law

Question 1

If a plaintiff is successful in a tort claim, the plaintiff will recover

a.Damages for unforeseeable losses
b.Damages for physical loss but never damages for economic loss
c.Damages that are remote
d.Damages for physical loss and possibly damages for economic loss

Answer 1

d.Damages for physical loss and possibly damages for economic loss

Question 2

If a plaintiff is successful in a negligence claim, the plaintiff:

a.Will recover punitive damages
b.Will recover compensation for any physical damages
c.May recover compensation for economic loss, it just depends
d.(b) and (c)

Answer 2

d.(b) and (c)

Question 3

If a plaintiff is successful in a negligence claim the defendant:

a.Must compensate for any physical damages and economic loss, it just depends
b.Must pay punitive damages
c.(a) and (b)
d.None of the above
e.Will always go to jail

Answer 3

a.Must compensate for any physical damages and economic loss, it just depends

Question 4

If a plaintiff is successful in a tort claim, the damages are intended to:

a.Put the plaintiff in the position in which he or she would have been had the tort not occurred
b.Put the plaintiff and the defendant in the position in which they would have been had the tort not occurred
c.Compensate the defendant
d.Punish the defendant

Answer 4

a.Put the plaintiff in the position in which he or she would have been had the tort not occurred

Question 5

If a plaintiff is awarded damages for tort, the damages are intended as

a.Be paid to the judge
b.Be a tax payable to the city
c.Compensate the plaintiff
d.(a) and (c)
e.Punish the defendant

Answer 5

c.Compensate the plaintiff

Question 6

Slander:

a.Is a form of tort
b.Includes fraud
c.Both of the above
d.Is the same as defamation

Answer 6

d.Is the same as defamation

Question 7

If Defendant A and Defendant B are concurrent tortfeasors:

a.Defendant A and Defendant B are equally liable
b.Defendant A and Defendant B are vicariously liable
c.(a) and (b)
d.Defendant A and Defendant B both committed a tort

Answer 7

d.Defendant A and Defendant B both committed a tort

Question 8

The consequences of infringing a patent are

a.Court may order an injunction to stop the infringement
b.Damages may be ordered
c.The infringement is an offence under the criminal code
d.(a) and (b) above
e.(a), (b) and (c) above

Answer 8

d.(a) and (b) above

Question 9

An employee engineer would not be liable for negligence if he or she:

a.Was not licensed by the PEO
b.Tried his or her best
c.Did what a reasonable engineer would have done in all the circumstances
d.Was inexperienced

Answer 9

c.Did what a reasonable engineer would have done in all the circumstances

Question 10

The purpose of tort law is:

a.To punish careless people
b.To make careless people liable to provide compensation to their victims
c.To encourage people to be careful
d.(b) and (c)

Answer 10

d.(b) and (c)

Question 11

What insurance would a design-builder purchase to protect itself from faulty designs:

a.Liability
b.Errors and omissions
c.Property
d.(a) and (c)
e.None of the above

Answer 11

b.Errors and omissions

Question 12

An engineer who prepares and delivers to a client a report which contains a negligent misstatement:

a.May be protected by a disclaimer in the report
b.Is never liable to a third-party purchaser of the report
c.Both of the above
d.Will always be liable to the reader of the report

Answer 12

a.May be protected by a disclaimer in the report

Question 13

If an engineer provides free advice to someone:

a.The engineer will be responsible for the adequacy of the advice
b.The engineer will not be responsible for the adequacy of the advice
c.The engineer has committed professional misconduct
d.The engineer may be liable for the adequacy of the advice under contract law

Answer 13

a.The engineer will be responsible for the adequacy of the advice

Question 14

Does the Province of Ontario have the right to enact a law that puts conditions on a person’s ability to seek a patent?

a.Yes
b.No

Answer 14

b.No

Question 15

If a contractor posts a performance bonds as security for performance of its obligations under a contract:

a.The surety will make sure the obligation is fulfilled if the contractor fails to perform
b.If the surety has to pay any money under the bond, it will be able to sue the contractor
c.The issuance of the bondwill have impact on the contractor’s banking arrangements
d.(a), (b) and (c) above
e.(a) and (b) above

Answer 15

e.(a) and (b) above

Question 16

Which of the following business organizations require the most on-going administrative obligations:

a.Joint venture
b.Partnership
c.Corporation
d.Limited partnership
e.Sole partnership

Answer 16

c.Corporation

Question 17

If you and one friend wanted to set up a business, which forms of business would be available to you:

a.General partnership
b.Limited partnership
c.Corporation
d.Sole proprietor
e. (a), (b), and (c)

Answer 17

e.(a), (b) and (c)

Question 18

Parliamentary supremacy wascompletely eliminated by the Constitution Act and the Charter of Rights and Freedoms:

a.True
b.False

Answer 18

b.False

Question 19

A contractor that arranges for the posting of a letter of credit will never be liable to its bank if the bank has to pay out any money under the letter of credit:

a.True
b.False

Answer 19

b.False

Question 20

Which of the following project structures allows for the most co-operation between the owner and the designer with the least amount of coordination by the owner:

a.Design-build
b.Multi-designers
c.Traditional
d.All the above
e.(b) and (c) above

Answer 20

a.Design-build

Question 21

Which form of security is the easiest to recover monies under:

a.Letter of credit
b.Performance bond
c.Guarantee
d.None of the above
e.a and b above

Answer 21

a.Letter of credit

Question 22

An insured party under property insurance policy will not be covered for the following exposures:

a.Errors is design
b.Faulty workmanship
c.Claims in excess of the policy limit
d.All of the above
e.(a) and (b)

Answer 22

d.All of the above

Question 23

Which of the following factors are not important in the decision as to which business structure is appropriate:

a.Tax
b.Liability issues
c.Cost
d.Number of people invested in the business
e.The number of locations in which the business be operated

Answer 23

e.The number of locations in which the business be operated

Question 24

In the trial of an engineer accused of negligence:

a.An expert witness’ oral testimony would not be allowed because the expert did not witness the incident
b.The judge must always abide by an expert witness’ report as to engineering matters
c.An expert witness may never be called to give evidence at the trial
d.Both (a) and (c)
e.An expert witness could be called to give expert evidence at the trial

Answer 24

e.An expert witness could be called to give expert evidence at the trial

Question 25

In which of the following project structures will an owner be deemed to be the “constructor” under the Occupational Health and Safety Act?

a.Traditional
b.Construction management
c.Design-build
d.All of the above
e.None of the above

Answer 25

b.Construction management

Question 26

If the owner retains a designer to produce a set of drawings and that owner wishes to be able to use the drawings to make future modifications to the building, it must:

a.Have the copyright in the drawings assigned to it
b.Have a licence granted to it to make such use of drawings
c.Have the moral rights of the designer waived
d.(a) and (c) or (b) and (c)
e.(a), (b) and (c)

Answer 26

c.Have the moral rights of the designer waived

Question 27

If a law is declared ultra-vires, it means that it:

a.Is void
b.Has limited application
c.Is beyond the authority of the enacting government
d.Both (a) and (c)

Answer 27

d.Both (a) and (c)

Question 28

Which forms of security is the easiest to take advantage of:

a.Unconditional letter of credit
b.Performance bond
c.Guarantee
d.None of the above
e.(a) and (b) above

Answer 28

a.Unconditional letter of credit

Question 29

Which forms of security of payment requires involvement of a third party:

a.Lien
b.Letters of credit
c.Guarantee
d.None of the above
e.(b) and (c) above

Answer 29

e.(b) and (c) above

Question 30

30.Which forms of security of payment affects a grantor’s credit capacity

a.Lien
b.Letters of credit
c.Guarantee
d.None of the above
e.(b) and (c) above

Answer 30

b.Letters of credit

Question 31

31.In which of the following instances can the courts declare a provincial law to be invalid

a.The law reduces ones freedom of association
b.The law reduces ones freedom of religion
c.The subject matter of the law is set out in Section 91 of the Constitution Act
d.All of the above
e.(a) and (b) above

Answer 31

d.All of the above

Question 32

A party who commences a lawsuit, loses that lawsuit at trial and then commences an appeal will at various stages of the lawsuit be referred to as:

a.Plaintiff and appellant
b.Defendant and appellant
c.Plaintiff and respondent
d.Defendant and respondent
e.None of the above

Answer 32

a.Plaintiff and appellant

Question 33

A typical lawsuit includes the following steps:

a.Issuance of a statement of claim
b.Issuance of a statement of defence
c.Documentary and oral discoveries
d.All of the above
e.(a) and (b) above

Answer 33

d.All of the above

Question 34

Most property insurance policies include the following exclusions:

a.Faulty workmanship
b.Faulty design
c.Both (a) and (b)
d.None of the above

Answer 34

c.Both (a) and (b)

Question 35

The doctrine of parliamentary supremacy is best described as:

a.No longer existing in Canada
b.Replaced with the Charter of Rights and Freedoms
c.Still existing in Canada
d.(a) and (b) above
e.(b) and (c) above

Answer 35

e.(b) and (c) above

Question 36

Which of the following project structures is most likely to be requiredby a lender in a project-financed project:

a.Traditional
b.Construction management
c.Design-build
d.All of the above
e.(a) and (c) above

