CSA Sales Ethics and Compliance 3

Question 1

A customer signs a sales contract but later claims they were pressured and did not fully understand the terms. Under consumer protection law, what right may protect this customer?

Accepted Answer

The Right of Rescission

Answer

The Right of Rescission allows consumers a cooling-off period (typically 3 business days) to cancel certain contracts signed under pressure or in their home.

Question 2

When a salesperson omits a material fact that would likely influence a buyer's decision, this is known as:

Accepted Answer

Fraudulent misrepresentation by omission

Answer

Withholding a material fact that the buyer would consider important in making their decision constitutes fraudulent misrepresentation by omission.

Question 3

The Robinson-Patman Act primarily prohibits which type of unethical sales practice?

Accepted Answer

Price discrimination that harms competition between buyers

Answer

The Robinson-Patman Act prohibits sellers from charging different prices to competing buyers for the same product when it harms competition.

Question 4

A sales manager instructs reps to tell customers a product is 'FDA approved' when it has only received FDA clearance. What type of violation is this?

Accepted Answer

A deceptive claim that may violate FTC regulations and misrepresent the product

Answer

FDA approval and FDA clearance are legally distinct designations; misrepresenting clearance as approval is a deceptive claim that can violate FTC rules.

Question 5

An employee suspects their company is engaged in bid rigging with competitors. The most appropriate first step is to:

Accepted Answer

Report concerns through the company's compliance hotline or to legal counsel

Answer

Bid rigging is a serious antitrust violation; employees should report suspicions through internal compliance channels or seek legal guidance.

(CSA) Certified Sales Associate Practice Test

(CSA) Certified Sales Associate Practice Test

CSA Sales Ethics and Compliance 3