Quiz Set #5 - (Q101-125) | Take the Quiz

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Mastering Construction Law: A Quiz Challenge

Test your knowledge in construction law with our comprehensive quiz! From dispute resolution methods to contract principles, this quiz covers a breadth of essential topics within the industry.

Key features of the quiz:

25 thought-provoking questions
Multiple choice format
Ideal for professionals and students alike

25 Questions6 MinutesCreated by StudyingLaw101

Which of the following statements are true

Negotiation, mediation and arbitration are forms of dispute resolution

Courts almost always enforce arbitration agreements

The rights of appeal under the Arbitration Act are limited

Dispute resolution boards and partnering are alternate forms of dispute resolution mechanisms

All of the above

Which of the following statements are correct?

Negotiation, mediation and arbitration are forms of dispute resolution

The decisions of an arbitration panel can never be binding upon the partier to a contract

The Arbitration Act of Ontario does not allow decisions of an arbitrator to be appealed to a court of law

Dispute resolution boards and partnering are alternate forms of dispute resolution mechanisms

Both (a) and (d)

Which of the following statements is correct?

Fundamental breach of a contract may relieve the innocent party of its obligations under the contract

Breach of a condition of a contract may relieve the innocent party of its obligations under the contract

Fundamental breach of a contract may cause a limitation clause be unenforceable

Both (a) and (b)

Both (a) and (c)

Which of the following statements is correct?

The courts can use the doctrine of “Quantum Meruit” to prevent an engineering from charging too much for her work

The “Parol Evidence Rule” applies to verbal statements but not to a document such as a letter or memo

The courts will apply the doctrine of equitable estoppel whenever necessary to prevent an unfair result

The courts will not permit a party to accept an offer if the offeree (person to whom the offer is made) knows that the offeror has made a mistake

Both (c) and (d)

Advantages of arbitration over litigation include all of the following except:

Which of the following statements is incorrect?

Three types of surety bonds commonly used in the construction industry are Bids Bonds, Performance Bonds and Labor and Material Payment Bonds

Surety bonds are a promise by a surety (usually an insurance company) to guarantee an obligation of a contractor

Surety bonds are just like insurance: a customer pays a premium to insure against the possibility that the contractor will not be able to fulfill its obligations

The contractor providing the surety bond, and usually its shareholders, will be required to indemnify the surety against any losses the surety might incur if there is a claim on the surety bond

Both (b) and (d)

As general legal principles, in the event of a breach of contract, which of the following are true statements?

The non-defaulting party is required to mitigate its damages

The non-defaulting party is always entitled to terminate the contract

The non-defaulting party is never entitled to recover its indirect or consequential damages

Both (b) and (c)

All of the above

Which of the following statements are false?

The parol evidence rule provides that all extraneous evidence will be allowed to interpret any contract term

Specific performance is a remedy which is available to a non-defaulting party under certain circumstances in the event of a breach of contract by the other party

The legal principle of frustration that performance of the contract becomes impossible and not just more expensive

Both (a) and (c)

None of the above

If a court finds that a plaintiff has committed contributory negligence:

The plaintiff and the defendant are liable in contract and tort

The defendant is not required to compensate the plaintiff

The amount of compensation paid is reduced

(a) and (b)

A subcontractor who negligently performs work on an owner’s construction project:

Can only be liable to the general contractor

Can be liable directly to the owner

Will not be liable to the owner for economic loss

Will cause the general contractor be vicariously liable to the owner

The Limitations Act of 2002 prevents a plaintiff from suing a defendant:

Not until six years after the time of the action arose

After fifteen years after the events occurred

After two years after discoverability of the claim

After whichever of the two limitation periods described in (b) or (c) ends earlier

According to the Limitations Act of 2002:

The parties to a contract may agree to change the applicable limitation period that applies to them

Any such agreement to change the applicable limitation period is void

The concept of discoverability is no longer relevant

The concept of discoverability does not apply to tort claims

If the owner of a construction project sues a subcontractor for negligence:

The subcontractor cannot be found negligent because the subcontractor is not a professional

The owner must prove that the subcontractor owed a duty of care to the owner, the subcontractor breached the duty of care, and the breach caused damage to the owner

The subcontractor can only be liable to the contractor who hired the subcontractor

The owner must prove that the subcontractor acted unprofessionally

Which of the following statements are true?

