Ethical Boundaries & Good Faith Flashcards
7 cards from real CBN practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Ethical Boundaries & Good Faith flashcards as text
In the context of CBN ethics, 'anchoring dishonestly' would occur when a negotiator:
Answer: Fabricates an external benchmark (like a fake market report) to justify their anchor
Anchoring itself is legitimate, but fabricating external data to lend false credibility to an anchor crosses into deceptive misrepresentation.
An attorney-negotiator learns information during negotiations that would benefit their client but was shared by the opponent in apparent confidence. Ethically, the negotiator should:
Answer: Clarify with the other party whether the information was intended to be confidential
When information is shared ambiguously, good faith requires clarifying its intended confidentiality before acting on it.
The ethical standard of 'consistency' in negotiation means:
Answer: Applying the same ethical rules regardless of whether you are buying or selling
Ethical consistency means holding yourself to the same standards in all roles — you should not apply stricter ethics when you are the weaker party.
A negotiator for a pharmaceutical company is asked to conceal known side effects of a product during a licensing deal. This is:
Answer: A clear ethical violation involving material misrepresentation that could cause harm
Concealing known product risks during a licensing negotiation is a serious ethical violation involving both deception and potential public harm.
When two negotiating parties sign a letter of intent (LOI), what ethical obligation does this typically create?
Answer: A duty to negotiate the remaining issues in good faith
An LOI typically establishes a duty to negotiate remaining open terms in good faith, even if the final deal is not yet binding.
The tactic of 'good cop / bad cop' in team negotiations raises which ethical concern?
Answer: It can involve coordinated deception about the team's actual positions and authority
Good cop/bad cop involves a coordinated performance designed to manipulate the other party's perceptions, which can cross into deceptive conduct.
Which of the following best reflects the principle of 'autonomy' in negotiation ethics?
Answer: Negotiators must respect each party's right to make free, informed decisions without manipulation
Respecting autonomy means ensuring the other party's decisions are genuinely free and informed, not coerced or based on false information.