Answer 36

c.Design-build

Question 37

An invention of an employee unrelated to the employees’ job made on an employer’s time with the employer’s materials and at the expense of the employer:

a.Becomes the property of the employer unless there is an agreement otherwise
b.Becomes the property of the employer unless the employer waives its rights to the invention
c.Becomes the property of the employer unless the employee pays the employer for the costs of the invention
d.(a), (b) and (c) above
e.Does not become the property of the employer

Answer 37

e.Does not become the property of the employer

Question 38

If you have an invention that has the potential to be valuable for more than 20 years, which intellectual property rights would you most likely rely on:

a.Patent
b.Trademark
c.Copyright
d.Trade secret
e.Industrial design

Answer 38

d.Trade secret

Question 39

Which of the following intellectual property rights don’t require registration in order to be effective:

a.Patents
b.Trademarks
c.Copyright
d.None of the above
e.(a) and (c)

Answer 39

d.None of the above

Question 40

Case Management Rules are rules which:

a.The court system has adopted to expedite cases and eliminate or reduce delays
b.The Law Society imposes upon lawyers to ensure proper representation of clients
c.The police force uses to manage criminal prosecutions
d.All of the above
e.(a) and (b)

Answer 40

a.The court system has adopted to expedite cases and eliminate or reduce delays

Question 41

The criteria to register a patent includes that the invention be:

a.Novel and useful
b.Related only to machines
c.Reduced to something physical
d.(a), (b) and (c)
e.(a) and (c) above

Answer 41

e.(a) and (c) above

Question 42

Based on the theory of precedent, among the following courts which court’s decisions would take precedence:

a.Supreme Court of Ontario
b.Ontario Court of Justice
c.British Columbia Court of Justice
d.None of the above
e.(b) and (c) above

Answer 42

a.Supreme Court of Ontario

Question 43

Piercing the corporate veil means that:

a.A director of a corporation may be personally sued for the actions of a corporation
b.A shareholder of a corporation maybe personally sued for the actions of the corporation
c.An employee of a corporation may be personally sued for the actions of the corporation
d.All of the above
e.(a) and (b) above

Answer 43

e.(a) and (b) above

Question 44

If two people wantto form a business and wish to try and eliminate personal liability, they would:

a.Incorporate a provincial corporation
b.Incorporate a federal corporation
c.Set up a partnership
d.All of the above
e.(a) and (b)

Answer 44

e.(a) and (b)

Question 45

What are the exceptions to requiring leave to appeal to the Supreme Court of Canada?

a.A matter of national importance
b.A first degree murder conviction
c.A contravention of the Charter of Rights and Freedoms
d.All of the above
e.(b) and (c)

Answer 45

b.A first degree murder conviction

Question 46

The “deep pocket” principle best describes

a.The tax advantages of carrying in business under a corporation rather than under a sole proprietorship
b.The division of federal and provincial taxation authority under the Canadian constitution
c.Arationale for establishing an employer’s liability
d.The purpose of tort law
e.Acharge under the Criminal Code

Answer 46

c.Arationale for establishing an employer’s liability

Question 47

What issues are within the jurisdiction of the Divisional Court?

a.Appeals of interim orders made by a judge
b.Appeals of final orders made by a judge if the order stipulates a payment less than $25,000
c.Reviews of decisions made by government tribunals
d.All of the above
e.None of the above

Answer 47

c.Reviews of decisions made by government tribunals

Question 48

Which one of the following project structures is most conducive to be a “fast-tracked” project:

a.Traditional
b.Design-build
c.Construction management
d.All of the above
e.(b) and (c) above

Answer 48

c.Construction management

Question 49

Which of the following principles apply to the theory of precedent:

a.A court must follow the decision of a higher court
b.A must follow the decision of another judge of the same court
c.The decisions of the Supreme Court of Canada must be followed by all courts
d.(a) and (c) above
e.Allof the above

Answer 49

d.(a) and (c) above

Question 50

Which of the following statements are false?

a.If one party makes an innocent misrepresentation, the other party had the right to sue for damages
b.Contra proferentum is the legal principle whereby a court will interpret an ambiguous clause in favor of the party that drafted the clause
c.A stipulated price contract contains unit prices and the final contract price is determined by the actual number of units to complete the work
d.A guaranteed maximum price contract is a hybrid between a fixed price contract and stipulated price contract
e.All of the above

Answer 50

b.Contra proferentum is the legal principle whereby a court will interpret an ambiguous clause in favor of the party that drafted the clause

Question 51

Which of the following statements are true?

a.A contract is usuallyenforceable if the non-mistakenparty did not know of the mistake made by the other party at the time the contract was signed
b.Contraproferentum is the legal principle whereby a court will interpret an ambiguous clause in favor of the party that drafted the clause
c.A court will apply a liberal construction approach to the interpretation of limitation of liability clauses
d.A court will always permit extraneous evidence to be used to interpret contract clauses
e.None of the above

Answer 51

a.A contract is usuallyenforceable if the non-mistakenparty did not know of the mistake made by the other party at the time the contract was signed

Question 52

Which of the following statements are correct?

a.Contract A/Contract B is a legal principle applied to ensure that one party to a contract does not take advantage ofthe other party’s mistake
b.Penalty clauses in contracts are sometimes enforceable
c.A non-defaulting or innocent party can sue for breach of contract only to recover indirect or consequential damages
d.Limitation of liability clauses are not enforceable
e.None of the above

Answer 52

e.None of the above

Question 53

Which of the following are necessary elements of an enforceable contract?

a.An offer made and estoppel
b.Consideration and mutual intent
c.Capacity and irrevocable offer
d.Both (a) and (b)
e.Both (b) and (c)

Answer 53

b.Consideration and mutual intent

Question 54

Which of the following are necessary elements of an enforceable contract?

a.An irrevocable offer made and accepted
b.Capacity and mutual intent
c.A promise and estoppel
d.Both (a) and (b)
e.All of the above

Answer 54

b.Capacity and mutual intent

Question 55

Which of the following statements are true?

a.The case of Hunter vs. Syncrude is a case dealing with Quantum Meruit
b.A limitation of liability clause which limits one party’s liability to $1.00 is not enforceable
c.Equitable estoppel is a legal principle applied to ensure that one party to a contract can take advantage of the other party’s mistake
d.Both (b) and (c)
e.None of the above

Answer 55

b.A limitation of liability clause which limits one party’s liability to $1.00 is not enforceable

Question 56

Which of the following statements are correct?

a.Equitable estoppel is a legal principle applied to ensure that one party to a contract does not take advantage of the other party’s mistake
b.The case of Hunter vs. Syncrude is a leading case dealing with fundamental breach of contract
c.A limitation of liability clause which limits one party’s liability to $1.00 is not enforceable
d.Both (b) and (c)
e.None of the above

Answer 56

b.The case of Hunter vs. Syncrude is a leading case dealing with fundamental breach of contract

Question 57

Which of the following statements are true?

a.Types of duress include economic duress and threatened violence
b.The case of Gotaverken Energy Systems vs. Cariboo Pulp and Paper is a case dealing with duress
c.Where an innocent party claims that undue influence has been exerted by the other party to a contract, the innocent party must take prompt action when the undue influence or threat is removed
d.Both (a) and (b)
e.All of the above

Answer 57

e.All of the above

Question 58

Which of the following statements are true?

a.Two types of duress are threatened violence and undue influence
b.Courts alwaysadopt a strict construction approach to contract interpretation
c.Courts will always look to extraneous evidence when interpreting the terms of a contract
d.Both (a) and (c)
e.None of the above

Answer 58

a.Two types of duress are threatened violence and undue influence

Question 59

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

a.The non-defaulting party is required to increase its damages as much as possible
b.The non-defaulting party may in certain circumstances be entitledto terminate the contract
c.The defaulting party may be required to compensate the non-defaulting party for its indirect or consequential damages suffered as a result of the breach of contract
d.Both (b) and (c)
e.All of the above

Answer 59

d.Both (b) and (c)

Question 60

Which of the following statements are false?

a.Courts will imply a term into a contract when necessary to give the contract business efficacy
b.The Parol Evidence Rule applies to documents or happenings prior to, or contemporaneously with the making of the contract
c.Specific performance is a remedy which is always available to a non-defaulting party where there has been a breach of contract
d.The legal principle of frustration that the performance of the contract becomes impossible and not just more expensive
e.None of the above

Answer 60

c.Specific performance is a remedy which is always available to a non-defaulting party where there has been a breach of contract

Question 61

Which of the following statements are false?

a.A minor does not have the legal capacity to enter into any contracts
b.The Statute of Frauds requires some contract to be in writing
c.Duress and undue influence are examples of a lack of consideration
d.Most corporations have the legal capacity of a natural person to enter into a contract
e.Both (a) and (c)

Answer 61

e.Both (a) and (c)

Question 62

Which of the following statements are false?

a.Offers may be accepted by facsimile (fax)
b.Both parties must have a mutual intention to enter into a contract
c.Contract must always be in writing
d.Both (b) and (c)
e.Both (a) and (b)

Answer 62

c.Contract must always be in writing

Question 63

Which of the following statements are true?

a.Consideration may consist of an exchange of promises to provide something of value
b.Quantum Meruit is the legal principle by which a court may enforce an otherwise unenforceable gratuitous promise
c.Letters of intent are only expressions of interest and are never enforceable
d.Both (a) and (b)
e.All of the above

