Question 1

_____ occurs when salespeople make unfair or untrue statements to customers about a competitor,its products,or its salespeople.

Accepted Answer

A)  Collusion 
B)  Business defamation 
C)  Conspiracy 
D)  Reciprocity 
E)  Tying agreement 
A)  Collusion 
B)  Business defamation 
C)  Conspiracy 
D)  Reciprocity 
E)  Tying agreement

Question 2

One method that companies can use to protect themselves when an employee violates the law,is to include the Foreign Corrupt Practices Act (FCPA)in the company's code of ethics.

Accepted Answer

A) True 
 B)False

Question 3

Statements such as "The performance of this product is top-notch" can be classified as expressed warranties.

Accepted Answer

A) True 
 B)False

Question 4

When a perfume manufacturer establishes a minimum price below which a retailer may not sell its perfume,the manufacturer is engaged in:

Accepted Answer

A)  a tying contract. 
B)  resale price maintenance. 
C)  price discrimination. 
D)  collusion. 
E)  reciprocity. 
A)  a tying contract. 
B)  resale price maintenance. 
C)  price discrimination. 
D)  collusion. 
E)  reciprocity.

Question 5

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

Accepted Answer

A)  backdoor selling 
B)  expanded prospecting 
C)  sales prospecting 
D)  hustling 
E)  bypass selling 
A)  backdoor selling 
B)  expanded prospecting 
C)  sales prospecting 
D)  hustling 
E)  bypass selling

Question 6

Which of the following is an example of reciprocity?

Accepted Answer

A)  Jack reveals a competitor's secret formula for a plastic hardening compound. 
B)  Larry's Uniform Company agrees to buy Harry's landscaping services if Harry will rent its uniforms from Larry. 
C)  A purchasing agent bribes the receptionist to get him an appointment with the company's CEO. 
D)  In order to carry a line of profitable wind chimes,Scott's Hardware Store also has to carry a less profitable line of hose nozzles made by the same company. 
E)  A group of kaolin (used in the whitening of paper)manufacturers agree to a price freeze. 
A)  Jack reveals a competitor's secret formula for a plastic hardening compound. 
B)  Larry's Uniform Company agrees to buy Harry's landscaping services if Harry will rent its uniforms from Larry. 
C)  A purchasing agent bribes the receptionist to get him an appointment with the company's CEO. 
D)  In order to carry a line of profitable wind chimes,Scott's Hardware Store also has to carry a less profitable line of hose nozzles made by the same company. 
E)  A group of kaolin (used in the whitening of paper)manufacturers agree to a price freeze.

Question 7

The Foreign Corrupt Practices Act (FCPA)legalizes:

Accepted Answer

A)  subordination payments when they are made by government officials. 
B)  spiffs when they are paid with the customer's approval. 
C)  small lubrication payments when they are customary in a culture. 
D)  backdoor selling when goods are selling below their resale price. 
E)  kickbacks when they are in the form of expensive gifts. 
A)  subordination payments when they are made by government officials. 
B)  spiffs when they are paid with the customer's approval. 
C)  small lubrication payments when they are customary in a culture. 
D)  backdoor selling when goods are selling below their resale price. 
E)  kickbacks when they are in the form of expensive gifts.

Question 8

What is deception?

Accepted Answer

Deliberately presenting inaccurate infor

Question 9

Javier,a new insurance agent,pays one of his customers to buy his firm's insurance product.Javier explains to the customer that he would pay the customer a few thousand dollars if the customer decides to invest in the policy recommended by Javier.This is an example of:

Accepted Answer

A)  sales puffery. 
B)  a conspiracy. 
C)  kickbacks. 
D)  bribery. 
E)  collusion. 
A)  sales puffery. 
B)  a conspiracy. 
C)  kickbacks. 
D)  bribery. 
E)  collusion.

Question 10

It is ethical to take over potential customers' accounts from other salespeople.

Accepted Answer

A) True 
 B)False

Question 11

The _____ Act requires written notification to customers regarding privacy policies.

Accepted Answer

A)  Robinson-Patman 
B)  Gramm-Leach-Bliley 
C)  Sarbanes-Oxley 
D)  FOB notification 
E)  Federal Do-Not-Call Registry 
A)  Robinson-Patman 
B)  Gramm-Leach-Bliley 
C)  Sarbanes-Oxley 
D)  FOB notification 
E)  Federal Do-Not-Call Registry

Question 12

A group of uniform rental companies agreed that they would not charge less than $5 per week per uniform even before the newly opened chicken plant contacted them for bids.This is an example of:

Accepted Answer

A)  business defamation. 
B)  a contrivance. 
C)  price discrimination. 
D)  collusion. 
E)  a conspiracy. 
A)  business defamation. 
B)  a contrivance. 
C)  price discrimination. 
D)  collusion. 
E)  a conspiracy.

Question 13

When a salesperson tells a customer that a product will last a lifetime,such a claim is most likely an example of sales puffery.

Accepted Answer

A) True 
 B)False

Question 14

The Robinson-Patman Act forbids product differentiation.

Accepted Answer

A) True 
 B)False

Question 15

What is the difference between bribery and kickbacks?

Accepted Answer

Bribes and kickbacks may be illegal.Brib

Question 16

It is easy to develop a reimbursement policy that prevents salespeople from cheating and yet allows them the flexibility to cover their territory and entertain customers.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements is true about a noncompete clause?

Accepted Answer

A)  It states that competing firms cannot engage in price discrimination. 
B)  It states that competing firms should not engage in collusion. 
C)  It has the same legality in all U.S.states. 
D)  It limits an employee from working for a competitor. 
E)  It states that competing firms should not buy from a single manufacturer. 
A)  It states that competing firms cannot engage in price discrimination. 
B)  It states that competing firms should not engage in collusion. 
C)  It has the same legality in all U.S.states. 
D)  It limits an employee from working for a competitor. 
E)  It states that competing firms should not buy from a single manufacturer.

