SPC Sales Ethics and Compliance 2

Question 1

Under the FTC's guidelines, what must a salesperson disclose when making claims about a product's performance?

Accepted Answer

Claims must be truthful, non-deceptive, and supported by evidence

Answer

Only claims that are negative

Answer

Claims are unrestricted if customers sign a waiver

Answer

Only written claims require truthfulness

Question 2

What does 'data privacy compliance' require of a sales professional handling customer data in the U.S.?

Accepted Answer

Handling personal data in accordance with applicable privacy laws and company data policies

Answer

Sharing customer data freely within the sales team with no restrictions

Answer

Storing all customer data on personal devices for convenience

Answer

Only protecting data once a contract is signed

Question 3

A sales professional discovers that a colleague is falsifying expense reports. The ethical action is to:

Accepted Answer

Report it through the appropriate internal channel (e.g., manager, compliance hotline)

Answer

Ignore it to maintain team harmony

Answer

Confront the colleague publicly

Answer

Replicate the behavior to stay competitive

Question 4

What is 'bait-and-switch' selling, and why is it unethical?

Accepted Answer

Advertising a product at an attractive price with the intent to switch customers to a higher-priced item once engaged

Answer

Offering one product and delivering a better one at no extra cost

Answer

Switching sales reps mid-deal at the customer's request

Answer

Offering promotional pricing only on select items

Question 5

In sales, what does 'informed consent' mean when presenting a contract?

Accepted Answer

The customer fully understands the terms, conditions, and obligations before agreeing

Answer

The customer signs without reading, trusting the rep

Answer

Consent given only verbally during a sales call

Answer

Approval from the sales manager before presenting an offer

Question 6

Why should a sales professional avoid making disparaging remarks about competitors to customers?

Accepted Answer

Competitors can sue for defamation if claims are false, and it undermines the rep's professionalism

Answer

Competitors will retaliate by lowering their prices

Answer

It is only problematic if the competitor finds out

Answer

It increases the length of the sales cycle