Ethics and Selling
Principles governing the behavior of an individual or a group.
What are ethics?
Unethical practice of withholding information or telling white lies.
What is Deception?
Law based on legislation passed by either state legislatures or Congress.
What is Statutory Law?
Exaggerated statements about the performance of products or services.
What is Sales Puffery?
A clause in a contract that limits one party, in this case the salesperson, from working for a competitor.
What is a Noncompete Clause?
A scripted sales pitch to follow without deviation.
What is a canned sales pitch?
Payments made to buyers to influence their purchase decisions.
What are Bribes?
Law established by local, state, or federal regulatory agencies, such as the Federal Trade Commission (FTC) or the Food and Drug Administration (FDA).
Canadian law stating that a company is liable to pay damages if advertising and sale presentation claims and statements about comparisons with competitive products could be misunderstood by a reasonable person.
What is the Credulous Person Standard?
Knowledge, operating procedures, and other intangible assets of a company or a person.
What is Intellectual Property?
A salesperson who only takes calls from customers.
What is an inbound telephone salesperson?
Payments made to buyers based on the amount of orders they place for a salesperson’s products or services.
What are kickbacks?
Legal precedent that arises out of court decisions.
What is Common Law?
Payments made by a producer to a reseller’s salespeople to motivate the salespeople to sell the producer’s products or services.
What are Spiffs (push money)?
Information owned by a company that gives it a competitive advantage.
What are Trade Secrets?
A salesperson who calls customers to make sales; also called telemarketers.
What is an outbound telephone salesperson?
Actions by one salesperson that go behind the back of a purchaser to directly contact other members of the buying center.
What is Backdoor Selling?
The seller has title until the goods are received at the destination.
What is Free On Board (FOB) Destination?
Law that limits the amount of information that a firm can obtain about a consumer and specify how that information can be used or shared.
What are Privacy Laws?
The unethical act of stealing a prospect from a salesperson in the same company.
What is Poaching?
the suspension of moral beliefs in order to perform a specific questionable behavior
Buying something from an unauthorized vendor or off-contract when an authorized vendor or a contract has an equivalent item.
What is Rogue Purchasing?
The buyer has title when the goods leave the seller’s facility.
What is FOB Factory?
Law intended to reduce deceptive e-mails and usually contains specifications, such as an opt-out process and complete contact information, that are allowable.
What is the CAN-SPAM Act?
A contract that specifies what information is owned by whom and the conditions under which that information can be shared or used.
What is a Non Disclosure Agreement (NDA)?