Q1.

Position-based negotiators focus on finding what the other side wants, not why
they want it.

 True
 False
Q2. Dispute resolution negotiations tend to be position-based.

 True
 False
Q3. The three key ADR processes are arbitration, mediation and avoidance.

 True
 False
Q4. Litigation and arbitration are examples of rights-oriented processes.

 True
 False
Q5. In a cross-cultural negotiation, “deep culture” refers to the negotiators’ values
and beliefs.

 True
 False
Q6. If you are a seller, your stretch goal is the minimum price you will accept from
the buyer.

 True
 False
Q7. The Zone of Potential Agreement is the zone between the stretch goals of the
negotiators.

 True
 False
Q8. Under the “American Rule,” the loser in a trial pays the winner’s attorney fees.

 True
 False
Q9. When you are selling your car to a stranger, you do not owe a fiduciary duty
during negotiations.

 True
 False
Q10. When a principal authorizes an agent to negotiate a contract, the agent has
apparent authority.

 True
 False

Successful Negotiation: Essential Strategies and Skills Week 02 Quiz

Answers
 Quiz : Show What You Know

Q1. In some situations, you should disclose your BATNA to the other side during a
negotiation.

 True
 False
Q2. Because of anchoring, you should never make the first offer in a negotiation.

 True
 False
Q3. Because of anchoring, you should always make the first offer in a negotiation.

 True
 False
Q4. Overconfidence is a problem when making decisions, as opposed to
implementing decisions.

 True
 False
Q5. People tend to be risk averse when faced with positive choices.

 True
 False
Q6. Reciprocity is a useful tool to overcome problems that arise from relying on
easily-available information.

 True
 False
Q7. Great negotiators tend to focus on their own perspectives during a negotiation
as a way to dominate the other side.

 True
 False
Q8. The mythical fixed pie assumption is based on a belief that your interests during
a negotiation directly conflict with the interests of the other side.

 True
 False
Q9. Reactive devaluation refers to currency devaluation that affects the price that
you will offer during a negotiation.

 True
 False
Q10. One useful power strategy during a negotiation is to try to weaken the BATNA
of the other side.

 True
 False
Successful Negotiation: Essential Strategies and Skills Week 03 Quiz
Answers

Quiz : Show What You Know

Q1. Traditionally, contracts tended to be shorter in civil law countries.

 True
 False
Q2. Consideration in contracts is a common law requirement.

 True
 False
Q3. The UN Convention on Contracts for the International Sale of Goods covers sale
of real estate.

 True
 False
Q4. Two people can enter into an agreement in writing that is not legally enforceable.

 True
 False
Q5. You offer to sell your car to Chris for 2000, with payment to be made on 23
February. Chris accepts your offer but changes the date to 26 February. You have a
contract.

 True
 False
Q6. The Parol Evidence Rule requires that certain contracts must be in writing.

 True
 False
Q7. Lean contracting is limited to contracts for the lean production of products

 True
 False
Q8. To be legally binding, a contract must be in writing, but a formal document is not
necessary.

 True
 False
Q9. You want your employees to sign non-compete agreements. These agreements
are not legally enforceable everywhere.

 True
 False
Q10. The common law system relies heavily on case precedent.

 True
 False
Successful Negotiation: Essential Strategies and Skills Week 04 Quiz
Answers

Quiz : Show What You Know

Q1. The mini-trial is an example of mediation.

 True
 False
Q2. Screens are used to select one of these two binding dispute resolution
processes: arbitration and mediation.

 True
 False
Q3. The Corporate Pledge is an example of an ADR contract clause.

 True
 False
Q4. You can agree with the other side to use a dispute resolution procedure after a
dispute arises.

 True
 False
Q5. ADR contract clauses can include more than one dispute resolution process.

 True
 False
Q6. Arbitration decisions are generally not subject to review in the court system.

 True
 False
Q7. With transformative mediation, the mediator is authorized to decide the case.

 True
 False
Q8. One difference between arbitration and negotiation is that arbitrators often use
caucuses.

 True
 False
Q9. Preventive law focuses on trying to predict court decisions.

 True
 False
Q10. Arbitrators do not have to be lawyers.

 True
 False
Successful Negotiation: Essential Strategies and Skills Week 05 Quiz
Answers

Quiz : Final Exam

Q1. Brijesh is negotiating with Sara, who wants to purchase his car. The only issue is
price. This is an example of a (select one):

 position-based negotiation.
 interest-based negotiation.
 dispute-resolution negotiation.
 all of the above
 two of the above
 none of the above
Q2. 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.
Q3. 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.
Q4. 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
Q5. 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
Q6. 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
Q7. 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
Q8. 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):

 values.
 beliefs.
 negotiating style.
 all of the above
 two of the above
 none of the above
Q9. 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 150 and Beiji’s stretch goal is 200.

 Elena’s stretch goal is 400 and Beiji’s stretch goal is 400.
 Elena’s stretch goal is 250 and Beiji’s stretch goal is 400.
 Elena’s stretch goal is 300 and Beixi’s stretch goal is 350.
 Elena’s stretch goal is 250 and Beixi’s stretch goal is 275.
 none of the above
Q10. Based on only the facts in #9, (select one):

 Elena’s reservation price is 400 and Beixi’s reservation price is 275.

  Elena’s reservation price is 300 and Beixi’s reservation price is 275.
 Elena’s reservation price is 400 and Beixi’s reservation price is 200.
 Elena’s reservation price is 250 and Beixi’s reservation price is 200.
 Elena’s reservation price is 150 and Beixi’s reservation price is 350.
 none of the above
Q11. Based on only the facts in #9 (select one):

 This is an interest-based negotiation.

