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Contracts, Liability, and Ethics > Exam I > Flashcards

Exam I Flashcards

1
Q

Juror

A

Member of Jury

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2
Q

How do architects and engineers get involved in the court system?

A

Expert witnesses, contracts, local rules & regulations

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3
Q

Civil Law

A

Regulates private rights of individuals

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4
Q

Criminal Law

A

Regulates individuals’ conduct to protect public

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5
Q

How does civil law affect construction?

A

Governs contract language
Aids dispute resolution
protects workers, consumers, and homeowners from unethical practices

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6
Q

How does criminal law affect construction?

A

Curtails theft/violence
ensures safety

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7
Q

Main sources of law:

A

Constitutions
Laws by Legislature
Court Decisions by Judiciary

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8
Q

What source of law would provide licensing board regulations and zoning?

A

Laws by legislature

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9
Q

What source of law is a general framework?

A

Constitution

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10
Q

What source of law would provide common laws relating to contracts, torts, property, and crime?

A

Court decisions by Judiciary

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11
Q

Federal laws…

A

Regulate currency, taxes, patents, bankruptcy, construction worksite safety

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12
Q

State laws…

A

Regulate criminal laws
Determine which contracts to enforce
Regulation of who can be a professional (A/E/B)

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13
Q

US Constitution regulates power among:

A

Branches of government (legislative, executive, and judicial)
Federal and state government
All governments and their citizens

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14
Q

If state and federal laws conflict, which trumps?

A

Federal

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15
Q

What is a statue?

A

Law passed by legislature and signed and executed by executive branch

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16
Q

What are some things statues regulate in construction?

A

Who may build a building
What may be built
Where it may be built
Content of contracts
Litigation process

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17
Q

Housing and building codes control:

A

Quality of construction

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18
Q

Licensing and registration laws determine:

A

Who designs and builds

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19
Q

An example of a statue that has been adopted by 50 states is:

A

Uniform commercial code

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20
Q

Uniform Commercial Code:

A

Set of laws governing all commercial transactions in US

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21
Q

Article 2 in the UCC regulates:

A

Sale of materials and supplies in a construction project

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22
Q

What is judicial review?

A

Power of courts to review actions of government entities

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23
Q

3 powers of judicial review:

A

Review of actions by executive and legislative branches
Grant remedies for law violations
Make decisions that establish precedent

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24
Q

What is common law?

A

Judge-made law

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25
Q

3 main levels of federal court system:

A

Disctrict courts
Circuit courts of appeals
US supreme court

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26
Q

3 main levels of state court system:

A

Trial courts
Appeallate courts
Supreme court

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27
Q

What is litigation?

A

Process of settling a dispute in a court

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28
Q

In order to resolve a dispute in the court system, litigant must file a claim called:

A

Lawsuit

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29
Q

The jury’s decision on a lawsuit is called:

A

Verdict

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30
Q

The court’s ruling on a lawsuit is called:

A

Judgement

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31
Q

What are the two options a litigant can ask for to have their lawsuit resolved?

A

A judge or 12-person jury

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32
Q

This court is a 3-judge panel and issues an opinion

A

Appellate court

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33
Q

Who is appellant?

A

Party disagreeing with the judgement

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34
Q

Who is respondent?

A

Party wanting to uphold the trial court decision against the appellant

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35
Q

What were some difficulties with litigation during covid?

A

Challenges of virtual representation of clients
Delay of jury trials

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36
Q

What are ethics?

A

Morals and customs of conduct

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37
Q

When does a profession need to be recognized by the state?

A

When public’s health, safety, and welfare is involved

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38
Q

Are registered engineers charged with upholding laws and rules? If so which ones?

A

Yes, ones that include professional conduct and ethics

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39
Q

What are some ethical situations engineers and people in construction face?

A

Professional responsibility
Moral upbringing
Sound judgement vs financial or political pressure
Safeguard reputation
Avoid conflicts of interest

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40
Q

What is moral authority?

A

Ability to think independently and rationally about ethics

41
Q

Briefly describe Agnew case study

A

He was a civil engineer and lawyer, who became county executive. He gave an edge to firms who paid him for receiving contracts. Parties who paid him served prison terms, he served probation

42
Q

What is a contract?

A

Binding agreement, usually between 2 parties

43
Q

What is contract of adhesion?

A

A contract in which one of the parties has disproportionate bargaining power

44
Q

What is an example of contract of adhesion?

A

Electricity. You may not like the bill but there’s no other options

45
Q

List some of the parties engineers make contracts with:

A

Clients
Consultants
Employees
Landlords
Seller of Goods

46
Q

List some of the parties contractors make contracts with:

A

Clients
Subcontractors
Suppliers
Employers and employees
Engineering consultants
Insurance and bonding companies

47
Q

What are some things that make a contract legally enforceable?

A

Offer & Acceptance
Consideration
Certainty
Legality
Legal Capacity
Free Consent

48
Q

What is promisor?

A

Party making the promise

49
Q

What is promise?

A

Party to whom the promise is made

50
Q

What is offeror?

A

Party making the offer

51
Q

What is offeree?

