Assignment #3

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Corey Davis

FM431-702
Assignment #3

#7) Which of the following are legal practices and which might be considered illegal? If you
determine that not enough information is provided, what would make the practice legal or
illegal?

a) A salesperson offers a discount to a small drugstore if the store will set up a special
display of his product at its entrance
- This is not illegal. Many companies pay more for stores to display their products in
certain areas of the store.

b) A salesperson sends two bottles of wine, valued at $100 each, to a customer as a


thank-you gift after making a large sale
- I think this is a legal practice. The sale already happened, so it wouldn’t be a situation
of bribery but one of customer appreciation.

c) The buyer asks the salesperson out for drinks after work
- Not enough information is provided, but as long as it wasn’t a situation of any sexual
advancement or bribery for a product, I don’t see anything illegal with this situation.

d) A buyer provides a salesperson with a competitor’s proposal, including pricing


information
- This is illegal & unethical, as they are providing confidential information about a
competitor company that could affect the sales performance of said company. Buyers
must be unbiased and not share information about other companies they are buying
for.

#8) As a sales manager, you find yourself faced with the following situations. Identify the
ethical or legal issue in each and discuss how you would handle the problem. (All of these
were experienced by former students.)

a) The regional sales manager, your boss, forwards several ethnic jokes and lewd e-
mails to you and your entire sales and support staff. Two of your salespeople
complain to you.
- The ethical issue is that the regional manager is making discriminatory and disrespectful
comments disguised as jokes. I would handle the complaint from the salespeople by first &
foremost apologizing and reinforcing their value as individuals and our value as a company.
Then I would respond to the regional manager discussing the complaints and the disrespectful
language and figure out actions that need to be taken to prevent this happening again moving
forward.

b) A customer has called and asked you to send someone else to his office as he does not
want to be called on by his currently assigned salesperson. When you ask why, it is
because he doesn’t want someone of that sexual orientation calling on him.
- The ethical problem is that the customer is discriminating against an employee on the
basis of their sexual-orientation. Depending on the company I work for, I would
hopefully handle the situation by letting the customer know we don’t need their
service if they don’t want to respect the individuals working for the company.
c) You’ve asked a salesperson to create a training session for the entire sales team, a task
that will require the salesperson to spend about $60 on materials that company policy
expressly prohibits salespeople from charging on their expense report. She agrees and
then submits an expense report with the $60 down as entertainment of a client, an
acceptable expense. You notice it on the expense report; she hasn’t said anything
about it but you know she was conducting a training session on the day in question
and couldn’t have entertained the client that day.
- The ethical issue is that the salesperson charged the $60 worth of materials on the
company sales report, despite being told not to. I would deal with this situation by
confronting the salesperson and asking why she felt it was appropriate to lie about the
expense report. I would let them off with a warning, but if it happens again there
would be consequences.

d) The company has introduced a new product and requires all salespeople to memorize
a demonstration script. To encourage salespeople to learn it, a contest was developed
by your boss to award a new HDTV to the best presentation of the demonstration.
Two salespeople come to you and say, “Let’s just let Beverly represent our team. We
don’t have time for this. We need to be out selling.”

The ethical issue is that the team wants Beverly to represent the entire team for the
demonstration script. I would deal with this issue by encouraging the fellow team members to
support Beverly and help with the demonstration script and let me worry about the selling for
the time being.

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