119) An ethics ombudsperson:
A) interacts with the organizational stakeholders on a daily basis.
B) writes the company’s code of ethics.
C) is also called a whistle-blower.
D) handles all negative publicity for an organization.
E) is an official who assumes the role of corporate conscience.
120) All employees who observe or become aware of criminal practices or unethical behavior
should be encouraged to report the incident to their superiors, to a higher level of management,
or to an appropriate unit of the organization. This reporting process is called:
A) reciprocating.
B) tattling.
C) intelligence gathering.
D) whistle-blowing.
E) fact-finding.
121) Jason Montgomery, a hospital administrator in Montana, lodged a complaint against the
hospital owners when he was asked to keep two sets of accounting records so that the hospital
could reduce its tax liability. Montgomery was engaged in:
A) reciprocity.
B) preconventional moral development.
C) whistle-blowing.
D) consensual reporting.
E) ethical declarations of wrongdoing.
122) 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:
A) breach of trust.
B) intelligence gathering.
C) tattling.
D) whistle-blowing.
E) fact-finding.
123) Which term refers to the adherence to a strict ethical and moral code?
A) humility
B) courage
C) sincerity
D) honesty
E) integrity
124) According to the text, modern corporations seek salespeople with all of the following
characteristics EXCEPT:
A) character
B) integrity
C) synergy
D) values
E) trust
125) Which of the following is the underlying focus of the Core Principles of Professional
Selling?
A) Respecting the dignity of individuals
B) Showing fairness with competitors
C) Being conscientious at all times
D) Showing trustworthiness
E) Recognizing good deeds
126) Which of the following is legal according to the Robinson-Patman Act of 1936?
A) Whistle-blowing
B) Exclusive dealerships
C) Reciprocity
D) Quantity discounts
E) Tie-in sales
127) What factors shape a person’s belief system?
128) What are some common ethical situations that occur between salespeople and customers?
What control systems can an employer implement to create an ethical sales climate?
129) What steps can a company take to ensure that it maintains an ethical environment?
130) List the three levels of moral development. At what level do most salespeople operate?
131) From the perspective of the world’s religions, define the professionalism. What are the Core
Principles of Professional Selling?
132) If the concept of ethics is so easy to understand, why do ethical dilemmas occur so
frequently?
133) Imagine you sell automobiles. Develop a statement that is clearly an example of puffery.
Develop a statement that could be interpreted as misrepresentation. What conditions would make
this assignment easier?
134) What is price discrimination? What law protects customers from price discrimination?
135) What is an ethics ombudsperson?
136) What are the two major influences on the ethical behavior of sales personnel?
137) At what level of moral development do most people operate?
138) What complaint could be lodged against a salesperson who claimed that if you bought the
mattress she was selling, you would never have any more backaches?
139) What law protects customers from price discrimination?
140) Under what condition(s) is it illegal for a manufacturer to offer a reseller an exclusive
dealership?
141) What are the two types of codes of ethics?
142) What is the single most important factor in improving the climate for ethical behavior in a
sales force?
143) 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.
Evan’s income is based on commissions at Innovative Installers, and his income has declined in
recent months. As a result, Evans has taken an additional job renting apartments. Although
Evans mostly works on weekends, he sometimes shows apartments to clients during the week
when he works for Innovative Installers. Which of the following best describes Evans’s actions?
A) Misusing company assets
B) Accepting bribes
C) Misrepresentation
D) Sales puffery
E) Moonlighting
144) 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.
Evans tells a potential client that Innovative Installers offers the most modern and stylish office
furniture available on the market. Evans is most likely guilty of:
A) reciprocity.
B) profiteering.
C) sales puffery.
D) breach of warranty.
E) misrepresentation.
145) 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.
Glenda is meeting with an Office Pro store manager. Office Pro is interested in purchasing a line
of Innovative Installers’ desks to sell in the Office Pro retail stores. Glenda tells the Office Pro
manager that she has a limited supply of the desks; however, she can obtain more desks if Office
Pro also purchases desk chairs. Glenda is most likely guilty of:
A) establishing unfair sales restrictions.
B) practicing price discrimination.
C) setting an exclusive dealership.
D) encouraging a tie-in sale.
E) requiring reciprocity.
146) 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.
Managerial concern about the solvency of Innovative Installers has led to excessive pressure on
salespeople to sell unneeded services to customers. The issue of whether the company should be
more concerned about maintaining its existence or providing the best possible service to its
customers produces a(n):
A) social impasse.
B) discretionary responsibility.
C) ethical dilemma.
D) policy-based moral development.
E) sales dilemma.
147) 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:
A) misrepresentation.
B) bribery.
C) reciprocity.
D) exclusive dealership.
E) sales restrictions.