CBN Ethical Standards & Professionalism 2

Question 1

A negotiator discovers mid-deal that their client withheld material information from the other party. What is the most ethical course of action?

Accepted Answer

Advise the client to disclose the information or withdraw from representation

Answer

A professional negotiator must advise the client to correct material omissions or withdraw rather than facilitate deception.

Question 2

Which concept best describes the ethical obligation to keep negotiation communications confidential when explicitly agreed upon?

Accepted Answer

Duty of confidentiality

Answer

The duty of confidentiality requires negotiators to protect sensitive information shared within an agreed-upon confidential framework.

Question 3

A negotiator uses a bluff by overstating their client's alternatives to gain leverage. This practice is generally considered:

Accepted Answer

Ethically acceptable puffery within accepted negotiation norms

Answer

Overstating alternatives is widely accepted as permissible puffery in negotiation, distinct from fraudulent misrepresentation of material facts.

Question 4

What does 'good faith negotiation' primarily require of a negotiator?

Accepted Answer

Genuine intent to reach a mutually acceptable resolution

Answer

Good faith requires sincere engagement in the negotiation process with honest intent, not a guaranteed outcome.

Question 5

When a negotiator has a personal financial interest in the outcome of a deal they are facilitating, this situation is called a:

Accepted Answer

Conflict of interest

Answer

A conflict of interest arises when a negotiator's personal stake could compromise their objectivity or loyalty to their client.

(CBN) Certified Business Negotiator Practice Test