Deck 3: Ethics First Then Customer Relationships

Question 1

Multiple world religions adhere to the Golden Rule.

Answer 1

True
Explanation: Christians, Jews, Hindus, Buddhists, and Confucius' followers embrace the
Golden Rule, although each has its own interpretation.

Question 2

Ethical behavior specifically refers to carrying out one's share of the work and responsibility with 100 percent effort.

Answer 2

True
Explanation: Ethical behavior refers to treating others fairly. Specifically, it refers to actions such as being honest and truthful, following the rules, and carrying your share of the work and responsibility with 100 percent effort.

Question 3

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

Answer 3

True
Explanation: Individuals at the preconventional moral development stage break moral and legal laws when they can get away with it. So, they probably would feel no concern about lying to a customer.

Question 4

The Golden Rule of Selling requires people whose personal character is at level 2.

Question 5

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.

Question 6

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

Question 7

A sales executive makes decisions based upon what her boss says is right; this person is at the principled level of moral development.

Question 8

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

Question 9

Salespeople who split commissions with co-workers or take customers away from co-workers to win sales contests are engaged in moonlighting.

Question 10

The world views and belief systems of employees from the same country are typically identical.

Question 11

The ethical behavior of an employee is influenced by managers,co-workers,and the organization.

Question 12

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.

Question 13

The right to be free of sexual harassment is a part of the 1980 EEOC guidelines.

Question 14

Morals refer to people's adherence to right or wrong behavior and right or wrong thinking.

Question 15

If sales personnel loosely describe their product or service in glowing terms,the law treats these comments as statements of fact and warranties.

Question 16

Most sales people operate at the conventional level of moral development.

Question 17

An individual in the pre-conventional stage of morality asks,"What can I get away with?"

Question 18

Individuals at the principled moral level base ethical decisions on laws and consequences.

Question 19

In most cases,an individual's moral development becomes increasingly mature.

Question 20

A fixed point of reference refers to something that provides the correct action to take in any situation and never gets tailored to fit an occasion.

Question 21

Integrity and trust form the attributes that distinguish the organization and salesperson,often referred to as character.

Question 22

According to the text,why do most employees in organizations succumb to questionable ethical standards or only follow formal policies?

A) Most people are in the conventional and principled levels of moral development.
B) Few organizations develop and enforce very stringent codes of ethics.
C) Most people are in the preconventional and conventional levels of moral development.
D) Few people in an organization are considered stakeholders or stockholders.
E) Most people exhibit behavior that is close to the principled level of moral development.

Question 23

Donna buys two laptop computers for $2,000.Jackson buys 15 units of the same laptop computer for $12,000.This selling situation provides evidence for price discrimination.

Question 24

Principle-based statements generally outline the procedures to be used in specific ethical situations.

Question 25

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

Question 26

A person who engages in whistle-blowing is called an ethics ombudsperson.

Question 27

Which term refers to the different beliefs people have about the world around them?

A) Multiculturalism
B) Social morals
C) World ethics
D) Worldview
E) Citizenship

Question 28

The Robinson-Patman Act of 1936 prevents sellers from granting quantity discounts to larger buyers.

Question 29

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.

Question 30

The most often misused company assets are automobiles,expense accounts,samples,and damaged-merchandise credits.

Question 31

Integrity,trust,and character are the building blocks of a Golden Rule salesperson's values.

Question 32

U.S.salespeople competing in foreign countries are required to comply with the laws of the foreign country rather than U.S.laws,which are not applicable overseas.

Question 33

Which of the following questions would most likely be asked by a person at the principled level of moral development?

A) What does society expect from me?
B) What is the right thing to do?
C) What am I legally required to do?
D) What does my family want me to do?
E) What can I get away with?

Question 34

Which of the following factors has the LEAST influence on an individual's core belief system?

A) Physical appearance
B) Religious background
C) Family upbringing
D) Life experiences
E) Personality

Question 35

A cooling-off law gives the buyer three weeks to cancel the contract,return any merchandise,and obtain a full refund.

Question 36

Which of the following questions would most likely be asked by a person at the preconventional level of moral development?

A) What can I get away with?
B) What does my family want me to do?
C) What am I legally required to do?
D) What is the right thing to do?
E) What does society expect from me?

Question 37

Green River ordinances require that industrial salespeople who sell complex machineries to organizations be licensed before approaching customers.

Question 38

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.

Question 39

"This refrigerator will preserve foods in the warmest weather." This statement by a home appliance salesperson is legally actionable.

