LEGAL ISSUES Flashcards
Meeting the requirements
under law.
LEGAL
established by or founded upon law or official or accepted rules
LEGAL
Something which has a basis in the law
LEGAL
Something which is allowed or prescribed by
law
LEGAL
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
____________.
specific statements
evidence
If your ________ do not pay attention to warnings and operating instructions, remind them to read this
information
customers
If customers contemplate using your product
____________ or in an _____________ application, caution
them especially about how the product should be
used.
incorrectly
inappropriate
_________ your customer’s experience and knowledge.
Assess
Don’t make __________ statements about a competitors product, financial condition or business practices.
negative
Ethical and Legal Issues in International
Selling
Many countries make a clear distinction between payments
for __________ and payments for subordination.
lubrication
_______________ involves small sums of money or gifts, typically made to low-ranking managers or government officials, in
countries where these payments are not illegal.
LUBRICATION
_______________ 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.
SUBORDINATION
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.
cultural relativism
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.
cultural relativism
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.
Sample of Cultural Difference
- On the other hand, Indians are a lazy lot.
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.
Sales puffery
is a deliberative falsehood such as,”This car is brand new” when in fact it was a used car.
Misrepresentation
– occurs when a salesperson makes unfair or untrue statement to customers about a competitor, its products, or its salespeople.
Business Defamation
This is illegal when they damage the
competitor’s reputation or the
reputation of its salespeople
Business Defamation
special relationship which two companies agree to buy products from each other.
Reciprocity
It is illegal when one company
forces another company to join
the agreement.
Reciprocity
It is legal only
when both
parties consent to
agreement
willingly
Reciprocity
a buyer is required to purchase
one product in order to get another product.
Tying Agreements
This are legal only
when the seller
can show that the
products must be
used together,
Tying Agreements
That is, that one
product will not
function properly
unless the other
product is used
with it
Tying Agreements
an agreement between
competitors before customers are contracted
Conspiracy
competitors working together while
the customer is making a purchase decision.
Collusion
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.
Interference with Competitors
It is illegal for
companies to establish a
minimum price below their distributors or
retailers could not resell their products.
Resale Price Maintenance
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
Spiffs or push money
Giving unjustified special prices,
discounts, or services to some
customers and not to others
Price Discrimination
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
cost
product
competitors
