Administrative Law
established by local, state, or federal regulatory agencies
agent
a person who acts or does business for another
Backdoor selling
when salespeople ignore the purchasing agent's policy, go around his or her back, and contact other people directly involved in the purchasing decision
bribes
payments made to buyers to influence their purchase decisions
Business Defamation
occurs when a salesperson makes unfair or untrue statements to customers about a competitor, its products, or its salespeople
canned sales pitch
a scripted sales pitch to follow without deviation
collusion
Competitors working together while the customer is making a purchase decision
common law
grows out of court decisions
conspiracy
an agreement between two or more persons to commit a crime
contract to sell
anytime a salesperson makes an offer and receives an unqualified acceptance
Credulous person standard
the company and the salesperson have to pay damages if a reasonable person could misunderstand a statement
cultural relativism
View that no culture's ethics are superior
deception
the withholding of some details of a study from participants (deception through omission) or the act of actively lying to them (deception through commission)
ethical imperialism
View that ethical standards in one's home country should be applied to one's behavior across the world
Ethics
the principles of right and wrong that guide an individual in making decisions
expressed warranty
an oral or written statement by the seller
False Claims Act
Lincoln Law" was passed in 1863 during the Civil War to encourage citizens to press claims against vendors that fraudulently sold to the U.S. government (all states now have their own version, too)
FOB factory
Buyer assumes responsibility for any loss or damage incurred during transportation
Foreign Corrupt Practices Act
makes it illegal for U.S. companies to bribe foreign government officials to obtain or maintain business over which that foreign official has authority
free on board destination
Seller has title until goods are received at destination
implied warranty
an unwritten guarantee that the good or service is fit for the purpose for which it was sold
Invitation to Negotiate
sales presentation
kickbacks
payments made to a person who has facilitated a transaction
lubrication
Involves a relatively small sum of cash, a gift, or a service given to a low-ranking official in a country where such offerings are not prohibited by law
manipulation
eliminates or reduces the buyer's choice unfairly
offer
When one person proposes a contract to another; if the other person accepts the offer, a binding contract is formed.
orders
Written offers from buyers or agents
persuasion
A kind of speaking or writing that is intended to influence people's actions.
poaching
Unethical practice of stealing potential customers from other salespeople
price discrimination
the business practice of selling the same good at different prices to different customers
privacy laws
limit the amount of information that a firm can obtain about a consumer and specify how that information can be used or shared
Reciprocity
Special relationship in which two companies agree to buy products from each other
resale price maintenance
price fixing imposed by a manufacturer on wholesale or retail resellers of its products to deter price-based competition
sale
the transfer of title to goods from the seller to the buyer for a consideration called the price
sales puffery
Unreliable statements that do not state the inherent capabilities of products or services
sexual harassment
unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature
spiffs (push money)
payments made by a producer to a reseller's salespeople to motivate the salespeople to sell the producer's products or services
Statutory Law
Based on legislation passed either by state legislatures or by Congress
Subordiantion
paying larger sums of money to higher-ranking officials to get them to do something that is illegal or to ignore an illegal act
trade secrets
Information owned by the company by which the company gains a competitive advantage
tying agreement
Buyer is required to purchase one product in order to get another product
Uniform Commercial Code
A collection of laws that governs various types of business transactions.
warranty
Assurance by the seller that the products will perform as represented