LEGAL ISSUES

Question 1

Meeting the requirements
under law.

Answer 1

LEGAL

Question 2

established by or founded upon law or official or accepted rules

Answer 2

LEGAL

Question 3

Something which has a basis in the law

Answer 3

LEGAL

Question 4

Something which is allowed or prescribed by
law

Answer 4

LEGAL

Question 5

Legal Guidelines:
Be sure that all ________________ about your product’s performance are accurate.

Be sure that all specific positive statements
about performance can be supported by
____________.

Answer 5

specific statements
evidence

Question 6

If your ________ do not pay attention to warnings and operating instructions, remind them to read this
information

Answer 6

customers

Question 7

If customers contemplate using your product
____________ or in an _____________ application, caution
them especially about how the product should be
used.

Answer 7

incorrectly
inappropriate

Question 8

_________ your customer’s experience and knowledge.

Answer 8

Assess

Question 9

Don’t make __________ statements about a competitors product, financial condition or business practices.

Answer 9

negative

Question 10

Ethical and Legal Issues in International
Selling

Many countries make a clear distinction between payments
for __________ and payments for subordination.

Answer 10

lubrication

Question 11

_______________ involves small sums of money or gifts, typically made to low-ranking managers or government officials, in
countries where these payments are not illegal.

Answer 11

LUBRICATION

Question 12

_______________ involves paying larger sums of money to
higher-ranking officials to get them to do something that is illegal or to ignore an illegal act.

Answer 12

SUBORDINATION

Question 13

principle that an individual human’s beliefsis the principle that an individual human’s beliefs and activities should be understood by others in terms of that individual’s own culture.

Answer 13

cultural relativism

Question 14

is the view that all beliefs, customs, and ethics are
relative to the individual within his own social
context.

In other words, “right” and “wrong” are culture-specific; what is considered moral in one
society may be considered immoral in another, and,
since no universal standard of morality exists, no one
has the right to judge another society’s customs.

Answer 14

cultural relativism

Question 15

American vs. Indian Culture

1.Indians are very much family oriented, the Americans are individual oriented.

2.Indians respect family values. On the other hand, in
American culture ,the individual values gets prominence than the family values.

3.Indians are more competitive than the Americans.

4.Americans have great regard to time and its value.

Answer 15

Sample of Cultural Difference

• On the other hand, Indians are a lazy lot.

Question 16

is exaggerating the features of a
particular item such as “this car make you look
young, chic, rich, and 25 pounds lighter.”

It’s not exactly a lie but a slight distortion of the truth.

Answer 16

Sales puffery

Question 17

is a deliberative falsehood such as,”This car is brand new” when in fact it was a used car.

Answer 17

Misrepresentation

Question 18

– occurs when a salesperson makes unfair or untrue statement to customers about a competitor, its products, or its salespeople.

Answer 18

Business Defamation

Question 19

This is illegal when they damage the
competitor’s reputation or the
reputation of its salespeople

Answer 19

Business Defamation

Question 20

special relationship which two companies agree to buy products from each other.

Answer 20

Reciprocity

Question 21

It is illegal when one company
forces another company to join
the agreement.

Answer 21

Reciprocity

Question 22

It is legal only
when both
parties consent to
agreement
willingly

Answer 22

Reciprocity

Question 23

a buyer is required to purchase
one product in order to get another product.

Answer 23

Tying Agreements

Question 24

This are legal only
when the seller
can show that the
products must be
used together,

Answer 24

Tying Agreements

Question 25

That is, that one
product will not
function properly
unless the other
product is used
with it

Answer 25

Tying Agreements

Question 26

an agreement between
competitors before customers are contracted

Answer 26

Conspiracy

Question 27

competitors working together while
the customer is making a purchase decision.

Answer 27

Collusion

Question 28

Salespeople may illegally interfere with competitors by:

Trying to get a customer to break a contract
with a competitor

Tampering with competitor’s product

Confusing a competitor’s market research by
buying merchandise from stores.

Answer 28

Interference with Competitors

Question 29

It is illegal for
companies to establish a
minimum price below their distributors or
retailers could not resell their products.

Answer 29

Resale Price Maintenance

Question 30

Special incentives which are legal only if the reseller knows and approves the incentive and it is offered to all of the reseller’s salespeople

Answer 30

Spiffs or push money

Question 31

Giving unjustified special prices,
discounts, or services to some
customers and not to others

Answer 31

Price Discrimination

Question 32

To justify a special price or discount the seller must prove that the results from:

Differences in the ____ of manufacture, sale or delivery

Differences in the quality or nature of the ______ delivered

An attempt to meet prices offered by
_____________ in a market

Answer 32

cost
product
competitors