Exam 2: Ethics First -Then Customer Relationships

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

(Multiple Choice)
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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.

(Multiple Choice)
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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:

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

(True/False)
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Most sales people operate at the conventional level of moral development.

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

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

(True/False)
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"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.

(Multiple Choice)
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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:

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

(True/False)
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A cooling-off law:

(Multiple Choice)
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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?

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

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

(True/False)
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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:

(Multiple Choice)
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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:

(Multiple Choice)
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What is reciprocity?

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

(Multiple Choice)
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What are the two major influences on the ethical behavior of sales personnel?

(Short Answer)
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Cooling-off laws apply only to:

(Multiple Choice)
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