Legal and Ethical issues in Selling

Legal and Ethical issues in Selling

Marketing Class

Multiple Choice

Selling laws exist at a ____ level.

• worldwide

• personal

• federal and state

• moral and ethical

Multiple Choice

Salespeople are responsible for which of the following:

• Making sure that what they do is legally correct

• following only the laws in their city or county

• Following only the laws in the city or country they're selling in

• Making sure that customers behave legally

Multiple Choice

Jessa wants to sell her product to a skeptical customer, so she claims it will last forever, even though she knows this isn't true. Jessa's actions are considered:

• negligence.

• misrepresentation.

• bribery.

• slander.

Multiple Choice

Parker is making a sales presentation to a customer. He wants to make sure his company, not his competitor, gets its business. by telling the customer negative, untrue facts about his competitor, Parker is engaging in

• libel.

• bribery.

• negligence.

• slander.

Multiple Choice

Nilesh sells a product to his customer, but he doesn't check to see if it passed its most recent safety test. Nelesh is guilty of

• negligence.

• misrepresentation.

• libel.

• bribery.

Multiple Choice

Illeana wants to maker sure she secures a potential customer's business, so she offers the company a large sum of money if it places an order. When her actions are discovered, she's convicted of

• misrepresentation.

• libel.

• bribery.

• negligence.

Multiple Choice

Which of the following is an example of libel:

• An employer persuades a salesperson to misrepresent a product.

• An employer writes something untrue about a competitor.

• A salesperson doesn't tell a customer about a problem with a product.

• A salesperson offers a large gift to a client.

Multiple Choice

Maureen is a salesperson who will only buy products from those who buy from her, This illegal process is known as

• reciprocity.

• negligence.

• price discrimination.

• misrepresentation.

Multiple Choice

A salesperson might encounter a legal problem if his/her employer

• asks if the salesperson can work overtime.

• encourages salesperson to bribe a customer.

• puts too much pressure on the salesperson.

• fires the salesperson for poor performance.

Multiple Choice

Which of the following is an illegal sales activity:

• Selling a product to a company that does business with your company

• Giving a customer a product sample

• Taking a client to lunch

• Providing inaccurate product information

Multiple Choice

A salesperson might encounter a legal problem if his/her employer

• asks if the salesperson can work overtime.

• encourages salesperson to bribe a customer.

• puts too much pressure on the salesperson.

• fires the salesperson for poor performance.

Multiple Choice

Which of the following is true of ethics:

• They are basic principles that govern behavior.

• They are enforced by state and federal governments.

• They are the same from person to person.

• They are the same as laws.

Multiple Choice

Which of the following illustrates what can happen when salespeople behave unethically:

• The company's image changes for the better.

• The company loses business and customers.

• Customers will continue to trust the company.

• Customers remain loyal to particular brands.

Multiple Choice

A high level of ethics with compel you to behave in a ____ way.

• suspicious

• law-abiding

• truthful

• questionable

Multiple Choice

The foundation of sales relationship is

• money.

• profit.

• laws.

• trust.

Multiple Choice

Gift-giving and entertaining are considered ethical issues because they risk crossing into which of the following legal problems:

• Slander

• Negligence

• Misrepresentation

• Bribery

Multiple Choice

If they want to behave ethically and protect relationships, salespeople should avoid

• sharing confidential customer information.

• making sales presentations to customers.

• giving customers product samples

• communicating honestly with customers.

Multiple Choice

Which of these activities could be considered unethical:

• Tia works hard to win a sales competition at her company.

• Penny focuses on her product's benefits while giving a sales presentation.

• Marcus knows his coworker is behaving unethically, but he doesn't say anything.

• Lorenzo isn't sure about a question his customer asks, so he asks her supervisor.

Multiple Choice

your sales behavior should flow directly from

• your current situation.

• the governmental laws affecting the sale.

• the company's procedure manuel.

• your personal code of ethics.

Multiple Choice

Which of the following would an ethical salesperson do:

• Make decisions based on what works best right now

• Stick with the facts during a sales presentation

• Manipulate potential customers into doing what the salesperson wants

• Fudge expense reports when no one is looking