CSE Ethics & Compliance in Sales 2

Question 1

Which of the following best describes 'gray area' ethical situations in sales?

Accepted Answer

Situations where the right course of action is ambiguous and requires judgment

Answer

Clear violations of company policy

Answer

Situations where legal compliance automatically ensures ethical behavior

Answer

Cases of obvious fraud or bribery

Question 2

A sales manager learns that a top performer is padding expense reports. The MOST appropriate first action is to:

Accepted Answer

Confront the employee privately and report it through proper compliance channels

Answer

Ignore it to avoid losing a high performer

Answer

Publicly reprimand the employee

Answer

Immediately terminate employment without investigation

Question 3

The Robinson-Patman Act in sales compliance primarily addresses:

Accepted Answer

Price discrimination between competing buyers

Answer

Deceptive advertising claims

Answer

Non-compete agreement enforcement

Answer

Data privacy in e-commerce

Question 4

An ethical sales organization fosters a culture of compliance MOST effectively by:

Accepted Answer

Modeling ethical behavior from leadership and reinforcing standards through ongoing training

Answer

Relying solely on written policies distributed during onboarding

Answer

Focusing exclusively on punishing violations after they occur

Answer

Delegating all compliance responsibilities to the legal department

Question 5

In ethical selling, the concept of 'informed consent' means:

Accepted Answer

The customer has received and understood all relevant information before making a decision

Answer

The customer agrees to any terms presented by the salesperson

Answer

Sales management has approved the deal terms

Answer

Legal counsel has reviewed the contract

Question 6

Which of the following is an example of a conflict of interest for a sales executive?

Accepted Answer

Recommending a vendor in which they hold undisclosed financial interest

Answer

Attending a company-sponsored training event

Answer

Negotiating price discounts within authorized limits

Answer

Building long-term relationships with key accounts

Question 7

A whistleblower protection program in a sales organization is designed to:

Accepted Answer

Encourage employees to report unethical behavior without fear of retaliation

Answer

Monitor sales calls for quality assurance

Answer

Track competitor intelligence gathering activities

Answer

Audit expense reports automatically