurance. This is a classic example of:

A) misrepresentation.

B) reciprocal selling.

C) a Green River dealership.

D) discriminatory selling.

E) a tie-in sale.

100) Which of the following marketing tactics would most likely trigger an ethical dilemma?

A) Prospecting

B) Reciprocity

C) Cooperative acceptance

D) Seasonal discounts

E) Loyalty programs

101) If a video game manufacturer required its resellers to stock a line of games based on the financially-disappointing movie War of the Worlds in order to carry games based on the very popular TV show Survivor, it would be an example of:

A) misrepresentation.

B) a tie-in sale.

C) reciprocal selling.

D) a Green River dealership.

E) discriminatory selling.

102) "I'll let you sell the Harley-Davidson designer clothes only if you'll also sell a new line of clothes designed by Paula Abdul, too." This statement made by a salesperson to a specialty retailer is potentially an example of ________ and may be in violation of the Clayton Act prohibition if the action substantially lessens competition.

A) misrepresentation

B) tie-in sales

C) reciprocity

D) price discrimination

E) kickbacks

103) The Clayton Act prohibits tie-in sales and exclusive agreements if they ________.

A) promote sexual harassment.

B) allow some customers to receive price reductions while others do not.

C) encourage price discrimination.

D) substantially lessen competition.

E) removes the employer's ability to terminate-at-will without justification.

104) If a manufacturer requires that its wholesalers and retailers buy merchandise only from it, the contract is a(n) ________ contract.

A) exclusive dealership

B) reciprocity

C) product discrimination

D) deceptive slotting

E) price discrimination

105) "I'll tell you what," said Tim. "I'll buy all my building supplies from your company if you'll make sure your people rent generators from my firm." Tim is proposing:

A) receivership.

B) reciprocity.

C) a tie-in sale.

D) price bartering.

E) discriminatory selling.

106) NewShine Floor Co. manufactures floor mats. It has agreed to buy all of its light bulbs and fixtures from Luminous Lighting if Luminous will agree to buy and use NewShine safety mats in its factory. This is an example of:

A) reciprocity.

B) tie-in sales.

C) price discrimination.

D) a Green River dealership.

E) an exclusive kickback.

107) What is reciprocity?

A) Obeying the Core Principles of Professional Selling

B) Buying a product from someone if that person agrees to buy from you

C) Sharing competitive intelligence

D) Creating win-win buying situations

E) A mutually-beneficial buying situation that does not lessen competition

108) Cooling-off laws apply only to:

A) sales made in out-of-town offices, regardless of value.

B) sales for which verbal guarantees are given.

C) sales over $25, made door-to-door.

D) sales over $50, made in hometown offices.

E) sales made in hometown offices over the value of $100.

109) A cooling-off law:

A) gives the buyer three weeks to return merchandise.

B) covers items sold through wholesale outlets.

C) deals with purchases between $25.00 and $50.00.

D) is in effect in all states.

E) covers some door-to-door transactions.

110) A Green River ordinance states that:

A) door-to-door sales are illegal unless being made for nonprofit organizations like schools and Girl Scouts.

B) door-to-door salespersons who are not residents of the city in which they do business must purchase sales licenses.

C) all persons selling directly to consumers must pay a bond.

D) door-to-door sales are not allowed within city limits.

E) all salespeople in a city must obtain a sales license.

111) What is the primary purpose of Green River ordinances and cooling-off laws?

A) Hold salespeople legally responsible for damaged products

B) Allow small businesses to compete fairly against large firms

C) Require persons selling directly to consumers to pay a license fee

D) Enforce federal laws regarding competition and monopolies

E) Protect consumers from high-pressure, unethical sales tactics

112) According to surveys, which of the following statements about how managers view sales ethics is true?

A) Sales goals force managers to act even more ethically than they ordinarily would

B) Some sales managers lower their ethical standards to meet job goals

C) Few managers feel that they face ethical problems in the workplace

D) Most managers are unaware of any unethical behavior in their industry

E) Most managers feel that they and their employees are operating as ethically as possible

113) A(n) ________ is a formal statement of a company's values concerning ethics and social issues.

