Reference no: EM133233210

Question 1. In your own words, define the following:

a. bargaining power

b. bargaining zone

c. reservation point

Question 2. Peter is selling his Jeep Wrangler for $7,500.00. He needs to pay off his loan of $4,000.00 and then he needs another $2,000.00 to put down on a new car. Kevin has been saving up for a car and has set his sights on a pre-owned Jeep. He would like to spend $5,000.00 but he has saved up $7,000.00 to cover the cost of a vehicle AND the registration fees of $500.00.

Kevin and Peter are co-workers and when Kevin learns that Peter is selling his Jeep, he approaches Peter and makes an offer to buy the Jeep and the parties begin to negotiate.

a. What is Peter's reservation point?

b. What is Kevin's reservation point?

c. What is the bargaining zone for this negotiation?

Question 3. In what contexts have you entered into an arbitration agreement or agreed to a mandatory arbitration clause in a contract? Discuss the implications of entering into such an agreement.

Question 4. Suppose you are employed as a risk management consultant and the President of one of your corporate clients has contacted you for advice. One of his most valued suppliers has sued his company alleging breach of contract. Discuss how you would advise him as to the pros and cons of litigation and EACH of the main ADR options and what steps would need to be taken to best resolve the issue.