Chapter 1
1. b
3. a
5. a
7. d
9. What is the supreme law of the land? The federal constitution is the supreme law of the land. What are
statutes? Laws enacted by Congress or a state legislative body. What are ordinances? Laws enacted by local
legislative bodies. What are administrative rules? Laws issued by administrative agencies under the authority
given to them in statutes.
11. The term “unfair trade practices” is broadly used and refers to any deceptive or fraudulent business
practice or act that causes injury to a consumer. Some examples include, but are not limited to, false
representations of a good or service including deceptive pricing, non-compliance with manufacturing
standards, and false advertising. The FTC investigates allegations of unfair trade practices raised by consumers
and businesses, pre-merger notification filings, congressional inquiries, or reports in the media and may seek
voluntary compliance by offending businesses through a consent order, administrative complaints, or federal
litigation.
13. c
15. b
Chapter 2
1. a
3. The process by which parties with nonidentical preferences allocate resources through interpersonal activity
and joint decision making.
5.
The Thomas-Kilmann Conflict Mode Instrument (TKI) is a questionnaire that provides a systematic framework
for categorizing five broad negotiation styles. It is closely associated with work done by conflict resolution
experts Dean Pruitt and Jeffrey Rubin. These styles are often considered in terms of the level of self-interest,
instead of how other negotiators feel. These five general negotiation styles include:
Forcing. If a party has high concern for itself, and low concern for the other party, it may adopt a competitive
approach that only takes into account the outcomes it desires. This negotiation style is most prone to zero-
sum thinking. For example, a car dealership that tries to give each customer as little as possible for his or her
trade-in vehicle would be applying a forcing negotiation approach. While the party using the forcing approach
is only considering its own selfinterests, this negotiating style often undermines the party’s long-term success.
For example, in the car dealership example, if a customer feels she has not received a fair trade-in value after
the sale, she may leave negative reviews and will not refer her friends and family to that dealership and will
not return to it when the time comes to buy another car. Collaborating.
Collaborating. If a party has high concern and care for both itself and the other party, it will often employ a
collaborative negotiation that seeks to maximum the gain for both. In this negotiating style, parties recognize
that acting in their mutual interests may create greater value and synergies.
Compromising. A compromising approach to negotiation will take place when parties share some concerns for
both themselves and the other party. While it is not always possible to collaborate, parties can often find
certain points that are more important to one versus the other, and in that way, find ways to isolate what is
most important to each party.
7. a
9.
E-mediation can be useful in situations where the parties are geographically far apart, or the transaction in
dispute took place online. Ebay uses e-mediation to handle the sheer volume of misunderstandings between
Answer Key
Answer Key
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