Question 40

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

Question 41

All of the following are characteristics of ethical behavior EXCEPT:

A) being honest with customers.
B) following company policies.
C) showing loyalty to co-workers.
D) treating customers and peers fairly.
E) maintaining personal sales goals.

Question 42

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

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

Question 43

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

A) Excessively codified ethical standards
B) Culturally different business practices
C) Long-term organizational loyalties
D) Productivity-based bonuses
E) Detail sales representatives

Question 44

Paula considers herself to be a responsible person.She upholds moral and legal laws and conforms to the expectations of others.Paula is functioning at what level of moral development?

A) Unrestricted
B) Principled
C) Mature
D) Conventional
E) Preconventional

Question 45

A _____ refers to something that provides the correct action to take in any situation and never gets tailored to fit an occasion.

A) conventional moral maturity
B) point of convenient reference
C) directional code of ethics
D) fixed point of reference
E) frame of conventionality

Question 46

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.

A) fixed point of reference
B) employee rights clause
C) mandatory cooling off period
D) preconventional moral maturity
E) directional code of ethics

Question 47

The majority of sales personnel operate at the _____ level of moral development.

A) intentional
B) principled
C) discretionary
D) conventional
E) preconventional

Question 48

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?

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

Question 49

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

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 50

Which of the following is LEAST likely an ethical issue faced by most sales managers?

A) Employee rights
B) Sales territories
C) Sales pressure
D) Benefits flexibility
E) Personnel substance abuse

Question 51

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

A) Balanced account
B) Outsourced account
C) Retail account
D) House account
E) Key account

Question 52

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

A) is at the conventional level.
B) remains too stationary.
C) changes based on the situation.
D) is too distant from the circumstances.
E) relies on conflicting belief systems.

Question 53

In order to be effective,a fixed point of reference must:

A) change rules based on the situation.
B) be identical to personal beliefs.
C) use one's own conscience.
D) relate to objects rather than people.
E) be separate from the individual.

Question 54

Which of the following occurs when the right or wrong decision cannot be clearly identified?

A) Ethical standardization
B) Immoral behavior
C) Sales pressure
D) Ethical dilemma
E) Social responsibility

Question 55

Ethical behavior:

A) refers to following the rules and treating others fairly.
B) refers to a firm's economic level of social responsibility.
C) assumes that the individual is operating at an unrestricted moral level.
D) assumes that human interactions are primarily reciprocal.
E) refers to the devotion to a generic religious or social principle.

Question 56

The person who operates at the _____ level of moral development would adhere to the Golden Rule of Selling.

A) intentional
B) principled
C) conventional
D) discretionary
E) preconventional

Question 57

On the job,Jack acts purely in his own best interest.He follows company rules only to avoid being fired.At what level of moral development is Jack most likely functioning?

A) Unrestricted
B) Principled
C) Conventional
D) Mature
E) Preconventional

Question 58

An individual operating in the _____ level of moral development would disobey orders,laws,and consequences to follow personal ethics and values.

A) voluntary
B) principled
C) conventional
D) habitual
E) preconventional

Question 59

All of the following are involved in the majority of sales people's ethical issues EXCEPT:

A) co-workers.
B) managers.
C) customers.
D) friends.
E) employers.

Question 60

According to a survey of adult Americans,people are most likely to base ethical and moral decisions on:

A) legal outcomes.
B) current situations.
C) principles of justice.
D) historical cultures.
E) religious standards.

Question 61

The Clayton Act prohibits actions that would:

A) prevent union formation.
B) void product warranties.
C) misrepresent product features.
D) substantially lessen competition.
E) limit the right to work.

Question 62

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

A) "You're going to love this new mattress!"
B) "We are the metropolitan area's low price leader."
C) "We offer a 100 percent order-fill rate; you'll never experience a back-order."
D) "Our employees have extensive training in how to pamper our customers."
E) "Your own mother can't care for you as well as our staff!"

Question 63

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

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 64

Sharon,a salesperson for a greeting card company,is responsible for sales in the northern part of California.Sharon's manager has decided to change Sharon's key account in the territory to a house account.Why would Sharon most likely dislike this decision?

A) Sharon will have to monitor the key account for less pay than she usually earns.
B) Sharon will be demoted from her position in the territory for losing the key account.
C) Sharon will have to share commissions from the key account with the home office.
D) Sharon will lose the commission for the key account.
E) Sharon will have to work from the firm's home office.

Question 65

Which term refers to the rights desired by employees regarding their job security and treatment by employers?

