Chapters 25, 26 (Assignment 19) - Purchasing, Personnel Agreement) Flashcards
John, a property manager, has opened a bid for the renovation of one of his managed properties. Four different companies have
tendered their bids.
Company A included a cost that was not a part of the mandatory requirements; Company B was permitted to amend their bid post-closing; Company C was not disqualified, even though their bid was non-compliant with a material
requirement; and Company D substituted material goods
The bid process is being appealed as a result of these situations.
Which two of the four companies’ actions would John likely be held responsible for?
1) Companies A and C
2) Companies B and C
3) Companies A and D
4) Companies B and D
Companies B and C
because John would most likely be held responsible for the actions of Companies B and C. John is
responsible for the action of Company B; by allowing Company B to amend its bid, John has breached his implied fairness obligation in the bid contract.
John is also responsible for the action of Company C, as he cannot consider bids that are non-
compliant with the invitation; this is also an unfair practice in competitive bidding.
The actions of Companies A and D will, at worst, render the bids of those companies invalid; these actions are not the fault of John, and therefore he will not be responsible.
Which one of the following scenarios is MOST likely to be inconsistent with a property management company’s purchasing policy?
1) A property manager conducts regular assessment of the stock supplies and records this information in a ledger.
2) A property manager sends off the purchase order prior to negotiation with the supplier and expects it to be fulfilled in
accordance with the terms supplied.
3) A property manager commences a tendering process for the new carpeting that is to be installed in multiple units within
the managed building.
A property manager sends off the purchase order prior to negotiation with the supplier and expects it to be fulfilled in accordance with the terms supplied.
because this option is the most likely to be inconsistent with a property management company’s purchasing policy.
A property manager cannot expect the purchase order to be filled as requested, as the order was sent before any negotiations were conducted.
When a purchase order is sent prior to negotiations, there is no guarantee that the order will be completed as requested.
Steve, the property manager of Lakeshore Rental Complex, has opened up a tendering competition for the required renovations to the common areas of the property.
Three of the bids he has received so far are similar in cost approximations. One bid that has been submitted by a new company, Sturdystuds, is remarkably lower in cost.
Which of the following factors is LEAST likely to be a potential reason for this low bid?
1) Sturdystuds has purposely underbid (“lowballed”) the cost of the renovations.
2) Since Sturdystuds is the only non-unionized company to tender a bid, they are able to provide the service at a much lower cost.
3) Since Sturdystuds is a small, local company, they are able to purchase all the necessary equipment at a lower cost than
a large contractor.
Since Sturdystuds is a small, local company, they are able to purchase all the necessary equipment at a lower cost than a large contractor.
correct because, as a small company, Sturdystuds will likely have to pay higher costs for equipment than a larger
company.
Large companies generally can acquire equipment at lower costs by purchasing equipment in higher volumes from the same suppliers. Therefore, this is the least likely reason for the lower bid.
Fernande, a property manager, needs to hire a contractor to install new electrical wiring for the units in a rental complex.
She is unsure whether she should continue her relationship with the same contractor who performed the last job or if she should open
up a tender.
Which of the following is NOT an advantage if Fernande were to commence a tender?
1) With a tendering, Fernande is more likely to receive the best price possible.
2) With a tendering, Fernande is able to base her selection on several different criteria.
3) With a tendering, the process is quick and efficient.
With a tendering, the process is quick and efficient.
correct because this is not an advantage associated with conducting a tender, as the process of competitive bidding
is generally more time consuming than selecting a sole source contractor or supplier. Options
Stella, a property manager, needs to hire a company to perform some regular building maintenance and she is looking at a few options.
All three of the prospective companies have similar experience, but one of the companies, HomeStars, was featured in this year’s edition of “Maintenance News”, an industry publication. Stella contacted each of the companies to evaluate their
services prior to making a decision. Stella is thinking of selecting HomeStars based on their reputation alone.
The two other firms are irate and demand that Stella reconsider. Which of the following statements is TRUE?
1) Stella owes a duty to be fair to all three parties.