Answer 63

a.Consideration may consist of an exchange of promises to provide something of value

Question 64

Which of the following statements are true?

a.Consideration can simply be the exchange of $1.00 between two parties to a contract
b.Most offers are revocable even if states to be irrevocable unless special formalities are followed
c.Quantum Meruit is the legal principle applied by courts to determine whether a limitation of liability clause in enforceable
d.Both (a) and (b)
e.All of the above

Answer 64

d.Both (a) and (b)

Question 65

The Hedley Byrne vs. Heller case is important to engineers because it establishes that:

a.Reliance on professional skill and judgement can give rise to a duty of care
b.Professionals may be liable for negligent advice
c.Both of the above
d.A disclaimer will not protect a professional from liability for negligent advice

Answer 65

c.Both of the above

Question 66

The Hedley Byrne vs. Heller case is important to engineers because it establishes that:

a.Professionals may be liable for negligent advice
b.Reliance on professional skill and judgement can give rise to a duty of care
c.A disclaimer may protect a professional from liability for negligent advice
d.All of the above

Answer 66

d.All of the above

Question 67

A defendant who is concurrently liable in tort and contract:

a.Is liable to more than one plaintiff at the same time
b.Is liable under tort and contract at the same time
c.Has limited liability under the new Limitations Act, 2002
d.None of the above

Answer 67

b.Is liable under tort and contract at the same time

Question 68

Limitations periods establish:

a.The scope of the engineers scope of services
b.The maximum hourly rates which professionals may charge for their services
c.The rate of tax which must be paid in Canada
d.The time period within which an action be commenced by the plaintiff
e.The deadline by which an engineer must deliver his or her report to a client

Answer 68

d.The time period within which an action be commenced by the plaintiff

Question 69

The Donoghue vs. Stevenson case establishes that:

a.Reliance on professional skill and judgement can give rise to a duty of care
b.A disclaimer will not protect a professional from liability for negligent advice
c.Engineers may be liable for economic loss
d.None of the above

Answer 69

d.None of the above

Question 70

Which of the following will affect the enforceability of a contract?

a.The acceptance of an offer was communicated by facsimile (fax)
b.The contract is verbal and is for performance of services over a period of six month
c.The consideration for the contract is $1.00
d.The contract contains a dispute resolution clause
e.None of the above

Answer 70

e.None of the above

Question 71

Which of the following will affect the enforceability of a contract?

a.The acceptance of an offer was communicated by facsimile (fax)
b.The contract requires that all disputes must be resolved by using binding arbitration
c.The contract contains a limitation of liability clause
d.There is no consideration, but the contract is under seal
e.None of the above

Answer 71

e.None of the above

Question 72

Which of the following statements are true?

a.Special formalities are required to ensure irrevocability of an offer
b.Most offers are revocable even if they are states to irrevocable
c.Offers must be accepted in their entirety, otherwise it is simply a counter-offer
d.Both (a) and (c)
e.All of the above

Answer 72

e.All of the above

Question 73

Which of the following project structures has the highest risk when it comes to the Occupational Health and Safety Act:

a.Traditional
b.Design-build
c.Construction management
d.Multi-designers
e.None of the above

Answer 73

c.Construction management

Question 74

Which of the following statements are true?

a.Dabous vs. Zuliani is a case dealing with inspection services
b.Engineers can beconcurrently liable for breach of contract and for negligence
c.In administrating theterm of a construction contract, an engineer may be required to make decisions affecting the rights of the owner and the contractor
d.Both a and b
e.All of the above

Answer 74

e.All of the above

Question 75

Which of the following statements are false?

a.If one party makes a fraudulent misrepresentation, the other party has the right to sue for damages
b.An engineer is not normally a party to construction contract between an owner and a contractor
c.The case of Dabous vs. Zuliani is a case dealing with improper inspection services by an architect
d.Contract A and Contract B are legal terms used to describe contracts that may arise in a bid and tender procurement process
e.None of the above

Answer 75

e.None of the above

Question 76

Which of the following statements are false?

a.Memorandums of understanding are expression of interest and are always enforceable
b.If an offer is accepted by mail, the contract is formed when the mail is received by the other party
c.Quantum Meruit is the legal principle by which a court may enforce an otherwise unenforceable gratuitous promise
d.Both (b) and (c)
e.All of the above

Answer 76

e.All of the above

Question 77

Which of the following business organizations would be best to protect two business partners from personal liability:

a.Partnership
b.Sole proprietorship
c.Corporation
d.Joint venture
e.All of the above

Answer 77

c.Corporation

Question 78

Which of the following statements are false?

a.The old approach to tendering disputes was based on the court decision of Ron Engineering which applied the legal doctrine of mistake
b.The new approach to tendering disputes is based on the court decision of Belle River which applied the Contract A / Contract B approach
c.The Supreme Court of Canada in the MJB Enterprises decision established that an owner owes a duty of good faith to all contractors submitting a compliant bid
d.Both (a) and (b)
e.All of the above

Answer 78

e.All of the above

Question 79

Which of the following project structures reduces the likelihood of the owner facing arguments from the designer and contractor that the other is at fault:

a.Construction management
b.Multi-designers
c.Traditional
d.Design-build
e.Engineering procurement and construction management

Answer 79

d.Design-build

Question 80

Which of the following statements are true?

a.The case of Davis Contractors vs Fareham Urban District Council is a case dealing with contract frustration
b.Some of the remedies which may be available to a non-defaulting party in the event of a breach of contract include: termination, specific performance and injunctions
c.Quantum Meruit is a legal principle applied when there are no contract provisions dealing with contract price
d.Both (a) and (c)
e.All of the above

Answer 80

e.All of the above

Question 81

Which of the following statements are true?

a.Engineers may be required to act as a client’s agent
b.Engineers can never be concurrently liable for breach of contract and for negligence
c.In administering the terms of a construction contract, an engineer may be required to make decisions affecting the rights of the owner and the contractor
d.Both (a) and (c)
e.All of the above

Answer 81

d.Both (a) and (c)

Question 82

Which of the following statements are true?

a.Courts will enforce liquidated damages clauses in a contract if they are a genuine pre-estimate of damages
b.The legal principle of substantial compliance is usually explicitly stated in modern construction contracts
c.The purposes of an injunction is to enforce a promise not to do something
d.The remedy of specific performance is most often applied in sale of land cases
e.All of the above

Answer 82

e.All of the above

Question 83

Which of the following statements are true?

a.There are three types of misrepresentation: innocent, negligent and fraudulent
b.Only where one of the parties to a contract makes an innocent misrepresentation can the innocent party rescind the contract
c.The legal principle of negligent misrepresentation does not apply to contract
d.Both (a) and (b)
e.All of the above

Answer 83

a.There are three types of misrepresentation: innocent, negligent and fraudulent

Question 84

Which of the following business organizations results in the least amount of tax being initially paid by the business:

a.Sole proprietorship
b.Corporation
c.Partnership
d.Limited partnership
e.None of the above

Answer 84

b.Corporation

Question 85

f two business partners choose a corporation as their business organization, can each of them be:

a.A shareholder
b.A director
c.An employee
d.(a), (b) and (c) above
e.None of the above

Answer 85

d.(a), (b) and (c) above

Question 86

Nuisance law:

a.May result in an injunction
b.Prevents a person making unreasonable use of his or her land
c.Protects a person’s right to make reasonable use of his or her land
d.All of the above

Answer 86

d.All of the above

Question 87

In a negligence claim, the plaintiff must provide enough evidence against the defendant to prove the claim:

a.With absolute certainty
b.On a balance of probabilities
c.Beyond a reasonable doubt
d.Beyond a shadow of doubt

Answer 87

b.On a balance of probabilities

Question 88

When an employee acting within the reasonable scope of his or her responsibility commits negligence, vicarious liability means that:

a.The employer is responsible
b.The employee is not responsible
c.The employee is responsible
d.(a) and (c)

Answer 88

d.(a) and (c)

Question 89

In a trial of a negligent engineer, where an expert witness is called to testify:

a.Only one expert witness may testify
b.It is the judge’s duty to present the expert’s testimony
c.The expert witness may express his or her opinions
d.The judge must abide by the expert’s determination of the applicable standard of care

Answer 89

c.The expert witness may express his or her opinions

Question 90

Which of the following statement is false?

a.Courts will only look to the express terms of a contract in all cases.
b.Some contractual terms may be implied unless they are specifically excluded in the contract
c.Courts will imply a term when it is necessary to give the contract ‘business efficacy’
d.Both (a)and (b)
e.Both (b) and (c)

Answer 90

a.Courts will only look to the express terms of a contract in all cases.

