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WorksheetsSales Force Chapter 2
Total questions: 82
Worksheet time: 41mins
Which of the following represent ethical behavior?
Misleading customers by leaving out important facts
Using guilt tactics such as telling older people they should have life insurance policies for
many relatives
Disclosing all the advantages and disadvantages of a product being considered for sale
Using excessive jargon and fine print to make the terms of sale unclear
_______________ consists of the shared values, norms, and artifacts that provide the
blueprint for behavior (within firms).
Sales ethics subcompliance culture
Sales management ethics
Organizational culture
Sales subculture
Ethics are
something that is basically irrelevant to business
the study of what is right and wrong or good and bad and honest and dishonest
rules clearly outlined in the bible
simply complying with the law
Which of the behaviors below is least likely to be unethical?
Revealing confidential information to a prospect about their competitors
Taking a prospect or customer to dinner, to play golf, or to attend a sports event.
Promising an unrealistic delivery date in order to make a sale
Shifting sales orders from one period to another to win a sales contest
All of the following are common unethical practices committed by salespeople except
special gifts and overpromising
showing favoritism and disclosing confidential information
manipulating order forms and misrepresenting the facts
getting another salesperson to help them make a sale in their territory
Which of the following are ethical sales practices?
Expense account padding
Competitive snooping
making positive statements about the competition
Showing favoritism among customers
Which of the following is not considered an unethical sales practice?
Discussing how your product can help make the buyer’s firm more productive
Disparaging competitors
Manipulating order forms
Tampering with competitors’ products
__________ refer to the “specific component of business ethics that deals with ethically managing the sales function.
marketing management ethics
Sales management ethics
moral ethics
business ethics
Which of the following statements about ethics is false?
Ethics constitute the moral content of behavior governing individuals and societies
Ethics deal with things as they should be, not necessarily as they are
Ethics are an obligation to consider not only our own personal actions but also that of other
human beings
Ethics does not embody the moral content of behavior of organizations towards society
With regard to business ethics, which of the following statement is false?
ethics pertain to the moral content of behavior
Professional ethics stress the norms or values of a profession
Individual, organizational, and professional ethics should always be in conflict so that the check and balance system can operate most effectively to prevent any one ethic—no matter
how noble—from dominating.
Salespeople who find a particular sales strategy unethical should be allowed to voice dissenting opinions instead of being pressured into unwilling conformity
Customer vulnerability is manifested in the following ways except:
Ignorance—a lack of some vital knowledge, often product knowledge, needed to participate in a fair exchange
Complacency—lack of motivation to do anything meaningful
Powerlessness—a lack of either competition within a marketplace or sufficient assets with
which to be persuasive
Naiveté—a lack of experience or the ability to conduct a transaction or negotiate terms of a fair deal
_________ refer to written expression of a firm’s values, listing specific behaviors that
are consistent or inconsistent with those values.
Code of ethics
Sales management ethics
moral ethics
business ethics
Several types of ethical codes exist in American enterprise. Which of the following is not
one of these ethical codes?
professional codes—for occupational groups such as doctors, lawyers, accountants, marketing
advisory group codes—suggested by government agencies or other special interest groups
consultative codes—for professional consultants to business, government, and not-for-profit
organizations
business association codes—for companies engaged in the same line of activity, e.g., the
American Association of Advertising Agencies
The discipline dealing with moral duty and obligation; a set of moral principles or values; the principles of conduct governing an individual or group deal with:
social responsibility
professional judgments
morals
ethics
The following behaviors are generally prohibited in sales-related codes of ethics:
Bribes, gifts, kickbacks
Illegal political payments
Violation of laws in general
all the above
According to sales-related codes of ethics, the following practices are generally not acceptable:
Violation of antitrust laws
Fraud and deception
Illegal payments abroad
all the above
___________ represents a rule that should always be applied with no exceptions or excuses.
Idealism
moral absolute
deontological process
Moral philosophy
In dealing with their own companies, which of the following is not an ethical issue for most salespeople?
cheating in sales contests
falsification of sales records
misuse of company assets
all the above are ethical issues for most salespeople
Salespeople must be aware that the saying “all is fair in love and war” does not necessarily apply to ethical selling and dealing with competition. Which of the following is considered to be an unethical practice?
snooping on competitors
calling upon a competitor’s customer
attending civic meetings when your competitors are in attendance
all of the above are unethical
__________, as a moral philosophy, is a process by which individuals reach moral decisions based more on the actions they perceive to be acceptable given a particular situation
Relativism
deontologism
Idealism
Absolutism
________ is a philosophy that defines morality based on the behavior. It allows some indiscretion based on the argument that the “good” that results is consequences of the more important than the harm caused. In other words, the end justifies the means.
