CBN Ethical Standards & Professionalism 3 — Questions and Answers
Question 1: A certified negotiator is asked by a client to negotiate using a strategy they believe is deceptive to the other side. The negotiator should:
- Follow client instructions since the client bears final responsibility
- Refuse the instruction and explain the ethical and legal risks involved (Correct answer)
- Use the strategy but document their objection internally
- Consult the opposing party before deciding
Correct answer: Refuse the instruction and explain the ethical and legal risks involved
Negotiators must refuse instructions to engage in deceptive conduct and counsel clients on the associated ethical and legal risks.
Question 2: What is the primary purpose of a negotiator maintaining detailed records of offers, counteroffers, and communications?
- To create leverage in future disputes with the opposing party
- To ensure transparency, accountability, and professional defensibility (Correct answer)
- To satisfy government regulatory reporting requirements
- To enable quick settlement in future similar negotiations
Correct answer: To ensure transparency, accountability, and professional defensibility
Detailed records protect the negotiator's integrity and provide accountability for how the negotiation was conducted.
Question 3: In CBN ethics, 'procedural fairness' in a negotiation refers to:
- Ensuring both parties receive equal monetary outcomes
- Providing each party a fair opportunity to present their case and be heard (Correct answer)
- Following only the procedures outlined in the contract
- Allowing only certified professionals to facilitate the process
Correct answer: Providing each party a fair opportunity to present their case and be heard
Procedural fairness focuses on the equity of the process itself — each party having a genuine voice — not necessarily equal outcomes.
Question 4: A negotiator who simultaneously represents two parties with opposing interests without full disclosure is engaging in:
- Dual representation
- Undisclosed conflict of interest (Correct answer)
- Parallel advocacy
- Cross-party mediation
Correct answer: Undisclosed conflict of interest
Representing opposing parties without disclosure is an undisclosed conflict of interest, which is a serious ethical breach.
Question 5: Which of the following best illustrates an ethical use of competitive negotiation tactics?
- Fabricating a competing offer to pressure the other side
- Anchoring with a strong but defensible opening position (Correct answer)
- Threatening consequences the negotiator has no authority to execute
- Hiding known defects in the subject matter of the deal
Correct answer: Anchoring with a strong but defensible opening position
A strong but defensible anchor is a legitimate competitive tactic, unlike fabrication, false threats, or material concealment.
Question 6: What should a negotiator do when they realize the other party is operating under a significant factual misunderstanding about a key term?
- Exploit the misunderstanding to gain an advantage
- Clarify the misunderstanding to ensure mutual understanding of terms (Correct answer)
- Remain silent and allow the misunderstanding to persist
- Immediately halt negotiations and seek legal counsel
Correct answer: Clarify the misunderstanding to ensure mutual understanding of terms
Allowing a material misunderstanding to persist without correction can constitute a form of deceptive conduct and undermines good-faith negotiation.
Question 7: Under professional standards, a negotiator's duty of loyalty means they must:
- Always prioritize their own professional reputation above the client's interests
- Advance the client's legitimate interests without compromising ethical obligations (Correct answer)
- Follow every client instruction without question
- Maintain equal loyalty to both the client and the opposing party
Correct answer: Advance the client's legitimate interests without compromising ethical obligations
Duty of loyalty requires advancing the client's interests but only within the bounds of ethical and legal obligations.
CBN Ethical Standards & Professionalism 3
A certified negotiator is asked by a client to negotiate using a strategy they believe is deceptive to the other side.
The negotiator should: