Ethical Practices in Negotiation Flashcards

A negotiator discovers mid-deal that their client's financial projections contain an error that overstates value. What is the ethical course of action?

Answer: Notify the client and correct the information before continuing

The CNE standard requires notifying the client and correcting material misrepresentations before they influence the other party's decisions.

Which of the following best describes the concept of 'good faith' in negotiation ethics?

Answer: Engaging sincerely with intent to reach a mutually acceptable agreement

Good faith means genuine engagement toward resolution, not requiring disclosure of all information or abandonment of competitive strategy.

A real estate negotiator uses a made-up competing offer to pressure the seller into accepting a lower price. This is best classified as:

Answer: Fraudulent misrepresentation

Fabricating a competing offer is fraudulent misrepresentation, crossing a clear ethical and legal line for CNE practitioners.

When should a CNE negotiator disclose a conflict of interest to their client?

Answer: As soon as the conflict is identified, before proceeding

Timely disclosure of conflicts of interest is required so clients can make informed decisions about whether to continue the relationship.

The ethical principle of 'reciprocity' in negotiation most accurately refers to:

Answer: Treating the other party the way you would want to be treated

Ethical reciprocity in the CNE framework reflects the Golden Rule—treating counterparts with the respect and fairness you expect in return.

A negotiator is asked by their client to relay false information to the other party. The negotiator's best response is to:

Answer: Refuse and explain that transmitting false information violates professional ethics

CNE ethics prohibit agents from knowingly conveying false information on behalf of a client, regardless of client instruction.

Which scenario most clearly illustrates an ethical use of strategic ambiguity in negotiation?

Answer: Describing your flexibility on terms without revealing your exact walk-away point

Ethically, negotiators may withhold their precise reservation price while being truthful about flexibility—this is standard strategic information management.