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39) Which of the following is a fairly easy way for a company to discourage unethical behaviors
by its employees?
A) Have a zero tolerance policy so anyone suspected of unethical behavior would be
immediately terminated.
B) Require all potential hires to have completed a privately-conducted ethics course before
submitting their applications for employment.
C) Allow employees to unionize so their actions will be dictated by the union.
D) Change the Employee of the Month program to celebrate the employee with the fewest
ethical violations.
E) Write up an ethical code, refer to it as a company value in the employee handbook and on the
website, and ask management to adhere to it strictly to lead by example.
40) Reciprocity is sometimes, but not always, unethical behavior. Which of the following
situations is an example of reciprocity which is unethical behavior?
A) An architect refuses to allow any other builders to build her designs because she doesn't trust
the quality of the jobs performed by other builders. The builder does not build designs by other
architects because other architects cut corners in the designs.
B) A plastics company is willing to develop a special process for coating nonstick cooking
equipment. As a thank-you, the cooking equipment company allows employees of the plastics
company to use the same employee discount its own employees enjoy for purchases of cooking
equipment.
C) A restaurant chef buys all his produce from the local farmers' market. The farmers and
workers at the market eat their meals at that restaurant on the days they sell at the market.
D) A garbage hauling service requires that a hotel chain give a discount to employees of the
garbage hauling service in exchange for discounted garbage hauling services for the hotels.
E) The merchants in one neighborhood of a large city have decided to engage in a "buy local"
campaign and to patronize each other whenever possible, even if they could find slightly lower
prices in other areas of the city.
41) A salesperson's sales manager exerts strong influence on whether the sales rep acts ethically
or not. A sales manager may not even be aware of the influence she wields or the effect her
words or management techniques have on her employees. Of the following actions by a sales
manager, which one could most easily be construed by an employee as a directive to use
unethical conduct?
A) offering an incentive or prize to salespeople who meet or exceed their quotas
B) sending an e-mail to the entire department whenever a sales rep closes a sale
C) telling sales teams that they need to hit their quotas no matter what it takes
D) modifying sales territories to ensure that key accounts are actively monitored
E) contacting key accounts to let them know the company stands behind its product
42) A salesperson from Company A discovers that salespeople from Company B have been
telling customers that Company A's safety records are falsified. The most ethical action a sales
manager from Company A can take to remedy the situation is:
A) have Company A's safety records audited and publish the results of the audit on their website,
and ask Company A's salespeople to direct customers to them
B) tell Company A's salespeople to match the actions of Company B's salespeople by implying
that Company B's safety records may be falsified
C) file an anonymous complaint with the Attorney General in the state in which both companies
operate
D) pay a visit to the corporate offices of Company B and threaten Company B's sales managers
with a pricing war unless Company B's sales reps stop spreading false rumors
E) create a website detailing the safety records of all the companies in the industry so consumers
can compare easily
43) An American company has been working on a business deal in a developing nation. This
deal will open an entirely new market to the American company, increase stability in the local
economy, and provide jobs to thousands of local workers. When the deal reaches the final
phases, the local government asks for a sizable bribe from the American company to move
forward with the proper permits to continue with the project. Which of the following is the
proper analysis of the situation?
A) Paying bribes violates U.S. laws, so the deal may fall through.
B) Reciprocity is illegal in most foreign countries but not necessarily in the U.S.
C) U.S. bribery laws are suspended in foreign countries, so paying the bribe is acceptable.
D) According to U.S. laws, bribes are equivalent to gift giving, so they are an accepted aspect of
conducting business.
E) The U.S. firm must consult the International Uniform Code of Business to determine the
legality of the bribe.
44) Anne, a sales representative for a software firm, is heading to Europe for a sales presentation.
Anne is unsure about the practice of gift giving and wants to make sure that she is perceived as
ethical by the other firm. Which of the following should Anne LEAST likely do in this situation?
A) Check the company policy about gift giving.
B) Ensure that the gift is a small, thoughtful token.
C) Give the gift before doing any business with the customer.
D) Avoid giving the impression of buying the customer's favor.
E) Ensure that the customer views the gift as a gesture of goodwill.
45) Ethical standards tend to filter down from the top of a business organization.
46) The major outcome of a business agreement based on reciprocity is a mutual exchange of
benefits.
47) The salesperson should entertain all customers with the same activity to avoid the appearance
of favoritism.
48) Product disparagement constitutes a type of business defamation.
49) A majority of states have passed legislation establishing a cooling-off period during which
the consumer may void a contract to purchase goods and services.
50) The Uniform Commercial Code is a legal guide that strives to reduce the number of
telemarketing calls.
51) The primary focus of trust in transactional sales is trust in the person who sells the product.
52) The term ________ can be defined as a mutual exchange of benefits, as when a firm
purchases product from its own customers.
53) The major types of business defamation are business slander, business libel, and ________.
54) Business defamation incurred when an unfair and untrue statement is made about a company
in writing is known as ________.
55) ________ are deep personal beliefs and preferences.
