MKT 360 ch 2

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.

A) sales puffery.

________ 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

B) Ethics

All of the following statements, if made by a salesperson, could have legally actionable consequences if the statement were incorrect EXCEPT: A) "this refrigerator will preserve foods in the warmest weather." B) "this is a safe, dependable helicopter." C) "feel free to prescribe this drug to your patients, doctor. It's not addictive." D) "this mace pen is capable of instantaneous incapacitation for a period of 15 to 20 minutes." E) "this offer is valid only until the end of this month."

E) "this offer is valid only until the end of this month."

A Barna Research study finds that all of the following are primary influences on the ethical and moral decision-making process of Americans EXCEPT: A) religion B) books C) the Internet D) television E) family

A) religion

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

A) Creates abusive working environment

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.

A) Ethical dilemmas occur because many ethical standards are not classified.

Which of the following questions would most likely be asked by a person at the preconventional level of moral development? A) What can I get away with? B) What does my family want me to do? C) What am I legally required to do? D) What is the right thing to do? E) What does society expect from me?

A) What can I get away with?

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

A) fixed point of reference

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.

A) misrepresentation and breach of warranty.

Which of the following factors has the LEAST influence on an individual's core belief system? A) physical appearance B) religious background C) family upbringing D) life experiences E) personality

A) physical appearance

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.

A) the organization's employees and the organization itself.

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.

B) A building supply salesperson who sells vacation real estate on company time.

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.

B) Bribery accounts for more than half of all white-collar crimes in the U.S.

Which of the following statements about misrepresentation is false? A) When salespeople loosely describe their goods or services in glowing terms, those statements cannot be relied upon by the potential buyer. B) Courts tend to favor salespersons in misrepresentation cases when the customer lacks product knowledge. C) When a salesperson makes claims of a "factual nature" regarding a service's inherent capabilities, the law treats these comments as statements of fact and warranties. D) A salesperson's opinion of the quality of the product being sold is known as sales puffery and is not legally actionable. E) To "stay legal" a salesperson needs to understand the difference between general statements of praise and statements of fact.

B) Courts tend to favor salespersons in misrepresentation cases when the customer lacks product knowledge.

) Which of the following marketing tactics would most likely trigger an ethical dilemma? A) Prospecting B) Reciprocity C) Cooperative acceptance D) Seasonal discounts E) Loyalty programs

B) Reciprocity

Which of the following questions would most likely be asked by a person at the principled level of moral development? A) What does society expect from me? B) What is the right thing to do? C) What am I legally required to do? D) What does my family want me to do? E) What can I get away with?

B) What is the right thing to do?

If a video game manufacturer required its resellers to stock a line of games based on the financially-disappointing movie War of the Worlds in order to carry games based on the very popular TV show Survivor, it would be an example of: A) misrepresentation. B) a tie-in sale. C) reciprocal selling. D) a Green River dealership. E) discriminatory selling.

B) a tie-in sale.

According to a survey of adult Americans, people are most likely to base ethical and moral decisions on the: A) legal outcome. B) current situation. C) principle of justice. D) historical culture. E) religious standard.

B) current situation.

"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

B) principled

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

B) principled

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.

C) earn less sales revenue.

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.

C) ethical dilemma.

Which of the following statements, if false, would most likely have legal consequences? A) "You're going to love this new mattress!" B) "We are the metropolitan area's low price leader." C) "We offer a 100 percent order-fill rate; you'll never experience a back-order." D) "Our employees have extensive training in how to pamper our customers." E) "Your own mother can't care for you as well as our staff!"

C) "We offer a 100 percent order-fill rate; you'll never experience a back-order."

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

C) Conventional

Most salespeople operate at what level of moral development? A) Consensual B) Principled C) Conventional D) Discretionary E) Responsive

C) Conventional

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

C) Conventional

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.

C) Cooperative acceptance is an employee right referring to fair treatment.

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

C) Core Principles of Professional Selling

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.

C) Generally, the less knowledgeable the customer, the greater the chances the court will interpret a statement as actionable.