Idealism
Relativism
Teleology
Absolutism
____________ represents a situation with alternate courses of action, each having different moral implications.
ethical dilemma
Acceptability dilemma
Contractual dilemma
Obligational dilemma
____________ refers to the inherent fairness or justice in a situation.
Acceptability
Moral equity
Contractualism
teleology
____________ describes how culturally or socially acceptable we perceive an action to be.
Acceptability
Moral equity
Contractualism
teleology
____________ is the extent to which an act is consistent with stated or implied contracts and/or laws.
Acceptability
Moral equity
Contractualism
teleology
Which of the following research findings are incorrect?
Sales managers and salespeople are not more likely to engage in unethical practices than are people with other marketing and management jobs
Relatively high levels of relativism are associated with less ethical decision making among sales managers
Age is negatively related to ethical behavior among sales managers—younger sales managers tend to make more ethical decisions than older sales managers
Relatively high levels of idealism are associated with a lower likelihood of hiring a controversial job candidate
Which of the following are not dimensions of the ethical climate?
policies and rules
trust and responsibility
accountability
peer behavior
When sales managers and salespeople internalize the _________ that govern selling and marketing conduct within the firm, they are more likely to behave ethically.
policies and rules
bottom-line sales emphasis
trust and responsibility
peer behavior
The _______________ dimension defines how far people are trusted to behave in a responsible way and are held personally responsible for their actions.
policies and rules
bottom-line sales emphasis
trust and responsibility
peer behavior
______________, as a dimension of ethical climate, is the extent to which employees view coworkers as having high moral standards.
policies and rules
bottom-line sales emphasis
trust and responsibility
peer behavior
As a dimension of ethical climate, ______________ refers to the extent to which employees feel pressured to prioritize increased revenues, profits, margins, or other financial returns over all other concerns.
policies and rules
bottom-line sales emphasis
trust and responsibility
peer behavior
Laws protecting companies from each other, thus ensuring that a competitive marketplace exists include all except:
Robinson-Patman Act
Textile Labeling Act
Clayton Act
Sherman Antitrust Act
Which of the following is not a law protecting companies from each other to ensure healthy competition?
Wheeler-Lea Act
Lanham Trademark Act
Consumer Goods Pricing Act
Meat Inspection Act
The following are laws and policies protecting consumers and society from unfair business practices except:
Federal Trade Commission Act
Pure Food and Drug Act
Automobile Information Disclosure Act
Kefauver-Harris Drug Amendments
Which of the following is not a law protecting consumers and society from unfair business practices?
National Traffic and Motor Vehicle Safety Act
Fair Credit Reporting Act
Robinson-Patman Act
Consumer Goods Pricing Act
Laws protecting consumers and society from unfair business practices include all except:
National Environmental Policy Act
Equal Credit Opportunity Act
Nutrition Label and Education Act
all the above
Federal regulations have had a major impact on business organizations in areas such as collusion, price-cutting, and the restraint of trade. Which of the following regulations address the issue of pricing?
