Under what circumstances does a contract zone exist?

Question

Quizplus · Accepted Answer

A contract zone exists when there is overlap between each side's bottom line. This means that both management and the union have identified a range of acceptable terms for the contract, and there is potential for agreement to be reached within this range. Option A is incorrect because no overlap between the sides' bottom lines would indicate an impasse rather than a contract zone. Option B and D are not necessarily relevant factors in determining the existence of a contract zone.

Under What Circumstances Does a Contract Zone Exist