A) social covenant

B) tying agreement

C) law of fairness

D) code of ethics

E) ethics ombudsperson

114) A code of ethics that ________ is classified as a principle-based statement.

A) communicates selection methods

B) affirms equal opportunities

C) defines conflicts of interest

D) outlines ethical tolerances

E) defines fundamental values

115) A(n) ________ code of ethics generally outlines the procedures to be used in specific ethical situations.

A) operational

B) tactical

C) policy-based

D) credo-based

E) principle-based

116) Fostering a climate that encourages ethical behavior by the sales force requires management to do all of the following EXCEPT:

A) establish an ethics committee.

B) ensure that top management behaves ethically.

C) discipline wrongdoers.

D) formally discourage "whistle-blowing."

E) establish control systems.

117) According to the text, what is the single most important factor in improving the climate for ethical behavior in a sales force?

A) The actions taken by top management

B) The establishment of whistle-blowing procedures

C) Effective goal-setting programs

D) Quick disciplinary action against offenders

E) The development of ethics training seminars

118) An ethics committee is typically:

A) composed of employees from all functional areas and managerial levels.

B) a nonessential organization in multinational corporations.

C) assigned the task of writing employee handbooks.

D) responsible for disciplining wrongdoers.

E) charged with eliminating ethical dilemmas.

119) An ethics ombudsperson:

A) interacts with the organizational stakeholders on a daily basis.

B) writes the company's code of ethics.

C) is also called a whistle-blower.

D) handles all negative publicity for an organization.

E) is an official who assumes the role of corporate conscience.

120) All employees who observe or become aware of criminal practices or unethical behavior should be encouraged to report the incident to their superiors, to a higher level of management, or to an appropriate unit of the organization. This reporting process is called:

A) reciprocating.

B) tattling.

C) intelligence gathering.

D) whistle-blowing.

E) fact-finding.

121) Jason Montgomery, a hospital administrator in Montana, lodged a complaint against the hospital owners when he was asked to keep two sets of accounting records so that the hospital could reduce its tax liability. Montgomery was engaged in:

A) reciprocity.

B) preconventional moral development.

C) whistle-blowing.

D) consensual reporting.

E) ethical declarations of wrongdoing.

122) Harold Williams was the Managing Director of Web Power, which was being merged with another company. He raised concerns that false invoices were being used to support the merger proposal. He was dismissed from the company unfairly for indulging in:

A) breach of trust.

B) intelligence gathering.

C) tattling.

D) whistle-blowing.

E) fact-finding.

123) Which term refers to the adherence to a strict ethical and moral code?

A) humility

B) courage

C) sincerity

D) honesty

E) integrity

124) According to the text, modern corporations seek salespeople with all of the following characteristics EXCEPT:

A) character

B) integrity

C) synergy

D) values

E) trust

125) Which of the following is the underlying focus of the Core Principles of Professional Selling?

A) Respecting the dignity of individuals

B) Showing fairness with competitors

C) Being conscientious at all times

D) Showing trustworthiness

E) Recognizing good deeds

126) Which of the following is legal according to the Robinson-Patman Act of 1936?

A) Whistle-blowing

B) Exclusive dealerships

C) Reciprocity

D) Quantity discounts

E) Tie-in sales

127) What factors shape a person's belief system?

128) What are some common ethical situations that occur between salespeople and customers? What control systems can an employer implement to create an ethical sales climate?

129) What steps can a company take to ensure that it maintains an ethical environment?

130) List the three levels of moral development. At what level do most salespeople operate?

131) From the perspective of the world's religions, define the professionalism. What are the Core Principles of Professional Selling?

132) If the concept of ethics is so easy to understand, why do ethical dilemmas occur so frequently?

133) Imagine you sell automobiles. Develop a statement that is clearly an example of puffery. Develop a statement that could be interpreted as misrepresentation. What conditions would make this assignment easier?

134) What is price discrimination? What law protects customers from price discrimination?

135) What is an ethics ombudsperson?

136) What are the two major influences on the ethical behavior of sales personnel?

137) At what level of moral development do most people operate?

138) What complaint could be lodged against a salesperson who claimed that if you bought the mattress she was selling, you would never have any more backaches?

139) What law protects customers from price discrimination?

