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

question 39

Multiple Choice

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

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Definitions:

Ski Slope

A graded and usually groomed path down a mountainside for snow skiing, snowboarding, or other mountain sports.

Moral Hazard

The risk that a party to a transaction has not entered into the contract in good faith, or has an incentive to take unusual risks in a desperate attempt to earn a return before the contract settles.

Contract Changes

Amendments or modifications to the terms and conditions of an existing agreement.

Behavior Cost

The non-financial costs associated with actions or decisions, including effort, time, and opportunity costs that impact individuals' or companies' behaviors.