CSM Professional Ethics & Compliance 3

Question 1

A sales rep receives an expensive gift from a supplier during contract negotiations. Best ethical practice is to:

Accepted Answer

Decline or report it per the company's gift policy

Answer

Accepting gifts during active negotiations creates a conflict of interest; company gift policies typically require declining or reporting such items.

Question 2

Which of the following best describes a 'conflict of interest' in a sales context?

Accepted Answer

A situation where personal interests may improperly influence a business decision

Answer

A conflict of interest arises when a personal interest could improperly affect an employee's professional judgment or actions.

Question 3

The Robinson-Patman Act requires that sales managers who offer promotional allowances to customers must:

Accepted Answer

Offer them on proportionally equal terms to competing customers

Answer

The Robinson-Patman Act mandates that promotional allowances be made available to competing customers on proportionally equal terms to prevent price discrimination.

Question 4

When a sales team discovers a compliance violation internally before it causes harm, what is the recommended first step?

Accepted Answer

Report it through the appropriate internal compliance channel

Answer

Self-reporting through internal compliance channels demonstrates good faith and allows the organization to remediate before the issue escalates.

Question 5

In ethical negotiation, 'puffery' differs from fraud because puffery involves:

Accepted Answer

Exaggerated opinions no reasonable buyer would rely on as facts

Answer

Puffery consists of vague, subjective boasts (e.g., 'best product on the market') that courts recognize as opinion, not actionable misrepresentation.

(CSM) Certified Sales Manager Practice Test

(CSM) Certified Sales Manager Practice Test

CSM Professional Ethics & Compliance 3