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ABC's of Relationship Selling, 7/e
Charles M. Futrell, Texas A&M University

Social, Ethical, and Legal Issues in Selling

Mutltiple Choice Quiz

Choose the best answer:



1

Which of the following is an example of a stakeholder for a manufacturer of popcorn, sno-cones, and caramel corn machines?
A)carnivals that buy the machines to use in their concession areas
B)the community in which the manufacturer is located
C)the manufacturer's employees
D)government inspectors who examine the working conditions at the manufacturer's plant
E)all of the above
2

The acronym CCC GOMES:
A)is a series of steps used in the resolution of ethical dilemmas
B)is a way to remember the major stakeholders that impact an organization's performance
C)refers to the various degrees of social responsibility
D)is a convenient way to remember the various types of salespeople
E)is the steps to follow when engaged in whistle-blowing
3

When a building supply store agrees to donate $750 worth of plumbing supplies to a nonprofit organization that repairs the homes of people who are on fixed incomes and who cannot do the repairs themselves, the building supply store is exhibiting its _____ responsibilities to society.
A)legal
B)moral
C)financial
D)discretionary
E)economic
4

Trademark holders lose billions of dollars annually to trademark infringements. In 2001, Nike sued several jewelry distributors because they were using the Nike swoosh in their jewelry design without permission from Nike. In trying to aggressively protect its trademark, Nike is hoping to get the jewelry distributors to at the very least accept their _____ responsibility to society.
A)legal
B)moral
C)financial
D)discretionary
E)economic
5

At the _____ moral development level, an individual follows rules to avoid punishments or receive rewards. He or she will act immorally if there is no danger of being caught.
A)principled
B)judgmental
C)preconventional
D)transformational
E)conventional
6

Senator John McCain has said that during his days as a North Vietnamese prisoner of war, a young officer named Mike Christian made a U.S. flag out of scrap material. He kept the flag hidden inside each shirt. Each day Christian would open his shirt, and the prisoners would say the pledge of allegiance. It made each of them feel like there was a purpose to their suffering. When the North Vietnamese discovered the flag, they removed Christian's shirt, and beat him for hours. As soon as he was able, he began to make a new flag. Christian operated at a _____ moral development level.
A)principled
B)judgmental
C)preconventional
D)transformational
E)conventional
7

Your company has invested almost $1 million in developing plastic component parts for small engines, such as are found in lawn mowers and snow blowers. The company needs to sell these parts to manufacturers to recoup its development costs and to keep from having to lay off one-third of its employees. You know that 15 percent of the time the plastic component parts shatter and cause potential damage to the user, but you are told not to tell potential customers this information. You are experiencing a(n):
A)moral handicap
B)principled predicament
C)responsibility gap
D)organizational impasse
E)ethical dilemma
8

Which of the following statements about the termination-at-will rule is true?
A)The termination-at-will rule was first used to protect the rights of employees.
B)There are no legal limitations on when the termination-at-will rule can be used.
C)As used today, the termination-at-will rule states that employees can be terminated and that employers do not have to provide any reasons for that termination.
D)Today, the termination-at-will rule is replaced by the establishment and use of a grievance procedure.
E)Today, the termination-at-will rule is used to protect the rights of employers.
9

Cooperative acceptance:
A)is a stage of moral development
B)is the second level of organizational responsibility
C)refers to the right of employees to be treated fairly and with respect regardless of race, sex, physical disability, age, or religion
D)defines the point at which an act can be described as harassment
E)refers to an employee's right to privacy
10

Eileen sells veterinarian supplies. Often when she is supposed to be calling on veterinarians' offices, she is working on developing Web pages on her company laptop computer. She sells these Web page designs to the veterinarians that she calls on. Eileen is engaged in:
A)keystoning
B)moonlighting
C)integrated selling
D)cross-selling
E)taking kickbacks
11

Your company has invested almost $1 million in developing plastic component parts for small engines, such as are found in lawn mowers and snow blowers. The company needs to sell these parts to manufacturers to recoup its development costs and to keep from having to lay off one-third of its employees. You know that 15 percent of the time the plastic component parts shatter and cause potential damage to the user, but you are told not to tell potential customers this information. Since some of the parts will fail to perform as promised, you and your company can be sued for:
A)moonlighting
B)self-serving kickbacks
C)one-way reciprocity
D)misrepresentation and breach of warranty
E)reliance on preconventional moral development
12

Rosa is a new salesperson, and her sales manager is suggesting ways that she can ensure she will not be sued for misrepresentation. Which of the following is NOT a suggestion that Rosa is likely to hear?
A)Answer all questions that customers have about a product, but don't volunteer any other information.
B)Understand the difference between general statements of praise and statements of fact made during a sales pitch.
C)Avoid making exaggerated claims about a product's safety.
D)Never overstep authority, especially when discussing price.
E)Avoid offering opinions when the customer asks about how a product operates unless the organization has tested the product and has statistical evidence.
13

_____ codes of ethics are designed to affect corporate culture, define fundamental values, and contain general language about company responsibilities, quality of products, and treatment of employees.
A)Mission-based
B)Policy-based
C)Reciprocal
D)Conventional
E)Principle-based
14

An ethical ombudsman is:
A)the name given to federal investigators who work for the Environmental Protection Agency
B)the member of the corporation that makes sure the organization acts economically responsible
C)an official given the responsibility of corporate conscience and who hears and investigates ethical complaints
D)any employee who engages in ethical moonlighting
E)is accurately described by none of the above
15

Gail Hambrick discovered that a Medical College of Georgia fund earmarked for indigent patients was being misused at this teaching hospital. The misuse included the purchase of trips and equipment unrelated to health care for the poor. When she informed the state Attorney General of this misuse, Hambrick was:
A)keystoning
B)creating a source of positive publicity
C)taking kickbacks
D)whistle-blowing
E)moonlighting




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