Ethical Practices in Negotiation Flashcards

A buyer's agent learns that the seller is under severe financial pressure and uses that information aggressively to extract a below-market price. This raises which primary ethical concern?

Answer: Exploitation of vulnerability, which conflicts with ethical negotiation standards

CNE ethics caution against exploiting vulnerabilities in ways that violate principles of fairness and dignity, even when doing so is technically legal.

Which of the following is considered acceptable 'puffery' under CNE ethical standards?

Answer: 'This is the best neighborhood in the city—you'll love it here.'

General subjective praise ('best neighborhood') qualifies as puffery, while specific false factual claims are misrepresentation.

In a multi-party negotiation, an agent privately shares one party's confidential bottom line with another party without authorization. This violates which ethical duty?

Answer: Duty of confidentiality

Sharing a client's confidential information without consent is a direct breach of the negotiator's duty of confidentiality.

A CNE negotiator suspects the other party is using a straw buyer to obscure the true buyer's identity. Ethically, the negotiator should:

Answer: Advise their client of the concern and consider legal counsel

When potential fraud is suspected, the CNE practitioner's duty is to alert their client and recommend appropriate legal guidance.

What does the ethical concept of 'informed consent' require in a negotiation context?

Answer: Clients must have sufficient information to make meaningful decisions about their negotiation

Informed consent means clients receive enough relevant information to make autonomous, meaningful decisions throughout the negotiation process.

A negotiator uses extreme time pressure tactics that they know will cause the other party to make a poor decision. Under CNE ethics, this is best characterized as:

Answer: Coercive manipulation that violates ethical standards

Deliberately exploiting pressure to impair decision-making crosses from legitimate strategy into coercive manipulation under CNE ethical principles.

Which best describes a negotiator's ethical obligation when they realize they lack the expertise needed for a specific aspect of the deal?

Answer: Disclose the limitation and recommend appropriate specialists to the client

The duty of competence requires acknowledging knowledge gaps and ensuring clients receive qualified guidance, including referrals to specialists when necessary.