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Professional Ethics & Compliance Flashcards

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

Read the first 7 Professional Ethics & Compliance flashcards as text
  1. A sales rep discovers a competitor's confidential pricing sheet left by accident at a trade show. What is the ethical course of action?

    Answer: Return it to the competitor without reviewing it

    Using or retaining a competitor's confidential information obtained by accident is unethical and potentially illegal; it should be returned immediately.

  2. Under the Foreign Corrupt Practices Act (FCPA), which of the following payments is generally permitted?

    Answer: Facilitating payments to expedite routine government actions

    The FCPA has a narrow exception for facilitation payments that expedite routine, non-discretionary government actions like processing permits.

  3. A sales manager pressures the team to backdate a contract to meet the quarterly quota. This action primarily violates which principle?

    Answer: Integrity and honesty

    Backdating contracts constitutes fraud and directly violates the core ethical principle of integrity and honesty in business dealings.

  4. Which law governs telemarketing sales practices in the United States and requires do-not-call compliance?

    Answer: Telephone Consumer Protection Act (TCPA)

    The TCPA regulates telemarketing calls, texts, and faxes, including enforcement of the National Do Not Call Registry.

  5. An ethical sales culture is best reinforced when leadership does which of the following?

    Answer: Models ethical behavior and applies rules consistently

    Ethical culture is most durable when leaders visibly model the behavior they expect and enforce standards consistently across all levels.

  6. Price fixing between competing companies violates which body of U.S. law?

    Answer: Sherman Antitrust Act

    The Sherman Antitrust Act prohibits agreements among competitors that restrain trade, including price fixing conspiracies.

  7. A customer asks a sales rep to omit a known product defect from the written proposal. The rep should:

    Answer: Include disclosure of the defect as required by honest dealing

    Material omissions in sales proposals can constitute fraudulent misrepresentation; honest dealing requires disclosing known defects.