A) Cultural acceptance
B) Human rights
C) Affirmative action
D) Employee rights
E) Workers' compensation

Question 66

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

A) Bribes always involve money.
B) Bribery accounts for more than half of all white-collar crimes in the U.S.
C) Commissioned salespeople cannot be bribed because of the commission system.
D) The difference between a business gift and a bribe is quite clear.
E) Bar bills, meals, and entertainment are always considered bribes.

Question 67

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

A) Splitting commissions with fellow employees to win a sales contest
B) Taking a family vacation and writing it off on an expense account
C) Working a second job during company time to earn additional income
D) Calling in sick to prepare for a test in a college course later in the day
E) Giving a $10 dollar gift to a $10,000 customer

Question 68

A salesperson can minimize exposure to costly misrepresentation and breach of warranty lawsuits if the salesperson:

A) never negotiates.
B) avoids win-win sales situations.
C) never sells customers more than they want.
D) thoroughly educates customers before making a sale.
E) offers opinions when customers ask what results to expect from a product.

Question 69

Sheridan decides to buy his first car.The car salesperson promises to arrange a car loan for him if he also purchases the auto insurance.This is a classic example of:

A) misrepresentation.
B) reciprocal selling.
C) a Green River dealership.
D) discriminatory selling.
E) a tie-in sale.

Question 70

Which of the following would be an example of a salesperson who is moonlighting unethically?

A) A retail sales clerk who works Monday through Friday and is taking a weekend MBA program.
B) A building supply salesperson who sells vacation real estate on company time.
C) A travel agent who sells antiques on the Internet during the weekends.
D) A fire equipment salesperson who demonstrates her equipment to prospects by setting real fires.
E) A retail ad salesperson who tells his wife when store sales are scheduled before they are announced to the public.

Question 71

What is reciprocity?

A) Obeying the Golden Rule of Sales
B) Creating win-win buying situations
C) Sharing competitive intelligence with peers in the same industry
D) Buying a product from someone if that person agrees to buy from you
E) A mutually-beneficial buying situation that does not lessen competition

Question 72

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:

A) misrepresentation.
B) a tie-in sale.
C) reciprocal selling.
D) a Green River dealership.
E) discriminatory selling.

Question 73

Which of the following is illustrated if a contract requires that a wholesaler purchase products from one manufacturer?

A) Reciprocity
B) Exclusive dealership
C) Product discrimination
D) Deceptive slotting
E) Price discrimination

Question 74

When a customer relies on a salesperson's statements,purchases the product,and then finds that it fails to perform as promised,the supplier can be sued for:

A) reciprocity.
B) tie-in sales practice.
C) sales discrimination.
D) misrepresentation.
E) sales restriction.

Question 75

Which term refers to giving some customers promotional allowances and support while not making other customers aware of such opportunities?

A) Customer discrimination
B) Selective discounting
C) Price discrimination
D) Exclusive dealing
E) Functional discounting

Question 76

Suzanne,a sales representative at MedEx,a pharmaceutical firm,was being sexually harassed by her manager,Phil.After Suzanne refused to submit to Phil's advances,he threatened to fire her.Suzanne can most likely sue MedEx based on which type of sexual harassment?

A) Hostile environment
B) Cooperative acceptance
C) De facto termination
D) Quid pro quo
E) Employment-at-will

Question 77

A company decides to split one of its high-performing territories into two.The company has also decided to retain the existing salesperson for working in one of the territories and to appoint a new salesperson for the other.This decision would most likely result in the unethical treatment of:

A) the existing salesperson in the territory.
B) the new salesperson appointed to the territory.
C) the key accounts in the territory.
D) the customers in the sales territory.
E) the wholesalers in the territory.

Question 78

Which of the following laws allows sellers to grant quantity discounts to larger buyers based on savings in manufacturing costs?

A) Clayton Act
B) Cooling-off laws
C) Robinson-Patman Act
D) Green River ordinances
E) Civil Rights Act

Question 79

Cooperative acceptance supports:

A) termination of employees at the will of the employer.
B) the right of the employees to be free of sexual harassment.
C) price discrimination as a legal activity.
D) free market competition which benefits consumers.
E) the ethical treatment of employees with drug or alcohol addictions.

Question 80

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:

A) terminate the employee to convey a message to other employees.
B) punish the employee with a salary cut and demotion.
C) encourage the employee to seek professional help.
D) encourage the employee to take a leave of absence.
E) file a lawsuit against the employee to cover the liability.