Statements Made During Negotiations

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It was unethical for Engineer A to make the statement to Engineer B in an effort to move the negotiations forward.

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The obligation of professional engineers to be honest, truthful, and forthcoming in their professional dealings is a critical ethical principle to which all engineers should adhere. As a general matter, the public, employers, clients, and colleagues rely upon the honesty and integrity of the professional engineer in professional matters. For that reason, engineers always need to be mindful of their statements as well as their actions. As the expression goes, one’s words are one’s bond and it is often by one’s words how an individual will be judged. The NSPE Board of Ethical Review has had occasion to review cases relating to the statements made by engineers. For example, in BER Case No. 72-11, the Board considered a case involving engineer John Doe who had been employed as a design engineer in an aerospace company for 12 years. During that time Doe had been assigned to the performance of highly technical and complex engineering design work. Along with thousands of other engineers in the aerospace industry, Doe was laid off when contracts with his company were terminated and new work was not forthcoming. After many months of seeking a new job in his specialized field with no success, Doe was advised by an employment counselor that Doe’s only opportunity lay in finding a position involving management and administration of engineering work. Doe previously had some managerial and administrative experience of a minor nature in connection with his former employment, but felt he could perform satisfactorily at a higher level in that related field of technical activity if given the opportunity. After being turned down repeatedly for technical managerial or administrative positions because his resume showed a lack of such experience, Doe devised a new resume, which played down his technical design experience and expertise and emphasized his minor managerial and administrative function in his former employment as an important responsibility. As a result, Doe was able to obta...

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Engineer A is acting as the chief negotiator in the sale of a small engineering subsidiary to Engineer B. Engineer A wants to move the negotiations forward to finalize the deal but Engineer B has been stalling. Engineer C had expressed some initial interest in buying the subsidiary, but following consideration, Engineer C decided she was definitely not interested in purchasing the subsidiary. In an effort to move the negotiations forward, referring to Engineer C’s earlier interest, Engineer A tells Engineer B, “Another company has expressed an interest in buying our subsidiary, so you had better move quickly if you are interested.”

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Was it ethical for Engineer A to make the statement to Engineer B in an effort to move the negotiations forward?
Similar Cases

D-tuple Component Breakdown

131

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Roles R
w=0.12 384D
Engineering Subsidiary Prospective Buyer
A licensed professional engineer or engineering firm principal who is engaged in negotiations to acquire an...
Withdrawn Engineering Acquisition Prospect
A licensed professional engineer or engineering firm principal who initially expressed interest in acquiring an...
Engineer A Engineering Firm Sale Negotiator
Acts as chief negotiator in the sale of a small engineering subsidiary to Engineer B; attempts to accelerate...
Engineer B Engineering Subsidiary Prospective Buyer
Prospective buyer of the engineering subsidiary who has been stalling negotiations; is the target of Engineer A's...
Engineer C Withdrawn Engineering Acquisition Prospect
Initially expressed interest in acquiring the subsidiary but definitively decided not to purchase it; her withdrawn...
Resume Misrepresenting Job-Seeking Engineer
A licensed or credentialed engineer who, while seeking new employment after a layoff or career transition, crafts a...
Engineer A Firm Sale Negotiator
Made artfully misleading comments to Engineer B (prospective buyer) during business negotiations for the sale of an...
Engineer Doe Resume Misrepresenting Job-Seeker
Laid-off aerospace engineer (BER 72-11) who, after failing to find work, rewrote his resume to emphasize minor...
Engineer A BER 86-6 Team Credit Misrepresenter
Staff engineer (BER 86-6) who, as one of six equal-rank engineers on a team that jointly designed patented products,...
Employer Y Engineering Hiring Authority
Prospective employer in BER 86-6 to whom Engineer A submitted a misleading resume implying sole credit for...
Engineering Subsidiary Prospective Buyer Engineer B
The prospective purchaser of the engineering firm or subsidiary who received artfully misleading statements from...
11 entities
Principles P
w=0.2 384D
Engineer A Business Negotiation Honesty Non-Exemption
Engineer A's attempt to use a misleading statement about Engineer C to accelerate stalled acquisition negotiations...
Technically True But Misleading Statement Invoked By Engineer A In Subsidiary Sale Negotiation
Engineer A exploited Engineer C's past (but definitively withdrawn) interest in the subsidiary by framing it as...
Honesty Violated By Engineer A Through Misleading Competitive Representation
Engineer A's statement to Engineer B violated the honesty principle by creating a false impression of active...
