BPTC Negotiation Skills 1 — Questions and Answers
Question 1: What does 'BATNA' stand for in negotiation theory?
- Best Alternative To a Negotiated Agreement (Correct answer)
- Balanced Approach To Negotiating Arrangements
- Basic Assessment of Total Negotiated Amount
- Best Attainable Terms in any Negotiation
Correct answer: Best Alternative To a Negotiated Agreement
BATNA (Best Alternative To a Negotiated Agreement) is the most advantageous course of action available to a party if negotiations fail to produce a deal.
Question 2: In principled negotiation (the Harvard approach), which of the following is NOT one of the four key principles?
- Separate the people from the problem
- Focus on positions rather than interests (Correct answer)
- Invent options for mutual gain
- Insist on using objective criteria
Correct answer: Focus on positions rather than interests
Principled negotiation specifically advocates focusing on underlying interests rather than stated positions; positional bargaining is exactly what the Harvard approach seeks to move away from.
Question 3: What is the 'Zone of Possible Agreement' (ZOPA) in negotiation?
- The range of issues open for discussion in a negotiation
- The overlap between each party's reservation prices within which a deal can be struck (Correct answer)
- The geographical area in which a negotiation takes place
- The list of concessions each party is prepared to make
Correct answer: The overlap between each party's reservation prices within which a deal can be struck
ZOPA is the range between the parties' respective reservation prices (walk-away points) where a mutually acceptable agreement is possible.
Question 4: Which negotiation style treats the negotiation as a zero-sum game where one party's gain is the other's loss?
- Integrative negotiation
- Collaborative negotiation
- Distributive negotiation (Correct answer)
- Principled negotiation
Correct answer: Distributive negotiation
Distributive (or positional/competitive) negotiation involves dividing a fixed resource so that one party's gain necessarily comes at the other party's expense.
Question 5: In negotiation, what is a party's 'reservation price'?
- The opening offer made at the start of negotiation
- The price agreed in advance with the client before negotiation begins
- The threshold beyond which a party would prefer no deal to a deal on those terms (Correct answer)
- The amount a party expects the court to award if litigation proceeds
Correct answer: The threshold beyond which a party would prefer no deal to a deal on those terms
A reservation price (or walk-away point) is the least favourable outcome a party would accept before preferring to walk away from the negotiation entirely.
Question 6: Which of the following best describes 'integrative' negotiation?
- Each party seeks to maximise individual gain at the other's expense
- A neutral third party evaluates each party's position and imposes a solution
- Parties identify shared and complementary interests to create mutually beneficial outcomes (Correct answer)
- One party makes all concessions to achieve a quick settlement
Correct answer: Parties identify shared and complementary interests to create mutually beneficial outcomes
Integrative negotiation focuses on expanding value by exploring underlying interests, enabling solutions that leave both parties better off than pure positional bargaining would allow.
Question 7: At the BPTC, when (if ever) should a negotiator reveal their client's bottom line to the opposing party?
- At the outset, to demonstrate good faith and encourage reciprocity
- Only if the client specifically instructs disclosure
- Never under any circumstances
- Only if genuinely necessary to achieve settlement, and then only strategically (Correct answer)
Correct answer: Only if genuinely necessary to achieve settlement, and then only strategically
Revealing a client's bottom line prematurely weakens the negotiating position; disclosure should be an absolute last resort and even then managed carefully to avoid unnecessary concession.
BPTC Negotiation Skills 1
What does 'BATNA' stand for in negotiation theory?