A

Party to whom offer is made

52
Q

What is offer in contract formation law?

A

An offer with terms that when accepted by offeree, creates a legally enforceable contract

53
Q

What is counteroffer?

A

Offer terminating original offer

54
Q

What is mutual assent?

A

Meeting of the minds; each party agrees on the same thing

55
Q

What is contract consideration?

A

Something of legal value is given in exchange for a promise

56
Q

What is bargaining?

A

Exchange of promises of obligations

57
Q

Do courts examine the fairness of a bargain?

A

No

58
Q

What are some common forms of consideration?

A

Tangible payment
Performance of an act

59
Q

What are some things that make a contract unenforceable even if there’s an offer, acceptance, and consideration?

A

Fraud
Mistake
Unconscionability
Economic Duress

60
Q

What is unconscionability?

A

So unfair or one-sided that it shocks the conscience of judge

61
Q

What is economic duress?

A

1 party exerts pressure beyond permissible bargaining, other party agrees b/c there’s no other choice

62
Q

What is a unilateral contract?

A

A one-to-all contract
Ex: X promises reward to anyone who will find his lost wallet

63
Q

What is a bilateral or unilateral contract?

A

Promise by one party exchanged for promise by another party
Ex: sales of goods contract

64
Q

3 most common business association types in construction industry:

A

Sole Proprietorship
Partnership
Corporation

65
Q

What is sole proprietorship?

A

1 person business

66
Q

What are some business association types other than the most common 3?

A

Limited liability
Joint ventures
Unincorporated Associations

67
Q

What is a partnership?

A

2+ Persons are co-owners of business

68
Q

What are some qualities of sole proprietorship?

A

Informal creation and operation
Liable personally for all debt
Taxes on sole proprietor’s income
Discontinues upon death

69
Q

What governs the rights and duties of partners in a partnership?

A

Uniform partnership act

70
Q

(True/False) General partnership allows creditors to go after individual assets of any of the partners

A

True

71
Q

(True/False) Limited partners added to raise capital but do not participate in management and are personally liable for debts

A

False, not liable

72
Q

What could end a partnership?

A

Death of a partner
Bankruptcy
Withdrawal from the partnership
Court order

73
Q

Corporations are created by:

A

Contracts

74
Q

Corporations are legal entities, which means they can:

A

Take, hold, or convey property
Sue or be sued
Managed by a board of directors
Profits and losses within the name of corp.

75
Q

(True/False) Intermingling personal money with corporation’s money can pierce the corporate veil (someone can get through to the shareholder)

A

True

76
Q

What two types of taxes do corporations pay?

A

Income tax on money earned
Shareholders pay income tax on dividends

77
Q

Are non-profit corporations tax exempt?

A

Yes

78
Q

What is a limited liability company (LLC)?

A

Hybrid of corps and partnerships;
has pass-through income tax benefits of partnership,
and has limited liability protections of a corp

79
Q

What is limited liability partnership (LLP)?

A

liability only of the LLP, not the joint and several liability of partners in a partnership

80
Q

What is a joint venture?

A

2+ entities who associate, usually for 1 specific project

81
Q

What is the most common way joint ventures are structured?

A

One firm assumes management role, rest provide financial support

82
Q

How are profits and losses shared in a joint venture?

A

Based upon percentage of partnership

83
Q

What is the purpose of agency law?

A

Ensures third parties will be able to contract through an agent, and it will be enforceable

84
Q

What / Who is a fiduciary?

A

A person or an organization making financial decisions on behalf of another, obligated to act in their best interest

85
Q

What is a fiduciary relationship?

A

One party places trust and confidence in another who is to act for the benefit of the other

86
Q

Actual authority

A

Principal to make the authority of agent clear to third parties

87
Q

Apparent authority

A

Principal manifests to third parties that agent has authority (Business cards, forms, stationary, etc.)

88
Q

How can an authority be terminated?

A

specific period of time
consent to terminate b/w principal and agent

89
Q

What is a dispute?

A

Disagreement between two parties

90
Q

A breach of contract claim includes:

A

Formation of contract
Breach of contract
Causation
Damages

91
Q

What is a breach of contract?

A

Failure to perform in the time or manner required

92
Q

What needs to be proven for a breach of contract case to not be dropped?

A

Causation
Can be proven through daily reports, logs, etc.

93
Q

What are the possible judgements that a court could order if a party prevailed in a lawsuit?

A

Monetary awards
Specific performance
Injunction
Mechanic’s Lien

94
Q

What is a mechanic’s lien?

A

Guarantee of payment to builders, contractors, and construction firms

95
Q

What could a party pay in damages?

A

Actual costs
Overhead
Profit
Attorney and expert fees

96
Q

Tort Law

A

Civil wrong against another party, outside of contract

97
Q

What are some example situations where tort law would be applicable?

A

Injured workman on site
Damage to adjacent property
Automobile accident

98
Q

What are the three main functions of tort law?

A

Compensate injured victims
Deter unsafe behavior
Punish wrongful acts

Contracts, Liability, and Ethics (9 decks)

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