Question 91

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

a.The offer and acceptance were communicated by email
b.The consideration given was not sufficient
c.The contract contemplates that someone will commit a criminal act in its performance.
d.The contract is verbal and if for performance of services to be performed over a period of 6 months but starting 18 months after the contract was formed
e.Both a and b

Answer 91

e.Both a and b

Question 92

Which of the following statements is false?

a.The legal principle of force majeure applies only to certain types of contracts such as services or performance contracts.
b.Where one party breaches any term of a contract the innocent party is always entitled to terminate the contract
c.Specific performance and injunctions are remedies, which are always available to a non-defaulting party in the event of a breach of contract by the other party.
d.Both (b) and (c)
e.All of the above

Answer 92

e.All of the above

Question 93

When an expert engineer is called to testify at a trial of an engineer who has been accused of negligence:

a.It is the judge’s duty to select the expert
b.The judge must abide by the expert’s opinion on engineering matters
c.(a) and (b)
d.The expert witness may express his or her opinions

Answer 93

d.The expert witness may express his or her opinions

Question 94

An engineer firm would not be liable for negligence if:

a.The damages were only economic
b.Economic loss was not specifically identified as a special circumstance in the engineer firm’s services agreement with its client
c.The engineering firm did not foresee the damages
d.By pure luck, the engineering firm’s careless conduct caused no damages

Answer 94

d.By pure luck, the engineering firm’s careless conduct caused no damages

Question 95

If a client hired an engineer for a project and the engineer is negligent in carrying out his or her services, the Limitations Act, 2002:

a.Will place a dollar limit on the engineer’s total liability
b.May be used by the engineer to protect himself or herself from liability
c.Would never apply to the engineer
d.None of the above

Answer 95

b.May be used by the engineer to protect himself or herself from liability

Question 96

Which of the following are required elements of an enforceable contract:

a.An offer and written acceptance and intent
b.Consideration and legality of purpose
c.Legal capacity of the parties and detrimental reliance by one party on the other’s promise
d.Both (a) and (b)
e.Both (b) and (c)

Answer 96

d.Both (a) and (b)

Question 97

An agreement between two parties may require that a dispute be:

a.Arbitrated as opposed to litigated
b.That the decision of the arbitrator(s) be final and binding
c.That the parties will share the administrative cost of any arbitration
d.All of the above
e.(a) and (b) above

Answer 97

d.All of the above

Question 98

Under a traditional project structure involving an owner, the owner’s engineer and the owner’s general contractor:

a.The engineer owes a duty of care to the owner
b.The engineer can only be liable to the owner
c.The engineer owes a duty of care to the general contractor
d.(a) and (c)

Answer 98

d.(a) and (c)

Question 99

Which of the following statements are correct?

a.An engineering company cannot legally limit its liability under an engineering services agreement
b.An engineering company providing engineering services in Ontario can enter into an enforceable contract without obtaining a certificate of authorization from the PEO
c.An engineer cannot act as an agent for the client
d.An engineer acting as a consultant for an owner on a construction project does not owea duty of care to the contractor on the project
e.None of the above

Answer 99

b.An engineering company providing engineering services in Ontario can enter into an enforceable contract without obtaining a certificate of authorization from the PEO

Question 100

100.Which of the following statements are correct?

a.Mediation is an alternative dispute resolution mechanism
b.The decisions of an arbitrator are always final and binding
c.The Arbitration Act ofOntario provides for certain rights to have decisions of an arbitrator appealed to a court of law
d.The use of dispute resolution boards is an illegal method of dealing with disputes
e.Both (a) and (c)

Answer 100

e.Both (a) and (c)

Question 101

Which of the following statements are true?

a.Negotiation, mediation and arbitration are forms of dispute resolution
b.Courts almost always enforce arbitration agreements
c.The rights of appeal under the Arbitration Act are limited
d.Dispute resolution boards and partnering are alternate forms of dispute resolution mechanisms
e.All of the above

Answer 101

e.All of the above

Question 102

Which of the following statements are correct?

a.Negotiation, mediation and arbitration are forms of dispute resolution
b.The decisions of an arbitration panel can never be binding upon the partier to a contract
c.The Arbitration Act of Ontario does not allow decisions of an arbitrator to be appealed to a court of law
d.Dispute resolution boards and partnering are alternate forms of dispute resolution mechanisms
e.Both (a) and (d)

Answer 102

e.Both (a) and (d)

Question 103

Which of the following statements is correct?

a.Fundamental breach of a contract may relieve the innocent party of its obligations under the contract
b.Breach of a condition of a contract may relieve the innocent party of its obligations under the contract
c.Fundamental breach of a contract may causea limitation clause beunenforceable
d.Both (a) and (b)
e.Both (a) and (c)

Answer 103

e.Both (a) and (c)

Question 104

Which of the following statements is correct?

a.The courts can use the doctrine of “Quantum Meruit” to prevent an engineering from charging too much for her work
b.The “Parol Evidence Rule” applies to verbal statements but not to a document such as a letter or memo
c.The courts will apply the doctrine of equitable estoppel whenever necessary to prevent an unfair result
d.The courts will not permit a party to accept an offer if the offeree (person towhom the offer is made) knows that the offeror has made a mistake
e.Both (c) and (d)

Answer 104

e.Both (c) and (d)

Question 105

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

a.Privacy
b.Binding decisions
c.Often cheaper
d.Quicker decisions
e.Ability to choose a knowledgeable decision maker

Answer 105

b.Binding decisions

Question 106

Which of the following statements is incorrect?

a.Three types of surety bonds commonly used in the construction industry are Bids Bonds, Performance Bonds and Labor and Material Payment Bonds
b.Surety bonds are a promise by a surety (usually an insurance company) to guarantee an obligation of a contractor
c.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
d.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
e.Both (b) and (d)

Answer 106

c.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

Question 107

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

a.The non-defaulting party is required to mitigate its damages
b.The non-defaulting party is always entitledto terminate the contract
c.The non-defaulting party is never entitledto recover its indirect or consequential damages
d.Both (b) and (c)
e.All of the above

Answer 107

a.The non-defaulting party is required to mitigate its damages

Question 108

Which of the following statements are false?

a.The parol evidence rule provides that all extraneous evidence will be allowed to interpret any contract term
b.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
c.The legal principle of frustration that performance of the contract becomes impossible and not just more expensive
d.Both (a) and (c)
e.None of the above

Answer 108

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

Question 109

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

a.The plaintiff and the defendant are liable in contract and tort
b.The defendant is not required to compensate the plaintiff
c.The amount of compensation paid is reduced
d.(a) and (b)

Answer 109

c.The amount of compensation paid is reduced

Question 110

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

a.Can only be liable to the general contractor
b.Can be liable directly to the owner
c.Will not be liable to the owner for economic loss
d.Will cause the general contractor be vicariously liable to the owner

Answer 110

b.Can be liable directly to the owner

Question 111

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

a.Not until six years after the time of the action arose
b.After fifteen years after the events occurred
c.After two years after discoverability of the claim
d.After whichever of the two limitation periods described in (b) or (c) ends earlier

Answer 111

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

Question 112

According to the Limitations Act of 2002:

a.The parties to a contract may agree to change the applicable limitation period that applies to them
b.Any such agreement to change the applicable limitation period is void
c.The concept of discoverability is no longer relevant
d.The concept of discoverability does not apply to tort claims

Answer 112

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

Question 113

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

a.The subcontractor cannot be found negligent because the subcontractor is not a professional
b.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
c.The subcontractor can only be liable to the contractor who hired the subcontractor
d.The owner must prove that the subcontractor acted unprofessionally

Answer 113

b.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

Question 114

Which of the following statements are true?

a.There are only three types of misrepresentation: innocent, negligent and crimina
lb.Courts never adopt a liberal approach to contract interpretation
c.Courts will never consider implied terms in interpreting a contract
d.Both (a) and (c)
e.None of the above

Answer 114

e.None of the above

Question 115

Which of the following statements are correct?

a.Three types of misrepresentation include innocent misrepresentation, negligent misrepresentation and irrefutable misrepresentation
b.An engineering company providing services under a contract with an owner can only be liable for breach of contract
c.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
d.Both (a) and (c)
e.None of the above

Answer 115

c.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

Question 116

Which of the following statements is incorrect?

a.A stipulated price contract may be the best option if the owner has already engagedconsultants who have prepared a complete design for the proposed construction project
b.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
c.Cost-plus contract arrangements are relatively simple to administer compared to a stipulated price contract
d.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
e.Both (a) and (b)

Answer 116

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

Question 117

Which of the following statements are true?

a.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
b.The innocent party may elect to accept the other party’s repudiation or continue with the contract (if possible)
c.In the case of a repudiation, the damages are calculated for the date of signing the contract
d.Both (a) and (b)
e.All of the above

Answer 117

d.Both (a) and (b)

Question 118

Which of the following statements are true?

a.The breach of a fundamental term or condition of a contract will entitle the non-defaulting party to terminate the contract
b.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
c.Liquidated damages clauses are enforceable if they are a genuine pre-estimate of damages
d.Both (a) and (c)
e.All of the above

Answer 118

d.Both (a) and (c)

Question 119

Whichof the following statements is incorrect?

a.Repudiation occurs when one party announces by words or action that is had no intention of completing the contract
b.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
c.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)
d.When possible, a court will grant specific performance or injunctive relief out of a concern that monetary damages will not be sufficient
e.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

Answer 119

e.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

Question 120

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

a.The engineering may not limit her liability to the client for breach of contract or negligence to less than the amount of insurance available
b.The engineering may limit her liability to the client for breach of contract but not for negligence
c.Both (a) and (b)
d.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
e.(c) and (d)
f.All of (a), (b)

Answer 120

c.Both (a) and (b)

Question 121

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

a.The contract was made with a minor person
b.The consideration given was not sufficient
c.Both (a) and (b)
d.The contract contemplates that someone will commit a criminal act in its performance
e.The contract is verbal and is for performance of services over a period of 18 months

