Chapter 17 Ethical and Legal Responsibilities of Sales Managers

12/7/2010
Fig. 17-2 The American Marketing Association’s
Code of Ethics
• Rights and Duties of Parties in the Marketing Exchange Process
Participants in the marketing exchange process should be able to expect
that:
• Products and services offered are safe and fit for their intended
uses;Communications about offered products and services are not
deceptive;
• All parties intend to discharge their obligations, financial and otherwise, in
good faith; and
• Appropriate internal methods exist for equitable adjustment and/or redress
of grievances concerning purchases.
Laws and Regulations
Affecting Sales Executives
• Price discrimination
– Clayton Antitrust Act (1914) and Robinson-Patman (1936)
• Unfair competition
– Bribes
– Misleading information (about products, competitors)
• Green River Ordinances
– Enacted by many cities to regulate door-to-door salespeople from
firms located outside the city
• Cooling-Off Laws
– Protects consumers requiring a time period (usually 3 days) to
cancel contract, return merchandise for refund.
Illegal Sales Practices
• Granting price concessions that are not justified or that
are not necessary to meet competition
• Making false claims about your product and the services
that accompany your product
• Representing a product to be new when it is rebuilt or
second-hand
• Misleading customers into thinking they are getting a
bargain when this is not the case
• Bribing customers’ employees in order to acquire or
hold an account
• Using bribery or espionage to learn a competitor’s trade
secrets
2