Figure 2.3
Concern for self vs. others leads to the differences in negotiating styles. (Modification of art by
BNED/Rubin Credit: CC BY NC SA)
Negotiation Styles in Practice
Apple’s response to its treatment of warranties in China, i.e., giving one-year warranties instead of two-year
warranties as required by law, serves as an example of how negotiation may be used. While Apple products
continued to be successful and popular in China, the issue rankled its customers, and Chinese celebrities
joined the movement to address the concern. Chinese consumers felt that Apple was arrogant and didn’t
value its customers or the customers’ feedback. In response, Tim Cook issued a public apology in which he
expressed regret over the misunderstanding, saying, “We are aware that insufficient communications during
this process has led to the perception that Apple is arrogant and disregards, or pays little attention to,
consumer feedback. We express our sincere apologies for any concern or misunderstanding arising
therefrom.” Apple then listed four ways it intended to resolve the matter. By exhibiting humility and concern
for its customers, Apple was able to diffuse a contentious situation that might have resulted in costly litigation.
Negotiation Laws
Negotiations are covered by a medley of federal and state laws, such as the Federal Arbitration Act and
Uniform Arbitration Act. The Federal Arbitration Act (FAA) is a national policy that favors arbitration and
enforces situations in which parties have contractually agreed to participate in arbitration. Parties who have
18
Chapter 2 Disputes and Dispute Settlement
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