Engineering Business-Profession Duality Integrity Invoked In Subsidiary Sale Context
The subsidiary sale negotiation represents the business dimension of engineering practice; Engineer A's conduct...
Resume Selective Emphasis Misrepresentation By Engineer Doe
Engineer Doe rewrote his resume after layoff to emphasize minor managerial experience and downplay his dominant...
Resume Selective Emphasis Misrepresentation By Engineer A BER 86-6 Team Credit
Engineer A (BER 86-6) submitted a resume to Employer Y implying sole credit for patented products that were jointly...
Honesty in Professional Representations Violated By Engineer A BER 86-6
Engineer A (BER 86-6) misrepresented his role and contribution to jointly designed patented products by implying...
Professional Accountability Invoked For Engineer A Deceptive Negotiation Conduct
Engineer A, as a licensed professional engineer acting as chief negotiator, remains accountable under professional...
Full Disclosure as Conditional Ethical Defense Principle
Professional ethics principle establishing that an engineer who makes a statement that would otherwise be misleading...
Honesty and Truthfulness as Hallmark Engineering Qualities
The Board affirms that honesty and truthfulness are foundational professional virtues for all practicing engineers,...
Engineer Doe Resume Emphasis Permissibility Invocation BER 72-11
Engineer Doe's rewriting of his resume to emphasize minor managerial experience and downplay technical expertise was...
Engineer A BER 86-6 Team Credit Misrepresentation Violation
Engineer A's resume implied personal sole responsibility for products that were jointly designed by a six-person...
Three-Case Comparative Precedent Distinguishing Analysis
The Board explicitly acknowledges that BER 72-11 (Doe resume emphasis), BER 86-6 (team credit misrepresentation),...
Technically True But Misleading Statement Prohibition
Professional honesty principle establishing that engineers may not make statements that are literally or technically...
Business Negotiation Non-Exemption from Professional Honesty Obligations
Principle establishing that an engineer's professional ethical obligations - particularly honesty and non-deception...
Resume Selective Emphasis Misrepresentation Prohibition
Professional honesty principle prohibiting engineers from crafting resumes, qualification statements, or...
Business Negotiation Non-Exemption Invoked In Engineer A Subsidiary Sale
Engineer A's deceptive negotiation tactic - misrepresenting the competitive landscape to pressure Engineer B -...
Contextual Resume Emphasis Permissibility Principle
Professional honesty principle establishing that an engineer's selective emphasis of certain qualifications on a...
Engineer A Firm Sale Artfully Misleading Statement Violation
Engineer A's comments to Engineer B during acquisition negotiations about Engineer C's interest were artfully...
Full Disclosure of Engineer C Circumstances as Conditional Defense
The Board explicitly states that if Engineer A had fully disclosed all circumstances relating to Engineer C -...
Public Employer Client Colleague Reliance on Engineer Honesty
The Board grounds the honesty obligation in the reliance that the public, employers, clients, and colleagues place...
21 entities
Obligations O
w=0.15 384D
Engineer A Withdrawn Competitor Status Accurate Disclosure Negotiation
Engineer A was obligated to disclose to Engineer B that Engineer C had definitively decided not to purchase the...
Engineer A Withdrawn Competitor Status Non-Misrepresentation Collegial Duty
Engineer A was obligated to refrain from misrepresenting Engineer C's position and status in the negotiation, as...
Engineer A BER 86-6 Team Credit Sole Authorship Misrepresentation Violation
Engineer A was obligated to refrain from implying on his resume submitted to Employer Y that he was personally and...
Engineer A BER 86-6 Prior Employer Project Credit Scope Violation
Engineer A was obligated to limit his claims of credit for the patented products designed at Employer X to his...
Engineer A Firm Sale Business Negotiation Honesty Non-Exemption Violation
Engineer A was obligated to maintain the same standard of honesty and truthfulness in commercial business...
Engineer A BER 86-6 Qualifications Non-Misrepresentation Violation
Engineer A was obligated to refrain from misrepresenting his qualifications by implying sole authorship of jointly...
Engineer Doe BER 72-11 Resume Emphasis Permissibility Boundary Compliance
Engineer Doe was obligated to remain within the permissible boundary of resume emphasis - highlighting genuine...
Engineer A Firm Sale Full Circumstance Disclosure Conditional Defense Failure
Engineer A was obligated to fully disclose all circumstances relating to Engineer C - including that Engineer C had...
Withdrawn Competitor Interest Accurate Status Disclosure Obligation
Duty of a licensed professional engineer acting as a negotiator in a professional business transaction to accurately...
Business Negotiation Competitive Pressure Misrepresentation Prohibition Obligation
Duty of a licensed professional engineer who is acting as a negotiator or representative in a professional business...
Engineer A Artfully Misleading Competitive Pressure Statement Prohibition
Engineer A was obligated to refrain from making the statement 'Another company has expressed an interest in buying...
Engineer A Business Negotiation Competitive Misrepresentation Prohibition
Engineer A was obligated to refrain from misrepresenting the competitive landscape - specifically, from implying...
Engineer B Engineering Subsidiary Prospective Buyer Deception Non-Commission
Engineer A was obligated not to deceive Engineer B - the prospective buyer - by creating a false impression of...
Resume Team Contribution Sole Authorship Misrepresentation Prohibition Obligation
Duty of a licensed professional engineer who participated as one member of a multi-engineer team in the design of...
Resume Selective Emphasis Permissibility Boundary Obligation
Duty of a licensed professional engineer who is crafting a resume or professional qualification statement to remain...
Negotiation Counterparty Material Harm Awareness Heightened Honesty Obligation
Duty of a licensed professional engineer engaged in professional negotiations - including firm acquisitions,...
Engineer A Firm Sale Artfully Misleading Statement Prohibition Violation
Engineer A was obligated to refrain from making artfully misleading statements to Engineer B during acquisition...
Engineer A Firm Sale Negotiation Material Harm Heightened Honesty Violation
Engineer A was obligated to exercise heightened honesty in his representations to Engineer B given that his...
18 entities
States S
w=0.1 384D
Engineer A Misrepresentation of Engineer C Interest
Engineer A's statement to Engineer B about competing buyer interest
Engineer B Stalling Creating Negotiation Pressure
Engineer A's negotiation context with Engineer B
Engineer A Ethical Dilemma in Negotiation
Engineer A's choice between advancing a legitimate business goal and maintaining professional honesty
Material Harm Potential in Business Negotiation State
State in which misleading or deceptive statements made during a business negotiation carry the potential for...
Doe Resume Emphasis Reframing - BER 72-11
Engineer Doe's professional self-presentation during job search
Engineer A Implied Sole Credit - BER 86-6
Engineer A's resume submitted to Employer Y
Engineer A Misleading Negotiation Statements - Present Case
Engineer A's statements to Engineer B during business negotiation
Material Harm Potential from Engineer A's Misrepresentation - Present Case
Engineer B's position as counterparty to Engineer A's misleading negotiation statements
Stalled Negotiation Pressure - Present Case
Business negotiation between Engineer A and Engineer B (potential purchaser)
False Urgency Misrepresentation in Negotiation State
State in which a professional acting as a negotiator makes a materially false or misleading statement to a...
Stalled Negotiation Pressure State
State in which a professional negotiator faces a counterparty who is deliberately delaying or stalling a...
Resume Experience Emphasis Reframing State
State in which a professional, facing repeated rejection due to a resume that accurately but unfavorably represents...
Implied Sole Credit Misrepresentation State
State in which a professional includes in a resume or qualifications document descriptions of work products - such...
13 entities
Resources Rs
w=0.1 384D
NSPE-Code-Honesty-Truthfulness
Primary normative authority establishing the obligation of engineers to be truthful and not engage in deceptive or...
Personal-Misconduct-Ethics-Standard-Business-Dealings
Supports the principle that Engineer A's deceptive negotiation conduct, though occurring in a business/commercial...
Misrepresentation in Business Dealings Standard
Professional norms and ethical obligations prohibiting engineers from making false, misleading, or deceptive...
BER-Negotiation-Misrepresentation-Precedent
Analogical precedential reasoning for assessing whether Engineer A's misleading statement about Engineer C's...
NSPE Code of Ethics - Honesty and Truthfulness Obligations
Cited as the primary normative authority establishing engineers' obligations to be honest, truthful, and forthcoming...
BER Case No. 72-11
Cited as precedent addressing resume emphasis vs. exaggeration: the Board found that an engineer who reframed his...
BER Case No. 86-6
Cited as precedent establishing that implying sole personal responsibility for team-designed work on a resume is...
Qualification Representation Standard - Resume Accuracy
Applied in the BER 72-11 and BER 86-6 precedents to evaluate the boundary between permissible emphasis and deceptive...
Misrepresentation-in-Business-Dealings-Standard-Instance
Directly applicable to Engineer A's false statement that 'another company has expressed an interest' when Engineer C...
9 entities
Actions A
w=0.1 384D
Engineer C Expresses Initial Interest
Engineer C Withdraws Purchase Interest
Engineer B Stalls Negotiations
Engineer A Misrepresents Competitor Interest
Engineer Doe Rewrites Emphasis Resume
BER 86-6 Engineer Implies Sole Authorship
6 entities
Events E
w=0.08 384D
Negotiations Enter Stalled State
Engineer C Interest Becomes Stale
NSPE Board Reviews Conduct
Board Concludes Conduct Impermissible
Precedent Cases Activated As Framework
5 entities
Capabilities Ca
w=0.07 384D
Engineer A Withdrawn Competitor Status Accurate Disclosure Failure
Engineer A failed to exercise the capability to accurately disclose Engineer C's definitively withdrawn status,...
Engineer A Firm Sale Negotiator Competitive Urgency Fabrication Recognition Deficit
Engineer A failed to recognize that manufacturing false competitive urgency by invoking Engineer C's lapsed interest...
Engineer A Artful Misrepresentation Recognition Deficit in Subsidiary Sale Negotiation
Engineer A lacked or failed to exercise the capability to recognize that the statement 'Another company has...
Engineer A Technically True Misleading Statement Avoidance Failure in Negotiation
Engineer A failed to exercise the capability to recognize that the statement about another company's interest, while...
Engineer A Negotiation Competitive Urgency Fabrication Prohibition Recognition Failure
Engineer A failed to recognize that using Engineer C's lapsed interest to manufacture competitive urgency in...
Engineer A Engineering Business Ethics Competitive Context Awareness Failure in Subsidiary Sale
Engineer A failed to apply the awareness that business competition in engineering contexts does not suspend...
Engineer B Engineering Subsidiary Prospective Buyer Deception Recognition Capability Instance
Engineer B, as the prospective buyer, would benefit from the capability to recognize that the competitive urgency...
Engineer A Firm Sale Negotiator Artful Misrepresentation Recognition Deficit
Engineer A lacked or failed to exercise the capability to recognize that his statement about Engineer C's interest...
Engineer A Firm Sale Negotiator Business Honesty Non-Exemption Recognition Deficit
Engineer A failed to recognize that professional honesty obligations apply equally to commercial business...
Engineer A Firm Sale Negotiator Material Harm Heightened Honesty Recognition Deficit
Engineer A failed to recognize that the potential material harm to Engineer B from his misleading statements about...
Engineer A Firm Sale Negotiator Withdrawn Competitor Disclosure Deficit
Engineer A lacked or failed to exercise the capability to accurately disclose Engineer C's withdrawn status to...
Engineer A Firm Sale Third-Party Reputation Non-Impairment Deficit
Engineer A failed to recognize that misrepresenting Engineer C's position and interest in the transaction implicated...
Engineer Doe BER 72-11 Resume Selective Emphasis Permissibility Assessment
Engineer Doe exercised the capability to craft a resume that emphasized minor managerial experience for a managerial...
Engineer A BER 86-6 Prior Employer Project Credit Scope Calibration Deficit
Engineer A failed to correctly calibrate the permissible scope of credit for team-designed patented products,...
BER Board BER-72-11-86-6-Present Case Dual-Precedent Resume Misrepresentation Triangulation
The BER exercised the capability to triangulate between BER 72-11 (permissible emphasis) and BER 86-6 (impermissible...
Engineer A Firm Sale Negotiator Full Circumstance Disclosure Defense Failure
Engineer A failed to recognize that fully disclosing all circumstances relating to Engineer C - including her...
Engineer A BER 86-6 Team Contribution Sole Authorship Implication Non-Commission Deficit
Engineer A lacked or failed to exercise the capability to recognize that implying sole authorship of jointly...
Withdrawn Competitor Status Accurate Disclosure Capability
Capability of a licensed professional engineer acting as a negotiator in a professional business transaction to...
Negotiation Competitive Urgency Fabrication Prohibition Recognition Capability
Capability of a licensed professional engineer acting as a negotiator to recognize that manufacturing or implying...
Third-Party Reputation Non-Impairment in Business Negotiation Capability
Capability of a licensed professional engineer engaged in business negotiations to recognize that misrepresenting a...
Engineer A Third-Party Reputation Non-Impairment Failure Regarding Engineer C
Engineer A failed to recognize that misrepresenting Engineer C's position in the negotiation - implying she was an...
Resume Selective Emphasis vs. Misrepresentation Boundary Discrimination Capability
Capability of a licensed professional engineer crafting a resume or professional qualification statement to...
Team Contribution Sole Authorship Implication Non-Commission Capability
Capability of a licensed professional engineer who participated as one member of a multi-engineer team to recognize...
Negotiation Material Harm Heightened Honesty Self-Activation Capability
Capability of a licensed professional engineer engaged in professional negotiations - including firm acquisitions,...
Full Circumstance Disclosure Conditional Defense Recognition Capability
Capability of a licensed professional engineer to recognize that full and complete disclosure of all relevant...
BER Dual-Precedent Resume Misrepresentation Spectrum Triangulation Capability
Capability of a licensed professional engineer or ethics reviewing body to triangulate between BER Case 72-11...
Business Negotiation Honesty Standard Non-Exemption Recognition Capability
Capability of a licensed professional engineer to recognize that the professional obligation of honesty and...
Engineer A Firm Sale Technically True Misleading Statement Recognition Deficit
Engineer A failed to recognize that his statement about Engineer C's interest - while technically referencing a...
28 entities
Constraints Cs
w=0.08 384D
Engineer A Negotiation Stalling Non-Justification for Competitive Misrepresentation
Engineer A was prohibited from invoking Engineer B's stalling behavior as justification for misrepresenting the...
Engineer A Unauthorized Misrepresentation of Engineer C Withdrawn Negotiation Status
Engineer A was prohibited from representing Engineer C as an active or interested competing buyer after Engineer C...
BER-86-6-Engineer-A-Team-Credit-Sole-Authorship-Prohibition
Engineer A was constrained from implying on his resume submitted to Employer Y that he was personally and solely...
Engineer-A-Present-Case-Negotiation-Competitive-Pressure-Non-Justification
Engineer A was constrained from invoking the stalled or slow-moving nature of the negotiation with Engineer B - who...
Engineer-A-Present-Case-Full-Circumstance-Disclosure-Conditional-Defense-Failure
Engineer A was constrained such that his only available defense to the misleading statement finding - full...
Business Negotiation Artfully Misleading Statement Prohibition Constraint
Ethical constraint prohibiting a licensed professional engineer acting as a negotiator or representative in a...
Negotiation Competitive Pressure Non-Justification for Misrepresentation Constraint
Ethical constraint establishing that a licensed professional engineer who faces a stalled or slow-moving business...
Engineer-A-Present-Case-Third-Party-Engineer-Status-Non-Misrepresentation
Engineer A was constrained from misrepresenting Engineer C's current status and interest in the negotiation -...
Third-Party Engineer Negotiation Status Non-Misrepresentation Constraint
Ethical constraint prohibiting a licensed professional engineer from misrepresenting or materially misstating the...
Engineer A Business Negotiation Artfully Misleading Statement About Engineer C Interest
Engineer A was prohibited from telling Engineer B that 'Another company has expressed an interest in buying our...
Engineer A Technically True Misleading Omission in Business Negotiation
Engineer A's statement that 'Another company has expressed an interest' was technically true in a narrow historical...
Engineer-A-Present-Case-Material-Harm-Heightened-Honesty
Engineer A was subject to a heightened honesty constraint arising from the potential material harm his misleading...
Engineer-A-Present-Case-Business-Negotiation-Honesty-Non-Exemption
Engineer A was constrained from making artfully misleading statements during the business negotiation with Engineer...
Resume Emphasis Permissible Boundary Non-Deception Constraint
Defeasible ethical constraint establishing that a licensed professional engineer who rewrites or restructures a...
Team-Designed Work Implied Sole Authorship Resume Prohibition Constraint
Ethical constraint prohibiting a licensed professional engineer from including in a resume, qualification statement,...
Full Circumstance Disclosure Conditional Defense Activation Constraint
Defeasible ethical constraint establishing that a licensed professional engineer who makes statements during a...
Engineer Statement Professional Bond Integrity Constraint
Foundational ethical constraint establishing that a licensed professional engineer's words and statements in...
Material Harm Potential Negotiation Heightened Honesty Constraint
Ethical constraint establishing that when a licensed professional engineer makes statements during a business...
BER-72-11-Doe-Resume-Emphasis-Permissible-Boundary
Engineer Doe was constrained to remain within the permissible boundary of resume emphasis - restructuring his resume...
Engineer-A-Present-Case-Statement-Professional-Bond-Integrity
Engineer A was constrained by the foundational professional obligation that his words in the negotiation with...
20 entities
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