Sales Ethics and Compliance Flashcards
7 cards from real CSA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Sales Ethics and Compliance flashcards as text
A customer asks you to match a competitor's price that seems impossibly low. You suspect the competitor is violating minimum advertised price (MAP) policies. What is the most ethical response?
Answer: Explain your pricing policy and the value you offer without disparaging the competitor
The ethical approach is to explain your own pricing and value proposition without making unverified accusations about a competitor.
Which federal law prohibits deceptive practices in consumer transactions and gives the FTC authority to regulate unfair business practices?
Answer: The FTC Act of 1914
The Federal Trade Commission Act of 1914 established the FTC and prohibits unfair or deceptive acts or practices in commerce.
A salesperson offers a key customer a gift valued at $150 during a holiday promotion. The customer's company policy prohibits gifts over $50. What should the salesperson do?
Answer: Respect the customer's company policy and offer something within the $50 limit or nothing at all
Salespeople must respect the procurement and ethics policies of their customers' organizations, not just their own company's rules.
What does the term 'bait and switch' refer to in sales compliance?
Answer: Advertising a product at a low price then steering customers to a higher-priced item
Bait and switch is an illegal practice where a low-priced item is advertised to attract customers who are then pushed toward a more expensive product.
Under the Telephone Consumer Protection Act (TCPA), what must a business do before sending marketing text messages to consumers?
Answer: Obtain prior express written consent from the recipient
The TCPA requires businesses to obtain prior express written consent before sending automated marketing text messages to consumers.
A sales rep discovers that their company has been overcharging a group of customers due to a billing system error. The affected customers have not noticed. What is the ethical obligation?
Answer: Report the error to management and initiate refunds for all affected customers
Ethical sales practice requires proactive disclosure and correction of errors, even when customers have not detected the problem.
Which practice best demonstrates integrity in handling competitive intelligence?
Answer: Reviewing publicly available competitor marketing materials and pricing
Reviewing publicly available information is legal and ethical; misrepresentation, theft of trade secrets, and unauthorized access are all violations.