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Exam 2: Ethics First -Then Customer Relationships

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Question 41

Multiple Choice

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Which of the following statements about misrepresentation is false?

A) When salespeople loosely describe their goods or services in glowing terms, those statements cannot be relied upon by the potential buyer.
B) Courts tend to favor salespersons in misrepresentation cases when the customer lacks product knowledge.
C) When a salesperson makes claims of a "factual nature" regarding a service's inherent capabilities, the law treats these comments as statements of fact and warranties.
D) A salesperson's opinion of the quality of the product being sold is known as sales puffery and is not legally actionable.
E) To "stay legal" a salesperson needs to understand the difference between general statements of praise and statements of fact.

F) C) and E)
G) A) and B)

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Question 42

Multiple Choice

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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.

F) All of the above
G) A) and E)

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Question 43

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

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

What law protects customers from price discrimination?

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. After Glenda promises a potential customer that a new office arrangement will increase productivity by 50%, the customer signs a contract with Innovative Installers for the furniture and service. However, Glenda made this assertion without any valid data as support. Glenda could possibly be guilty of:

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

What is the single most important factor in improving the climate for ethical behavior in a sales force?

According to the text, modern corporations seek salespeople with all of the following characteristics EXCEPT:

Multiple world religions adhere to the Core Principles.

While buying some land, Mike asked the seller's solicitor if there were any restrictive covenants on the land; the solicitor said he did not know of any. What the solicitor failed to mention was that he had not bothered to read the documents. This failure on the part of the solicitor to disclose the state of affairs to Mike amounts to:

What factors shape a person's belief system?

An ethical sales manager should set realistic and obtainable goals.

What is an ethics ombudsperson?

If the concept of ethics is so easy to understand, why do ethical dilemmas occur so frequently?

Harold Williams was the Managing Director of Web Power, which was being merged with another company. He raised concerns that false invoices were being used to support the merger proposal. He was dismissed from the company unfairly for indulging in:

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

Durham Building Supplies requires anyone who wants to use its product to purchase only from it; this contractual arrangement is called an exclusive dealership.

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

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