Hinze Chapter 5-8

Question 1

Agency Agreement

Answer 1

An agency agreement consists of a principal authorizing an agent (a different party) to do something on their behalf with a third party. It must be consensual and issued by the principal

Question 2

Ways an agency agreement can be created (3)

Answer 2

• Law or Contract (express or implied)
• Ratification of an unauthorized act (after the fact)
• Estoppel (implied by past actions)

Question 3

Contingent Liability

Answer 3

All parties on a construction site are independent, through contingent liability, the GC may be responsible to the owner and third parties for the torts of a sub

Question 4

Describe the circumstances in which an employee can act as an agent

Answer 4

If the employee has the “right to direct what should be done and when and how it should be done, the right to general control”

example on page 61

Question 5

List the order in which the following activities occur:

Work Plan
Scope of Services
RFP
Budget

Answer 5

1. RFP
2. Scope of Services
3. Work Plan
4. Budget

Question 6

Landscape Architects may be licensed under a….

Answer 6

Practice and Title Act

Question 7

Scope of Services

Answer 7

sets out precisely what services a consultant will be performing on a project

Question 8

What is the purpose of a bid bond?

Answer 8

to discourage frivolous bids

Question 9

The bid bond for a $100,000 bid would be how much?

Answer 9

$5,000 (5%)

Question 10

If a duty exists, substandard performance is proven, and damage occurs, the type of legal issue you would be charged with is:

Answer 10

Negligence

Question 11

Your business partner made a mistake in a drawings that caused a client to lose considerable sum of money. You are liable for all or a portion of the damages under what definition?

Answer 11

Joint liability

Question 12

Arbitration

Answer 12

a form of alternative dispute resolution, is a way to resolve disputes outside of judiciary courts. It is legally binding on both sides and enforceable in the courts.

Question 13

Does the agent to a principal have the legal power to bind the principal to the decisions made with a third party?

Answer 13

yes

Question 14

Your plan calls for a considerable amount of excavation on a small property. What two property rights should you be concerned with?

Answer 14

Land form maintenance and subsurface rights

Question 15

Identify the order in which the following items would be developed in your office:

Advertisement to bid
RFP
Work plan
Qualifications statement
Scope of Services

Answer 15

1. RFP
2. Advertisement to Bid
3. Qualifications Statement
4. Scope of Services
5. Work Plan

Question 16

The chart most commonly used for the typical projects in landscape architectural office is:

Answer 16

Bar Chart

Question 17

If you are trying to integrate, sequence and schedule taks and activities for a complex project in a manner that will involve everyone and that will be easy to read you would select which type of graph?

Answer 17

Critical path method (CPM)

Question 18

Which of the following is NOT a project management document?

Work plan
Scope of Services
Time Sheet
RFP

Answer 18

RFP

Question 19

What does ‘consideration’ mean?

Answer 19

you will work with the client in accordance with the terms of the contract

Question 20

What is the advantage of a unit bid price over a lump sum bid?

Answer 20

Unit price bids are easier to evaluate.

Question 21

What conditions could dissolve a partnership?

Answer 21

• Death
• Bankruptcy
• Expiration of time periods
• Mutual agreement
• One partner is insane
• Mutual agreement ceases to exist
• One of the partners decides to withdrawal
• Court decree
• A change in the partnership
• Expulsion of a partner

Question 22

In what order would debts be settled in dissolving a partnership

• Profits left even spread amongst partners
• Repayment of loans or advances
• Outside creditors
• Return each partners capital investment

Answer 22

1. Outside creditors
2. Repayment of loans or advances
3. Return each partners capital investment
4. Profits left even spread amongst partners

Question 23

Tort

Answer 23

disputes that relate to matters not address by statutory law or contract obligations

Question 24

Attractive nuisance

Answer 24

The part controlling a piece of property should know that childrenare likely to trespass and that there is an unreasonable risk of death or serious injury on site

Question 25

How do torts differ from criminal acts?

Answer 25

A tort is an offense against a person that does not involve a crime or the violation of a law

Question 26

What 4 conditions must exist for an injured party to successfully sue another person in a tort action?

Answer 26

1. One party owes duty to another party
2. The party does not conform (breach in the performance of that duty) to the standard
3. The second party is harmed by the act or failure to act
4. There is a clear casual relationship between the act and the harm that results

Question 27

Explain the rationale for regarding attractive nuisances as torts

Answer 27

Trespass violations are torts, often attractive nuisances involve trespass

Question 28

Describe duty of care as it pertains to contractors

Answer 28

Ensure that another party doesn’t suffer unreasonable harm or loss as a result of contractual obligations or tort of negligence

Question 29

Contract how a tort suit would generally differ from a contract dispute

Answer 29

Tort suit is an informal notice of claim

Question 30

surety bond

Answer 30

essentially a guarantee provided by a firm that states that the contractor will fulfill the terms of the contract

Question 31

bid bond

Answer 31

gives assurances that the contractor will enter into a binding construction contract and will provide required payment and performance bonds

Question 32

Performance bonds

Answer 32

assures that a financially responsible party wil stand behind the prime contractor is he or she does not perform properly. These usually state a specifies dollar amount as a limit to the liability of the surety.

Question 33

Which bond usually has a 100% of the contract price?

Answer 33

Performance bonds

Question 34

Payment bond

Answer 34

gives protection to the owner is the subs and suppliers are not paid by the prime contractor, prevents liens

Question 35

The Miller Act

Answer 35

The Miller Act requires prime contractors on some government construction contracts to post bonds guaranteeing both the performance of their contractual duties and the payment of their subcontractors and material suppliers.