Short Answer

Fairness and Coercion in Negotiations

Two business partners are dissolving their company. Partner A, who personally holds a critical patent the company needs to operate, tells Partner B, 'We can split the remaining assets 50-50, or I will take my patent and leave, which will make the company's assets worthless.' Partner B, feeling they have no other real choice, agrees to the 50-50 split. Based on principles of fairness, explain why this 50-50 outcome might be considered unfair.

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Updated 2025-09-20

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