CBN Ethical Boundaries & Good Faith 2

Question 1

A negotiator discovers mid-negotiation that a key assumption underlying the deal is false. What does good faith require?

Accepted Answer

Disclose the error to the other party promptly

Answer

Good faith requires honest dealing, which includes correcting material errors that could affect the other party's decision-making.

Question 2

Which behavior constitutes 'sharp practice' in negotiation ethics?

Accepted Answer

Exploiting a technical loophole to gain advantage unfairly

Answer

Sharp practice involves exploiting technicalities or procedural tricks in ways that violate the spirit of fair dealing, even if technically legal.

Question 3

When a negotiator says 'I need to check with my principal' as a tactic rather than a genuine need, this raises concerns about:

Accepted Answer

Deceptive authority misrepresentation

Answer

Falsely claiming limited authority to create negotiating room is a deceptive tactic that undermines good faith.

Question 4

The ethical concept of 'duty to speak' in negotiation refers to:

Accepted Answer

The requirement to volunteer material information the other party would reasonably expect

Answer

Duty to speak arises when silence would be misleading — negotiators must disclose information that a reasonable party would expect to receive.

Question 5

A supplier negotiating a long-term contract knows their manufacturing facility will close in 6 months. Ethically, they should:

Accepted Answer

Disclose this fact as it is material to the contract duration

Answer

A facility closure is material information that directly affects the supplier's ability to perform, creating an ethical obligation to disclose.

(CBN) Certified Business Negotiator Practice Test