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Key Terms
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breach of warranty  A legal cause of action on which an injured party seeks damages. It arises when a salesperson makes erroneous statements or offers false promises regarding a product's characteristics and capabilities.
CCC GOMES  Acronym for the eight important stakeholders of an organization: customers, community, creditors, government, owners, managers, employees, suppliers.
character  Who you are when no one is looking and what you are willing to stand for when someone is looking.
Clayton Act  Prohibits the practice of tie-in sales when they substantially lessen competition.
code of ethics  A formal statement of the company's values concerning ethics and social issues.
conventional moral development level  The second level of an individual's moral development. At this level, an individual conforms to the expectations of others, such as family, employer, boss, and society, and upholds moral and legal laws.
cooling-off laws  Laws that provide a cooling-off period during which the buyer may cancel the contract, return any merchandise, and obtain a full refund.
cooperative acceptance  The right of employees to be treated fairly and with respect regardless of race, sex, national origin, physical disability, age, or religion, while on the job.
cornerstone  The essential component of a building's foundation which for the organization is love of others.
discretionary responsibility  Actions taken by a company that are purely voluntary and guided by its desire to make social contributions not mandated by economics, law, or ethics.
employee rights  Rights desired by employees regarding their job security and the treatment administered by their employers while on the job, irrespective of whether those rights are currently protected by law or collective bargaining agreements of labor unions.
ethical behavior  Behavior demonstrating a willingness to treat others fairly and that shows one to be honest and trustworthy and that exhibits loyalty to company, associates, and the work for which one is responsible.
ethics  Principles of right or good conduct, or a body of such principles, that affect good and bad business practices.
ethics committee  A group of executives appointed to oversee company ethics.
ethics ombudsman  An official given the responsibility of corporate conscience who hears and investigates ethical complaints and informs top management of potential ethical issues.
fixed point of reference  Something that provides the correct action to take in any situation and never gets tailored to fit an occasion.
Green River ordinance  This type of ordinance protects consumers and aids local firms by making it more difficult for outside competition to enter the market.
integrity  The quality of being honest without compromise or corruption.
love  The strong affection, desire, or devotion to people.
misrepresentation  A legal cause of action on which an injured party seeks damages. It arises when a salesperson makes erroneous statements or offers false promises regarding a product's characteristics and capabilities.
morals  People's adherence to right or wrong behavior and right or wrong thinking.
preconventional moral development level  The first level of an individual's moral development. At this level, an individual acts in his or her own best interest and thus follows rules to avoid punishment or receive rewards. This individual would break moral and legal laws.
price discrimination  The act of selling the same quantity of the same product to different buyers at different prices.
principled moral development level  The third level of an individual's moral development. At this level, an individual lives by an internal set of morals, values, and ethics, regardless of punishments or majority opinion.
reciprocity  An agreement whereby a person or organization buys a product if the person or organization selling the product also buys a product from the first party.
Robinson-Patman Act  An act that allows sellers to grant quantity discounts to larger buyers based on savings in manufacturing costs.
social responsibility  The responsibility to profitably serve employees and customers in an ethical and lawful manner.
stakeholder  Any group within or outside the organization that has a stake in the organization's performance.
termination-at-will rule  The employer's right to terminate sales personnel for poor performance, excessive absenteeism, unsafe conduct, and poor organizational citizenship.
tie-in sale  Prohibited under the Clayton Act, it occurs when a buyer is required to buy other, unwanted products in order to buy a particular line of merchandise.
true  Consistent with fact.
trust  The belief that another will act as they are expected to act.
truth  The facts needed to make ethical and moral decisions; to a person of faith--that which upholds and does not contradict what is fundamental to his or her faith and/or, frequently dependent on, what is stated in his or her sacred text.
value-added  Benefits received that are not included in the purchase price of the individual good or service.
worldview  People's different beliefs about the world around them.







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