Bullard Slides Only

Bullard Houses: Interests and BATNAs of Parties Seller (Downtown Co.)  Interests

Buyer (Absentia)  Interests

Preservation

Confidentiality

Residential

Money

No

poor press  BATNA Room for James Bullard  Alternative site at $20 million--important not to Money leak b/c price of site could  BATNA go up Quincy style market: $24 million reservation $19 million price Residential brownstones: Negotiations Terri Kurtzberg 1 $15 million

Bullard Houses: Bargaining Zone Positive bargaining

zone with regard

to finances $19

million reservation price for Seller $24 million reservation price for Buyer Negative bargaining

zone with regard

to interests Seller

wants to maintain residential with reputable, known buyer Buyer wants to convert to commercial, maintain anonymity Negotiations Terri Kurtzberg

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Quotes 

Buyers:  “Concealing



the real use of the property was a challenge in this negotiation. I had to appear as though I was negotiating with the other party on their requests all the while knowing that most of their requests would not be met. I also had to make sure that I did not agree to anything that would preclude the real plans of the client.”   “At no point did I acknowledge that I had information as to the plan for the property.”   “I completely lied through my teeth on this negotiation!!!”

Sellers:  “To

me I couldn't get to his Interests because he seemed to be only the negotiator and he wasn't authorized to reveal the commercial plans. To me this violated one of my basic interests as I understood the situation. In fact, I was a little leery of the intentions of  Absentia since all I could tell they were willing to do was keep the original walls of the place standing.”   “Really, any question I asked did not produce a clear, concise, committed answer.” 

Negotiations Terri Kurtzberg

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Four Types of “Ethical Misbehavior”  Lies: “We

plan to make the property into a concert hall” or “I don’t know what they want to do with it”   Misleading Statements: “Sure, it’ll be residential” or “The structure will remain as it is”   Overpromising: “You can have approval on all building activities”   Compromising the Client: “We are building a hotel”  Negotiations Terri Kurtzberg

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Fundamental Attribution Error  Why

we lie

 Avoid

 Why

negative consequences (hurting others’ feelings; facesaving) Produce good consequences (profit) Justice (fairness, even score) Unavoidable given situation

others lie

Dishonesty Deceit Corruption Immorality

Negotiations Terri Kurtzberg

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What the law says about legal fraud 

 A statement is fraudulent when the speaker makes a knowing misrepresentation of a material fact on which the victim reasonably relies and which causes damage. 

 

Knowing misrepresentation or willful shielding from material information BATNA - fact Reservation Price & Weightings - subjective

Negotiations Terri Kurtzberg

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Cues to Detect Lies 

What DOESN’T work:  Looking

at facial expressions  Expecting liars to not meet our gaze or shift in their seats  Expecting faster speech rates and rambling speech 

What DOES work:  Liars

tend to use higher pitch, more sentence corrections, slower speech, and shorter total speech  In writing, less connector-words (but, however) and less personal articles (I, we)  Not readily available to the naked eye: Facial micro-expressions, eye-position, nose swelling  Ask

and re-ask questions, and listen to the answers! Negotiations Terri Kurtzberg

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Suggestions for Avoiding Ethical Disputes 

Consult your lawyer, and ask yourself:  Can

you live up to any bold assurances you may have made?  Are there alternative tactics available with fewer ethical ambiguities?  Will lying assure you what you want?  What are the chances of negative ramifications?

Read contracts carefully and clarify questionable areas (again and again, if necessary) in writing before signing  Remember: “Nobody ever listened their way out of a deal” unless it was a deal they didn’t want in the first place! 

Negotiations Terri Kurtzberg

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