Answer 121

b.The consideration given was not sufficient

Question 122

Which of the following statements is not correct?

a.(b) and (c) below
b.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
c.Mediation is type of non-binding alternative dispute resolution
d.If there is a partnering agreement for a project, the parties must agree never to sue each other
e.A project neutral attempts to resolve disputes quickly before they can escalate

Answer 122

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

Question 123

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

a.If the engineer is not licensed as a P. Eng.
b.If the engineer had tried his or her best
c.If the engineer did what a reasonable engineer would have done in all the circumstances
d.If the engineer was in experienced

Answer 123

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

Question 124

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

a.An injunction to stop the infringement
b.Recovery of damages sustained by the owner
c.Recovery of profits earner by the infringer
d.Both (a) and (b)
e.All of (a), (b) and (c)

Answer 124

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

Question 125

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

a.The DRB can be set up with panelists who are experts in the construction matters
b.The DRB is established at the beginning of the project and is available to respond to disputes as they arise
c.The decisions of the DRB are never subject to appeal
d.All of (a), (b) and (c)
e.Both (a) and (b)

Answer 125

e.Both (a) and (b)

Question 126

Which of the following dispute resolution techniques entail the assistance of a third party?

a.Partnering
b.Negotiation
c.Mediation
d.Arbitration
e.All of (a), (c) and (d)

Answer 126

e.All of (a), (c) and (d)

Question 127

Slander and defamation:

a.Are the same as fraud
b.Are torts
c.Both of the above
d.Are the same thing

Answer 127

b.Are torts

Question 128

According to the law of negligence, an engineer performing services owes a duty of care to:

a.Anyone whom the engineer knows is relying on the engineer
b.Only the person who is responsible for paying the engineer
c.Anyone whom a reasonable engineer would be expected to know is relying on the engineer
d.(a) and (c)

Answer 128

d.(a) and (c)

Question 129

According to the law of negligence, an engineer who prepares and delivers to a client a report which contains a negligent misstatement:

a.May be protected by a disclaimer in the report
b.May be protected by the terms of the engineer’s contract with the client
c.Both of the above
d.Will be liable even if no damages result

Answer 129

a.May be protected by a disclaimer in the report

Question 130

Under product liability, the ultimate consumer of a product:

a.Is owed a duty of care by the manufacturer of the product
b.Is owed a duty of care by the seller of the product
c.Is entitled to sue for injuries caused by the product even if the consumer did not purchase the product
d.All of the above

Answer 130

d.All of the above

Question 131

Which of the following statements are correct?

a.An engineering company cannot legally limit its liability under an engineering services agreement.
b.An engineering company providing engineering services can enter into an enforceable contract without obtaining a certificate of authorization from the PEO
c.An engineer acting as a consultant for an owner on a construction project does not owe a duty of care to the contractor on the project.
d.An engineer cannot act as an agent for a client
e.None of the above

Answer 131

e.None of the above

Question 131

When dealing with product liability law, a duty of care is owed by the manufacturer to:

a.All purchasers of the product
b.Nobody
c.All users and consumers of the product
d.Both (a) and (c)
e.None of the above

Answer 131

d.Both (a) and (c)

Question 132

Which of the following statements are true?

a.The Statute of Frauds requires that certain types of contracts mustbe in writing
b.Force majeure events are events that occur during the performance of a contract that are beyond a person’s control.
c.Equitable estoppel is a contract principle dealing with gratuitous promises.
d.Both (a) and (c)
e.All of the above

Answer 132

e.All of the above

Question 133

The law of negligence imposes duties:

a.On professional engineers only
b.On professional persons only
c.On professional persons and corporations only
d.On all persons generally

Answer 133

d.On all persons generally

Question 134

In a trial of an engineer who has been accused of negligence, the applicable standard of care is:

a.The standard which would be used by a reasonable engineer
b.The subjective standard
c.The standard contained in provincial regulations of common law provinces
d.None of the above

Answer 134

a.The standard which would be used by a reasonable engineer

Question 135

To prove that a defendant engineer breached the duty of care under tort law, it must be established that the engineer’s conduct:

a.Caused damages to a plaintiff
b.Fell below a reasonable standard of care
c.Breached the Code of Ethics
d.Breached the Professional Engineers Ac

Answer 135

b.Fell below a reasonable standard of care

Question 136

To prove that a defendant engineer is negligent, the plaintiff must prove

a.That the engineer owed a duty of care to the plaintiff, the engineer breached the duty of care and the breach caused damage to the plaintiff
b.That the engineer acted unprofessionally
c.That the engineer breached the Engineer’s Code of Ethics
d.All of the above

Answer 136

a.That the engineer owed a duty of care to the plaintiff, the engineer breached the duty of care and the breach caused damage to the plaintiff

Question 137

The basic limitation period in the Limitations Act of 2002 is:

a.Ten years from the act or omission giving rise to the claim
b.Fifteen years from discoverability
c.Six years from contract signing
d.Two years from discoverability
e.Eight years from the signing of the contract

Answer 137

d.Two years from discoverability

Question 138

The ultimate limitationperiod in the Limitations Act of 2002 is:

a.Two years from discoverability
b.Two years from the act or omission giving rise to the claim
c.Six years from the act or omission giving rise to the claim
d.Six years from the signing of the contract
e.Fifteen years from the act or omission giving rise to the claim

Answer 138

e.Fifteen years from the act or omission giving rise to the claim

Question 139

According to the law of tort, the engineering standard of care:

a.Is the subjective standard
b.Is an objective standard
c.Is a reasonable standard
d.(b) and (c)

Answer 139

c.Is a reasonable standard

Question 140

Which form of security does not have a direct cost to the party posting the security:

a.Bond
b.Guarantee
c.Letter of Credit
d.(a) and (c)
e.None of the above

Answer 140

b.Guarantee

Question 141

The discoverability concept means:

a.The cause of action starts to run when the action or omission giving rise to the damages occurs
b.The cause of action does not start to run until the damages is first discovered, or ought with reasonable diligence to have been discovered by the plaintiff
c.Engineers discover mistakes in their work
d.None of the above
e.The cause of action only arises on the signing of the contract

Answer 141

b.The cause of action does not start to run until the damages is first discovered, or ought with reasonable diligence to have been discovered by the plaintiff

Question 142

According to tort law, assuming a traditional project structure, the engineer owes a duty to:

a.The owner
b.The contractor
c.The owner and contractor
d.The PEO

Answer 142

c.The owner and contractor

Question 143

In a civil trial:

a.The plaintiff has the burden of proof
b.The defendant has the burden of proof
c.The case must be proved beyond a reasonable doubt
d.The case must be proved beyond the shadow of a doubt

Answer 143

a.The plaintiff has the burden of proof

Question 144

If an engineer prepares a design, the negligence standard of care means that:

a.The engineer’s design must have no flaws
b.The engineer’s design must be reasonable
c.The engineer must pay for any failure of the design
d.The engineer must comply with PEO’s Code of Ethics

Answer 144

b.The engineer’s design must be reasonable

Question 145

Which of the following statements are true?

a.An offer must always be in writing to be capable of acceptance
b.Acceptance of an offer may be communicated by mail or by fax
c.Irrevocable offers cannot be revoked if made in writing
d.Both (b) and (c)
e.All of the above

Answer 145

b.Acceptance of an offer may be communicated by mail or by fax

Question 146

Which of the following statements are false?

a.Letters of intent are always enforceable
b.The Statute of Frauds requires all contracts to be in writing
c.Corporations do not have the ability to enter into binding and enforceable contracts
d.Both (a) and (b)
e.All of the above

Answer 146

e.All of the above

Question 147

Which of the following statements are false?

a.Letters of intent are always enforceable
b.The Statute of Frauds requires all contracts to be in writing
c.All corporations have the same capacity to enter into contracts as a natural person
d.Both (a) and (b)
e.All of the above

Answer 147

d.Both (a) and (b)

Question 148

Which of the following statements are false?

a.A minor does not have the capacity to enter into any types of contracts
b.Penalty clauses are enforceable under contract law
c.The case of Conwest Exploration vs. Letain is one of the leading cases in Canada dealing with the concept of equitable estoppel
d.Both (a) and (b)
e.None of the above

Answer 148

d.Both (a) and (b)

Question 149

Which of the following statements are false?

a.The case of Trunorth Exploration vs. Murphy is one of the leading cases in Canada dealing with the concept of equitable estoppel
b.A minor has the capacity to enter into certain types contracts
c.Penalty clauses are enforceable under contract law
d.Both (a) and (c)
e.All of the above

Answer 149

d.Both (a) and (c)

Question 150

Which of the following statements are true?

a.Arbitration agreements usually specify how the arbitrators will be chosen, what rules and procedures will be used and timing of the arbitration process
b.Engineers may be concurrently liable for breach of contract and for negligence
c.In administering the terms of a construction contract, an engineer may be required to make decisions affecting the rights of the owner and contractor
d.Both (a) and (b)
e.All of the above

Answer 150

e.All of the above

Question 151

Which of the following will affect the enforceability of a contract?

a.The contract requires that all disputes must be resolved using mediation before using arbitration or the courts
b.One of the parties to the contract is a minor and the contract is not for a necessity of life
c.The acceptance of the offer was communicated by mail
d.The contract is for the sale of land but not in writing
e.Both (b) and (d)

