1.

Bracketing - directs you to where its best to concentrate, it isolates where you have the best
chance for negotiation
a. The settlers would be going out west.The Indians didn't like the settlers because the
settlers were taking their land. All right. Same things happening last night on the
news with the oil pipeline. So, what would happen is that the Indians will attack the
settlers. And the settlers would put their Wagons into a circle. And then the settlers
would take their guns and shoot from the circle. Now the Indians they didn't have
guns, they had bows and arrows. The Indians had to figure out a way to kill the
settlers. Well those Indians weren't necessarily sure where the settlers were. The
settlers could have been over here a bit over here. Could have been over here. The
Indians would be over here what the Indians would do. There might be 500 Indians.
(DIAGRAM ON THE COPY). They'd all shoot an arrow at the same time. Now they
weren't sure exactly where the settlers were. But they could sort of tell but they were
probably in this area here. So, they shoot 500 arrows and they all come down in this
area. And so, the arrows would come down and hopefully kill the settlers which were
in this area. This is called bracketing. Right direction towards where it is best to
concentrate it isolates worry that your best chances for negotiations are, you
specify certain areas that you think you have the best chance and you
concentrate on that area. Same way the Indians will kill the settlers. I think new in
this area here. Let's concentrate on that area. We'll bracket that area with 500 arrows
and hopefully we'll kill all the settlers. So, you're directed towards the area which you
think it is best to concentrate.
2. Agent of limited authority- e.g. doesn’t have the right to make any contracts that he wants,
only contracts under $5000
a. Are you a member from your business law class. When you have an agent an agent in
contract on behalf of his principal he is given the authority by his principal to enter
into a contract. But the agent may say you can enter into any contract where the
contract price is ten thousand dollars or less for more than ten thousand dollars. You
gotta come and see me agent has authority. What is the authority is limited to
contracts which are less than ten thousand dollars. This is the agent of limited
authority and you have limited authority and the guy says Let's do it for 15 you may
say I'm not at liberty to do it for 15. An agent of limited authority makes it clear that
he is unable to make a firm or final decision without acceptance by the principal.
b. Solami: When you take a piece of salami, you eat at one ? NO. You take piece by
piece in lunch or dinner. The salami technique in negotiation is little by little. You
gather the information little by little and make deal. (is best where there are multiple
elements of cost, do one thing at a time)
c. Quick Close: Now, You have a book you want to sell your book to another student.
Well how much do you know how much you want to sell his book for your price
when you sell your book for.( each party is willing to meet the other party half-way)
a. Fifty dollars. How much is the other guy want to pay. Twenty five. So then
what do you say. Forty five. Yeah. What does he say. Thirty then what do you
say. Well you could say forty and he's got to say what. Thirty five. Yeah so
they haven't met yet. Right. So what do you say. Let's split the difference. All
one guys at one end. Yeah. Guys at the other end guy says Let's split the
difference. This is called Quick close. You wanna quickly close the deal.
You're at a fast rope. One guy has a one right the other guy's another price you
might just say that split the difference call a quick closed.