Consumer Goods Pricing Act (1975)
Clayton Act (1914)
Automobile Information Disclosure Act (1958)
all of the above
The Federal Trade Commission Act of 1914 seeks to control which of the following
monopolies
acts that significantly reduce competition
unfair methods of competition in commerce
brands and trademarks
Collusion refers to:
agreements in which a manufacturer grants one dealer exclusive rights to sell a product in a certain trading area
competitors who do not conspire to set or maintain uniform prices and profit margins
competitors who conspire to set prices or join together to act to the detriment of another competitor
all of the above
Price fixing refers to:
competitors colluding to divide a market into noncompetitive territories or to restrict competition in a market
competitors who conspire to set prices or join together to act to the detriment of another competitor
Agreements in which a manufacturer or wholesaler grants one dealer exclusive rights to sell a product in a certain trading area or insists that the dealer not carry competing lines
Competitors who conspire to set or maintain uniform prices and profit margins
Exclusive dealing refers to:
competitors colluding to divide a market into noncompetitive territories or competition in a market
competitors who conspire to set prices or join together to act to the detriment of another competitor
Agreements in which a manufacturer or wholesaler grants one dealer exclusive rights to sell a product in a certain trading area or insists that the dealer not carry competing lines
Competitors who conspire to set or maintain uniform prices and profit margins
Restraint of trade refers to:
competitors colluding to divide a market into noncompetitive territories or to restrict competition in a market
competitors who conspire to set prices or join together to act to the detriment of another competitor
Agreements in which a manufacturer or wholesaler grants one dealer exclusive rights to sell a product in a certain trading area or insists that the dealer not carry competing lines
Competitors who conspire to set or maintain uniform prices and profit margins
About reciprocity as a business practice, it can accurately be said that:
most buyers and purchasers believe it should be illegal
most salespeople like it because is helps them sell
reciprocity is increasing sharply as a result of a lack of enforcement of antitrust laws
it is legal
Reciprocity refers to:
selling substitute goods different from those ordered, intentionally misrepresent delivery dates, fail to actually fill an order, and not fill an order in a reasonable time
Selecting only suppliers who will also purchase from the buyer—“You buy from me and I’ll buy from you”
buying an unwanted item or items in return for being allowed to purchase a product in heavy demand
shipping unordered goods or shipping larger amounts than ordered, hoping the buyer will pay for them
Tie-in sales refers to:
selling substitute goods different from those ordered, intentionally misrepresent delivery dates, fail to actually fill an order, and not fill an order in a reasonable time
Selecting only suppliers who will also purchase from the buyer—“You buy from me and I’ll buy from you”
buying an unwanted item or items in return for being allowed to purchase a product in heavy demand
shipping unordered goods or shipping larger amounts than ordered, hoping the buyer will pay
for them
Unordered goods refers to:
selling substitute goods different from those ordered, intentionally misrepresent delivery dates, fail to actually fill an order, and not fill an order in a reasonable time
Selecting only suppliers who will also purchase from the buyer—“You buy from me and I’ll buy from you”
buying an unwanted item or items in return for being allowed to purchase a product in heavy demand
shipping unordered goods or shipping larger amounts than ordered, hoping the buyer will pay for them
Orders and terms of sale refers to:
selling substitute goods different from those ordered, intentionally misrepresent delivery dates, fail to actually fill an order, and not fill an order in a reasonable time
Selecting only suppliers who will also purchase from the buyer—“You buy from me and I’ll buy from you”
buying an unwanted item or items in return for being allowed to purchase a product in heavy demand
shipping unordered goods or shipping larger amounts than ordered, hoping the buyer will pay for them
Business defamation can include each of the following offenses except
business slander
business libel
product disparagement
all of the above
Which of the following is an example of business slander?
an untrue comparison is made concerning a competitor’s product
an untrue written statement made about a competitor
an unfair and untrue oral statement made about a competitor
unfair pricing
Business slander refers to:
when an unfair and untrue oral statement is made about a competitor
when an unfair and untrue statement about a competitor is made in writing (usually a letter, sales literature, advertisement, or company brochure)
false or deceptive comparisons or distorted claims are made concerning a competitor’s product, services, or property
injury to a competitor can result from the false advertising of one’s own product, misrepresentation of the qualities or characteristics of the product, or related unfair or deceptive trade practices
Business libel refers to:
when an unfair and untrue oral statement is made about a competitor
when an unfair and untrue statement about a competitor is made in writing (usually a letter, sales literature, advertisement, or company brochure)
false or deceptive comparisons or distorted claims are made concerning a competitor’s product, services, or property
injury to a competitor can result from the false advertising of one’s own product, misrepresentation of the qualities or characteristics of the product, or related unfair or deceptive trade practices
Unfair competition refers to:
when an unfair and untrue oral statement is made about a competitor
when an unfair and untrue statement about a competitor is made in writing (usually a letter, sales literature, advertisement, or company brochure)
false or deceptive comparisons or distorted claims are made concerning a competitor’s product, services, or property
injury to a competitor can result from the false advertising of one’s own product, misrepresentation of the qualities or characteristics of the product, or related unfair or deceptive trade practices
With regard to “cooling off” rules, which of the following is correct?