Answer 151

e.Both (b) and (d)

Question 152

Concurrent tortfeasors means:

a.No party is liable in tort
b.Only one party is liable in tort
c.Two employees have been charged under the criminal code
d.None of the above
e.More than one party is liable in tort

Answer 152

e.More than one party is liable in tort

Question 153

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

a.Can only be liable to the general contractor
b.Can be liable directly to the owner
c.Will always be arrested
d.Will never be liable to the owner for economic loss
e.Can never have any liability

Answer 153

b.Can be liable directly to the owner

Question 154

Is an engineer prohibited from registering a claim for lien under the Construction Lien Act?

a.Yes
b.No

Answer 154

b.No

Question 155

The attachment of ribbons on the necks of the Canadian geese in the Eaton’s Center created a problem between the landlord and the artist related to:

a.Patents
b.Copyright
c.Moral rights
d.Passing off
e.None of the above
f.Trade secrets

Answer 155

c.Moral rights

Question 156

If a person commits defamation:

a.That person has committed a tort
b.That person is libel
c.Both of the above
d.That person’s reputation has been injured

Answer 156

a.That person has committed a tort

Question 157

To establish tort liability against a defendant, the plaintiff:

a.Must have a contract with the defendant
b.Must have a contract with the defendant’s client
c.(a) or (b)
d.None of the above

Answer 157

d.None of the above

Question 158

The Hedley Byrne vs. Heller case (i.e. the banking case)is important to engineers because it establishes that:

a.A professional may be liable for economic loss
b.Professional advice may give rise to liability
c.A disclaimer may protect a professional from liability for negligent advice
d.All of the above

Answer 158

d.All of the above

Question 159

If a court finds that Person A committed contributory negligence:

a.Person A is a defendant
b.Person A and the plaintiff have committed negligence
c.Person A and the defendant have committed negligence
d.(a) and (b)

Answer 159

c.Person A and the defendant have committed negligence

Question 160

If a P. Eng. is determined in court to be negligent under tort laws:

a.The plaintiff proved that the P. Eng. owed a duty of care to the plaintiff, that the P. Eng. breached the duty of care, and that the breach caused damage to the plaintiff
b.The P. Eng. must be an employer
c.The P. Eng. is strictly liable
d.All of the above

Answer 160

a.The plaintiff proved that the P. Eng. owed a duty of care to the plaintiff, that the P. Eng. breached the duty of care, and that the breach caused damage to the plaintiff

Question 161

The Professional Engineers Act:

a.Is a statute and has no bearing on an engineer’s liability under tort law, which is judge-made law
b.Provides that an engineer can never be liable 12 months after his or her services were actually performed or should have been performed
c.Provides than an engineer can never be liable 12 months after his or her services were actually performed
d.None of the above

Answer 161

b.Provides that an engineer can never be liable 12 months after his or her services were actually performed or should have been performed

Question 162

Which of the following statements are false

a.The Statute of Frauds requires all contracts to be in writing
b.A minor does not have the legal capacity to enter into a contract
c.Duress and undue influence are examples of a lack of capacity
d.All corporations have all the legal capacity of a natural person
e.All of the above

Answer 162

e.All of the above

Question 163

The law of negligence:

a.Applies only to engineers
b.Applies only to professionals
c.Applies only to professionals and their employers
d.None of the above

Answer 163

d.None of the above

Question 164

Which of the following will affect the enforceability of a contract?

a.The contract is verbal and is for performance of services over a period of ten months
b.The acceptance of an offer was communicated by facsimile
c.The consideration for the contract is peppercorn
d.The contract does not contain a dispute resolution clause
e.None of the above

Answer 164

e.None of the above

Question 165

Which of the following statements are true?

a.There are only two types of misrepresentation: negligent and fraudulent
b.If one of the parties to a contract makes a negligent misrepresentation, the innocent party is entitledto be compensated under principles of contract law for damages resulting from such misrepresentation
c.Only where one of the parties to a contract makes a fraudulent misrepresentation, can the innocent party rescind the contract
d.Both (a) and (c)
e.None of the above

Answer 165

e.None of the above

Question 166

Assume Prime Minister Trudeau, Premier Wynne and Mayor Tory met and agreedthat the province of Ontario would enact a law to make it a criminal offense for someone to possess an unregistered gun in

a.Ultra vires
b.Beyond the jurisdiction of the Province of Ontario
c.A violation of one of the fundamental freedoms
d.(a) and (b) only
e.(a), (b) and (c)

Answer 166

d.(a) and (b) only

Question 167

The attachment of red ribbons on the necks of the Canadian geese in the Eaton’s Center created a problem between the landlord and the artist related to:

a.Design-build concepts
b.Insurance coverage
c.Moral rights
d.Religious expression
e.Confidential information

Answer 167

c.Moral rights

Question 168

Which of the following principles apply to the theory of precedent:

a.A court must follow the decision of a higher court
b.A court must follow the decision of a lower court
c.The decisions of the Supreme Court of Canada must be followed by all courts
d.(a) and (c) above
e.All of the above

Answer 168

d.(a) and (c) above

Question 169

If an engineer is sued under the law of negligence, the conduct of the employee would be measured against the following standard of care:

a.The standard which would be used by a reasonable engineer
b.The standard contained in provincial regulations outside of Quebec
c.The subjective standard
d.None of the above
e.No specific standard

Answer 169

a.The standard which would be used by a reasonable engineer

Question 170

An engineering firmwould not be liable for negligence if:

a.The damages were only economic
b.Economic loss was not specifically identified as a special circumstance in the engineer firm’s services agreement with its client
c.The engineering firm did not have a contract with the person who suffered the damages
d.By pure luck, the engineer firm’s careless conduct caused no damages
e.The engineering firm has no insurance

Answer 170

d.By pure luck, the engineer firm’s careless conduct caused no damages

Question 171

The “deep pocket” principle best describes:

a.The division of federal and provincial taxation authority under the Canadian constitution
b.The tax advantages of carrying on business under a corporation rather than a sole proprietorship
c.The purpose of tort law
d.A rationale for establishing an employer’s liability
e.The employee’s obligation to work long hours

Answer 171

d.A rationale for establishing an employer’s liability

Question 172

In a lawsuit, if there are two concurrent tortfeasors:

a.There are two defendants who are accused of contributing to a tort
b.There are two defendants who always share the liability 50:50
c.There are two plaintiffs who have suffered damages caused by one defendant
d.Both (a) and (b)
e.None of the above

Answer 172

a.There are two defendants who are accused of contributing to a tort

Question 173

Vicarious liability means

a.That an employer would be responsible for the torts of its employees acting within the reasonable scope of their responsibility
b.That the employer would be responsible for the torts of only certain employees
c.That the employer would always be responsible for the torts of its employees
d.That the employee would not be found liable
e.That the employee is given a raise

Answer 173

a.That an employer would be responsible for the torts of its employees acting within the reasonable scope of their responsibility

Question 174

Which of the following statements are true?

a.An offer can never be withdrawn before acceptance
b.Acceptance of an offer must be clearly communicated
c.Special formalities are required to ensure irrevocability of an offer
d.Both (b) and (c)
e.All of the above

Answer 174

d.Both (b) and (c)

Question 175

Which of the following statements are true?

a.A minor hasthe capacity to enter into any types of contracts
b.Penalty clauses are enforceable under contract law
c.The case of Conwest Exploration vs. Letain is one of the leading cases in Canada dealing with the concept of equitable estoppel
d.Both (a) and (b)
e.None of the above

Answer 175

c.The case of Conwest Exploration vs. Letain is one of the leading cases in Canada dealing with the concept of equitable estoppel

Question 176

Which of the following statements are false?

a.The case of Hadley vs. Baxendale is one of the leading cases in Canada dealing with the concept of Quantum Meruit
b.Only drunken adults can rely on the defence of duress or undue influence
c.Contracts are only enforceable if they are in writing
d.Both (a) and (b)
e.All of the above

Answer 176

e.All of the above

Question 177

Which of the following will negatively affect the enforceability of the contract?

a.The contract was made with a minor person
b.There was no consideration exchanged between the parties
c.The contract contemplates that someone will commit a criminal act in its performance
d.The contract is verbal and is for performance of services over a period of 10 months commencing 18 months after the date the contract was signed
e.All of the above

Answer 177

e.All of the above

Question 178

Which of the following statements are false?

a.If one party made a fraudulent misrepresentation, the other party has the right to sue for damages
b.An engineer is not normally a party to a construction contract between an owner and a contractor
c.The case of Buttcon vs. Toronto Hydro is a case dealing with a dispute over a request for proposals and the duty of fairness
d.Intra proferentum is a legal principle whereby a court will interpret an ambiguous clause in favor of the party that did not draft the clause
e.None of the above

Answer 178

d.Intra proferentum is a legal principle whereby a court will interpret an ambiguous clause in favor of the party that did not draft the clause

Question 179

Which of the following statements are false?

a.The defaulting party to a contract must compensate the non-defaulting party for all damages that it suffers no matter how remote or unreasonable the damages may be
b.Specific performance is a remedy which is available to a non-defaulting party where there has been a breach of contract by the other party
c.The legal principle of frustration that the performance of the contract becomes impossible and not just more expensive
d.Both (a) and (c)
e.None of the above