Question 18

The Uniform Commercial Code (UCC)is the only legal guide to commercial practice in the United Nations.

Accepted Answer

A) True 
 B)False

Question 19

Statutory laws:

Accepted Answer

A)  include regulations developed by the Federal Trade Commission. 
B)  grow out of court decisions. 
C)  include regulations developed by the Better Business Bureau. 
D)  are based on legislation passed either by state legislatures or by Congress. 
E)  are established by local,state,and federal regulatory agencies. 
A)  include regulations developed by the Federal Trade Commission. 
B)  grow out of court decisions. 
C)  include regulations developed by the Better Business Bureau. 
D)  are based on legislation passed either by state legislatures or by Congress. 
E)  are established by local,state,and federal regulatory agencies.

Question 20

Two alloy manufacturers agree to charge the same price for a product to a potential customer who is considering buying alloy from one of these manufacturers.This is an example of:

Accepted Answer

A)  price discrimination. 
B)  a tying agreement. 
C)  sales puffery. 
D)  collusion. 
E)  upselling. 
A)  price discrimination. 
B)  a tying agreement. 
C)  sales puffery. 
D)  collusion. 
E)  upselling.

_____ occurs when salespeople make unfair or untrue statements to customers about a competitor,its products,or its salespeople.

One method that companies can use to protect themselves when an employee violates the law,is to include the Foreign Corrupt Practices Act (FCPA)in the company's code of ethics.

Statements such as "The performance of this product is top-notch" can be classified as expressed warranties.

When a perfume manufacturer establishes a minimum price below which a retailer may not sell its perfume,the manufacturer is engaged in:

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

Which of the following is an example of reciprocity?

The Foreign Corrupt Practices Act (FCPA)legalizes:

What is deception?

Javier,a new insurance agent,pays one of his customers to buy his firm's insurance product.Javier explains to the customer that he would pay the customer a few thousand dollars if the customer decides to invest in the policy recommended by Javier.This is an example of:

It is ethical to take over potential customers' accounts from other salespeople.

The _____ Act requires written notification to customers regarding privacy policies.

A group of uniform rental companies agreed that they would not charge less than $5 per week per uniform even before the newly opened chicken plant contacted them for bids.This is an example of:

When a salesperson tells a customer that a product will last a lifetime,such a claim is most likely an example of sales puffery.

The Robinson-Patman Act forbids product differentiation.

What is the difference between bribery and kickbacks?

It is easy to develop a reimbursement policy that prevents salespeople from cheating and yet allows them the flexibility to cover their territory and entertain customers.

Which of the following statements is true about a noncompete clause?

The Uniform Commercial Code (UCC)is the only legal guide to commercial practice in the United Nations.

Statutory laws:

Two alloy manufacturers agree to charge the same price for a product to a potential customer who is considering buying alloy from one of these manufacturers.This is an example of:

Selling and Salespeople

Buying Behavior and the Buying Process

Using Communication Principles to Build Relationships

Adaptive Selling for Relationship Building

Prospecting

Planning the Sales Call

Making the Sales Call

Strengthening the Presentation

Responding to Objections

Obtaining Commitment

Formal Negotiating

Building Partnering Relationships

Building Long-Term Partnerships

Managing Your Time and Territory

Managing Within Your Company

Managing Your Career

Filters

Exam 2: Ethical and Legal Issues in Selling

_____ occurs when salespeople make unfair or untrue statements to customers about a competitor,its products,or its salespeople.

One method that companies can use to protect themselves when an employee violates the law,is to include the Foreign Corrupt Practices Act (FCPA)in the company's code of ethics.

Statements such as "The performance of this product is top-notch" can be classified as expressed warranties.

When a perfume manufacturer establishes a minimum price below which a retailer may not sell its perfume,the manufacturer is engaged in:

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

Which of the following is an example of reciprocity?

The Foreign Corrupt Practices Act (FCPA)legalizes:

What is deception?

Javier,a new insurance agent,pays one of his customers to buy his firm's insurance product.Javier explains to the customer that he would pay the customer a few thousand dollars if the customer decides to invest in the policy recommended by Javier.This is an example of:

It is ethical to take over potential customers' accounts from other salespeople.

The _____ Act requires written notification to customers regarding privacy policies.

A group of uniform rental companies agreed that they would not charge less than $5 per week per uniform even before the newly opened chicken plant contacted them for bids.This is an example of:

When a salesperson tells a customer that a product will last a lifetime,such a claim is most likely an example of sales puffery.

The Robinson-Patman Act forbids product differentiation.

What is the difference between bribery and kickbacks?

It is easy to develop a reimbursement policy that prevents salespeople from cheating and yet allows them the flexibility to cover their territory and entertain customers.

Which of the following statements is true about a noncompete clause?

The Uniform Commercial Code (UCC)is the only legal guide to commercial practice in the United Nations.

Statutory laws:

Two alloy manufacturers agree to charge the same price for a product to a potential customer who is considering buying alloy from one of these manufacturers.This is an example of:

Selling and Salespeople

Buying Behavior and the Buying Process

Using Communication Principles to Build Relationships

Adaptive Selling for Relationship Building

Prospecting

Planning the Sales Call

Making the Sales Call

Strengthening the Presentation

Responding to Objections

Obtaining Commitment

Formal Negotiating

Building Partnering Relationships

Building Long-Term Partnerships

Managing Your Time and Territory

Managing Within Your Company

Managing Your Career

Filters