CSE Ethics & Compliance in Sales

Question 1

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

Accepted Answer

Principle of full disclosure

Answer

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

Question 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:

Accepted Answer

Commercial bribery

Answer

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

Question 3

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

Accepted Answer

Facilitating payments to foreign government officials to secure contracts

Answer

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

Question 4

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

Accepted Answer

Fraud

Answer

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

Question 5

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

Accepted Answer

Establish standards of conduct that guide ethical decision-making

Answer

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

CSE - Certified Sales Executive Practice Test

CSE - Certified Sales Executive Practice Test

CSE Ethics & Compliance in Sales