Brijesh is negotiating with Sara, who wants to purchase his car. The only issue is price.

This is an
example of a (select one):
This is an example of Position based negotiation because the main idea involved is the price alone

regardless of other interests.

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):
This is pats reservation price because it is the least favourable price at which he is accepting a

negotiated agreement.it is the maximum price he is only prepared to pay for the house

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):
This negotiation tends to look to the past grudges because Tim has been looking at a point of
conflict so that he create dispute
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):

Mediation this is whereby a neutral person will be involved to solve the business dispute and will help
reach a resolution during a meeting.the mediator will help both parties clarify disputed issues and
come up with possible options

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):
 None of the above, the best ADR (alternative dispute resolution) process,this is where a third
party that is independent and with recognized knowledge in the matter of dispute assist both
parties to come up with a resolution.the process avoids the dispute to be taken to court.

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):

The best is the arbitration because it will solve the commercial dispute that has arised under the
business agreement and come up with a resolution

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):
Litigation is the best process because this will involve the rules and the practices for resolving the

disputes in a court system and they will be able to evict proceedings.

8.

Cai is preparing for a cross-cultural negotiation with Yosuke. In preparing for this negotiation, he
wants to make sure that he understands Yosuke’s “deep culture.” This means understanding the
other side’s (select one):

Cai should understand the other sides cultural beliefs inorder to enhance the negotiation.

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):

elena’s stretch goal is 250 and beixi’s stretch goal is 400.

10.

Based on only the facts in #9, (select one):

elena’s reservation price is 300 and beixi’s reservation price is 275.

11.

Based on only the facts in #9 (select one):

This is a Position based negotiation because the main idea involved is the price alone regardless of

other interests.

12.

Based on only the facts in #9 (select one):

BATNA is the Best alternative to a negotiated agreement

elena’s batna is 300 and beixi’s batna is 275.

13.

Based on only the facts in #9 the ZOPA ranges from (select one):

ZOPA is the bargaining range and in this case is 250 to 400.

 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):

Bonnie and Clyde formed a contract on November 16 because it was the set start date of the
contract

point
15.

Amanda is beginning to negotiate the sale of her car to Anuj. In deciding whether to make the
first offer, the most important psychological tool that she needs to consider is (select one):
The most important psychological tool she needs to consider is anchoring effect.these describes human

tendency on relying heavily on the first hand information to make decisions or judgements.

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.

1
point
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.

1
point
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):
Harinee is being fraud because she is cheating for her own finances and personal gain.
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):

The company in this situation must pay Mark the commissions because he did not request for the
bonus but the customer offered freely.
20
To increase your power in a negotiation you should (select one):
Always make the first offer to increase negotiation power
21.

Your BATNA strategy should always include (select one):

strengthening your batna. Because it increases your negotiating power

22.

Company A hired Nick as an agent and gave him a letter authorizing him to make purchases on
behalf of the company. In a separate email, the company explained to Nick that he could only
make purchases for 100,000 or less. In other words, 100,000 was the reservation price for his
negotiations. Nick proceeded to negotiate a contract with a new supplier, B, in which he
purchased goods for 95,000. Nick showed B the letter of authority from the company but did not
mention the 100,000 limitation that the company explained in the email. Select one:

the company a is not bound by the contract because of unconscionability.it is just in the prices

23.

Same fact as #22, except that Nick agreed to pay 105,000 in the contract with B. Select one.

In this case the company is bound by the contract because nick had express authority.

24.
The best way to avoid the fixed pie assumption is to (select one):

To avoid the fixed pie assumption always use a larger stretch goal and search for interests of both
sides that are not in conflict.

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):
This is an example of reactive devaluation
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):

This an example of reciprocity because there are privileges of extended warranty that were given
to malavica.

27.

Bailey recently moved to France and is negotiating the purchase of a house in a suburb of Paris
from a French owner. She has retained her US citizenship. Her contract is governed by (select
one):

CIVIL LAW.

COMMON LAW.

THE UNITED NATIONS CONVENTION ON CONTRACTS FOR THE INTERNATIONAL

SALE OF GOODS.

THE UNIFORM COMMERCIAL CODE.

ALL OF THE ABOVE.

NONE OF THE ABOVE.

1
point
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):

Agreements in principle always bind contracts because they form the basis of the treaty

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 the overconfidence trap.

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):

In this situation there is no there is no consideration for sarah’s additional promise.

1
point
31.

Kathryn and Jose are involved in a business dispute that is going to arbitration. In the typical
arbitration (select one):

the arbitrator attempts to bring the parties together to transform their relationship by coming up
with a resolution.

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):
The typical types of mediation are facilitative whereby mediators will ensure both parties comes
to agreement.and evaluative whereby mediators will help both in with resolution and also predict
what ajudge is likely to do

33.

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):

With mediation a third party is present to make a decision and resolutions of the dispute

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):

The best process is avoidance of ZOPA that is doing away with it or making it to be void

35.

In every price negotiation, there is (select one):

In every price negotiation there must be a ZOPA,a BATNA and also a RESERVATION PRICE

36.

If the losing party in an arbitration appeals the decision to the court system, the court will (select
one):

The court will always review the decision that was made to make sure it does not favour any
side of the party and the decision is just

37.

Arbitration is very similar to litigation except that with arbitration (select one):

In arbitration you and the other side select your own third party or the arbitrator and also the
proceedings are private and not in the court system
38.

ADR screens are used to (select one):

alternative dispute resolution (ADR) decides on whether to use a binding or nonbinding process
when resolving a dispute.

1
point
39.

The following statement(s) is (are) correct (select one):

when negotiating with an agent who represents the other side, you should always ask the agent to
confirm that she has authority to represent the other side.

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 Maria’s 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):

The ideal situation is Apparent authority this is a situation whereby a reasonable third party will
have to understand that Maria has an authority to act.

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 can recover her attorney fees from aashka if she litigates the case in the united states and
wins.
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):

the agreement is unconscionable because it is only favouring Michelle

43.

Decision trees can be used to (select one):

Decision trees can be used to calculate BATNAS in deal making negotiations.

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):

I should consider to encourage the company to use screens to select an appropriate dispute
resolution process and include ADR clauses in contracts with its suppliers and customers

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):

These can be considerered as unconscionability because tracy is being unjust to Pat