Professional Documents
Culture Documents
45 Questions
45 Questions
position-based negotiation.
interest-based negotiation.
dispute-resolution negotiation.
all of the abovetwo of the above
none of the above
2.In the ?House on Elm Street? negotiation, Pat could pay no more than 250,000 for
the house. This is Pat?s (select one):
stretch goal.
most-likely price.
reservation price.
BATNA.
ZOPA.
none of the above.
3.Jing and Tim have parking spaces next to each other at the apartment complex
where they live. Tim claims that Jing dented his car when she was driving out of
her space. They are negotiating with each other, trying to resolve this dispute.
This type of negotiation tends to (select one):
be adversarial.
look to the past.
be interest-based.
all of the above.
two of the above.
none of the above.
4.Boris is involved in a business dispute with his partner Kaylee. Someone has
suggested that they should use a third party process to resolve the dispute. The
following are examples of third party processes (select one):
arbitration
mediation
litigation
all of the above
two of the above
none of the above
5.Someone else has suggested that Boris and Kaylee (#4 above) should use an ADR
process. The following are examples of ADR processes (select one):
arbitration
mediation
litigation
all of the above
two of the above
none of the above
6.Tommaso owns a business and is involved in a dispute with one of his suppliers,
Sharmin. Because Tommaso is certain that he is right, he wants to use a rights-
oriented process to resolve the dispute. Examples of rights-oriented processes are
(select one):
arbitration
mediation
negotiation
two of the above
all of the above
none of the above
7.Kelly is negotiating a complex deal with Santiago, but they are making little
progress. They should consider the following processes, which have been used for
deal making (select one):
mediation
litigation
arbitration
all of the above
two of the above
none of the above
values.
beliefs.
negotiating style.
all of the above
two of the above
none of the above
9.Elena is negotiating the purchase of a kitchen table from her neighbor Beixi. Her
goal is to acquire it for 250 and she will begin the negotiations by offering 150.
If Elena cannot negotiate a price of 300 or less for the table, she will purchase a
new table from a store for 400. Beixi?s goal is to sell the table for 350. She will
counter Elena?s initial offer by countering with 400. If Beixi cannot get at least
275 from Elena for the table, she will sell it to her nephew for 200. (Select one):
13.Based on only the facts in #9 the ZOPA ranges from (select one):
250 to 400.
150 to 400.
150 to 275.
150 to 250.
275 to 300.
250 to 350.
14.Clyde owns a business and needs to hire a temporary employee for one month,
beginning November 16. On November 1, he sent Bonnie a written job offer that
stated the November 16 start date. Bonnie accepted Clyde?s offer with a written
reply on November 2 but said that she could not start until November 18. Clyde sent
her a written response on November 3 stating that November 18 was fine with him.
Assuming that all other details regarding employment (such as salary, hours, etc.)
were spelled out in their messages, Bonnie and Clyde (select one):
16.Jessica manufactures components for a product. She has sued one of her
customers, Michael, in the United States for payment. Michael claims that the
components that Jessica delivered were defective. They are now negotiating a
possible settlement. Jessica is asking the court to award her 400,000 in damages
and she agreed to pay her attorney a 30% contingency fee. There is a 50% chance
that she will win. If they go to court, she estimates that Michael?s attorney?s
fees will total 80,000. Based on a decision tree calculation, the value of Jessica?
s litigation BATNA based only on these facts is (select one):
400,000.
280,000.
200,000.
140,000.
110,000.
none of the above.
17.Same facts as #16, except that Jessica files her lawsuit outside the US in a
country that uses a "loser pays" rule. Instead of hiring her attorney on a
contingency fee, she agrees to pay the attorney a fixed fee of 90,000. Based on a
decision tree calculation, the value of Jessica?s litigation BATNA based on these
revised facts is (select one):
200,000.
155,000.
115,000.
110,000.
70,000
none of the above.
18.Harinee is negotiating to sell her car to Sam. During negotiations, Sam asks
Harinee whether the car has ever been damaged in an accident. Harinee says ?
absolutely not.? This is a lie. She was involved in a serious accident in which a
passenger in her car was killed. After the accident she had the car completely
repaired and the damage is not noticeable. Based on Harinee?s answer, Sam bought
the car but later discovered the lie. Harinee has violated which of the following
legal rules (select one):
fiduciary duty
unconscionability
fraud
all of the above
two of the above
none of the above
19.Mark works in sales for Company X and is paid a commission on his sales. After
negotiations he enters into a contract to sell a product to a customer at a price
that is much higher than what other sales people could negotiate. His boss sends
Mark an email stating that she is very pleased with the deal. Despite the high
price, the customer is also pleased with the deal and pays Mark a bonus. When Mark?
s company later learns about the bonus the company (select one):
can refuse to pay his commission because the unconscionability rule.can refuse to
pay his commission because of the fraud rule.
can refuse to pay his commission because of the fiduciary duty rule.
can refuse to pay his commission because of the Golden Rule.
in this situation, must pay the commission.
none of the above
23.Same fact as #22, except that Nick agreed to pay 105,000 in the contract with B.
