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Ethics & Compliance in Sales Flashcards

7 cards from real CSE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Ethics & Compliance in Sales flashcards as text

  1. Which ethical principle requires a sales executive to disclose all material facts about a product that could influence a buyer's purchasing decision?

    Answer: Principle of full disclosure

    The principle of full disclosure obligates sales professionals to share all relevant information that could reasonably affect a customer's buying decision.

  2. A sales representative offers a purchasing manager tickets to a major sporting event in exchange for preferential treatment on a contract bid. This practice is best described as:

    Answer: Commercial bribery

    Offering gifts or entertainment to influence a business decision constitutes commercial bribery, which is illegal and violates ethical sales standards.

  3. Under the Foreign Corrupt Practices Act (FCPA), which of the following is PROHIBITED for US companies operating internationally?

    Answer: Facilitating payments to foreign government officials to secure contracts

    The FCPA prohibits US companies from bribing foreign government officials to obtain or retain business.

  4. When a sales executive knowingly misrepresents the capabilities of their product to close a deal, this constitutes:

    Answer: Fraud

    Knowingly misrepresenting material facts about a product to induce a purchase constitutes fraud, exposing the company to significant legal liability.

  5. A company's code of ethics in sales should primarily serve to:

    Answer: Establish standards of conduct that guide ethical decision-making

    A code of ethics provides a framework of values and standards that guide sales professionals in making ethical decisions across various situations.

  6. Which legislation primarily governs how sales organizations must handle consumer personal data in the United States?

    Answer: The CAN-SPAM Act and state-level laws like CCPA

    The CAN-SPAM Act governs commercial email practices, while state laws like the California Consumer Privacy Act (CCPA) regulate broader personal data handling.

  7. Price fixing among competitors is prohibited under which US federal law?

    Answer: The Sherman Antitrust Act

    The Sherman Antitrust Act prohibits anticompetitive agreements, including price fixing among competitors, to protect free market competition.