A model of the negotiation process is developed and tested on a sample of motor carriers that provide contractual service in distribution channels. The result indicate that expectation of continuity in a channel relationship leads to cooperative negotiating behavior. This cooperative (integrative) negotiating behavior, in turn, results in mutually beneficial outcomes. In addition, perceived dependence has a weak effect on negotiating behavior and outcomes. Managers are advised about conditions and outcomes of the use of both cooperative and arms-length negotiating strategies.