CPCM Certified Professional Contract Manager: Negotiation and Conflict Resolution in Contracts 2

Question 1

Which negotiation strategy involves making a high initial offer to anchor the counterparty's expectations?

Accepted Answer

Anchoring

Answer

Anchoring sets a reference point that influences the other party's perception of a fair outcome.

Question 2

Under the UCC, when parties have conflicting terms in their standard forms, which doctrine determines what becomes part of the contract?

Accepted Answer

Battle of the forms under UCC 2-207

Answer

UCC 2-207 allows a contract to form even if the acceptance contains different or additional terms, resolving conflicts through specific rules.

Question 3

A contract manager discovers mid-performance that a key subcontractor is in financial distress. The BEST first step is to:

Accepted Answer

Issue a cure notice and request adequate assurance

Answer

Requesting adequate assurance under UCC 2-609 preserves the contract while addressing insolvency risk before a breach occurs.

Question 4

In interest-based negotiation, what does 'separating people from the problem' primarily achieve?

Accepted Answer

Reduces emotional barriers so parties can focus on substantive issues

Answer

Depersonalizing the dispute helps negotiators engage with underlying interests rather than defending positions.

Question 5

Which clause most effectively limits a contractor's liability exposure for consequential damages arising from contract disputes?

Accepted Answer

Mutual waiver of consequential damages clause

Answer

A mutual waiver of consequential damages contractually excludes lost profits and other indirect losses for both parties.

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