 This is a position-based negotiation.
 This is a deal-making negotiation.
 all of the above
 two of the above
 none of the above
Q12. Based on only the facts in #9 (select one):

 Elena’s BATNA is 300 and Beixi’s BATNA is 275.

 Elena’s BATNA is 150 and Beixi’s BATNA is 400.
 Elena’s BATNA is 400 and Beixi’s BATNA is 250.
 Elena’s BATNA is 250 and Beixi’s BATNA is 350.
 Elena’s BATNA is 300 and Beixi’s BATNA is 200.
 None of the above
Q13. Based on only the facts in #9 the ZOPA ranges from (select one):

 150 to 400.
 250 to 350.
 150 to 250.
 150 to 275.
 250 to 400.
 275 to 300.
Q14. 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):

 formed a contract on November 1.

 formed a contract on November 2.
 formed a contract on November 3.
 formed a contract on November 16.
 formed a contract on November 18.
 have not formed a contract.
Q15. 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 contrast principle.

 reactive devaluation.
 anchoring.
  reciprocity.
 whether the other side is authorized to make a deal.
 none of the above.
Q16. 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.
Q17. 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.
Q18. 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
Q19. 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
Q20. To increase your power in a negotiation you should (select one):

 always make the first offer.

 use reactive devaluation.
 rely on confirming evidence when preparing for the negotiation.
 ask the other side lots of questions
 use overconfidence when making decisions relating to the negotiation.
 none of the above
Q21. Your BATNA strategy should always include (select one):

 disclosing your BATNA.

 weakening the other side’s BATNA.
 strengthening your BATNA.
 all of the above.
 two of the above.
 none of the above.
Q22. 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:

 Company A is bound by the contract because Nick had express

authority.
 Company A is bound by the contract because Nick had apparent authority.
 Company A is not bound by the contract because of illegality.
 Company A is not bound by the contract because of unconscionability.
 Company A is not bound by the contract because of fraud.
 none of the above.
Q23. Same fact as #22, except that Nick agreed to pay 105,000 in the contract with
B. Select one.

 Company A is bound by the contract because Nick had express authority.

 Company A is bound by the contract because Nick had apparent
authority.
 Company A is not bound by the contract because of illegality.
 Company A is not bound by the contract because of unconscionability.
 Company A is not bound by the contract because of fraud.
 none of the above
Q24. The best way to avoid the fixed pie assumption is to (select one):

 devalue proposals made by the other side.

  use a large stretch goal.
 search for interests of both sides that aren’t in conflict.
 all of the above.
 two of the above.
 none of the above.
Q25. 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 above.
Q26. 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.
 all of the above.
 two of the above.
 none of the above.
Q27. 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.
Q28. 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):

 always binding contracts.

 never binding contracts.
 can be binding contracts, depending on the circumstances.
 statements summarizing the ethical beliefs of the two sides.
 two of the above.
 none of the above.
Q29. 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 consideration is

missing.
 he is legally required to provide the extra space because of his fiduciary duty
to Sarah.
 he is legally required to provide the extra space because of the
overconfidence trap.
 all of the above.
 two of the above.
 none of the above.
Q30. 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):

 there is no consideration for Sarah’s additional promise.

 there is consideration for Sarah’s additional promise because of the illegality
principle.
 there is consideration for Sarah’s additional promise because of fiduciary duty
requirements.
 all of the above.
 two of the above.
 none of the above.
Q31. Kathryn and Jose are involved in a business dispute that is going to arbitration.
In the typical arbitration (select one):

 the arbitrator acts as a facilitator.

 the arbitrator decides who wins and who loses.
 the arbitrator attempts to bring the parties together to transform their
relationship.
 all of the above.
 two of the above.
 none of the above.
Q32. 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.
 all of the above.
 two of the above.
 none of the above.
Q33. 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)
  a third party is present to make a decision.
 witnesses testify under oath.
 mediators generally follow court procedure.
 all of the above.
 two of the above.
 none of the above
Q34. 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.
 all of the above.
 two of the above.
 none of the above.
Q35. In every price negotiation, there is (select one):

 a ZOPA.
 a BATNA.
 a reservation price.
 all of the above.
 two of the above.
 none of the above.
Q36. If the losing party in an arbitration appeals the decision to the court system, the
court will (select one):

 always review the decision.

 never review the decision.
 in some situations review the decision.
 incarcerate the losing party.
 usually order a new arbitration.
 two of the above.
Q37. Arbitration is very similar to litigation except that with arbitration (select one):

 you and the other side select your own third party (the arbitrator).
 the proceedings are private.
 the technical rules of litigation are not followed.
 all of the above.
 two of the above.
 none of the above.
Q38. ADR screens are used to (select one):

 decide whether to use an ADR pledge.

 decide whether to use a binding or a non-binding process when
resolving a dispute.
 hide your BATNA from the other side.
 all of the above.
 two of the above.
 none of the above.
Q39. The following statement(s) is (are) correct (select one):

 You should always ask the other side to make the first offer.
 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.
 You should never reveal your BATNA to the other side.
 all of the above.
 two of the above.
 none of the above.
Q40. 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):

 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.
Q41. 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.
Q42. 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):

 Michelle committed fraud.

 the agreement is unconscionable.
 Michelle breached the anchoring rule.
 all of the above.
 two of the above.
 none of the above.
Q43. 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.
Q44. 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):

 adopt an ADR pledge.

 use screens to select an appropriate dispute-resolution process.
 include ADR clauses in contracts with its suppliers and customers.
 all of the above.
 two of the above.
 none of the above.
Q45. 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