53) 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
54) An act of sexual harassment violates a victim’s civil rights if it is unwelcome and
“sufficiently severe” and ________.
A) Creates abusive working environment
B) Sets unfair labor standards
C) Interferes with employees’ privacy
D) Empowers only selected few employees
E) Creates role ambiguity for employees
55) How can an employer reduce its liability in sexual harassment complaints?
A) Requiring thorough background checks
B) Encouraging cross-cultural training exercises
C) Implementing effective internal grievance procedures
D) Monitoring the social environment of employees
E) Utilizing effective recruitment and selection practices
56) Most federal laws regarding personnel files are directed at:
A) large corporations.
B) private firms.
C) government employers.
D) small businesses.
E) publicly-traded companies.
57) Two major influences on the ethical behavior of sales personnel are:
A) the organization’s employees and the organization itself.
B) the organization’s production and finance departments.
C) internal and external organizational environments.
D) national and international policies.
E) the organization’s customers and stockholders.
58) On the job, Gary acts purely in his own best interests. He follows the company’s rules only to
avoid being fired. At what level of moral development is Gary functioning?
A) Principled
B) Consensual
C) Conventional
D) Discretionary
E) Preconventional
59) In Turkey, a salesperson wants to sell a block of 75 symphony tickets to an Armenian senior
citizen center to hand out to its members. If he can sell these remaining tickets, he will receive a
$500 bonus. When the center director asks him if there will be adequate security at the event, the
Turk assures her the arena has doubled its security force for the event even though no special
security arrangements have been made in spite of recent threats made against Armenians. The
Turkish salesperson is most likely functioning at the ________ stage of moral development.
A) postconventional
B) principled
C) conventional
D) discretionary
E) preconventional
60) Tina perceives herself to be a responsible person because she does not misuse company
assets, she is always truthful, and she treats others fairly. She upholds moral and legal laws and
conforms to the expectations of others. At which level of moral development is Tina operating?
A) Consensual
B) Principled
C) Conventional
D) Discretionary
E) Preconventional
61) A salesperson asks, “What am I legally required to do with this?” when deciding whether to
return competitive intelligence that was gathered by stealing company data. At which level of
moral development is this salesperson operating?
A) Economically
B) Principled
C) Conventional
D) Restricted
E) Preconventional
62) Courtney Lee works for a travel agency. The company has spent several hundred dollars
promoting a trip to a country that is undergoing a great deal of political unrest. Lee has been told
that if she wants to keep her job, she needs to get at least three couples to sign up for this trip.
Instead, Lee handed in her letter of resignation because she refused to sell a potentially
dangerous trip to her customers. Lee is functioning at the ________ level of moral development.
A) biblical
B) principled
C) conventional
D) discretionary
E) preconventional
63) “I don’t care what the boss said. It’s wrong and I‘m not going to do it. If I get fired, then that’s
just the way it’ll have to be.” The salesperson who just made this statement to a co-worker is
apparently working at the ________ level of moral development.
A) nondiscriminatory
B) principled
C) conventional
D) consensual
E) preconventional
64) Most salespeople operate at what level of moral development?
A) Consensual
B) Principled
C) Conventional
D) Discretionary
E) Responsive
65) The Core Principles of Professional Selling require people whose personal character is at
level:
A) 0.
B) 1.
C) 2.
D) 3.
E) 4.
66) According to the text, a(n) ________ refers to something that provides the correct action to
take in any situation and never gets tailored to fit a situation.
A) ethical continuum
B) situational compass
C) ethical talisman
D) fixed point of reference
E) situational barometer
67) According to the text, a ________ would tell Rob Loughton he should return the stolen
competitive information to its owner without examining it even though the information would
more than likely result in a large commission for Loughton.
A) fixed point of reference
B) frame of conventional reference
C) compass point
D) moral sextant
E) directional code of ethics
68) According to the text, businesses use the ________ to serve as a universal, practical, and
helpful standard for businesspeople.
A) Hindu Mahabharata
B) sayings of Confucius
C) Core Principles of Professional Selling
D) Beatitudes
E) Torah
69) ________ are the codes of moral principles and values that govern the behaviors of a person
or a group with respect to what is wrong.
A) Laws
B) Ethics
C) Principled heuristics
D) Sociocultural norms
E) Governing norms
70) Ethical behavior:
A) assumes that an economic level of social responsibility exists in the organization.
B) assumes that the individual is operating at an unrestricted moral level.
C) refers to following the rules and treating others fairly.
D) assumes that human interaction is reciprocal.
E) refers to adhering to a generic religious principle.
71) Which of the following statements about ethical dilemmas is true?
A) Ethical dilemmas occur because many ethical standards are not classified.
B) Friends and family are never the cause of an ethical dilemma.
C) Cultural differences are never the source of ethical dilemmas.
D) Ethical dilemmas occur when right and wrong are clearly identified.
E) Ethical dilemmas are rare when the available choices all have unethical elements.
72) Your brother Craig sells art collectibles. He knows that your boss collects early 20th century
baseball memorabilia and he has asked that you introduce him to your boss and to endorse his
background as an ethical antiques dealer. You know that in the past Craig has sold some items
that were not what he claimed they were and you suspect that some of his baseball memorabilia
might be forgeries. Your mother is pressuring you to help your brother make this sale. This is an
example of a(n):
A) social impasse.
