Ethical Boundaries & Good Faith Flashcards

A negotiator is representing a client in a real estate deal and learns their client plans to demolish a historic building immediately after purchase. Should the negotiator disclose this to the seller?

Answer: No, the negotiator has no duty to disclose client intentions that are lawful

Absent a specific duty (such as fiduciary relationship or applicable law), a negotiator generally has no obligation to disclose a client's lawful post-purchase intentions.

In ethical negotiation, 'integrative good faith' differs from mere procedural good faith in that it:

Answer: Demands active effort to find mutually beneficial outcomes, not just avoid bad behavior

Integrative good faith goes beyond avoiding unethical acts — it affirmatively requires genuine effort to create value and find mutually beneficial solutions.

A negotiator who deliberately misquotes an industry standard to justify their position is committing:

Answer: Misrepresentation of objective criteria

Deliberately misquoting objective standards (like industry benchmarks or legal rules) to support your position is a form of fraudulent misrepresentation.

Which ethical framework would support a negotiator sacrificing personal gain to ensure a fair outcome for a financially vulnerable counterpart?

Answer: Care ethics, emphasizing relationships and vulnerability

Care ethics emphasizes moral obligations based on relationships and the vulnerability of others, which would support protecting a disadvantaged party even at personal cost.

A party threatens to file a lawsuit they privately know lacks merit, solely to pressure the other side into a settlement. This is ethically problematic because:

Answer: It is an empty threat based on misrepresentation of their legal position

Threatening litigation you know to be without merit is a misrepresentation of your legal position and constitutes bad faith coercive pressure.

Which statement about confidentiality obligations in negotiation is most accurate?

Answer: Confidentiality obligations arise from express agreement, professional rules, or applicable law — not automatically

Confidentiality in negotiation is not automatic — it must be established by agreement, professional codes, or specific legal protections such as mediation privilege.

A negotiator operating under a code of professional ethics discovers the opposing party is acting in bad faith. The most appropriate initial response is to:

Answer: Name the conduct explicitly and seek a recommitment to good faith dealing

Naming the bad faith behavior directly and seeking recommitment to ethical standards is the appropriate first step before escalating or withdrawing.