Deck 5: Ethics: the Foundation for Relationships in Selling

Question 1

Trust is the most important precondition of partnership selling.

Answer 1

True

Question 2

Product disparagement constitutes a type of business defamation.

Answer 2

True

Question 3

Laws which define what is legally proper serve as the best deterrent against unethical selling practices.

Answer 3

False

Question 4

Companies and individuals who engage in unethical practices have a long-term orientation about the business.

Question 5

"Accurately represent my products or service to the best of my ability in a manner that places my customer or prospective customer and my company in a position that benefits both" is an example of a Code of Ethics.

Question 6

It may be acceptable ethical practice to give a token gift as a gesture of goodwill in Canada.

Question 7

The ability to distinguish between right and wrong is an intuitive skill.

Question 8

An oral promise cannot be considered a contract and therefore enforceable by law.

Question 9

The Competition Act limits competition in Canada.

Question 10

The Competition Act is a legal guide to a narrow range of transactions between the seller and the buyer.

Question 11

People with higher character strength tend to engage in unethical practices.

Question 12

An advantage of dealing with salespeople who belong to professional associations such as The Canadian Professional Sales Association (CPSA)is that; such salespeople have to agree to abide to the association's code of ethics.

Question 13

A survey conducted by Newsweek suggests that the current generation of workers may be more tolerant of deception.

Question 14

As part of his selling strategy,Ronny makes untrue oral statement about a competitor.This is called Business slander.

Question 15

A negative outcome of very high competitive pressures on a firm could be for it to engage in unethical behaviours for survival.

Question 16

If the business community cannot control the ethical behavior of its members,people are likely to turn to legal intervention.

Question 17

There is a uniform code of ethics for all salespeople.

Question 18

Collecting information on a customer's competition and sharing it with the customer is a good way to develop close trusting relationships.

Question 19

Sam was able to void a contract after he purchased some goods within a certain period of time as a result of the cooling-off laws.

Question 20

Kickbacks and payoffs may be acceptable practices in one part of the world yet may be viewed as unethical practices elsewhere.

Question 21

Ramond believes that building trust with his customers is important.This is because trust:

A)causes buying behaviour.
B)is needed to create ethical situations.
C)allows for mistakes to be made.
D)is the most important precondition to partnering.
E)makes the world go around.

Question 22

If you view your employer's instructions or influence as improper,then you should:

A)follow the path of least resistance.
B)consider the need to compromise your values in order to keep your job.
C)accept it as part of "business".
D)voice opposition to the practice if it is in conflict with your value system.
E)keep your concerns to yourself.

Question 23

Salespeople who are certified as sales professionals by the Canadian Professional Sales Association must follow the CPSA Sales Institute code of ethics or they:

A)may lose their professional sales designation.
B)may have to repeat some parts of their training.
C)will have to cancel their membership in the CPSA.
D)will lose privileges available only to members in good standing.
E)may have to pay a fine.

Question 24

Harold Timmons is in a position to close a large sale if he conceals certain information that the customer needs to make an intelligent buyer decision.His sales manager encourages him to withhold the information and says "You will not be breaking any law." In this case,the salesperson must be guided by the following ethical guideline:

A)the code of ethics established by the company should guide all ethical decisions
B)caveat emptor
C)the organization's moral tone is established primarily by salespeople who have daily customer contact
D)a salesperson's ethical sense must extend beyond the legal definition of what is right and wrong
E)the customer is king

Question 25

Teresa Fallon sends a written proposal to a customer.In the proposal,she compares the specifications of her product and a competing product.If the information about the competing product is not true,she is using a form of business defamation called:

A)bribery.
B)business libel.
C)negative word-of-mouth publicity.
D)business slander.
E)product disparagement.

Question 26

The difference between a "gift" and a "bribe" is that gifts are given to foster goodwill whereas bribes are intended to influence the person who is receiving the gift.

Question 27

In a transaction sale the sales person's character is more critical to the sale than the product itself.

Question 28

When a customer reveals confidential information about a competitor to a salesperson,the course of action is for the salesperson to:

A)accurately relate details to his/her top management.
B)tell it to no one.
C)ignore the potential uses of the information.
D)inform the competing company about the useful information.
E)request that the customer not comment further because of conflict of interest.

