January Inc.enters into negotiations with its longtime supplier,DBC Supplies to iron out the renewal of its contract.Predicting a slowing market in the immediate future,January is reluctant to grant DBC a significant improvement on the previous terms.However,DBC insists that the market will hold steady,and a significant change is justified.January's negotiators suggest that the two formulate a contingency contract that reconciles both points of view.Which of the following,if true,would prevent DBC from accepting these terms?
A) January Inc. has a history of overconfidence in negotiations.
B) DBC believes that January Inc.'s negotiators are lying about their expectations.
C) January Inc. expects the market to grow in the near future.
D) DBC believes that the market will shrink in the next year.

Question

Quizplus · Accepted Answer

If DBC believes that the market will shrink in the next year, they would not agree to a contingency contract that is based on the assumption that the market will hold steady. Therefore, this option would prevent DBC from accepting the terms. Options A, B, and C are not relevant to DBC's decision-making process.