Exam 3: Ethics First Then Customer Relationships

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

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Eldon Hensley is a sales representative at Amass Innovations,a firm that manufactures tankless water heating systems.He gives travel certificates and gifts to purchasing executives who buy numerous products from him.This is an example of bribing.

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What is a code of ethics? Describe the two types of codes of ethics.

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A code of ethics is a formal statement of the company's values concerning ethics and social issues.It states those values or behaviors that are expected and those that are not tolerated.The two types of codes of ethics are principle-based statements and policy-based statements.Principle-based statements are designed to affect corporate culture,define fundamental values,and contain general language about company responsibilities,quality of products,and treatment of employees.Policy-based statements generally outline the procedures to be used in specific ethical situations.These situations include marketing practice,conflicts of interest,observance of laws,proprietary information,political gifts,and equal opportunities.

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

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

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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.

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Cooling-off laws:

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Customers can recover damages on the grounds of breach of warranty and other contractual breach; however,customers cannot recover damages in cases of misrepresentation.

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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:

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When a company determines that one of its sales staff has an addiction which affects his work,it would be most ethical for the company to:

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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.

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

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A salesperson has been given the intellectual property of a competitor.The salesperson,who is uncertain how to handle the situation,seeks the guidance of an attorney.The salesperson is most likely operating at which level of moral development?

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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.

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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?

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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 popular TV show Survivor,it would be an example of:

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

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A(n)_____ would tell Quinton that he should return unauthorized competitive information to its owner without examining it,even though the information would more than likely result in a large commission for Quinton.

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Cooperative acceptance supports:

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Which of the following would most likely trigger an ethical dilemma?

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