Rob Peterson works as a salesperson at Consolidated Systems, Inc. In addition to a base monthly salary,

Question:

Rob Peterson works as a salesperson at Consolidated Systems, Inc. In addition to a base monthly salary, Rob receives a commission based on the amount of sales that he makes during the month. Rob was hoping to have enough money for a down payment on a new car, but sales have been low due to a downturn in the economy. Rob was aware that Consolidated Systems, Inc., granted credit terms of 2/10, n/30 to its credit customers. In addition, Rob knew that Consolidated Systems, Inc., had a "no questions asked" return policy. Based on this knowledge, Rob had an idea. Rob contacted a regular customer and convinced the customer to make a substantial purchase of merchandise so that he could earn the commission on the sale. Rob explained to the customer that he would not have to pay for the goods for 30 days and that he could return part, or all, of the goods prior to paying for them. However, Rob asked the customer not to return any of the goods until the following month to ensure that he would earn the full commission.
Requirements
1. Do you feel Rob acted unethically? Why or why not?
2. How can Consolidated Systems, Inc., deter actions like Rob's?
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Financial Accounting

ISBN: 978-0134436111

4th edition

Authors: Robert Kemp, Jeffrey Waybright

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