B) discretionary responsibility.
C) ethical dilemma.
D) policy-based moral development.
E) sales dilemma.
73) Which of the following questions is LEAST relevant to the level of pressure a manager
places on a salesperson?
A) What are the sales group goals?
B) What motivates the salesperson?
C) What is the industry standard?
D) How big is the territory?
E) What goals are realistic?
74) Linda Moore is a commission salesperson whose territory for the last nine years has been the
entire state of Virginia. Through hard work she has greatly increased her company’s business in
the region. Now her manager has decided to split the state into two territories. Moore can most
likely expect to:
A) receive additional key accounts.
B) earn more sales revenue.
C) earn less sales revenue.
D) gain more customers.
E) be fired from her job.
75) All of the following statements about employee termination are true EXCEPT:
A) many early 20th century courts strictly applied the termination-at-will rule.
B) many 1980s courts ruled in favor of employees by limiting the termination-at-will rule.
C) employers have the right to terminate sales personnel for poor performance.
D) employers have the right to terminate sales personnel for excessive absenteeism.
E) employers have the right to terminate sales personnel for union participation.
76) Under current U.S. laws regarding termination-at-will, it is illegal to terminate an employee
for:
A) excessive absenteeism.
B) poor organizational citizenship.
C) unsatisfactory performance.
D) unsafe conduct.
E) union activities.
77) Termination-at-will:
A) is a modern judicial term that came from court decisions in the 1980s.
B) refers to a firm’s inability to terminate an employee without just cause.
C) was designed to protect the rights of the employees.
D) was designed to protect the rights of the employers.
E) supports the strategy of downsizing.
78) Which of the following statements about employee rights is true?
A) Employee rights are based on what the employer deems is fair and equitable.
B) The terminate-at-will rule first came about during a 1940 court case.
C) Cooperative acceptance is an employee right referring to fair treatment.
D) Privacy is only an employee right with private firms not public entities.
E) Reciprocity is an employee right guaranteed by federal laws.
79) ________ refers to the right of employees to be treated fairly and with respect regardless of
race, sex, national origin, physical disability, age, or religion while on the job.
A) Discretionary approval
B) Hire-at-will
C) Discrimination
D) Cooperative acceptance
E) Terminate-at-will
80) Which of the following corporate actions would LEAST likely prevent racial and sexual
harassment?
A) Getting the active support of top management in preventing workplace harassment
B) Establishing compensation policies that reward anti-harassment behavior
C) Establishing harassment grievance procedures
D) Providing anti-harassment training to employees
E) Eliminating cooperative acceptance
81) All of the following are employer benefits of respecting employee rights EXCEPT:
A) creating a positive work environment.
B) reducing employee turnover.
C) attracting good employees.
D) reducing legal fees and fines.
E) minimizing union control.
82) 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.
83) Clark is a soft drink salesperson who is enrolled in a vocational technology program that
meets at night. From time to time, he takes off most of the day before his night class meets in
order to prepare assignments that are due that evening. From an ethical standpoint, it is correct to
say that Clark is:
A) guilty of misrepresentation.
B) misusing company assets.
C) cheating.
D) moonlighting.
E) acting quite ethically.
84) Which of the following sales personnel activities is considered ethically acceptable behavior?
A) Splitting commissions with fellow employees to win a sales contest.
B) Taking the family to Disneyworld and writing it off on the expense account.
C) Attending a college course on company time.
D) Attending college in the evening but taking an afternoon off to prepare for class.
E) Giving a $10 dollar gift to a $10,000 customer.
85) 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.
86) 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:
A) misuse of relationship marketing.
B) sales puffery.
C) misrepresentation.
D) a warranty of fact.
E) a statement of fact.
87) A computer dealer induced a finance company to enter into a hire-purchase agreement by
contributing false information about the amount of deposit paid by the customer unknowingly,
who later defaulted and sold the computer to a third party. This is an example of:
A) misuse of relationship marketing.
B) sales puffery.
C) a warranty of fact.
D) misrepresentation.
E) a statement of fact.
88) The salesperson promised the radio station manager that the new $30,000 computer system
would be compatible with the equipment already used by the station. When the new computer
system proved not to be compatible even after an additional $10,000 worth of new software, the
station manager sued the salesperson and his company for:
A) misrepresentation and breach of warranty.
B) misuse of relationship marketing.
C) violation of Title VII.
D) violation of the Robinson-Patman Act.
E) failure to adhere to the rules of full disclosure.
89) Which of the following pricing tactics is LEAST likely to be a source of an ethical dilemma?
A) Tie-in sales
B) Reciprocity
C) Price discrimination
D) Seasonal discounts
E) Exclusive dealership
90) When the salesperson says to the new prospective customer, “I believe my company sells the
best mattresses and that you can’t find any better,” it is an example of:
A) sales puffery.
B) an illegal act.
C) a statement of fact.
D) price discrimination.
E) a breach of warranty.
91) 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.
92) Which of the following statements about sales puffery is true?
A) The difference between sales puffery and statements of fact is easy to distinguish.
B) Misrepresentation cases are judged on the use of standardized words and phrases.
C) Generally, the less knowledgeable the customer, the greater the chances the court will
interpret a statement as actionable.
D) A salesperson’s statements of puffery should be taken at face value and considered factual.
E) Puffery typically occurs when a salesperson deliberately makes erroneous statements.