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3391_ethics_net-1 - Legal& Ethical Issues Legal Chapter...

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Unformatted text preview: Legal & Ethical Issues Legal Chapter 3 d Frau The Law Applied to Selling The • Statutory laws – legislation passed by Statutory state legislatures or Congress state – Uniform Commercial Code (UCC) – Antitrust laws n eptio Dec • Administrative laws – established by local, Administrative state or federal regulatory agencies state – Federal Trade Commission (FTC) • Common law – precedents set by previous Common Unfai court decisions court r Busin ess Pract ices Uniform Commercial Code Uniform • Agent – authority to legally obligate Agent firm firm • Sale – the transfer of title to goods by Sale the seller to the buyer for a consideration known as price consideration • Invitation to negotiate vs. an offer an • FOB destination vs. FOB factory FOB vs. • Expressed warranty vs. implied Expressed vs. warranty warranty Misrepresentation or Puffery? 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 Feel patients. It’s nonaddicting.” patients. – “Our service can’t be beat.” – “This equipment will keep up with any This other machine you are using.” other Illegal Business Practices Illegal • Business defamation – Libel vs. slander • • • • • • Reciprocity Tying agreement Conspiracy & collusion Interference with competitors Restrictions on resellers Price discrimination – Robinson Price Patman Act Patman • Unordered goods Ethics Ethics • Ethics – principles that govern Ethics the behavior of an individual or group group – Vary from industry to industry – Can change over time – Code of Ethics • 90% of organizations Deception Deception • Deception – withholding Deception important information or telling “white lies” “white – Unethical or illegal? – Credibility Ethics in Selling Ethics “Always do right – this will gratify Always some and as astonish the rest.” some Mark Twain “The what has to take second place to The the how. Live in a glass house with how Live megaphones.” megaphones.” Bernard Rapaport Ethical Dilemmas Ethical • Treatment of coworkers – Undermining – Stealing customers • Treatment of competitors – Disparaging – Tampering w/ their products – Snooping Snooping “Legal” Sources of Information • Published materials / documents • Disclosures made by Disclosures competitors’ employees competitors’ • Market surveys – consultants’ Market reports reports • Trade fairs & exhibits • Analysis of competitors’ Analysis products products Ethical Dilemmas Ethical Ethics & your company – Expense accounts – Company resources – Company time – Sales records – Customer orders Bribes & Kickbacks Bribes • What’s the difference? – Many companies forbid employees to Many accept gifts or entertainment from suppliers suppliers • Guidelines for gift giving: – – – – Check your motives Ensure proper impression is made Violate any policies? Good standby is an inexpensive business Good item imprinted with the salesperson’s company logo company Other ethical challenges Other • • • • Back-door selling Expense accounts Reporting Changing organizations – Give ample notice – Offer assistance during transition – Be careful to not burn bridges Sexual Harassment Sexual • Unwelcome sexual advances, Unwelcome 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 individual’s employment, interferes w/work performance or creates an offensive, hostile or intimidating work environment. environment. Sexual Harassment • Conduct unwelcome by the Conduct recipient recipient • Sexual in nature • Creates a hostile working Creates environment environment – Quid pro quo Sexual Harassment Facts Sexual • Victim/harasser can be male or female • Victim does not have to be of Victim opposite sex opposite • Harasser can be supervisor, agent of Harasser the employer, co-worker or nonthe employee • Victim does not have to be person Victim harassed harassed • Harasser’s conduct must be Harasser’s unwelcome unwelcome ...
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