CCNP Ethics in Negotiation 4 — Questions and Answers
Question 1: A procurement negotiator is offered a gift by a vendor during active contract negotiations. The most ethical response is to:
- Accept it as a goodwill gesture and disclose it later
- Decline the gift and report the offer per company policy (Correct answer)
- Accept it if below the company's gift threshold
- Accept it and recuse from the final approval only
Correct answer: Decline the gift and report the offer per company policy
Accepting gifts from vendors during active negotiations creates a conflict of interest regardless of value; the offer itself should be reported.
Question 2: The ethical duty of 'competence' in contract negotiation requires a professional to:
- Always achieve the best possible financial outcome
- Possess the knowledge and skill necessary to handle the negotiation adequately (Correct answer)
- Refuse any negotiation outside their industry specialty
- Complete negotiations within a mandated time frame
Correct answer: Possess the knowledge and skill necessary to handle the negotiation adequately
Competence requires adequate knowledge, preparation, and skill—not necessarily the best outcome—for every negotiation.
Question 3: Which statement best reflects the ethical obligation regarding confidentiality in negotiation?
- All negotiation communications are automatically privileged
- Information shared in confidence should not be disclosed without consent unless required by law (Correct answer)
- Confidentiality applies only to written communications
- Either party may waive the other's confidentiality obligations unilaterally
Correct answer: Information shared in confidence should not be disclosed without consent unless required by law
Negotiators must honor confidentiality commitments except where disclosure is mandated by law.
Question 4: A negotiator is representing a US government agency. Which law most directly governs their ethical obligation to avoid procurement corruption?
- Foreign Corrupt Practices Act (FCPA)
- Federal Acquisition Regulation (FAR) (Correct answer)
- Sarbanes-Oxley Act
- Uniform Commercial Code (UCC)
Correct answer: Federal Acquisition Regulation (FAR)
The Federal Acquisition Regulation (FAR) sets the ethical and procedural standards for US government procurement negotiations.
Question 5: Which negotiation behavior violates the principle of respect for party autonomy?
- Making a take-it-or-leave-it offer
- Using emotional appeals to build rapport
- Threatening physical or legal consequences to coerce agreement (Correct answer)
- Walking away from a deal that doesn't meet your interests
Correct answer: Threatening physical or legal consequences to coerce agreement
Coercion through illegitimate threats undermines the counterpart's freedom to make an autonomous decision.
Question 6: In a cross-cultural negotiation, ethical practice regarding cultural differences requires the negotiator to:
- Adopt the counterpart's cultural norms exclusively
- Exploit cultural gaps the counterpart is unaware of
- Adapt communication styles while maintaining core ethical standards (Correct answer)
- Apply only US legal ethical standards regardless of location
Correct answer: Adapt communication styles while maintaining core ethical standards
Cultural adaptability is appropriate, but core ethical standards such as honesty and respect remain non-negotiable.
Question 7: What is the primary ethical concern with using 'nibbling'—requesting small concessions after a deal is reached?
- It violates the parol evidence rule
- It can be manipulative if used to exploit the counterpart's sunk-cost commitment (Correct answer)
- It is illegal under US contract law
- It constitutes a breach of the negotiated contract
Correct answer: It can be manipulative if used to exploit the counterpart's sunk-cost commitment
Nibbling exploits psychological pressure from the counterpart's investment in the deal, which is an ethically questionable manipulation tactic.
CCNP Ethics in Negotiation 4
A procurement negotiator is offered a gift by a vendor during active contract negotiations.
The most ethical response is to: