First Learning Motivator - Dispute Resolution

January 14, 1997

Please show your work clearly in the space provided. Illegible writing will be marked incorrect. If you use the back of a page, indicate that you have done so on the front of the page. Good Luck!

1) Briefly define each of the following terms [4 points each]:

threat point


The fifty-percent rule


self actualization


principle-agent problem


"I" message




"say stop" game


"American Rule"


external effects



2) [12 points] List three of the four basic points of principled negotiation:







Circle the one best answer to each multiple choice question below [4 points each].

3) A hard bargainer will

a. try to avoid a contest of will.

b. try to reach a result based on standards independent of will.

c. try to win a contest of will.

d. disclose her bottom line.

e. insist on agreement.


4) Which of the following is not part of Fisher & Uryís definition of a wise agreement?

a. meets the legitimate interests of both parties to the extent possible

b. resolves conflicting interests fairly

c. is durable

d. takes community interests into account

e. is tangible


5) Which of the following is not suggested by Fisher & Ury?

a. Put yourself in their shoes.

b. Look for opportunities to act inconsistently with their perceptions.

c. Donít deduce their intentions from your fears.

d. Discuss each otherís perceptions.

e. React to emotional outbursts.


6) Which of the following is not true under the Sincerity Rule?

a. If the offer is rejected the parties must cease bargaining and go to trial.

b. If the jury award is less than the defendantís offer, the plaintiff must pay both sidesí attorney fees.

c. Either side can make an offer.

d. It is wise for the offeror to make an offer slightly superior to the expected jury award.

e. None of the above.


7) Which of the following is not one of the conditions for settlement listed by Anderson?

a. There is agreement over the settlement range, and the portions of the bargaining rent claimed by each party donít overlap.

b. The partiesí perceived settlement ranges differ but overlap, and there is agreement over an appropriate settlement value within the common range.

c. The defendantís threat point is less than the plaintiffís threat point.

d. One party is capable and willing to make a credible final offer within an existing settlement range.

e. A third party can form an acceptable or enforceable resolution.


8) In a Final Offer Auction where Td = 55 and Tp = 25, the most either side should bid is

a. 15

b. 25

c. 30

d. 55

e. 80


9) [6 points] On the number line below, label Jp, Jd, Td, and Tp such that the parties are relatively optimistic about the jury award but a settlement range exists. Label the settlement range.


 10) [6 points] In a graph below, graph fp(X) and fd(X) such that the parties are relatively optimistic. With X<X*, label Fp(X*) and Fd(X*).




 Why are there fewer cases filed when X is far from X* than when X is close to X*?




11) [5 points] What is one reason given in the book for why the fifty-percent rule might not hold?


12) [12 points] List three symbolic gestures that could be worth their weight in gold.