Exercise 2-5 Neither a Borrower Nor a Lender Be Bill borrowed $4,000 from Barbara to pay for some repair work on his car and to pay off some high-interest credit-card debt. He said he would pay her back at the rate of $300 per month. He just lost his job and is concerned that he wont have enough money coming in to live comfortably and still pay her back. Bill would like to drastically reduce the amount he is paying to Barbara each month so he has a cushion in case he has unexpected expenses. Barbara is planning to purchase her first house. She wants to minimize her mortgage and needs the money Bill owes her to put toward her down payment. She has known Bill for quite a while and has come to believe that Bill cares only about himself. Instructions:

For party #2: Name their interests, and possible alternatives to a negotiated agreement (BATNA, WATNA, and MLATNA).

Your answer

For party #2: Identify issues that would likely be part of the negotiation. ALSO for each issue: Establish a possible initial offer, target point, and any resistance points.

Your answer

For BOTH parties: Describe how each may have framed the situation, then REFRAME it yourself to see it from a different perspective.