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CS Professional · Arbitration, Mediation and Conciliation · Negotiation Skills and Communication

Before mediation, Ravi, a Delhi distributor, works out that if no settlement is reached his best alternative is to sell the disputed stock to another buyer at ₹8 lakh. He decides not to accept any settlement below ₹8 lakh. What has Ravi identified?

Ravi has identified his BATNA, the best alternative to a negotiated agreement. Selling the stock elsewhere for ₹8 lakh is his best outcome if talks fail, so it fixes his walk-away point and the minimum he should accept in any settlement.

  1. AHis BATNA, which sets his walk-away pointCorrect
  2. BThe mediator's proposal
  3. CThe other party's reservation price
  4. DA zone of possible agreement

Explanation

The best alternative to a negotiated agreement (BATNA) is the best outcome available if talks fail; here it is the ₹8 lakh sale. It sets Ravi's minimum acceptable deal. The zone of possible agreement needs both parties' limits, so it is not identified by Ravi alone.

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