Question 29

A sales person's ethics and values contribute more to sales success in the long-run than do techniques and strategies they may employ.

Question 30

In the New economy,many respected companies had crossed the ethical line as a result of:

A)the shareholders.Shareholders demanded high return-on-investment at any cost.
B)immigration.People from other cultures who came to North America had different ethical values.
C)the legal system.The law was not harsh enough to discourage unethical behaviors.
D)competition.Increased competition forced companies to make unethical decisions.
E)corporate culture.There was an emphasis on becoming lean,innovative and profitable at any cost.

Question 31

The practice of reciprocity:

A)is beneficial to all parties involved.
B)may result in firms buying products of questionable quality.
C)results in improved competition among sales and marketing firms.
D)is expected in most industries.
E)is no longer legal in Canada.

Question 32

Whereas a legal standard is enforced by statute,an ethical standard is an outgrowth of:

A)values of a culture.
B)personal values of the salesperson.
C)guidelines formulated by the religious community.
D)a political process.
E)guidelines established by professional association.

Question 33

Riccardo understands that rules of conduct that reflect moral principles and standards of the community is/are:

A)a ridiculous ideal.
B)nice,but unattainable.
C)nice,but unrealistic.
D)the definition of ethics.
E)the definition of morals.

Question 34

Which of the following would be considered a violation of guidelines governing a self-imposed code of ethics?

A)attempting to close a sale prior to fully understanding the prospect's needs
B)not selling the product at discounted prices
C)comparing your product with that of a competitor when requested to do so
D)exposing the limitations of your product to customers
E)submitting a sales-related expense account for reimbursement

Question 35

The competition is using exaggerated claims to increase sales of its product.Should you make similar claims to build a stronger case for your product? This is an example of:

A)ethics dilemma.
B)legal dilemma.
C)let the buyer beware.
D)marketing concept.
E)unfair competition.

Question 36

Which of the following sets only the minimal ethical standards of behaviour for salespeople?

A)written company policies that spell out standards of "rightness" and "wrongness"
B)federal and provincial laws that curb unethical business practices
C)leaders within the company (top management)who model high ethical standards
D)culture of that corporation
E)sales managers who model high ethical standards

Question 37

This form of business defamation arises when an unfair and untrue oral statement is made about a competitor.

A)business libel
B)reciprocity
C)business slander
D)bribery
E)conspiracy

Question 38

Many companies have a written code of ethics for all employees to follow.This code is usually enforced at all levels of the business fairly and without exception.However,

A)ethics are hard to define.
B)these codes of ethics are usually unique to each company and sale force.
C)there are often different sets of ethical standards that senior management follow.
D)these codes work in theory; in practice,salespeople do what they want.
E)these standards are only followed by employees in Canada; in the rest of the world,pretty much anything goes.

Question 39

In strategic-alliance sale the sales person's qualities are a critical aspect of the sale.

Question 40

Buyer and seller relationship should precede the sale of the actual product.

Question 41

Volt City,a home electronics store likes to advertise products at very low prices to attract customers to their store knowing they don't have those products in stock.Their sales people then tell the customers that those products are all sold out but,they can buy another,more expensive product.This practice is:

A)legal and ethical.
B)Misleading advertising
C)ethical but illegal.
D)unethical and illegal.
E)legal but unethical.

Question 42

Bernice,a salesperson,in attempting to close more sales makes false and deceptive comparisons with a competitor's product.This is called:

A)product disparagement.
B)false advertising.
C)unfair competition.
D)business defamation.
E)business slander.

Question 43

John sells heavy machinery to international markets.His company has no clear policy of not giving or accepting bribes.He is presently dealing with a company in another country where bribes are a common business practice.Above all,John should be guided by:

A)the customer's norms.
B)the Fair-Trade policy.
C)the ethical principle.
D)the legal principle.
E)the company policy.

Question 44

A clause which prohibits an employee from joining a competing firm for a year after they leave employment is called:

A)intellectual property clause.
B)employment clause.
C)a contract.
D)noncompete clause.
E)fair employment clause.