There are only three types of misrepresentation: innocent, negligent and criminal

Courts never adopt a liberal approach to contract interpretation

Courts will never consider implied terms in interpreting a contract

Both (a) and (c)

None of the above

Which of the following statements are correct?

Three types of misrepresentation include innocent misrepresentation, negligent misrepresentation and irrefutable misrepresentation

An engineering company providing services under a contract with an owner can only be liable for breach of contract

An engineer retained by a contractor on a design-build project to prepare construction drawings for a construction project owes a duty of care to the owner of the project

Both (a) and (c)

None of the above

Which of the following statements is incorrect?

A stipulated price contract may be the best option if the owner has already engaged consultants who have prepared a complete design for the proposed construction project

A cost-plus contract may be the only realistic option if a project is not fully designed and major uncertainties still exist regarding the difficulties which may be faced by the contractor

Cost-plus contract arrangements are relatively simple to administer compared to a stipulated price contract

A cost-plus with a guaranteed maximum price is a realistic alternative if the design for a project is reasonably complete and the uncertainties are reasonably well understood

Both (a) and (b)

Which of the following statements are true?

A party to a contract may be considered to have repudiated a contract if that party announced by its words or actions that is had no intention of completing the contract

The innocent party may elect to accept the other party’s repudiation or continue with the contract (if possible)

In the case of a repudiation, the damages are calculated for the date of signing the contract

Both (a) and (b)

All of the above

Which of the following statements are true?

The breach of a fundamental term or condition of a contract will entitle the non-defaulting party to terminate the contract

Some of the remedies may be available to a non-defaulting party in the event of a breach of contract include: termination, specific performance and frustration

Liquidated damages clauses are enforceable if they are a genuine pre-estimate of damages

Both (a) and (c)

All of the above

Which of the following statements is incorrect?

Repudiation occurs when one party announces by words or action that is had no intention of completing the contract

One of the options available to the innocent party, if the other has repudiated, is to elect to continue with the contract, if possible, and then sue for the contract price

The general principle to an award of damages is that the award should, as much as money can do, put the innocent party in the position it would have been had the contract been completed (subject to issues of remoteness)

When possible, a court will grant specific performance or injunctive relief out of a concern that monetary damages will not be sufficient

In addition to the common law rights to terminate, the parties may define other breaches of contract which will entitle the other to terminate the contract

Which of the following statements about a contract between an engineer and her client is incorrect?

The engineering may not limit her liability to the client for breach of contract or negligence to less than the amount of insurance available

The engineering may limit her liability to the client for breach of contract but not for negligence

Both (a) and (b)

The client and the engineer may agree to vary the standard of care that the engineer will employ, but if the contract is silent, the court will apply the negligence standard

Which of the following will not negatively affect the enforceability of the contract?

The contract was made with a minor person

The consideration given was not sufficient

Both (a) and (b)

The contract contemplates that someone will commit a criminal act in its performance

The contract is verbal and is for performance of services over a period of 18 months

Which of the following statements is not correct?

(b) and (c) below

If an arbitration agreement is in effect, the courts will almost always stay an action commenced by a party who wishes to avoid the arbitration agreement

Mediation is type of non-binding alternative dispute resolution

If there is a partnering agreement for a project, the parties must agree never to sue each other

A project neutral attempts to resolve disputes quickly before they can escalate

If an engineer is sued under the law of negligence, the engineer would not be liable:

If the engineer is not licensed as a P. Eng.

If the engineer had tried his or her best

If the engineer did what a reasonable engineer would have done in all the circumstances

If the engineer was in experienced

If a patent is infringed, the owner of the patent can obtain:

An injunction to stop the infringement

Recovery of damages sustained by the owner

Recovery of profits earner by the infringer

Both (a) and (b)

All of (a), (b) and (c)

What are the advantages of a dispute review board (DRB):

The DRB can be set up with panelists who are experts in the construction matters

The DRB is established at the beginning of the project and is available to respond to disputes as they arise

The decisions of the DRB are never subject to appeal

All of (a), (b) and (c)

Both (a) and (b)

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Quiz Set #5 - (Q101-125)

Mastering Construction Law: A Quiz Challenge

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