ORGS 4560 Lecture Notes - Lecture 11: Real Estate Broker, Punitive Damages
28 Apr 2018
School
Department
Course
Professor
ORGS 4560
Lecture 11
MATERIAL
- Many people lie or deliberately mislead others about something
during negotiations, seek to deceive by making initial demands that
far exceed their true needs or desires
- Statement that an asking price is “too high” may not be a
misrepresentation as much as a statement of opinion or preference
- Fraud for the gallery owner, as part of a negotiation with a collector
saying “I can’t take less than $12,000”, does have authority to sell the
painting for anything above $10,000 so there has been a knowing
misrepresentation of fact
- Legal question in both cases is whether these facts are “material” ,
they are not, lies about demands and bottom-line prices are so
prevalent in bargaining that many professional negotiators do not
consider such misstatements to be lies, preferring the term “bluffs”
- Such statements allow the parties to assert the legitimacy of their
preferences and set the boundaries of the bargaining range without
incurring a risk of loss
- Misleading statements about bottom-line prices and demands also
enable parties to test the limits of the other side’s commitment to their
expressed preferences
- “Estimates of price or value placed on the subject of a transaction
and a party’s intention as to an acceptable settlement of a claim” are
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