Question 45

Amy watched her sales manager put a round of golf and dinner on his expense account.He told her that expenses of this nature were acceptable behaviour for management,but not reps.This is:

A)clearly an acceptable policy.
B)a sales manager that is a poor role model.
C)what one expects from all businesses.
D)okay in large companies.
E)double standards.

Question 46

Alberto adheres to the principles of the Competition Act.Included in the issues addressed by this Act are price fixing,pricing discrimination,predatory pricing,and:

A)selling goods to all eligible customers.
B)bid rigging.
C)multi-level marketing plans.
D)referred customers.
E)direct selling.

Question 47

Which of the following statements about "cooling off" laws is correct?

A)The laws allow customers to reconsider decisions that may have been made under a salesperson's influence.
B)The Retail Sellers Act is a "cooling off" law.
C)They are regulated by the Competition Act.
D)They protect the seller against customers who "cool off" after a sale is made.
E)They are now generally standardized across Canada.

Question 48

Upon closing a large sale,Rebecca offered her company pen to Jerry,the manager who signed the deal.This action would normally be considered as:

A)reciprocity.
B)bribery.
C)prudent.
D)gift giving.
E)entertaining.

Question 49

Your competitor is using exaggerated claims to increase their sales.To retaliate you want to make unsubstantiated counter claims to build a stronger case for your product.You are then dealing with a:

A)marketing dilemma.
B)business dilemma.
C)ethical dilemma.
D)legal dilemma.
E)free competition.

Question 50

Jimmy made a habit of buying products only from those companies he sold his products to.We would call this practice:

A)reciprocity.
B)prudent.
C)entertaining.
D)gift giving.
E)bribery.

Question 51

The employment contract Janice signed included a clause which prevented her from joining a competing firm for a year after she left her present employment.Such a clause is an example of:

A)noncompete clause.
B)unethical employment practice.
C)illegal employment practice.
D)employment discrimination.
E)employee exploitation.

Question 52

Product disparagement occurs when:

A)you say something negative about your product.
B)you make a deceptive comparison between your competitor's product and your product.
C)you clearly differentiate your competitor's product from your product.
D)you give false information about your product.
E)you sell sub-quality product.

Question 53

Aaron finds that viewing selling as an exchange of value,putting the relationship ahead of achieving sales goals,and being honest with himself and his customers are all part of:

A)a legal requirement.
B)a good formulation for a personal code of ethics.
C)a naive way of doing business.
D)a statutory requirement.
E)corporate culture.

Question 54

Roberta learned about the Competition Act in sales class.Some of the issues included are price fixing,bid rigging,price discrimination,and:

A)not hiring minorities and women.
B)provocative advertising.
C)multi-level marketing plans.
D)predatory pricing.
E)selling at the lowest possible price.

Question 55

A business is legally bound by a verbal or written contract made by its sales people because:

A)it is illegal to not fulfill a contract.
B)it is the norm in Canada.
C)they are legal representatives of their company.
D)it is unethical to not fulfill a contract.
E)it is good business practice.

Question 56

Legal standards are enforced by:

A)industry standards.
B)the corporation.
C)company standards.
D)statute.
E)society as a whole.

Question 57

Legislation which give customers an opportunity to reconsider a buying decision made under a salesperson's persuasive influence is called:

A)legislation 401.
B)Nader provision.
C)marketers act.
D)cooling-off laws.
E)competition act.

Question 58

The difference between a "gift" and "bribe" is:

A)gift is of a personal nature whereas bribe is of a business nature.
B)gift is legal in Canada whereas bribe is illegal.
C)gifts is inexpensive whereas a bribe is large monetary value.
D)gift is meant to foster goodwill whereas bribe is an attempt to influence people.
E)they are the same thing.

Question 59

The legislation which ensures consumers are protected and fosters a competitive environment is called:

A)Competition Act.
B)Legislation 401.
C)Industry Act.
D)Canadian Code of Ethics.
E)Anti-monopoly Legislation.

