Legal

1
Legal Ethical Issues

• Chapter 3

2
The Law Applied to Selling
Fraud

• Statutory laws legislation passed by state
  legislatures or Congress
• Uniform Commercial Code (UCC)
• Antitrust laws
• Administrative laws established by local, state
  or federal regulatory agencies
• Federal Trade Commission (FTC)
• Common law precedents set by previous court
  decisions

Deception
Unfair Business Practices
3
Uniform Commercial Code

• Agent authority to legally obligate firm
• Sale the transfer of title to goods by the
  seller to the buyer for a consideration known as
  price
• Invitation to negotiate vs. an offer
• FOB destination vs. FOB factory
• Expressed warranty vs. implied warranty

4
Misrepresentation or Puffery?

• Can damage a business relationship
• The 1 selling car in America?
• This is a safe, dependable helicopter
• Feel free to prescribe this to your patients.
  Its nonaddicting.
• Our service cant be beat.
• This equipment will keep up with any other
  machine you are using.

5
Illegal Business Practices

• Business defamation
• Libel vs. slander
• Reciprocity
• Tying agreement
• Conspiracy collusion
• Interference with competitors
• Restrictions on resellers
• Price discrimination Robinson Patman Act
• Unordered goods

6
Ethics

• Ethics principles that govern the behavior of
  an individual or group
• Vary from industry to industry
• Can change over time
• Code of Ethics
• 90 of organizations

7
Deception

• Deception withholding important information or
  telling white lies
• Unethical or illegal?
• Credibility

8
Ethics in Selling

• Always do right this will gratify some and as
  astonish the rest.
• Mark Twain

The what has to take second place to the how.
Live in a glass house with megaphones. Bernard
Rapaport
9
Ethical Dilemmas

• Treatment of coworkers
• Undermining
• Stealing customers
• Treatment of competitors
• Disparaging
• Tampering w/ their products
• Snooping

10
Legal Sources of Information

• Published materials / documents
• Disclosures made by competitors employees
• Market surveys consultants reports
• Trade fairs exhibits
• Analysis of competitors products

11
Ethical Dilemmas

• Ethics your company
• Expense accounts
• Company resources
• Company time
• Sales records
• Customer orders

12
Bribes Kickbacks

• Whats the difference?
• Many companies forbid employees to accept gifts
  or entertainment from suppliers
• Guidelines for gift giving
• Check your motives
• Ensure proper impression is made
• Violate any policies?
• Good standby is an inexpensive business item
  imprinted with the salespersons company logo

13
Other ethical challenges

• Back-door selling
• Expense accounts
• Reporting
• Changing organizations
• Give ample notice
• Offer assistance during transition
• Be careful to not burn bridges

14
Sexual Harassment

• Unwelcome sexual advances, requests for sexual
  favors and/or other verbal or physical conduct of
  a sexual nature constitutes sexual harassment
  when submission to or rejection of this conduct
  explicitly or implicitly affects an individuals
  employment, interferes w/work performance or
  creates an offensive, hostile or intimidating
  work environment.

15
Sexual Harassment

• Conduct unwelcome by the recipient
• Sexual in nature
• Creates a hostile working environment
• Quid pro quo

16
Sexual Harassment Facts

• Victim/harasser can be male or female
• Victim does not have to be of opposite sex
• Harasser can be supervisor, agent of the
  employer, co-worker or non-employee
• Victim does not have to be person harassed
• Harassers conduct must be unwelcome