CCNP Ethics in Negotiation 2 — Questions and Answers
Question 1: A negotiator discovers mid-negotiation that their client provided false financial data. What is the ethically correct action?
- Use the false data to secure a better deal
- Disclose the inaccuracy to the opposing party immediately
- Quietly correct the record and continue without raising it
- Withdraw from the negotiation and advise the client to correct the record (Correct answer)
Correct answer: Withdraw from the negotiation and advise the client to correct the record
An ethical negotiator must not present false information; if the client refuses to correct it, withdrawal is required.
Question 2: Which of the following best describes 'puffery' in contract negotiation ethics?
- A deliberate misrepresentation of material fact
- Exaggerated promotional statements not meant as literal truth (Correct answer)
- A fraudulent inducement to enter a contract
- Withholding a known material defect
Correct answer: Exaggerated promotional statements not meant as literal truth
Puffery refers to subjective boasts or opinions that reasonable parties would not take as factual claims.
Question 3: Under the duty of good faith and fair dealing in US contract law, parties are generally prohibited from:
- Negotiating hard to obtain favorable terms
- Exercising contract rights solely to harm the other party (Correct answer)
- Seeking independent legal advice
- Using competitive bidding
Correct answer: Exercising contract rights solely to harm the other party
Good faith prohibits using contract rights in a way that deprives the other party of the benefit of the bargain.
Question 4: A negotiator receives a confidential document accidentally sent by opposing counsel. What is the most ethical course of action?
- Read it thoroughly before deciding
- Alert opposing counsel immediately and do not review it (Correct answer)
- Use it only for defensive purposes
- Submit it to a court as evidence
Correct answer: Alert opposing counsel immediately and do not review it
Professional ethics require notifying the sender and refraining from using inadvertently disclosed privileged materials.
Question 5: What ethical principle is most directly violated when a negotiator creates artificial urgency to pressure a counterpart?
- Principle of informed consent
- Principle of honesty and non-deception (Correct answer)
- Principle of confidentiality
- Principle of loyalty
Correct answer: Principle of honesty and non-deception
Fabricating time pressure is a deceptive tactic that violates the negotiator's duty of honesty.
Question 6: In multi-party negotiations, ethical practice requires a neutral facilitator to:
- Advocate for the party with the weakest position
- Maintain impartiality and disclose any conflicts of interest (Correct answer)
- Keep all party communications confidential from each other
- Prioritize reaching agreement over informed consent
Correct answer: Maintain impartiality and disclose any conflicts of interest
Neutrality and full conflict disclosure are foundational obligations for ethical facilitators.
Question 7: Which ethical framework most directly supports using negotiation to maximize joint value rather than claiming as much as possible for one side?
- Distributive ethics
- Utilitarian ethics favoring total welfare (Correct answer)
- Deontological ethics focused on rights
- Virtue ethics emphasizing character
Correct answer: Utilitarian ethics favoring total welfare
Utilitarian ethics evaluates outcomes by total well-being, supporting integrative bargaining that maximizes aggregate value.
CCNP Ethics in Negotiation 2
A negotiator discovers mid-negotiation that their client provided false financial data.
What is the ethically correct action?