2) Stella is liable for not fully disclosing her requirements to each party.
3) Stella is not under any obligation to either of the two companies that she did not select since this is not a competitive
bidding situation.
Stella is not under any obligation to either of the two companies that she did not select since this is not a competitive bidding situation.
correct because Stella does not owe any duties to the other two companies, as she has not commenced a competitive bidding process.
Big Mack Construction decided to tender a bid for the construction job at the Real Homes rental complex.
The closing date for the
bid was 4:00 pm, June 21st. Big Mack handed in its bid on June 19th. On June 21st, Big Mack realized it had made an error in its
bid and wanted to revoke it.
This was not communicated to Real Homes until the morning of June 22nd. Real Homes would not
let it withdraw its bid.
Which one of the following statements is TRUE?
1) Since Big Mack did not communicate its desire to retract its bid prior to the closing of the bidding, it entered into a Bid
Contract A with Real Homes.
2) If Real Homes had a clause that stated that a bidding party must forfeit its deposit if it retracts its bid after closing, the clause would be unenforceable.
3) Big Mack can withdraw its offer at any time prior to an award being made.
Since Big Mack did not communicate its desire to retract its bid prior to the closing of the bidding, it entered into a Bid
Contract A with Real Homes.
By submitting their bid and then failing to withdraw that bid prior to the closing date, Big Mack entered into a binding Bid Contract A with Real Homes.
FourStories, a property management company, commenced a tendering process for the development of a parking lot on one of their managed properties. Sterling submitted a bid that came in as the lowest bid and Hartell submitted the second lowest bid. FourStories chose to go with Hartell over Sterling.
Which one of the following is NOT a legally valid reason for selecting Hartell?
1) FourStories’ property manager was an acquaintance of Hartell’s head contractor.
2) FourStories’ invitation stated that the lowest bid will not necessarily be accepted.
FourStories’ property manager was an acquaintance of Hartell’s head contractor.
correct because this is an example of unfairness by the purchaser in competitive bidding practices, and is therefore not a legally valid reason for selection. FourStories may be liable to Sterling and the other bidders for this selection.
Which one of the following is NOT an implied obligation on the purchaser?
1) The obligation to disclose the true nature of the work, including any potential hidden dangers
2) The obligation to abide by the rules set out in the invitation
3) The obligation to include fair rules in the invitation
The obligation to include fair rules in the invitation
because there is no implied obligation on the purchaser to include fair rules in the invitation. The purchaser must only disclose the rules (fair or otherwise) and follow these rules.
The property manager of Devon Residential Units initiated a competitive bid for the renovations needed in the complex.
The closing of the bid was on July 5th. One of the bidders, Max Construction, did not comply with the specified building materials, but corrected this omission in their document on July 7th.
What is true?
Max Construction’s bid is invalid and Devon cannot award the bid in their favour.
is correct because it is true that Max Construction’s bid is invalid, as the bid was materially non-compliant and was not
amended before the bid closed. Therefore, the property manager of Devon Residential Units cannot award the bid in their favour.
Which of the following statements regarding the changes that the labour force has undergone in recent years is FALSE?
1)Since the labour force is achieving higher levels of education, employees now bring greater skills and knowledge to the
workplace.
2) Since the number of new entrants to the workforce is declining, recruitment of qualified applicants will become less
challenging in the future.
3) As the labour force achieves higher levels of education, employees will likely become more critical of authority and less
accepting of boring, repetitive work.
Since the number of new entrants to the workforce is declining, recruitment of qualified applicants will become less challenging in the future.
correct because this statement is false. With declining numbers of new entrants to the workforce, the recruitment of qualified applicants becomes more challenging, not less.
The fundamental rights of citizens of the province of British Columbia are protected by what?
The Human Rights Code
Which of the following statements regarding the hours of work and overtime within the province of British Columbia is FALSE?
1) The overtime rate is time and a half the regular rate for all hours in excess of 40 in the week.
2) Eight hours a day and forty hours a week are the standard hours of work.
