CSE Ethics & Compliance in Sales 3

Question 1

The ethical obligation of a sales professional to act in the best interest of the customer, even when it conflicts with short-term sales goals, is known as:

Accepted Answer

Consultative selling ethics

Answer

Transactional selling

Answer

Fiduciary responsibility

Answer

Customer stewardship

Question 2

Which of the following practices would MOST likely violate the CAN-SPAM Act?

Accepted Answer

Failing to include an unsubscribe mechanism in commercial emails

Answer

Sending promotional emails with a valid physical address

Answer

Using accurate subject lines that reflect email content

Answer

Identifying the sender clearly in the email header

Question 3

Predatory pricing, where a company intentionally prices products below cost to eliminate competition, is primarily regulated under:

Accepted Answer

The Federal Trade Commission Act and antitrust laws

Answer

The Truth in Lending Act

Answer

The Uniform Commercial Code

Answer

The Fair Debt Collection Practices Act

Question 4

When a sales executive discovers that a recently signed contract contains terms that were misrepresented to the client, the MOST ethical course of action is to:

Accepted Answer

Immediately disclose the error to the client and work to correct the contract terms

Answer

Wait to see if the client notices the discrepancy

Answer

Honor the contract as signed since it is legally binding

Answer

Consult only with the sales team before deciding what to do

Question 5

Social media ethics in sales requires that sales professionals:

Accepted Answer

Maintain honesty, respect confidentiality, and disclose affiliations when promoting products

Answer

Freely share confidential client information to build credibility online

Answer

Post competitor disparagement to differentiate their offerings

Answer

Use any available information about prospects to personalize outreach

Question 6

A sales manager is asked to inflate quarterly revenue figures for a board presentation. This request should FIRST be addressed by:

Accepted Answer

Reporting the request through the company's ethics hotline or compliance officer

Answer

Complying to avoid conflict with senior leadership

Answer

Adjusting the figures slightly to meet halfway

Answer

Delegating the task to a subordinate

Question 7

The concept of 'ethical reciprocity' in sales relationships means:

Accepted Answer

Treating customers the way you would want to be treated if the roles were reversed

Answer

Matching competitor pricing exactly

Answer

Providing equal gifts to all clients regardless of deal size

Answer

Reciprocating all concessions made during negotiation