Question 60

When Rachel signed the contracts at MicroManage,Inc.,she included an envelope that contained two season tickets to the Raptors games.This action would normally be considered as:

A)entertaining.
B)bribery.
C)reciprocity.
D)expected.
E)prudent.

Question 61

In Transactional sales,the customer considers the __________ as the most important element of the sale.

A)organization
B)product
C)customer service
D)price
E)sales person

Question 62

Business slander,business libel and product disparagement are all forms of:

A)aggressive marketing strategies.
B)market penetration strategies.
C)business defamation.
D)anti-competitive marketing.
E)negative marketing strategies.

Question 63

The person who has the greatest potential of being a role model to the sales staff in a company is the:

A)marketing manager who develops the marketing strategy.
B)chairman of the board of directors of the company.
C)sales manager to whom the sales staff reports to.
D)most senior sales person in the company.
E)top sales person in the company.

Question 64

In Consultative sales,the buyer considers the __________ as the most important element of the sale.

A)organization
B)product
C)price
D)sales person
E)customer service

Question 65

The term _______ can be defined as a mutual exchange of benefits,as when a firm buys products from its own customers.

Question 66

In Strategic-alliance sales,the buyer considers the __________ as the main element of the sale.

A)product
B)customer service
C)sale person
D)price
E)organization

Question 67

In the field of selling,there are both________ standards and________ standards.

Question 68

The legislation which protects buyers and sellers in a direct selling contract situation is generally referred to as:

A)the Ethical Standards legislation.
B)the Caveat Emptor Act.
C)the Competition Act.
D)the Consumer Protection Act.
E)the Marketing Act.

Question 69

Business defamation consists of business slander,business libel,and _______.

Question 70

Which of these behaviours is considered unethical:

A)bribery
B)making slanderous statements about another business
C)sharing confidential information
D)misleading statements about your products
E)all of the above

Question 71

Business defamation incurred when an unfair and untrue statement is made about a competitor in writing is known as ________ .

Question 72

The intention behind giving token gifts such as pens or key chains with company logos is to:

A)create customer's goodwill.
B)to stimulate demand for the product.
C)advertise your business.
D)influence the customer's behaviour.
E)to bribe the customer into giving you the sale.

Question 73

The most important single determinant of employee ethics is:

A)role model provided by top management.
B)role model provided by sales manager.
C)personal values of salesperson.
D)values of the country.
E)company policies and practices.

Question 74

Which statement is accurate:

A)attitudes determine our values and values determine our behaviour
B)attitudes determine our behaviour and behaviour determine our values
C)behaviour is not determined by attitudes or values.
D)behaviour determine our attitudes and attitudes determine our values
E)values determine our attitudes and attitudes determine our behaviour

Question 75

________ are your deep personal beliefs and preferences that influence your behaviour.

Question 76

The Canadian legislation which covers issues such as bribery is called:

A)the Mahoney Act.
B)the Corruption of Foreign Public Officials Act.
C)the Ethical Practices Act.
D)the Illegal Practices Act.
E)the Bribery Act.

Question 77

It is particularly common to entertain clients in:

A)the service industry.
B)high technology industries.
C)industries where products are nearly identical.
D)the entertainment industry.
E)industries which have not adopted the new economy way of thinking.

Question 78

A reason customers are demanding more ethical practices from their vendors is because:

A)they could be fined for buying from unethical vendors.
B)it is illegal to do business with unethical vendors.
C)it is better for them if their vendors remain in business for a long-time.
D)unethical behaviour is contagious.
E)they don't want their reputation tainted by others' behaviours.

Question 79

People who engage in unethical behaviours are adopting a:

A)long-term orientation.
B)short-term orientation.
C)sales motivated orientation.
D)illegal orientation.
E)profit motivated orientation.

Question 80

Malina sells mining equipment to international markets.Her company does not have a clear policy of not giving or accepting bribes.Her buyers have indicated that they would like to receive $100,000 for an exclusive contract which would be good for 10 years.Receiving bribes is a common business practice in that country.Malina's behaviour should be guided by:

A)her personal values and ethics.
B)the competition.
C)her company.
D)the business practices of that country.
E)her supervisors.