The check-out clerks at a large grocery store are in negotiations with management. The last remaining issue to settle is the hourly wage. In their earlier meetings, the clerks' bargaining committee has decided that although they are demanding $9.50 an hour, they will settle for nothing less than $8.75. Management's bargaining committee has decided that their highest offer will be $8.50. This situation is an example of _____.
A) a negative settlement range
B) a positive settlement range
C) an incompatible settlement range
D) a distributive settlement range
E) a settlement range of $.25

Question

Quizplus · Accepted Answer

The highest offer by management is lower than the lowest demand by the clerks, creating a negative settlement range. This means that there is no overlap between the two parties' positions and it will be difficult to reach a mutually acceptable agreement.

The Check-Out Clerks at a Large Grocery Store Are in Negotiations