Complete Test Bank Finch Negotiation Skills Chapter 20

Chapter 20: Negotiation Skills

Test Bank

Type: multiple choice question

Title: Chapter 20 Question 01

1) Which ONE of the following terms is used to describe a confrontational approach to negotiation that achieves gain by imposing loss on the other party?

a. Competitive gain negotiation.

b. Positional bargaining.

c. Integrative bargaining.

d. Defensive bargaining.

Type: true-false

Title: Chapter 20 Question 02

2) ‘The 'best negotiated outcome' is a phrase used to describe the position that you are in if you negotiate a settlement that is better than the best position you could be in if the case were to go to court.’ Is this statement true or false?

a. True

b. False

Type: multiple response question

Title: Chapter 20 Question 03

3) Which of the following are examples of an open question? Please select all that apply.

Feedback: Open questions are those that elicit broad general information, and are useful in opening out the discussion and obtaining detail from the other party. In general, they cannot be answered with a single word or a short statement of fact.

Section reference: 20.4.2.4

a. What issues are important to your client in this negotiation?

b. When does your client want the agreement to start?

c. Does your client have expertise in this area?

d. Why is your client so keen to achieve this particular aim?

Type: multiple response question

Title: Chapter 20 Question 04

4) Which of the following statements are true? Please select all that apply.

Feedback: BATNA is the ‘best alternative to a negotiated agreement’, so it is used to describe the outcome that is the best result for your client if there is no negotiation, or if the negotiations break down and fail to lead to agreement.

Section reference: 20.3.3.1

a. BATNA means the ‘best alternative to negotiated agreement’.

b. BATNA is shorthand way of saying ‘best negotiated outcome’.

c. BATNA is your client’s bottom line in the negotiation.

d. If you are hoping to achieve BATNA, it means that the negotiations have failed to reach a settlement.

Type: fill-in-blank

Title: Chapter 20 Question 05

5) A situation in which one party’s gain is equivalent to the other party’s loss is called a ______.

Feedback: ‘Zero-sum game’ describes the situation in which one party’s loss is equivalent to the other’s party’s gain, because the two sums added together equal zero.

Section reference: 20.1.1.1

a. zero-sum game

Type: multiple choice question

Title: Chapter 20 Question 06

6) Which ONE of the following describes the value of asking closed questions?

a. They open up debate and elicit broad information from the other party.

b. They force the other party to provide information they may wish to keep hidden.

c. They can be used to elicit specific information and so fill in the gaps in your understanding of the other party’s position.

d. Closed questions do not have any advantages in negotiation and should be avoided at all costs.

Type: multiple choice question

Title: Chapter 20 Question 07

7) Imagine that one of the issues that you have been asked to negotiate concerns the sale of a boat valued at £35,000, which your client has stated must be sold for £30,000 in order to get a quick sale. Which ONE of the following is the most appropriate opening statement on this point?

a. I have been instructed to obtain the best price possible for the boat, which is valued at £35,000, but my client wants to complete the sale as soon as possible—what would be you able to offer?

b. The boat is valued at £40,000, but my client is after a quick sale, so is prepared to take less than this price. Would you consider paying £30,000?

c. My client wishes to agree a quick sale on his boat. Although it has been valued at £35,000, he would be prepared to accept £30,000, provided that the sale could be completed quickly.

d. My client’s boat is worth £35,000, but he is prepared to sell it for less than this, provided that the sale is completed quickly. How much would your client be prepared to offer?

Type: multiple response question

Title: Chapter 20 Question 08

8) Which of the following strategies are useful in breaking deadlock? Please select all that apply.

Feedback: The most effective strategy in relation to deadlock is not to let it arise in the first place, but, if you find that you have reached a dead position in the negotiation, it is important to have try to get things moving again.

Section reference: 20.4.2.6

a. Highlighting concessions already made.

b. Asking questions to determine why the other party has become entrenched in their position.

c. Reopening a point that has already been agreed.

d. Refusing to proceed until the other party acts in a more reasonable manner.

Type: multiple response question

Title: Chapter 20 Question 09

9) Imagine that your client suffered serious burns when his new toaster exploded in his face on the first time that it was used. You are instructed to obtain damages from the retailer. What research would you need to conduct prior to the negotiation in order to prepare? Please select all that apply.

Feedback: The most important things to research here would be the level of damages that would usually be awarded (so that you are clear on the sort of figure at which to aim in your negotiation) and the law concerning liability for defective products (because your position will be stronger if you are clear that the other party is liable and would be found to be so if the case was heard at court). The issue of insurance is not relevant to your client, nor is whether or not the manufacturer may be liable if your client has instructed you to deal with the retailer.

Section reference: 20.3.2

a. The quantum of damages usually awarded for the sort of burns suffered by the client.

b. The law concerning liability for defective products.

c. The details of the insurance cover held by the retailer.

d. The incidence of similar injuries with the same product to determine whether the manufacturer is to blame.

Type: fill-in-blank

Title: Chapter 20 Question 10

10) If you feel that the negotiation is getting out of control, or if you want time to consider your strategy in light of the suggestions made by the other party, you can ______ to talk things through with your partner.

Feedback: Taking a short break in the middle of a negotiation can be a really effective way of gathering your thoughts and revising your strategy.

Section reference: 20.4.2.6

a. take a break

b. break