Question 1

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

Accepted Answer

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. 
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.

Question 2

"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.

Accepted Answer

A)  misrepresentation 
B)  tie-in sales 
C)  reciprocity 
D)  price discrimination 
E)  kickbacks 
A)  misrepresentation 
B)  tie-in sales 
C)  reciprocity 
D)  price discrimination 
E)  kickbacks

Question 3

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

Accepted Answer

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. 
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.

Question 4

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.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

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. 
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.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Termination-at-will:

Accepted Answer

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. 
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.

Question 11

________ 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.

Accepted Answer

A)  Discretionary approval 
B)  Hire-at-will 
C)  Discrimination 
D)  Cooperative acceptance 
E)  Terminate-at-will 
A)  Discretionary approval 
B)  Hire-at-will 
C)  Discrimination 
D)  Cooperative acceptance 
E)  Terminate-at-will

Question 12

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.

Accepted Answer

A) True 
 B)False

Question 13

Ethical behavior:

Accepted Answer

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. 
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.

Question 14

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?

Accepted Answer

A)  Economically 
B)  Principled 
C)  Conventional 
D)  Restricted 
E)  Preconventional 
A)  Economically 
B)  Principled 
C)  Conventional 
D)  Restricted 
E)  Preconventional

Question 15

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

Accepted Answer

When the exclusive d

Question 16

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

Accepted Answer

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. 
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.

Question 17

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?

Accepted Answer

A)  Misusing company assets 
B)  Accepting bribes 
C)  Misrepresentation 
D)  Sales puffery 
E)  Moonlighting 
A)  Misusing company assets 
B)  Accepting bribes 
C)  Misrepresentation 
D)  Sales puffery 
E)  Moonlighting

Question 18

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

Accepted Answer

The three levels of moral deve

Question 19

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

Accepted Answer

A)  religion 
B)  books 
C)  the Internet 
D)  television 
E)  family 
A)  religion 
B)  books 
C)  the Internet 
D)  television 
E)  family

Question 20

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):

Accepted Answer

A)  social impasse. 
B)  discretionary responsibility. 
C)  ethical dilemma. 
D)  policy-based moral development. 
E)  sales dilemma. 
A)  social impasse. 
B)  discretionary responsibility. 
C)  ethical dilemma. 
D)  policy-based moral development. 
E)  sales dilemma.

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

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

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.

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

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

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

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

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

Termination-at-will:

________ 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.

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.

Ethical behavior:

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?

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

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

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

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

The Life, Times, and Career of the Professional Salesperson

The Psychology of Selling: Why People Buy

Communication for Relationship Building: Its Not All Talk

Sales Knowledge: Customers, Products, Technologies

Prospectingthe Lifeblood of Selling

Planning the Sales Call Is a Must

Carefully Select Which Sales Presentation Method to Use

Begin Your Presentation Strategically

Elements of a Great Sales Presentation

Welcome Your Prospects Objections

Closing Begins the Relationship

Service and Follow-Up for Customer Retention

Time, Territory, and Self-Management: Keys to Success

Filters

Exam 2: Ethics First -Then Customer Relationships

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

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

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.

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

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

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

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

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

Termination-at-will:

________ 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.

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.

Ethical behavior:

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?

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

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

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

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

The Life, Times, and Career of the Professional Salesperson

The Psychology of Selling: Why People Buy

Communication for Relationship Building: Its Not All Talk

Sales Knowledge: Customers, Products, Technologies

Prospectingthe Lifeblood of Selling

Planning the Sales Call Is a Must

Carefully Select Which Sales Presentation Method to Use

Begin Your Presentation Strategically

Elements of a Great Sales Presentation

Welcome Your Prospects Objections

Closing Begins the Relationship

Service and Follow-Up for Customer Retention

Time, Territory, and Self-Management: Keys to Success

Filters