Question 1

A salesperson makes the following statement to a plant nursery retailer, "I'll sell you Southview Sphagnum peat moss only if you'll sell Greenway grass seeds, too." Under the Competition Act, this statement describes which of the following terms?

Accepted Answer

This statement describes a tie-in sale, where the salesperson is requiring the purchase of one product in order to buy another. This may be a violation of the Competition Act, which prohibits tying arrangements that have an anti-competitive effect.

Question 2

"I'll tell you what," said Brodie Wilson."I'll buy all my paper supplies from your company if you'll make sure your people buy all their cleaning supplies from my firm." Which term best describes what Wilson is proposing?

Accepted Answer

Wilson is proposing a reciprocal agreement where he will buy from the company in exchange for their employees buying from his firm.

Question 3

Peter Lau sells roof replacements via door-to-door sales calls in British Columbia.He just sold Mary, a homeowner, a full replacement package for which she provided a 20% down payment.Under legislation in British Columbia, Mary has ten days to cancel the contract without any negative consequences.What term describes this ten-day period?

Accepted Answer

The ten-day period during which Mary can cancel the contract without any negative consequences is known as a cooling-off period. This is a period where the consumer can reconsider their purchase and decide if they want to go through with it or not.

Question 4

Which of the following is not a Government of Canada's stated value for the government employees dealing within the public sector?

Accepted Answer

Respect for teamwork is not explicitly listed as a stated value for the government employees within the public sector. However, it can be inferred that teamwork is important as it is mentioned in the Government of Canada's Competency Framework, which outlines the skills and abilities required for effective performance in the public sector.

Question 5

Patty tells her customer that she can only sell her the limited edition watch if the customer purchases two of the regular watches worth at least $250.This is an example of:

Accepted Answer

The answer of Patty tells her customer that she can...

Question 6

In Canada, in price discrimination lawsuits, the buyer can also be held liable alongside the seller for the following reason:

Accepted Answer

In Canada, holding buyers liable alongside sellers in price discrimination cases is intended to discourage large-volume buyers from seeking or accepting discriminatory pricing, thereby reducing the occurrence of such practices.

Question 7

Rachel works on a commission-based pay structure at a retail store.She was expecting a potential client to show up yesterday, but he did not.Rachel then calls her client and she finds out that someone else from her store signed him up already.In this case, Rachel's commission was taken.Rachel's co-worker was involved in what type of unethical practice?

Accepted Answer

Rachel's co-worker's actions affected her sales and commission, which is an unethical practice.

Question 8

Sam is a medical sales representative and he is out on the road across the province of British Columbia doing sales calls.Sam has recently started providing Uber rides in between his sales calls to earn some extra cash on the side.Sam is involved in which of the following unethical practices:

Accepted Answer

Sam is involved in moonlighting by providing Uber rides on the side while being employed as a medical sales representative. Moonlighting is considered unethical when it distracts an employee from their primary job or competes with their employer's business.

Question 9

Which of the following statements about bribery is true?

Accepted Answer

Bribery is a gray area in business ethics, and it can be difficult to differentiate between a bribe and a gift. Sometimes, even a well-intentioned business gift can be interpreted as bribery. Therefore, it is crucial to understand the ethical implications of offering or accepting gifts in business contexts.

Question 10

Manufacture XYZ requires that its wholesalers and retailers buy merchandise only from it.These types of agreements may be deemed illegal under the Competition Act under a specific circumstance.Which of the following terms best describes the aforementioned agreement between XYZ and its wholesalers?

Accepted Answer

The agreement between XYZ and its wholesalers is described as exclusive dealership, which is an agreement where a manufacturer or supplier agrees to supply a product or service only to a specific distributor or retailer. However, such agreements may be considered illegal under the Competition Act if they have an anti-competitive effect on the market, as they can limit consumer choice and reduce competition.

Question 11

Which of the following product claims is an example of a statement that if made by a salesperson would have legally actionable consequences if the statement were incorrect?

Accepted Answer

The answer of Which of the following product claims is...

Question 12

Which of the following statements about misrepresentation is true?

Accepted Answer

The answer of Which of the following statements about misrepresentation...

Question 13

Martin is a real estate agent and he has developed a newsletter.One of the sentences in his newsletter highlights his direct competitor and states "Make sure to select a salesperson whose commission structure clearly laid out unlike Sam Smith who advertises 1% commission but ends up charging over 10%".This is an example of:

Accepted Answer

This is an example of libel because the statement is written and published, and it is potentially damaging to the reputation of Sam Smith, his direct competitor. The statement accuses Sam of false advertising and fraudulent behavior in charging commissions, which could harm his business and reputation.

Question 14

Price discrimination is covered by the Competition Act and exists when certain conditions can be proven.Which of the following would not be one such condition?

Accepted Answer

Customer dissatisfaction with service speed or ease of contact is not a condition for price discrimination. The other options, such as granting discounts or advantages to one customer and not another, or discriminating based on similar products, are conditions that can trigger price discrimination measures under the Competition Act. The presence of competitors or a unique product, which may lead to a monopoly, can also be relevant factors in assessing whether price discrimination occurred.

Question 15

Angela is in a middle of signing a deal for Product Z which her company sells.She is aware that this is the cheapest price the customer is getting for this product.So, she lays out a condition and tells her customer that they must purchase all of your Product Y from her company in order to purchase Product Z at this price.This is an example of:

Accepted Answer

This is an example of requirement tie selling, where the seller puts a condition that the buyer must purchase a certain product or service in order to purchase another product or service at a specific price.

Question 16

According to the textbook, which of the following internal policies are likely to reduce the level of judgment needed to operate within acceptable gift receiving framework on the part of buyers?

Accepted Answer

Prohibiting buyers from receiving any gifts from salespeople eliminates the need for judgment by setting a clear, strict policy.

Question 17

George is a new car salesperson and he notices a client is walking across from his competitor's showroom into his showroom.George decides to deal with her and goes through the entire sales presentation.The customer says that she needs time to think it over as she has George's competition's car in mind.George then defames his competition by telling the client that "they make cheap cars." This is an example of:

Accepted Answer

George's statement that his competition makes "cheap cars" is defamatory and untrue, and this type of false statement made to damage someone's reputation is known as slander.

Question 18

Monroe is a little worried about all the talk he's heard recently about lawsuits due to misrepresentation and breach of warranty.To help him "stay legal," you advise him to:

Accepted Answer

To "stay legal" and avoid lawsuits due to misrepresentation and breach of warranty, it is important to be accurate when describing product capabilities, thoroughly educate customers before making a sale, avoid making exaggerated claims about product safety, and know the technical specifications of the products being sold. All of these options are important for Monroe to consider in order to protect himself and his business.

Question 19

Which of the following statements, if false and made by a salesperson to an individual who bought the product(s) being sold, would be most likely to have legal consequences?

Accepted Answer

A false statement about a 100 percent order-fill rate could be considered a misrepresentation of a material fact, which can lead to legal consequences if it influences the buyer's decision.

Question 20

Arthur is a Sales Director at a technology firm.He has been provided with a company's credit card, so he can expense out his business meetings on it.However, he has been using this card to expense his family lunches once or twice a month and disguises it as a business meeting.In this case, Arthur is involved in:

Accepted Answer

Arthur is misusing company assets by using the credit card to pay for personal expenses and disguising it as a business meeting expense.

Quiz 2: Ethics Firstthen Customer Relationships