Chapter 4: Ethics: The Foundation for Relationships in Selling
Multiple Choice


The best interpretation of the "caveat emptor" principle is:

unethical conduct is to be judged by a neutral third party.
a handshake is the universal "gentlemen's agreement."
good ethics of the seller is good business.
the buyer is expected to look the product over carefully.


A close examination of the history of ethics and ethical behavior reveals the following fact:

It is now possible to define fundamental ethical principles to cover every business practice.
The role model provided by top management is less important today.
People are continually in the process of negotiating ethical norms.
There is now a uniform code of ethics for all salespeople.


Whereas a legal standard is enforced by statute, an ethical standard is an outgrowth of:

guidelines established by professional association.
personal values of the salesperson.
the customs and attitudes of society.
guidelines formed by a religious community.


When a customer reveals confidential information about a competitor to a salesperson, the salesperson should:

accurately relate details to his/her top management.
inform the competing company about the useful information.
request that the customer not comment further because of the conflict of interest.
tell it to no one.


Which of the following would be the best application of principles regarding gift giving to customers?

Give gifts before you begin doing business with a customer.
Once begun, maintain a regular and consistent pattern of gift giving.
Determine the gift-receiving policy of customer's company.
Clearly explain the conditions you expect of the customer who accepts a gift.


Which of the following is a true statement regarding the relationship between attitudes, behavior, and values.

Values influence attitudes which, in turn, influence behavior.
Attitudes influence behavior, which, in turn, influence values.
Behavior influences attitudes, which, in turn, influence values.
Although all three are related, there is no established sequence of influence.


Howard Simpleton is in a position to close a large sale if he conceals certain information that the customer needs to make an intelligent decision. His sales manager encourages him to withhold the information and says that no laws will be broken. In this case, the salesperson must consider the following ethical guideline:

"caveat emptor"
A salesperson's ethical sense must extend beyond the legal definition of what is right and wrong.
Company laws should guide all ethical decisions.
The organization's moral tone is established primarily by salespeople who have daily customer contact.


Which of the following statements dealing with values is true?

Our values change frequently throughout life.
Values are deep, personal beliefs and preferences that influence our behavior.
Most people find it easy to clarify their values.
Values have very little influence on our behavior.


Which of the following would be the LEAST important deterrent to unethical behavior by salespeople?

Sales managers who model high ethical standards
Written company policies that spell out standards of "rightness" and "wrongness"
Top management who model high ethical standards
National laws that curb unethical business practices.


The practice of reciprocity:

is beneficial to all parties involved.
is no longer legal in America.
may result in firms buying products of questionable quality.
results in improved competition among sales and marketing firms.

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