Settling a Lawsuit Review the Learning Exercise:

The purpose of this exercise is to apply the five negotiation skills presented in this chapter to an actual negotiation situation. Read below:

As a result of a claim, 30 people, none of whom knew each other prior to the filing of the claim, are negotiating a settlement with a pesticide company. The company sold lawn products that it said were not harmful to pets. After hundreds of dogs and cats died from exposure to the pesticide, the company withdrew the product from the market. The 30 people are seeking compensation for their lost pets. The company has gone out of business and left $250,000 to settle all of these claims. You are a representative of the former company, given the task of negotiating a settlement with the 30 people. You will receive a bonus if you can settle for less than the full amount. You know the amount of money to be distributed but the claimants do not. You are thinking of doing the following things: (1) demanding that the claimants appoint a representative for you to negotiate with, and then you can make sure the representative receives a premium for getting the parties to agree to settle; (2) telling the claimants that the company left only $100,000 for paying claims; (3) telling the claimants that the company also has other expenses to pay, so if they dont reach agreement by the end of the day, the money will be gone. (Heavrin 218)

Discuss the following statements: Discuss the ethical values you would use in this negotiation and the criteria you would use to make decisions. Describe the manner in which you would determine if you are using fair procedures and creating trust in this negotiation case.