Select one.
24.The best way to avoid the fixed pie assumption is to (select one):
25.Eshan is preparing for a negotiation to sell his house to Jose. He thinks that
the ZOPA range is 250 to 300 when it is really 225 to 325. This is an example of
(select one):
reactive devaluation.
overconfidence.
the contrast principle.all of the above.two of the above.none of the abov
26.
Malavica is negotiating to purchase some equipment from Eric for her start-up
business. During the negotiation she makes a concession to Eric regarding the
delivery date. (The delivery date requested by Eric caused no problems for
Malavica.) In gratitude for her concession, Eric agrees to extend the warranty on
the equipment he is selling her for an additional time period. This is an example
of (select one):
anchoring.
reciprocity.
availability.
27.
civil law.
common law.
the United Nations Convention on Contracts for the International Sale of Goods.
28.
Jing is negotiating to sell her business to Pedro. They have reached agreement on
most of the terms of the sale and have just signed an agreement in principle.
Agreements in principle are (select one):
29.
Sarah signed an agreement to rent an apartment from a landlord who also signed the
agreement. During the lease negotiations, the landlord agreed to provide Sarah with
extra storage space in the basement of the apartment building but this promise was
not included in the agreement. The landlord now tells Sarah that he will not
provide the extra space. If the landlord admits making the promise, under the parol
evidence rule (select one):
he is legally required to provide the extra space because of his fiduciary duty to
Sarah.
30.
After both sides signed the lease in #29, the landlord asked Sarah if she would be
willing to delay the move-in date by two days. She agreed and they amended the
lease. In this situation (select one):
31.
Kathryn and Jose are involved in a business dispute that is going to arbitration.
In the typical arbitration (select one):
32.
In #31, Kathryn and Jose decide to try mediation instead of arbitration. They can
select one of the following, which are the typical types of mediation (select one):
faciliative.
baseball.
evaluative.
In #31, assume that Kathryn and Jose are trying to decide whether to resolve their
dispute either by one-on-one negotiation or by mediation. Negotiation and mediation
are similar except that with mediation (select one):
34.
Jed is negotiating a business deal with Steve. They think that there might not be a
ZOPA, in which case they are wasting their time. The best process for finding out
whether there is a ZOPA is (select one):
avoidance.
arbitration.
mediation.
35.
a ZOPA.
a BATNA.
a reservation price.
36.
If the losing party in an arbitration appeals the decision to the court system, the
court will (select one):
40. Maria is the head of human resources for a mid-size company. She is involved in
a budget dispute with Max, the head of the finance department. Max wants to cut
back on Marias budget for next year. Maria claims that she needs the current budget
to meet the HR needs of the three other departments in the company (information
technology, operations, and marketing). This is an ideal situation for Maria to use
(select one):
apparent authority.
coalition building.
reactive devaluation to devalue the proposal made by Max.
all of the above.
two of the above.
none of the above.
41. Aashka is negotiating to sell her car to Juana. During the negotiation, Aashka
tells Juana that someone else has offered to purchase the car for 5000. In fact, no
one else has made an offer to purchase the car. Based on Aashka's statement, Juana
agrees to purchase the car for 5200. If Juana later learns of Aashka's lie and
decides to sue her: (select one):
She cannot recover damages for fraud because she should expect sellers to use this
type of deception.
She can recover damages because Aashka breached her fiduciary duty.
She can recover her attorney fees from Aashka if she litigates the case in the
United States and wins.
all of the above.
two of the above.
none of the above.
42. Peter and Michelle are recent business school graduates with very few
resources. They decided to start a business as partners. Michelle was a much better
negotiator than Peter (because she had taken a MOOC called Successful
Negotiation!). She persuaded Peter to sign a partnership agreement that was
extremely unfair to him. He should be able to back out of the agreement because
(select one):
43. Decision trees can be used to (select one): calculate BATNAs in dispute-
resolution negotiations. calculate BATNAs in deal-making negotiations. develop
attractive landscaping in parks. all of the above. two of the above. none of the
above.
44. You are a consultant. Company M has been involved in a number of disputes with
its suppliers and customers. The company hires you to establish an ADR system. As
part of this system you should consider encouraging the company to (select one):
45. In the House on Elm Street negotiation, if Tracy did not tell Pat that the
basement might have a leak, this would be an example of (select one):
unconscionability.
breach of fiduciary duty.
illegal use of a BATNA.
all of the above
two of the above
none of the above