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Alternative Dispute Resolution
Wayne State University Law School
McIntyre, Michael J.

Part I. Negotiation
1)      Negotiation and Conflict: The Big Picture  (17)
        I.      Outcomes of all disputes
i)        Mutual loss (lose/lose)
ii)       Gain for 1 loss for 1 (win/lose)
iii)     Mutual gain (win/win)
(1)    Advantage of Neg. is win/win can be had
     II.      Negotiation should focus on interests NOT positions (21)
i)        Positions can cause people being fixed on 1 positions while interests allow for parties to find overlapping interests
   III.      Jeffrey Rubin – Some Wise & Mistaken assumptions about conflict and negotiation – 1991
i)        A possibility for both sides to win even though they are both looking out for only themselves
ii)       Relationships are key to a good negotiate not just economic bottom line
iii)     Both parties must be ready to negotiate – must be “ripe”
(1)    Can be persuaded into this position by introduction of joint gain
(a)    gain outweighs stalemate position
2)      The Inner Negotiator: It’s All in Our Heads (27)
        I.      Rummel’s Subjectivity principle
i)        We process all information and stimuli around us through filters of our experiences, needs, and biases.
(1)    This can distort reality b/c we tend to see what we want to see
     II.      Rubin – We all have a “selection perception” – we see what we want to see
   III.      Golann – 4 obstacles to for negotiators
i)        Selective Perception
ii)       Optimistic Overconfidence – 
(1)    overconfident in out ability to assess uncertainty
iii)     Loss Aversion
(1)    more important then winning is not losing
iv)     Reactive Devaluation
(1)    We devalue offers given to us by adversarial party
 IV.      Birke – Settlement Psychology
i)        Data always trumps intuition (37)
3)      Negotiator Styles (43)
       I.      Competitive Negotiation
i)         Grounded on assumption that there is a limited resource or fund to be distributed btwn. competing parties
(1)    Works when there is only one round of negotiating
ii)       Dawson – Power Negotiating –p. 46
(1)    Gives you moves to make to win –
(a)    never say yes to proposal
(b)    be ready to walk away
(c)    Flinch at proposals – react w/ shock and wonder 
iii)     Levinson – Guerrilla Negotiating p.48
(1)    Your strategy depends upon the other persons strategy
    II.      Cooperative Negotiation
i)        Marked by an effort to understand one another’s perceptions and reexamine them together to arrive at a shared picture or mutually acceptable valuation
(1)    Works better when repeated interactions and future dealings are expected
ii)       5 basic Elements p. 54 –
(1)    Separate people from the problem
(2)    Focus on interest not positions
(3)    Invent options for Mutual Gain
(4)    Insist on objective criteria
(5)   Know your Best Alternative to a Negotiated Agreement (BATNA)
(a)     IE if adjudicated what is worst/best case 
(b)    What other options does a purchaser have – other businesses
iii)     In any bargain there are 2 reference points
(1)    Amount Buyer Won’t pay more than (buyer ceiling)
(2)    Amount seller won’t sell for (Seller bottom)
   III.       Chart out of N.S. –27
Neg. Approaches
Maximize self gain
Seeks joint gain
Positional Bargaining
Interest Bargaining
Perception of Issues
Zero Sum Gain (win/lose)
NO Zero Sum gain (win/win)
4)      The Negotiation Dance: Step by Step (79)
Stage- P. 79 Chart
1.   Preparation & Setting Goals
·     Planning & Research
·     Counseling client about neg.
·     Assessing Power of each party
·     Formulating positions and bottom lines
·     Setting Goals
·        Planning & Research
·        Counseling client about neg.
·     Assessing Needs of each party
·     Formulating BATNAs
·        Setting Goals
2. Initial Interaction & Offering
·     Setting Tone
·                                          Establishing Credentials & Authority
·      Making 1st Demand or offer
·     Stating Positions( often Exaggerative) 
·     Setting Tone
·     Establishing rapport and trust
·     Agreeing on Agenda
·     Stating Needs or interests
3.        Enchaining & Refining Information
·     Asking ?s
·     Offering overstates or understate

g point
(2)    If you can NOT make first offer then Counter promptly
(a)    Eliminates 1st offer as anchor position
(b)    Shows willingness to negotiate
(3)    DO NOT stage ranges p. 98
(a)    Give up bargaining ground
   III.      Exchanging & Refining Info  (100)
i)        Listening & ?ing
(1)    Active Listening is important
(a)    Will lean a lot by just being allowing other side to give you info
(2)    Encourage & acknowledge Efforts
(3)    Ask Open ended ?s – (begin with who, what , when , why)
(a)    Allow for latitude of answers
ii)       Managing Info
(1)    Use outside sources for info
(a)    Appraisals, mkt, value analysis, etc..
 IV.      Bargaining (109)
i)        Managing Concessions
(1)    Concessions should only be made only as required
(2)    Concessions should be made slowly
(3)    Try not to be the first to make a concession
(4)    Get something in return for any concession
(5)   First concede low cost negotiables that represent high value to other side
ii)       Value creates trades and brainstorming
     V.      Moving Toward Closure (117)
i)        Negotiating Power
(1)    Defined: ability to affect favorably someone else’s decision.
(2)    Categories of Power
(a)    Power of skill & knowledge
(i)      More skilled megotiatior has clear advantage
(b)    Power of a good relationship
(i)      This allows negotiator to have Trust & Communication with other party
(c)    Power of good alternative to negotiating
(i)      BATNAs come into play here
(d)    Power of elegant solution
(e)    Power of legitimacy
(i)      Avoid advancing a proposition that is so extreme it damages reputation
(f)     Power of commitment (120)
(i)      Affirmative commitment
(ii)    Negative commitment
1.       A commitment that I