This study examined the impact of situational and individual characteristics on sales representatives' propensity to lie or to tell the truth. The situational elements were the honesty of the organisation climate and its formal rules about lying to customers. The individual elements were the participants' degree of Machiavellianism and tolerance for ambiguity. The results indicated that more Machiavellian people were more likely to lie and that they were less guided by the rules than people who were low in this trait. In addition, rules and climate work together for people with a high tolerance for ambiguity in a complex manner.