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
Which of the following best describes 'gray area' ethical situations in sales?
Answer: Situations where the right course of action is ambiguous and requires judgment
Gray area situations are those where actions may be technically legal but ethically questionable, requiring sales professionals to apply careful judgment beyond written rules.
A sales manager learns that a top performer is padding expense reports. The MOST appropriate first action is to:
Answer: Confront the employee privately and report it through proper compliance channels
The appropriate response is to address the issue confidentially and report it through established compliance channels to ensure due process and legal protection.
The Robinson-Patman Act in sales compliance primarily addresses:
Answer: Price discrimination between competing buyers
The Robinson-Patman Act prohibits sellers from charging different prices to competing buyers for the same goods without a legitimate justification.
An ethical sales organization fosters a culture of compliance MOST effectively by:
Answer: Modeling ethical behavior from leadership and reinforcing standards through ongoing training
Sustainable ethical culture requires visible commitment from leadership combined with continuous training and reinforcement, not just policy documents.
In ethical selling, the concept of 'informed consent' means:
Answer: The customer has received and understood all relevant information before making a decision
Informed consent requires that customers are provided complete, understandable information about products, pricing, and terms before they commit to a purchase.
Which of the following is an example of a conflict of interest for a sales executive?
Answer: Recommending a vendor in which they hold undisclosed financial interest
Having an undisclosed financial interest in a vendor while making purchasing recommendations creates a conflict of interest that compromises objectivity.
A whistleblower protection program in a sales organization is designed to:
Answer: Encourage employees to report unethical behavior without fear of retaliation
Whistleblower programs create safe, confidential reporting channels that protect employees from retaliation when they report suspected misconduct.