CCNP Ethics in Negotiation 5 — Questions and Answers
Question 1: Which ethical standard specifically addresses a negotiator's obligation NOT to make false statements of material fact to a third party?
- ABA Model Rule 4.1 (Correct answer)
- ABA Model Rule 1.6
- ABA Model Rule 3.3
- ABA Model Rule 1.2
Correct answer: ABA Model Rule 4.1
ABA Model Rule 4.1 prohibits lawyers from making false statements of material fact or law to third parties during representation.
Question 2: A negotiator realizes during a negotiation that they have an undisclosed financial stake in the outcome. The first required step is to:
- Continue and self-monitor for bias
- Disclose the conflict to the client and seek informed consent or withdraw (Correct answer)
- Disclose only if the other party requests
- Transfer the negotiation file to a colleague without disclosure
Correct answer: Disclose the conflict to the client and seek informed consent or withdraw
Undisclosed financial interests create conflicts of interest requiring immediate disclosure and client consent before continuing.
Question 3: In negotiation ethics, the term 'principled negotiation' (Fisher & Ury) is grounded in which approach?
- Winning at all costs through superior information
- Separating people from the problem and focusing on interests over positions (Correct answer)
- Maximizing individual gain through competitive tactics
- Preserving relationships by always splitting differences
Correct answer: Separating people from the problem and focusing on interests over positions
Principled negotiation focuses on interests over positions, objective criteria, and separating people from the problem.
Question 4: When a negotiator suspects the opposing party is negotiating in bad faith with no intention to reach an agreement, the ethical response is to:
- Match the bad faith tactics to level the playing field
- Continue indefinitely to demonstrate good faith
- Confront the behavior, seek clarification, and consider withdrawing if confirmed (Correct answer)
- Report the behavior to a regulatory body immediately
Correct answer: Confront the behavior, seek clarification, and consider withdrawing if confirmed
Ethical negotiators address suspected bad faith directly and may withdraw rather than perpetuate a fraudulent process.
Question 5: The ethical principle of 'proportionality' in negotiation tactics means:
- Every concession must be matched dollar for dollar
- Tactics used should be commensurate with the stakes and not cause disproportionate harm (Correct answer)
- Stronger parties must offer more concessions
- Legal action must precede any hard bargaining
Correct answer: Tactics used should be commensurate with the stakes and not cause disproportionate harm
Proportionality holds that negotiation pressure should be reasonable relative to the situation and not weaponized to cause unnecessary harm.
Question 6: Which of the following is an example of 'constructive ambiguity' used ethically in contract drafting negotiations?
- Hiding an unfavorable clause in dense legalese
- Leaving a genuinely contested term vague to allow both parties to ratify and clarify later (Correct answer)
- Using ambiguous language to void enforcement of a penalty clause
- Deliberately obscuring risk allocation to win signature quickly
Correct answer: Leaving a genuinely contested term vague to allow both parties to ratify and clarify later
Constructive ambiguity is ethical when both parties knowingly agree to defer a contested issue, not when one party is misled.
Question 7: A negotiator is asked by their client to sign a contract they believe contains an illegal clause. The ethically correct action is to:
- Sign it since the client bears the legal risk
- Refuse to sign and advise the client that the clause is illegal (Correct answer)
- Strike the clause unilaterally and sign without informing the other party
- Proceed if the client provides written indemnification
Correct answer: Refuse to sign and advise the client that the clause is illegal
A professional negotiator must not knowingly execute an illegal agreement and must counsel the client to remove or modify the offending clause.
CCNP Ethics in Negotiation 5
Which ethical standard specifically addresses a negotiator's obligation NOT to make false statements of material fact to a third party?