56) Differentiate between business slander, business libel, and product disparagement.
57) Withholding information is most likely:
A) another name for reciprocity
B) legal and always ethical
C) only unethical if done under duress
D) the only logical course of action
E) similar to lying in some cases
58) Business associations and professional organizations that have created written codes of
ethics:
A) make it more difficult for salespeople in their industry to close sales
B) make it more difficult for competing companies to be honest about benefits and features
C) make it easier for salespeople in those industries to know what is considered ethical behavior
and what isn't
D) make it easier for unethical salespeople to have a false advantage with prospects
E) make it easier for law enforcement to build a case against companies for racketeering or
collusion
59) "Always doing what you say you will do" builds a relationship with customers based on:
A) transactions
B) trust
C) a written code of ethics
D) customer-focused strategy
E) product knowledge
60) "Erosion of character" takes place when employees:
A) have too many clients
B) are not trained adequately
C) do not have enough product knowledge
D) engage in dishonest behavior
E) compete with others in the same company
61) Accu-Tech, a small company in a tightly-contested market, discovers that sales reps of the
firm's main competitor, Compu-World, have been making false and negative statements about
Accu-Tech products and services. One of Accu-Tech's best customers calls the company's CEO
asking about the rumors, and the CEO realizes that Accu-Tech may lose business from the
Compu-World claims. What should Accu-Tech most likely do?
A) Take out a full-page ad in the local newspaper disputing the claims with facts and stating that
Compu-World has been lying to customers.
B) Talk to Accu-Tech customers in person to give them the facts and research that support the
truth about the firm's products and services.
C) Contact the Compu-World CEO and arrange to divide up the local market to avoid
duplicitous sales tactics.
D) Take Compu-World to court for business libel and reciprocity unless the firm issues a public
apology.
E) Engage in a mass media campaign to spread negative information about Compu-World.
62) A company operating exclusively in the United States is considering purchasing a training
course in ethics for its employees to help them understand what actions are considered ethical
and unethical, especially in relationships with clients. Which of the following makes a difference
in whether they should choose a training course?
A) cost of the printed version vs. the online version
B) whether the course is targeted to a U.S. audience or companies operating in other countries
C) number of training modules and how many topics each module covers
D) whether or not it covers tax codes
E) length of time it will take to complete the course
63) Many business organizations, professional associations, and certification agencies have
established written codes of ethics.
64) According to the text, one of the "half-truths" that has influenced the erosion of character in
business is that: "Corporations exist to maximize shareholder value."
65) Most people employed in the fast-paced business world, which is constantly changing, will
adopt or discard values quickly.
66) Culture is the sum total of beliefs, values, knowledge, ethnic customs, and objects that
people use to adapt to their environment.
67) Which of the following is a general guideline that serves as a foundation for a personal code
of business ethics?
A) Personal selling is a stepping stone to more legitimate careers.
B) Be honest with yourself and with others.
C) Tasks come first, relationships second.
D) Your values should not be in conflict with those of your employer.
E) Selling is about controlling the interaction and managing the relationship.
68) Taking time to establish a proper rapport with customers will most likely lead to:
A) guaranteed sales
B) open communication
C) a faster sales cycle
D) a slower sales cycle
E) lower commissions
69) Martin, a sales representative for a computer firm, receives the latest performance report on
the main product he sells. Unfortunately, Martin's product performs slightly behind that of the
closest competitor, and Martin is afraid that this information will cause him to lose customers.
The research and development team has made some major improvements in the product, but the
next performance report is not due out for another six months. What should Martin most likely
do to prevent the loss of customers?
A) He should pretend that the recent performance report has not come out and tell his customers
that he doesn't know when it will be out.
B) He should change the numbers on the performance report to indicate that his product
performs better than the competition's product.
C) He should avoid direct contact with his customers until the next performance report comes
out.
D) He should expose the performance report but explain to customers that the product has been
improved and new data will be available in six months.
E) He should change the numbers for the competitor so it looks as if the two companies' products
perform equally.
70) Edward, a pharmaceutical sales representative, tends to focus primarily on highlighting
product features and making quick sales when interacting with customers. Sometimes, Edward
misleads customers about the benefits and side effects of certain medications. Edward's sales
manager has noticed that Edward's customer retention rate is very low and is concerned about
Edward's personal code of ethics. What is the best advice that the sales manager could give to
Edward?
A) View personal selling as transactional.
B) Develop strategic alliances for profitability.
C) Focus on tasks first and relationships second.
D) Build customer relationships based on honesty.
E) Behaviors are the foundation for values and attitudes.
71) It is almost impossible for management to develop guidelines for sales personnel regarding
the giving of gifts to customers.
72) The role of the salesperson is to diagnose buyer need and determine how to create value from
the situation.
73) If you are not breaking the law, then you are definitely acting in an ethical manner.
74) ________ must be viewed as an exchange of value.
75) Respond to the following idea: "Ethics are not a matter of law alone. A salesperson's ethical
sense must extend beyond the legal definition of what is right or wrong."
