"This… is my final offer..."This post originally appeared on LinkedIn, June 1, 2015. Lying in Business Negotiations
In my negotiating experience, which is fairly extensive, I would state “no” to all of the above. Most of my peers, and comprehensive studies, support that position.
Is lying during business negotiations illegal?
In a business transaction both sides presumably try to get the best deal. That is the essence of bargaining and the free market. . . . No legal rule bounds the run of business interest. So one cannot characterize self-interest as bad faith. No particular demand in negotiations could be termed dishonest, even if it seemed outrageous to the other party. The proper recourse is to walk away from the bargaining table, not sue for “bad faith” in negotiations.
the speaker makes a knowing misrepresentation of a material fact on which the victim reasonably relies and which causes damages.
The Pinocchio Syndrome; why do managers lie?
“1. Do not realize they are behaving dishonestly; 2. They can't resist the temptation to act unethically; or, 3. Because they find effective ways to overlook or rationalize their choices.”