3) The hours of work and overtime provisions apply to all levels of employees.
The hours of work and overtime provisions apply to all levels of employees.
The hours of work and overtime provisions within BC do not apply to all levels of employees, as managerial positions are not included under this regulation.
Mr. Tully has been asked to analyze a building’s maintenance personnel and write up job descriptions for them. He has decided to use only the observational technique.
Which of the following BEST describes the drawbacks Mr. Tully should be aware of before deciding to proceed this way?
1) It can be time-consuming if a large number of employees need to be interviewed, leading to poor cost effectiveness.
2) It is unable to detect the mental process required by the job and offers no insight into the human requirements needed
to perform the job.
3) It requires use of the Maintenance Occupational Classification (MOC) and can be difficult to implement.
It is unable to detect the mental process required by the job and offers no insight into the human requirements needed
to perform the job.
because the main drawbacks of the observational technique are that it cannot detect the mental processes
involved in a job, such as planning and decision-making, and that it provides little insight into the human requirements
(knowledge, skills, and ability) necessary to perform the job.
Which of the following represents the correct order of the first four steps of the employee selection process?
1) Recruitment, Job Application, Employment Interview, Selection Decision
2) Recruitment, Employment Interview, Job Application, Selection Decision
3) Job Application, Selection Decision, Recruitment, Employment Interview
Recruitment, Job Application, Employment Interview, Selection Decision
In which of the following scenarios is the halo error MOST likely to occur?
1) When an interviewer allows a judgment of one of the candidate’s attributes to influence judgments of other attributes
2) When an average candidate appears very good when preceded by a poor candidate
3) When an average candidate appears very bad when preceded by a good candidate
When an interviewer allows a judgment of one of the candidate’s attributes to influence judgments of other attributes
correct because the halo error occurs when an interviewer allows their judgment of one of the candidate’s attributes
to influence judgments of other attributes. This scenario directly depicts an interviewer committing the halo error.
Which of the following statements regarding reference checks is FALSE?
1) Only references from former immediate supervisors in the applicant’s work history will provide the employer with
valuable information.
2) More than one reference should be checked as one reference may be slanted by personal perceptions.
3) A reference check is done as a follow-up after an initial employment interview in order to confirm your impression of the
candidate, either positive or negative.
4) It is unethical for an employer to view an interviewee’s social media presence during the interview process.
It is unethical for an employer to view an interviewee’s social media presence during the interview process.
correct because this statement is false. An employer can properly view an interviewee’s public social media accounts during the interview process, as long as the interviewer does not discriminate against a candidate based on the factors in the Human Rights Code.
Which of the following statements regarding interview techniques is/are TRUE?
1) Interview questions to candidates should be highly variable to get a good idea of each potential employee.
2) Notes should only be made after the interview so that the potential employee does not feel uncomfortable.
3) Hasty judgments about candidates should be avoided.
Hasty judgments about candidates should be avoided.
because it is good practice to avoid hasty judgments about candidates during the interview process. Option
Which of the following BEST defines a job analysis?
1) A job title plus information related to the job aspects
2) The process of gathering information about job applicants for the purposes of evaluating and deciding who the organization should hire
3) The process of developing policies and practices regarding the conditions of work
4) The process of determining the nature of a job by collecting and organizing information about its various aspects
The process of determining the nature of a job by collecting and organizing information about its various aspects
because a job analysis is properly explained as the process of determining the nature of a job by collecting and organizing information about its various aspects.
Which of the following statements regarding performance appraisals is TRUE?
1) Appraisal interviews are more effective when a manager is critical of an employee because this helps the employee learn how to do it the right way, not the wrong way.
2) Giving positive feedback first and negative feedback last is critical in a performance appraisal.
3) During the appraisal interview, the manager should encourage a high level of participation from the employee.
During the appraisal interview, the manager should encourage a high level of participation from the employee.
Performance appraisals are more effective when a candidate is allowed to prepare and the manager is noncritical, encourages a high level of participation, and ends the interview on a positive note with affirming, performance-related feedback.