140) Under what condition(s) is it illegal for a manufacturer to offer a reseller an exclusive dealership?

141) What are the two types of codes of ethics?

142) What is the single most important factor in improving the climate for ethical behavior in a sales force?

143) California-based Innovative Installers, Inc. provides a variety of corporate services related to office space. The firm sells modular office furniture, offers space planning consultations, and provides office relocation services. The company was founded in 1992 and depended on the growth of dot.com companies for its early success. Innovative Installers has experienced cash flow problems during the recent economic recession, and top managers are eager for salespeople to obtain new accounts. Mierzett Evans and Glenda Heldris are two of Innovative Installers' salespeople.

Evan's income is based on commissions at Innovative Installers, and his income has declined in recent months. As a result, Evans has taken an additional job renting apartments. Although Evans mostly works on weekends, he sometimes shows apartments to clients during the week when he works for Innovative Installers. Which of the following best describes Evans's actions?

A) Misusing company assets

B) Accepting bribes

C) Misrepresentation

D) Sales puffery

E) Moonlighting

144) California-based Innovative Installers, Inc. provides a variety of corporate services related to office space. The firm sells modular office furniture, offers space planning consultations, and provides office relocation services. The company was founded in 1992 and depended on the growth of dot.com companies for its early success. Innovative Installers has experienced cash flow problems during the recent economic recession, and top managers are eager for salespeople to obtain new accounts. Mierzett Evans and Glenda Heldris are two of Innovative Installers' salespeople.

Evans tells a potential client that Innovative Installers offers the most modern and stylish office furniture available on the market. Evans is most likely guilty of:

A) reciprocity.

B) profiteering.

C) sales puffery.

D) breach of warranty.

E) misrepresentation.

145) California-based Innovative Installers, Inc. provides a variety of corporate services related to office space. The firm sells modular office furniture, offers space planning consultations, and provides office relocation services. The company was founded in 1992 and depended on the growth of dot.com companies for its early success. Innovative Installers has experienced cash flow problems during the recent economic recession, and top managers are eager for salespeople to obtain new accounts. Mierzett Evans and Glenda Heldris are two of Innovative Installers' salespeople.

Glenda is meeting with an Office Pro store manager. Office Pro is interested in purchasing a line of Innovative Installers' desks to sell in the Office Pro retail stores. Glenda tells the Office Pro manager that she has a limited supply of the desks; however, she can obtain more desks if Office Pro also purchases desk chairs. Glenda is most likely guilty of:

A) establishing unfair sales restrictions.

B) practicing price discrimination.

C) setting an exclusive dealership.

D) encouraging a tie-in sale.

E) requiring reciprocity.

146) California-based Innovative Installers, Inc. provides a variety of corporate services related to office space. The firm sells modular office furniture, offers space planning consultations, and provides office relocation services. The company was founded in 1992 and depended on the growth of dot.com companies for its early success. Innovative Installers has experienced cash flow problems during the recent economic recession, and top managers are eager for salespeople to obtain new accounts. Mierzett Evans and Glenda Heldris are two of Innovative Installers' salespeople.

Managerial concern about the solvency of Innovative Installers has led to excessive pressure on salespeople to sell unneeded services to customers. The issue of whether the company should be more concerned about maintaining its existence or providing the best possible service to its customers produces a(n):

A) social impasse.

B) discretionary responsibility.

C) ethical dilemma.

D) policy-based moral development.

E) sales dilemma.

147) California-based Innovative Installers, Inc. provides a variety of corporate services related to office space. The firm sells modular office furniture, offers space planning consultations, and provides office relocation services. The company was founded in 1992 and depended on the growth of dot.com companies for its early success. Innovative Installers has experienced cash flow problems during the recent economic recession, and top managers are eager for salespeople to obtain new accounts. Mierzett Evans and Glenda Heldris are two of Innovative Installers' salespeople.

After Glenda promises a potential customer that a new office arrangement will increase productivity by 50%, the customer signs a contract with Innovative Installers for the furniture and service. However, Glenda made this assertion without any valid data as support. Glenda could possibly be guilty of:

A) misrepresentation.

B) bribery.

C) reciprocity.

D) exclusive dealership.

E) sales restrictions.