When the negotiation is a transaction situation,________.
A) the parties involved take legal recourse to reach a settlement
B) the parties involved annul the negotiation
C) the parties involved take recourse to their BATNAs
D) the parties involved do not take recourse to their BATNAs

Question

Quizplus · Accepted Answer

In a transaction situation, the parties involved are usually looking to reach an agreement that benefits both parties. Therefore, if the negotiation fails, they will typically take recourse to their Best Alternative to a Negotiated Agreement (BATNA) – the best option available if they cannot reach an agreement. This is because the parties involved are motivated to make the transaction happen, so they will look at alternatives to reach a settlement. Taking legal recourse (option A) would be a last resort if other negotiation strategies failed, such as seeking mediation or arbitration. Annulling the negotiation (option B) does not address the underlying motivation behind the transaction, nor does it provide a solution that benefits either party. Option D is not necessarily true as parties may need to weigh their alternatives and decide whether to proceed with the transaction, regardless of whether their BATNA is better or worse than the proposed agreement.

When the Negotiation Is a Transaction Situation,________