CHAPTER 7

Seatwork

1.) What does caveat emptor mean?

Caveat emptor is a Latin phrase that can be roughly translated in English to "let the buyer
beware." While the phrase is sometimes used as a proverb in English, it is also sometimes used in legal
contracts as a type of disclaimer. In many jurisdictions, it is the contract law principle that places the
onus on the buyer to perform due diligence before making a purchase.

2.) When does over-persuasion become unethical?

Persuasion is the process of appealing to the emotions of a prospective customer and rging him
to buy an item of merchandise he needs. Persuasion is legitimate and necessary in the selling of goods if
it is done in the interest of a buyer such as persuading him to get a hospitalization insurance policy.
However, persuasion use for the sole benefit of selling product without considering the interest of the
buyer is not ethical. Persuasion becomes unethical when facts are distorted, overlooked, manipulated
with an intent to deceive.

Over-persuasion includes following Examples.

 Urging a customers to satisfy a low priority need for merchandise

 Playing upon intense emotional agitation to convince a person to buy.
 Convincing person to but what he does not need because he has the capacity or money to
do so.

Persuasion is the process of appealing to the emotions of a prospective customer and urging
him to buy an item of merchandise
he needs. Persuasion is legitimate and necessary in the selling of goods if it is done in the interest of a
buyer such as persuading
him to get a hospitalization insurance policy. However, persuasion used for the sole benefit of
selling a product without
considering the interest of the buyer is not ethical. The common instances of over-persuasion include
the following examples:
1. Urging a customer to satisfy a low priority need for merchandise.
2. Playing upon intense emotional agitation to convince a person to buy.
3. Convincing a person to buy what he does not need just because he has the
capacity or money to do so
Persuasion is the process of appealing to the emotions of a prospective customer and urging him to buy
an item of merchandise
he needs. Persuasion is legitimate and necessary in the selling of goods if it is done in the interest of a
buyer such as persuading
him to get a hospitalization insurance policy. However, persuasion used for the sole benefit of
selling a product without
considering the interest of the buyer is not ethical. The common instances of over-persuasion include
the following examples:
1. Urging a customer to satisfy a low priority need for merchandise.
2. Playing upon intense emotional agitation to convince a person to buy.
3. Convincing a person to buy what he does not need just because he has the
capacity or money to do so
Persuasion is the process of appealing to the emotions of a prospective customer and urging him to buy
an item of merchandise
he needs. Persuasion is legitimate and necessary in the selling of goods if it is done in the interest of a
buyer such as persuading
him to get a hospitalization insurance policy.
3.) Insider trading is considered an unethical practice. Why?

YES. Obviously, the reason insider trading is illegal is because it gives the insider an unfair
advantage in the market, puts the interests of the insider above those to whom he or she owes a
fiduciary duty, and allows an insider to artificially influence the value of a company's stocks. If you or
someone you know has engaged in insider trading, this is a very serious situation requiring legal
assistance. An insider or his or her accomplices could face considerable fines and even federal prison
sentences. For more information on insider trading and to obtain legal assistance please visit our Law
Firms page and search for an attorney in your area who focuses on securities and/or criminal law.

Persuasion is the process of appealing to the emotions of a prospective customer and urging
him to buy an item of merchandise
he needs. Persuasion is legitimate and necessary in the selling of goods if it is done in the interest of a
buyer such as persuading
him to get a hospitalization insurance policy. However, persuasion used for the sole benefit of
selling a product without
considering the interest of the buyer is not ethical. The common instances of over-persuasion include
the following examples:
1. Urging a customer to satisfy a low priority need for merchandise.
2. Playing upon intense emotional agitation to convince a person to buy.
3. Convincing a person to buy what he does not need just because he has the
capacity or money to do so.
Persuasion is the process of appealing to the emotions of a prospective customer and urging him to buy
an item of merchandise
he needs. Persuasion is legitimate and necessary in the selling of goods if it is done in the interest of a
buyer such as persuading
him to get a hospitalization insurance policy. However, persuasion used for the sole benefit of
selling a product without
considering the interest of the buyer is not ethical. The common instances of over-persuasion include
the following examples:
1. Urging a customer to satisfy a low priority need for merchandise.
2. Playing upon intense emotional agitation to convince a person to buy.
 3. Convincing a person to buy what he does not need just because he has the
capacity or money to do so
Persuasion is the process of appealing to the emotions of a prospective customer and urging him to buy
an item of merchandise
he needs. Persuasion is legitimate and necessary in the selling of goods if it is done in the interest of a
buyer such as persuading
him to get a hospitalization insurance policy. However, persuasion used for the sole benefit of
selling a product without
considering the interest of the buyer is not ethical. The common instances of over-persuasion include
the following examples:
1. Urging a customer to satisfy a low priority need for merchandise.
2. Playing upon intense emotional agitation to convince a person to buy.
3. Convincing a person to buy what he does not need just because he has the
capacity or money to do so