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Question: You have just closed a major deal, selling a customer a four-year service contract that covers al…

by | Dec 1, 2023 | Posted Questions


You have just closed a major deal, selling a customer a
four-year service contract that covers all the equipment he has
purchased from your company. You have now exceeded your quota for
the quarter! You reviewed the contract with him, but when you got
to the part about the price of the contract increasing
significantly after the 12-month introductory period, you read
through quickly without explaining the increase. Is your behavior
ethical? Why or why not?

a. Yes. The information about the
price increase is written in the contract, which the client should
have read before signing.
b. Yes. You reviewed the contract
with the client, which is all that is legally necessary to
constitute ethical practice.
c. No. You should have contacted
your manager and had her make the final decision as to whether to
disclose the price change after the promotional period.
d. No. You should have offered the
four-year contract, explained its benefits, and disclosed the price
change.

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