According to the framing effect, people are risk-averse for gains and risk-seeking for
losses.
People with a competitive orientation behave cooperatively when paired with a
cooperative opponent.
Equity is often used to allocate benefits, but equality is more commonly used to allocate
burdens.
Effective negotiators consider partial trust as being detrimental to negotiations.
Negotiators who make larger and more frequent concessions maximize their slice of the
pie, compared to those who make fewer and smaller concessions.
It is to a negotiator’s advantage to set a high, somewhat difficult aspiration point early
in the negotiation.
Cultural intelligence is essential for effective negotiation.
Knowledge-based trust increases dependence and commitment among parties.
Surveillance helps reinforce the behaviors that monitoring intends to ensure.
Brainwriting capitalizes on the fact that individuals are better at generating ideas but
groups are superior in terms of evaluating ideas.
One of the biggest myths is that effective negotiation skills are something that people
are born with.
Which of the following nonverbal behaviors exhibited by an individual indicates that
you can trust him or her?
A) direct speech
B) overly serious tone
C) fidgeting
D) lack of eye contact
Horizon thinking involves ________.
A) determining the optimal value of the negotiator’s surplus
B) making projections about future outcomes
C) determining your counterparty’s BATNA
D) making projections about the counterparty’s reservation point
Which of the following is a typical characteristic of a tacit negotiation?
A) absence of a binding contract
B) interest-based negotiation approach
C) wide bargaining zone
D) presence of more than five principal parties
Which of the following is a component of protection benefits?
A) stock/equity interest
B) disability insurance
C) bonuses
D) sick and personal days off
You read that 30% of a country’s male population has received technical education. On
the same day you learn that 30% of the people in that country are rich. Combining these
facts, you conclude that technical education makes people richer. This is an example of
________.
A) an illusory correlation
B) the perseverance effect
C) a causal relationship
D) the base rate fallacy
E) the gambler’s fallacy
The negotiation process of two corporate giants ends with both leaving money on the
table. This situation is known as a ________.
A) win-lose situation
B) lose-lose situation
C) win-win situation
D) no win situation
Ben and Janie are getting a divorce and their friend Josh recommends that they divide
their property using mediation or arbitration techniques rather than costly litigation. But
Janie is not very assertive and is afraid that her views may be overridden. Which of the
following methods should Josh recommend to ensure that any settlement they make is
purely voluntary?
A) arbitration
B) mediation
C) arb-med
D) med-arb
The ________ refers to the perception that negotiation is unstable and should be
terminated.
A) recency effect
B) conjunction fallacy
C) flaming bias
D) exit bias
Which of the following skills is considered the most important in mediation?
A) the ability to create a settlement and impose it on the concerned parties
B) the ability to guarantee a settlement, either voluntary or involuntary, for the dispute
C) the ability to expand the size of the bargaining zone by discovering interests
D) the ability to maintain control over both the process and the outcome of the
mediation
Richard Shell has identified helpful strategies and tips designed for cooperative
negotiators and competitive negotiators. Which of the following is one of the seven
tools designed for a competitive negotiator?
A) being scrupulously reliable
B) avoiding concentrating too much on your bottom line
C) creating an audience
D) insisting on commitments, not just agreements
Sam and Chelsea meet to negotiate a business arrangement between their companies.
Chelsea has done a lot of research beforehand and is very well prepared for the meeting
when compared to Sam. Sam believes that better solutions are arrived at through
intuition, spontaneity, and working hard at the negotiation table. Whom do you think
will be more successful at negotiating?
A) Neither because successful negotiation requires hard bargaining and very little
preparation, intuition or spontaneity.
B) Chelsea, because the 80’“20 rule applies to negotiation: About 80% of your effort
should go toward preparation; 20% should be the actual work involved in the
negotiation.
C) Sam, because the 80’“20 rule applies to negotiation: About 20% of your effort should
go toward preparation; 80% should be the actual work involved in the negotiation.
D) While preparation is important, whoever has the “killer instinct ” will be more
successful at negotiating, because the “killer instinct” plays a much bigger role in
negotiation than preparation.
Which of the following is an advantage of a contingency contract?
A) Negotiators can easily and accurately formalize such agreements.
B) It allows negotiators to safeguard themselves if they are concerned about being
cheated.
C) It gives negotiators scope to focus on their speculative disagreements.
D) It requires one-time or minimal interaction between the negotiating parties.
Which of the following statements is true regarding face threat sensitivity (FTS)?
A) People with high FTS have little or no ability to detect and respond to face threats.
B) A seller who has little or no reaction to a face threat is said to have high FTS.
C) A negotiator’s FTS is the likelihood of having a negative reaction to a face threat.
D) In employment negotiations, job candidates are less likely to make win-win deals if
they have low FTS.
People with a cooperative orientation behave competitively when paired with a
competitive opponent. Which of the following statements, if true, would weaken this
argument?
A) People make judgments about what is fair based on what they are investing in the
relationship and what they are getting out of it.
B) The motivational orientation of people remains fixed irrespective of the
circumstances.
C) People’s choices are driven, in large part, by their relationshipwith the other party.
D) One of the fastest ways to extinguish a behavior is simply not to respond.
Penny is a fresh graduate from a business school in New Jersey. She has interviewed
with Penarol and Estudes for a marketing job. Which of the following guidelines should
she follow during the job negotiation process?
A) She should discuss her BATNA with the employer and be honest about her current
salary and wage package.
B) She should focus and select subjective standards that are most favorable to her and
steadfastly stand by them.
C) She should not push the employer to negotiate for non-monetary perks such as
flexible hours and bonuses.
D) She should always assume an offer is negotiable and articulate her needs and
interests.
In which of the following methods does the arbitrator lack the authority to compromise
between parties’ positions, and must accept one of the final offers made?
A) arb-med
B) final offer arbitration
C) minitrial
D) med-arb
Your team is negotiating a sales contract with a potential client. One of your team
members says, “I wish we could use some other mode of communication because this
one is creating a huge psychological distance between us and our potential clients.”
Which of the following modes of communication are you using?
A) face-to-face communication
B) videoconferencing
C) computer messaging
D) telephonic conversation
The three most common secondary status characteristics are ________.
A) age, cultural background, and financial status
B) gender, age, and race
C) gender, rank within the organization, and age
D) race, financial status, and rank within the organization
How do comparables and benchmarks influence the process of negotiating a job offer?
Write a brief note on BATNAs and their significance in job negotiations.
Compare and contrast the two major types of arbitration available to disputants.
Can you think of two situations where you, or someone known to you, made a decision
that was consistent with the certainty effect?
Discuss the key biases that affect the ability of people to negotiate via e-mail.
Discuss the steps to be taken for encouraging cooperation in social dilemmas when
companies should not privately collude.
What are the various components of nonverbal communication?
What are the key challenges to ‘same time, different place” negotiations?