requires door-to-door salespeople to give written notice to customers placing orders of $25 or more that they can cancel their purchase within three days
it came after years of complaints about high pressure tactics in business-to-business selling
it came after managers complained about business-to-business salespeople who gained entrance to their firms and then gave a sales pitch
all door-to-door salespeople post a $100,000 bond with city authorities before making sales call in the city
“Green River” ordinances require that
all salespeople who seek professional certification submit qualifying credentials to Green River, Wisconsin for verification
all non-residents who attempt to sell goods or services directly to consumers be registered with city authorities and obtain a license to sell goods or services direct to consumers in that vicinity
all salespeople with health problems obtain a validated health exam before being permitted to call on consumers in their homes
all door-to-door salespeople post a $1,000 bond with city authorities before making sales call in the city
Among the various differences in selling abroad, probably the major adjustment for most salespeople and sales managers is in developing sensitivity to the ____________ of the foreign country.
laws
distribution pattern
culture
pricing system
In selling to international markets, sales managers will need to recognize the truth of all of the following statements except:
France prohibits door-to-door selling
United States allows American companies to trade with some foreign countries such as Cuba and North Korea
Germany laws hold that bribes are legal and tax deductible as long as they are made outside Germany
United Nations and the European Union are standardizing commercial codes, such as environmental and product safety standards, that are binding on all companies whose nations
consent.
Sales management ethics is the specific component of business ethics that deals with ethically managing the sales function.
True
False
Code of ethics refer to written expression of a firm’s values, listing specific behaviors that are consistent or inconsistent with those values.
True
False
The mere existence of a code of ethics alone does not guarantee a more ethical environment.
True
False
Idealism deals with the systematic ways that individuals recognize and resolve decisions having moral content.
True
False
Strict idealism is associated with universal standards, meaning they should be applied in all relevant situations regardless of context.
True
False
A deontological process is not based on rules, but on a person’s whim.
True
False
Salespeople should be taught that it is seldom “smart” to conduct unethical practices with customers, even when the customer is the instigator.
True
False
Customer vulnerability refers to a state in which the selling company is at a
disadvantage relative to the buyers.
True
False
Relativism is sometimes called situational ethics, meaning that a behavior acceptable in one situation can be unacceptable in another.
True
False
According to situational ethics, behavior acceptable in one situation may be acceptable in another.
True
False
Relativism rejects the notion of “absolutes” or moral imperatives. Hence, acceptability could be based on the cultural context. For instance, a bribe may be unacceptable in the U.S., but may be acceptable in, say, Nigeria.
True
False
Teleology is a philosophy that defines morality based on the behavior. It allows some indiscretion based on the argument that the “good” that results is consequences of the more important than the harm caused. In other words, the end justifies the means.
True
False
A moral judgment is a person’s evaluation of the situation from an ethical perspective.
True
False
Contractualism describes how culturally or socially acceptable we perceive an action to be.
True
False
Acceptability is the extent to which an act is consistent with stated or implied contracts and/or laws.
True
False
The ethical work climate is a specific aspect of the organizational climate. Specifically, it’s the way employees view their work environment on moral dimensions.
True
False
The uniform commercial code is a basic set of guidelines adopted by most states that set forth the rules of contracts and the law pertaining to sales. The code regulates the performance of goods, sellers’ warranties, and the maximum allowable rates of interest and carrying charges.
True
False
Collusion refers to competitors who do not conspire to set or maintain uniform prices and profit margins.
True
False
Price fixing refers to agreements in which a manufacturer or wholesaler grants one dealer exclusive rights to sell a product in a certain trading area or insists that the dealer not carry competing lines.
True
False
Restraint of trade refers to competitors colluding to divide a market into noncompetitive territories or to restrict competition in a market.
True
False
Reciprocity refers to selecting only suppliers who will also purchase from the buyer— “You buy from me and I’ll buy from you.”
True
False
Tie-in sales refers to shipping unordered goods or shipping larger amounts than ordered, hoping the buyer will pay for them.
True
False
Unordered goods refers to selling substitute goods different from those ordered, intentionally misrepresent delivery dates, fail to actually fill an order, and not fill an order in a reasonable time.
True
False
Business libel occurs when an unfair and untrue statement about a competitor is made in writing (usually a letter, sales literature, advertisement, or company brochure).
True
False
Business slander occurs when an unfair and untrue oral statement is made about a competitor.
True
False
Sales subculture is a component of the organizational culture that influences sales force ethical behavior.
True
False