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

C) Implementing effective internal grievance procedures

According to the text, why do most employees in organizations succumb to questionable ethical standards or only follow formal policies? A) Most people are in the conventional and principled levels of moral development. B) Few organizations develop and enforce very stringent codes of ethics. C) Most people are in the preconventional and conventional levels of moral development. D) Few people in an organization are considered stakeholders or stockholders. E) Most people exhibit behavior that is close to the principled level of moral development.

C) Most people are in the preconventional and conventional levels of moral development.

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?

C) What is the industry standard?

According to the text, your conscience is usually not the best guide for making moral and ethical decisions because it: A) is at the conventional level B) remains too stationary C) changes based on the situation D) is too distant from the circumstances E) relies on conflicting belief systems

C) changes based on the situation

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.

C) government employers.

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.

C) misrepresentation.

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.

C) refers to following the rules and treating others fairly.

Which of the following is LEAST likely one of the ethical issues faced by most sales managers? A) Employee rights B) Sales territories C) Sales pressure D) Benefits flexibility E) Personnel substance abuse

D) Benefits flexibility

________ 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

D) Cooperative acceptance

Which term refers to the rights desired by employees regarding their job security and treatment by employers? A) Cultural acceptance B) Human rights C) Affirmative action D) Employee rights E) Workers' compensation

D) Employee rights

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

D) Quid pro quo

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

D) Seasonal discounts

Sharon, a salesperson for a greeting card company, is responsible for sales in the northern part of California. Sharon's manager has decided to change Sharon's key account in the territory to a house account. Why would Sharon most likely dislike this decision? A) Sharon will have to monitor the key account for less pay than she usually earns. B) Sharon will be demoted from her position in the territory for losing the key account. C) Sharon will have to share commissions from the key account with the home office. D) Sharon will lose the commission for the key account. E) Sharon will have to work from the firm's home office.

D) Sharon will lose the commission for the key account.

Which term refers to the different beliefs people have about the world? A) Multiculturalism B) Social morals C) World ethics D) Worldview E) Citizenship

D) Worldview

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

D) fixed point of reference

All of the following are involved in the majority of sales people's ethical issues EXCEPT: A) co-workers. B) managers. C) customers. D) friends. E) employers.

D) friends.

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.

D) misrepresentation.

All of the following may eliminate the need for additional laws governing right and wrong in business settings EXCEPT: A) stringent codes of ethics. B) moral organizational cultures. C) ethical examples from top management. D) standardization of fixed points of reference. E) support for corporate social responsibility programs.

D) standardization of fixed points of reference.

A salesperson can minimize exposure to costly misrepresentation and breach of warranty lawsuits if he/she: A) never negotiates. B) avoids win-win sales situations. C) never sells the customer more than he/she wants. D) thoroughly educates customers before making a sale. E) offers opinions when the customer asks what result a product will accomplish.

D) thoroughly educates customers before making a sale.

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.

D) was designed to protect the rights of the employers.

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

E) Eliminating cooperative acceptance

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.

E) Even if the salesperson misrepresentation statement is made innocently, many courts will award damages to the customer.

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.

E) Giving a $10 dollar gift to a $10,000 customer.

Which of the following terms refers to an extra-large customer that generates significantly more revenue for a salesperson than other customers? A) Balanced account B) Outsourced account C) Retail account D) House account E) Key account

E) Key account

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

E) Preconventional

Sheridan decides to buy his first car. The car salesperson promises to arrange a car loan for him if he also purchases the auto insurance. This is a classic example of: A) misrepresentation. B) reciprocal selling. C) a Green River dealership. D) discriminatory selling. E) a tie-in sale.

E) a tie-in sale.

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.

E) employers have the right to terminate sales personnel for union participation.

All of the following are characteristics of ethical behavior EXCEPT: A) being honest with customers. B) following company policies. C) showing loyalty to co-workers. D) treating customers and peers fairly. E) maintaining personal sales goals.

E) maintaining personal sales goals.

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.

E) minimizing union control.

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

E) preconventional

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.

E) union activities.