Exam 2: Ethical and Legal Issues in Selling

Court decisions related to the Robinson-Patman Act define _____ as a seller giving unjustified special prices,discounts,or services to some customers and not to others.

Which of the following statements is true about written agreements?

Which of the following statements is true about ethics?

When an item is shipped under contract terms that call for FOB (free on board)factory,the buyer assumes responsibility for any loss or damage incurred during transportation.

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

Which of the following statements is true about tying agreements?

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:

According to UCC,orders become contracts to sell when:

Jordon is a salesperson in a cosmetic firm.While selling a product to a customer,he lies to the customer that other competitors in the market use banned substances in their products.This is an example of:

What is the difference between free on board (FOB)destination and free on board factory?

Spreading rumors about a colleague's sexual conduct cannot be considered sexual harassment.

In the context of incentives given by a producer to a reseller's salespeople,a spiff is considered legal only if:

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

If the salesperson for a paint manufacturer promised a purchasing agent that a certain brand of paint was mildew-resistant (when it was not),the salesperson:

Robin is selling a Local Area Network (LAN)system to a company that oversees the renovation of dingy,old downtown districts into attractive shopping areas.Which of the following statements by the seller might be construed as an expressed warranty?

Tying agreements stipulate that a seller is only allowed to sell products to a single buyer.

When spending from their company's expense accounts,salespeople should act as though they are spending their own money.

Bribes typically have no negative consequences for the purchasing agent's firm-only for the purchasing agent as an individual.

The manufacturer of Kingston freestanding greenhouses gives $100 as an incentive to a reseller's salespeople for each greenhouse they sell.This special incentive is known as: