Riggs-Vericomp Negotiation (B): Confidential Information for VERICOMP (Buyer) Case Study Solution


The Riggs-Vericomp negotiation case (B) presents a complex scenario involving two parties: Riggs Engineering (the seller) and Vericomp (the buyer). The case revolves around confidential information shared by Riggs with Vericomp during the negotiation process. This essay provides a comprehensive analysis of the case, highlighting the key issues, analyzing the factors at play, and concluding with recommendations on how both parties should proceed.

Case Issue

The central issue in this case revolves around the ethical and strategic dilemma faced by Vericomp when it unexpectedly receives confidential information from Riggs during the negotiation process. Vericomp is now tasked with deciding how to handle this sensitive information, balancing its competitive advantage with ethical considerations.

Case Analysis

Confidential Information Disclosure: Riggs inadvertently disclosed confidential information to Vericomp. This information, which includes cost structure and project details, was not meant to be shared. This accidental disclosure puts both parties in a delicate situation.

Ethical Considerations for Vericomp: Vericomp faces an ethical dilemma. On one hand, they could exploit the confidential information to gain a competitive advantage. On the other hand, using this information would be unethical and could damage their reputation and long-term business relationships.

Impact on Trust: Trust is a crucial element in any negotiation. The accidental disclosure has the potential to erode trust between the parties. Riggs may feel that Vericomp is not trustworthy, while Vericomp may view Riggs as careless with sensitive information.

Strategic Implications for Vericomp: Vericomp needs to weigh the potential short-term benefits of using the information against the long-term consequences. Exploiting the information could lead to a better deal but damage their reputation and future negotiations.

Possible Legal Implications: Depending on the circumstances and applicable laws, the accidental disclosure of confidential information could have legal ramifications. Vericomp needs to consider these implications when making their decision.


The Riggs-Vericomp negotiation case presents a challenging situation for both parties. Riggs, the seller, unintentionally shared confidential information with Vericomp, the buyer. Vericomp is now faced with a moral and strategic dilemma regarding how to handle this information.

The accidental disclosure of confidential information has raised ethical questions for Vericomp. While using the information may lead to short-term benefits, it poses a significant risk to their reputation and future negotiations. Trust, a vital component of successful negotiations, is also at stake.

Additionally, Vericomp should be aware of potential legal implications stemming from the disclosure. Depending on the circumstances and jurisdiction, exploiting confidential information could lead to legal consequences.

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Ethical Decision-Making: Vericomp should prioritize ethical decision-making. Using the confidential information to their advantage may yield short-term gains but could damage their reputation and trustworthiness in the long run. The right course of action is to refrain from using the information and promptly inform Riggs about the inadvertent disclosure.

Open Communication: Vericomp should maintain open and transparent communication with Riggs. They should notify Riggs about the confidential information disclosure as soon as possible, emphasizing their commitment to ethical business practices.

Rebuilding Trust: To rebuild trust, Vericomp should take steps to reassure Riggs of their commitment to the negotiation process. This may involve additional safeguards to protect sensitive information and a commitment to maintaining confidentiality.

Legal Consultation: Vericomp should seek legal counsel to understand the potential legal implications of the disclosure. They should take necessary steps to mitigate any legal risks, including compliance with applicable laws and regulations.

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