SPC Sales Ethics and Compliance 3

Question 1

What is the role of a sales manager in creating an ethical sales culture?

Accepted Answer

Modeling ethical behavior, enforcing the code of conduct, and recognizing ethically earned wins

Answer

Setting high quotas regardless of ethical constraints

Answer

Encouraging reps to close deals by any means necessary

Answer

Avoiding discussions about ethics to prevent legal liability

Question 2

A customer asks a sales professional for a comparison of competitors' pricing. The ethical response is to:

Accepted Answer

Provide accurate information if available, or acknowledge the limits of your knowledge

Answer

Fabricate data to make your offer look best

Answer

Refuse to discuss competitors entirely

Answer

Redirect with irrelevant questions to avoid the topic

Question 3

What is 'churning' in sales ethics?

Accepted Answer

Repeatedly replacing a customer's product or contract to generate commissions without genuine benefit to the customer

Answer

The process of renewing customer contracts

Answer

Onboarding new customers quickly

Answer

Tracking customer satisfaction metrics

Question 4

Which of the following best describes 'suitability' in ethical selling?

Accepted Answer

Recommending products or services that genuinely match the customer's needs, financial situation, and goals

Answer

Selling the most expensive product available

Answer

Recommending only products with the highest commission

Answer

Suitability only applies to financial services, not general sales

Question 5

Why is documenting customer agreements and conversations important from a compliance perspective?

Accepted Answer

To create a verifiable record that protects both parties in case of disputes

Answer

To increase the number of CRM entries for reporting purposes

Answer

Documentation is optional if the customer seems trustworthy

Answer

To monitor customer behavior

Question 6

What is 'price gouging' and how does it relate to sales ethics?

Accepted Answer

Charging excessively high prices by exploiting an emergency, shortage, or customer vulnerability, which is both unethical and often illegal

Answer

Offering volume discounts to large customers

Answer

Adjusting prices in response to normal market competition

Answer

Negotiating a higher price with a customer who requested premium service