Answer 179

a.The defaulting party to a contract must compensate the non-defaulting party for all damages that it suffers no matter how remote or unreasonable the damages may be

Question 180

Which of the following statements are true?

a.A court will apply a liberal construction approach to the interpretation of limitation of liability clauses
b.A contract is always enforceable even if the non-mistakes party knew of the mistake made by the other party at the time the contract as signed
c.Contract A and Contract B are legal terms used to describe contracts that may arise in a bid and tender procurement process
d.The Parol Evidence Rule deals with whether extraneous evidence can be used to interpret contract clauses
e.Both (c) and (d)

Answer 180

e.Both (c) and (d)

Question 181

The basic limitation period in the Limitations Act (Ontario) is:

a.Four years from discoverability
b.Six years from discoverability
c.Two years from discoverability
d.One year from discoverability
e.Ten years from contract signing

Answer 181

c.Two years from discoverability

Question 182

Which of the following is a form of security of payment that requires agreement of a third party:

a.Engineering services agreement
b.Settlement agreement
c.Letter of credit
d.None of the above
e.(b) and (c) above

Answer 182

c.Letter of credit

Question 183

Which of the following statements are correct?

a.An engineering company from another country providing engineering services can enter into an enforceable contract in Ontario without obtaining a certificate of authorization from the PEO
b.An engineering company cannot legally limit its liability under an engineering services contract
c.An engineer cannot act as an agent for a client
d.An engineer acting as a consultant for an owner on a construction project does not owe a duty of care to the contractor on the project
e.None of the above

Answer 183

e.None of the above

Question 184

If a contractor posts a performance bonds as security for performance of its obligations under a contract

a.The surety will make sure the obligation is fulfilled if the contractor fails to perform
b.If the surety has to pay any money under the bond, it will be able to sue the contractor for reimbursement of that money
c.The bond is exactly the same as insurance
d.(a), (b) and (c) above
e.(a) and (b) above

Answer 184

e.(a) and (b) above

Question 185

Which forms of security of payment is the easiest to take advantage of:

a.Letter of credit
b.Performance bond
c.Parent company guarantee
d.None of the above
e.Both (b) and (c)

Answer 185

a.Letter of credit

Question 186

Which of the following project structures are not conducive to having input from the contractor during the design phase:

a.Design-build
b.Construction management
c.Design-bid-build (general contractor)
d.All of the abovee
(a) and (b) above

Answer 186

c.Design-bid-build (general contractor)

Question 187

hich of the following project structures is least conducive to a “fast-tracked” project:

a.Design-bid-build (general contractor)
b.Design-build
c.Construction management
d.All of the above
e.(b) and (c) above

Answer 187

a.Design-bid-build (general contractor)

Question 188

Which of the following project structures provides for “single point” responsibility for both design and construction:

a.Design-bid-build (general contractor)
b.Construction management
c.Design-build
d.All of the above
e.(a) and (c) above

Answer 188

c.Design-build

Question 189

Which of the following project structures has the highest risk to an owner when it comes to taking on the role of “constructor” pursuant the Occupational Health and Safety Act:

a.Design-bid-build (general contractor)
b.Design-build
c.Construction management
d.All of the above
e.None of the above

Answer 189

c.Construction management

Question 190

Which of the following structures has the owner entering intro trade contracts with each trade contractor:

a.Construction management
b.Design-bid-build
c.Design-build
d.All of the above
e.None of the above

Answer 190

a.Construction management

Question 191

Which of the following statements are true?

a.A construction lien under the Construction Lien Act gives a subcontractor a claim against an owner, even where no privity of contract with the other owner exists
b.Engineering services are never liable
c.Liens under the Construction Lien Act never expire
d.Both (a) and (c)
e.None of the above

Answer 191

a.A construction lien under the Construction Lien Act gives a subcontractor a claim against an owner, even where no privity of contract with the other owner exists

Question 192

Which of the following statements are true?

a.Mediation is a form of dispute resolution
b.A mediator is a neutral third party who attempts to guide the parties to a mutually beneficial resolution of their dispute
c.A mediator facilitates communications between the parties
d.All of the above
e.None of the above

Answer 192

d.All of the above

Question 193

Which of the following statements are true?

a.Arbitration involves a decision by a neutral decision maker that all parties agree to be bound by
b.An arbitrator must ensure that there is procedural fairness in the arbitration
c.You always get a public decision or precedent at the conclusion of arbitration
d.Both (a) and (b)
e.None of the above

Answer 193

d.Both (a) and (b)

Question 194

To prove that a defendant engineer is negligent, the plaintiff must prove:

a.That the engineer owed a duty of care to the plaintiff, the engineer breached the duty of care and the breach caused damage to the plaintiff
b.That the engineer was criminally responsible
c.That the engineer breached the Engineer’s Code of Ethics
d.All of the above
e.None of the above

Answer 194

a.That the engineer owed a duty of care to the plaintiff, the engineer breached the duty of care and the breach caused damage to the plaintiff

Question 195

In the trial of an engineer accused of negligence:

a.An expert witness could be called to give expert evidence at the trial
b.An expert witness’ oral testimony would not be allowed because the expert did not witness the incident
c.The judge is an expert witness
d.Both (a) and (c)
e.Both (b) and (c)

Answer 195

a.An expert witness could be called to give expert evidence at the trial

Question 196

What are the exceptions to requiring leave to appeal to the Supreme Court of Canada?

a.A matter of national importance
b.A first degree murder conviction
c.A contravention of the Charter of Rights and Freedoms
d.All of the above
e.b and c

Answer 196

d.All of the above

Question 197

What issues are within the jurisdiction of the Divisional Court?

a. Appeals of interim orders made by a judge
b. Appeals of final orders made by a judge if the order stipulates a payment less than $25,000
c. reviews of decisions made by government tribunals
d. all of the above
e. none of the above

Answer 197

d. all of the above

Question 198

Case management Rules are rules with:

a. The court system has adopted to expedite cases and eliminate or reduce delays
b. The law society imposes upon lawyers to ensure proper representation of clients
c. The police force uses to manage criminal prosecutions
d. All of the above
e. a and b

Answer 198

e. a and b

Question 199

If two people want to form a business and wish to try and eliminate personal liability they would:

a. Incorporate a provincial corporation
b. Incorporate a federal corporation
c. Set up a partnership
d. All of the above
e. a and b

Answer 199

e. a and b

Question 200

Parliamentary Supremacy was completely eliminated by the Constitution Act and the Charter of Rights and Freedom:

a. True
b. False

Answer 200

b. False

Question 201

In which of the following project structures will an Owner be deemed to be the “Constructor” under the Occupational Health and Safety Act?

a. Traditional
b. Construction management
c. Design-build
d. All of the above
e. None of the above

Answer 201

b. Construction management

Question 202

An insured party under a property insurance policy will not be covered for the following exposures

a. Errors in design
b. Faulty workmanship
c. Claims in excess of the policy limit
d. All of the above
e. a and b

Answer 202

e. a and b

Question 203

assume the following:

An owner contracted with a design-builder for a design and construction of a building. The contract price for design and construction work was $8,500,000. When the design-builder determined that it had achieved substantial performance it advised the Owner’s consultant, who inspected the work and determined that: (a) the work was ready for the purpose intended and (b) the rectification of known defects and the completion of incomplete items would cost $95,000:

What is the Owner’s consultant’s responsibility if it is the contract administrator of the design-build agreement?

a. To not show the partiality to either the Owner or the design-builder
b. To certify the substantial performance has been achieved
c. To advise the design-builder that substantial performance has not been achieved
d. a and b
e. b and c

Answer 203

b. To certify the substantial performance has been achieved

Question 204

assume the following:

An owner contracted with a design-builder for a design and construction of a building. The contract price for design and construction work was $8,500,000. When the design-builder determined that it had achieved substantial performance it advised the Owner’s consultant, who inspected the work and determined that: (a) the work was ready for the purpose intended and (b) the rectification of known defects and the completion of incomplete items would cost $95,000:

When can the owner release the basic holdback to the design-builder?

a. 45 days after the design-builder advises the Owner’s consultant that it has achieved substantial performance
b. 45 days after achieving total performance
c. 45 days after publication of the certificate of substantial performance
d. 45 days after issuance of the certificate of substantial performance
e. 30 days after the publication of the certificate of total performance

Answer 204

c. 45 days after publication of the certificate of substantial performance

Question 205

assume the following:

An owner contracted with a design-builder for a design and construction of a building. The contract price for design and construction work was $8,500,000. When the design-builder determined that it had achieved substantial performance it advised the Owner’s consultant, who inspected the work and determined that: (a) the work was ready for the purpose intended and (b) the rectification of known defects and the completion of incomplete items would cost $95,000:

When can the Owner release the finishing holdback?

a. 90 days after publication of the certificate of substantial performance
b. 45 days after the date of total performance
c. 45 days after the certificate of total performance is published in the Daily Commercial News
d. None of the above

Answer 205

b. 45 days after the date of total performance

Question 206

assume the following:

An owner contracted with a design-builder for a design and construction of a building. The contract price for design and construction work was $8,500,000. When the design-builder determined that it had achieved substantial performance it advised the Owner’s consultant, who inspected the work and determined that: (a) the work was ready for the purpose intended and (b) the rectification of known defects and the completion of incomplete items would cost $95,000:

What is the dollar threshold below which the value of defects to be remedied or incomplete work to be performed must fall before Substantial Performance is achieved:

a. $850,000
b. $100,000 ( 3% of $500,000 + 2% of $500,000 + 1% of rest ($7,500,000))
c. $85,000
d. $255,000
e. None of the above

Answer 206

b. $100,000 ( 3% of $500,000 + 2% of $500,000 + 1% of rest ($7,500,000))

Question 207

assume the following:

An owner contracted with a design-builder for a design and construction of a building. The contract price for design and construction work was $8,500,000. When the design-builder determined that it had achieved substantial performance it advised the Owner’s consultant, who inspected the work and determined that: (a) the work was ready for the purpose intended and (b) the rectification of known defects and the completion of incomplete items would cost $95,000:

Has the design-builder achieved Substantial Performance of its contract?

a. Yes
b. No

Answer 207

a. Yes

Question 208

assume the following:

An owner contracted with a design-builder for a design and construction of a building. The contract price for design and construction work was $8,500,000. When the design-builder determined that it had achieved substantial performance it advised the Owner’s consultant, who inspected the work and determined that: (a) the work was ready for the purpose intended and (b) the rectification of known defects and the completion of incomplete items would cost $95,000:

If a subcontractor to the design-builder is owed money and wishes to pursue a construction lien, it must:

a. Register its lien within 45 days after the expiry of the lien
b. Commence a lawsuit within 90 days after expiry of the lien
c. Set the lawsuit down for trial within 2 years after the date of commencement of the lawsuit
d. All of the above
e. a and c

Answer 208

c. Set the lawsuit down for trial within 2 years after the date of commencement of the lawsuit

Question 209

Which if of the following project structures is most conducive to a “fast-tracked” project?

a. Traditional
b. Design-build
c. Construction management
d. All of the above
e. b and c

Answer 209

e. b and c

Question 210

Which of the following principles apply to the theory of precedent?

a. A court must follow the decision of a higher court
b. A court must follow the decision of another judge of the same court
c. The decisions of the Supreme Court of Canada must be followed by all courts
d. All of the above
e. a and c

Answer 210

d. All of the above

Question 211

If a contractor posts a performance bond as security for performance of its obligations under a contract:

a. The surety will make sure the obligations are fulfilled if the contractor fails to perform
b. If the surety has to pay any monies under the bond it will be able to sue the contractor for reimbursement of those monies
c. The issuance of the bond will impact the contractor’s line of credit with its bank
d. All of the above
e. a and b above

Answer 211

e. a and b above

Question 212

if two business partners choose a corporation as their business organization, can each of them be:

a. a shareholder of the corporation
b. a director of the corporation
c. an employee of the corporation
d. all of the above
e. a and b above

Answer 212

d. all of the above

Question 213

a typical lawsuit includes the following steps:

a. Issuance of a statement of claim
b. Issuance of a statement of defence
c. Documentary and oral discoveries
d. All of the above
e. a and b

Answer 213

d. All of the above

Question 214

a party who commences a lawsuit, loses that lawsuit at trial and then commences an appeal will at various stages of the lawsuit be referred to as:

a. plaintiff and appellant
b. defendant and appellant
c. plaintiff and respondent
d. defendant and respondent
e. none of the above

Answer 214

a. plaintiff and appellant

Question 215

Piercing the corporate veil means that:

(a) A director of a corporation may be personally sued for the actions of the corporation
(b) A shareholder of a corporation may be personally sued for the actions of the corporation
(c) An employee of a corporation may be personally sued for the actions of the corporation
(d) All of the above
(e) (a) and (b) above

Answer 215

(d) All of the above

Question 216

An agreement between two parties may require that a dispute be:

(a) Arbitrated as opposed to litigated
(b) That the decision of the arbitrator(s) be final and binding
(c) That the parties will share the administrative cost of any arbitration
(d) All of the above
(e) (a) and (c) above

Answer 216

(d) All of the above

Question 217

If an owner retains a designer to produce a set of drawings and that owner wishes to be able to use the drawings to make future modifications to the building it must:

(a) Have the copyright in the drawings assigned to it
(b) Have a license granted to it to make such use of the drawings
(c) Have the moral rights of the designer waived
(d) (a) and (c) or (b) and (c)
(e) (a), (b) and (c) above

Answer 217

(c) Have the moral rights of the designer waived

Question 218

Where an expert engineer is called to testify at a trial of an engineer who has been accused of negligence:

(a) it is the judge’s duty to select the expert
(b) the judge must abide by the expert’s opinion on engineering matters
(c) (a) and (b)
(d) the expert witness may express his or her opinions

Answer 218

(d) the expert witness may express his or her opinions

Question 219

According to the law of negligence, an engineer who prepares and delivers to a client a report which contains a negligent misstatement:

(a) may be protected by a disclaimer in the report
(b) may be protected by the terms of the engineer’s contract with the client
(c) both of the above
(d) will be liable even if no damages result

Answer 219

(d) will be liable even if no damages result

Question 220

Under product liability law, the ultimate consumer of a product:

(a) is owed a duty of care by the manufacturer of the product
(b) is owed a duty of care by the seller of the product
(c) is entitled to sue for injuries caused by the product even if the consumer did not
purchase the product
(d) all of the above

Answer 220

(d) all of the above

Question 221

The law of negligence imposes duties:

(a) on professional engineers, only
(b) on professional persons, only
(c) on professional persons and corporations, only
(d) on all persons, generally

Answer 221

(d) on all persons, generally

Question 222

ln a trial of an engineer who has been accused of negligence, the applicable standard of care is:

(a) the standard which would be used by a reasonable engineer
(b) the subjective standard
(c) the standard contained in provincial regulations of common law provinces
(d) none of the above

Answer 222

(a) the standard which would be used by a reasonable engineer

Question 223

The Donoghue vs. Stevenson case establishes that:

(a) reliance on professional skill and judgment can give rise to a duty of care
(b) a disclaimer will protect a professional from liability for negligent advice
(c) engineers may be liable for economic loss
(d) none of the above

Answer 223

(d) none of the above

Question 224

If a plaintiff is successful in a tort claim, the damages are intended to

(a) put the plaintiff in the position in which he or she would have been had the tort not occurred
(b) put the plaintiff and the defendant in the position in which they would have been had the tort not occurred
(c) compensate the defendant
(d) punish the defendant

Answer 224

(a) put the plaintiff in the position in which he or she would have been had the tort not occurred

Question 225

Vicarious liability means that:

(a) the employer is responsible
(b) the employee is not responsible
(c) the employee is responsible
(d) (a) and (c)

Answer 225

(a) the employer is responsible

Question 226

According to tort law, assuming a traditional project structure, the engineer owes a duty to:

(a) the owner
(b) the contractor
(c) the owner and the contractor
(d) the PEO

Answer 226

(c) the owner and the contractor

Question 227

Which of the following are necessary elements of an enforceable contract?

(a) an irrevocable offer made and accepted
(b) capacity and mutual intent
(c) a promise and estoppel
(d) both (a) and (b)
(e) All of the above.

Answer 227

(d) both (a) and (b)

Question 228

Which of the following statements are true?

(a) An offer must always be in writing to be capable of acceptance.
(b) Acceptance of an offer may be communicated by mail or by fax.
(c) Irrevocable offers cannot be revoked if made in writing.
(d) Both (b) and (c).
(e) All of the above

Answer 228

(b) Acceptance of an offer may be communicated by mail or by fax.

Question 229

The following fact situation applies:

Wise Guys Inc. (“WGI”) issues a call for tenders for a contract to build a new head office to three bidders: Build’em Co. (“BC”), Offices-R-Us (“ORU”) and ABC Brothers Inc. (“ABC”). The call for tenders contains the following statement: “The lowest of any tender not necessarily accepted.” The tender documents required each bidder to submit a bid deposit in the form of a letter of credit or certified cheque for 10% of the bid price. The tender instructions stated that the WGI will automatically reject any non-compliant bids.
BC submitted the lowest bid of $10,00,000.00, but prior to bid closing, it advised the WGI that it had made a mistake in its bid by failing to add GST and that the actual price should have been $10,700,000.00. ORU submitted a bid of $l0,500,000.00, but fails to submit a letter of credit or certified cheque for $10,500,000.00 as required by the terms of the tender documents. ABC submits a bid of $11,000,000.00 plain and simple. After much deliberation, WGI decides to select ORU as the winning bidder and entered into a construction contract with ORU.

Which of the following is a true statement?

(a) WGI was entitled to ignore BC’s mistake in its bid and all else being equal, accept BC’s original bid.
(b) WGI was entitled to waive the irregularity (i.e., the failure to deliver the bid deposit) in ORU’s bid.
(c) WGI was required to award the contract to the lowest compliant bidder.
(d) All of the above.
(e) Both (a) and (c).

Answer 229

(b) WGI was entitled to waive the irregularity (i.e., the failure to deliver the bid deposit) in ORU’s bid.

Question 230

The following fact situation applies:

Wise Guys Inc. (“WGI”) issues a call for tenders for a contract to build a new head office to three bidders: Build’em Co. (“BC”), Offices-R-Us (“ORU”) and ABC Brothers Inc. (“ABC”). The call for tenders contains the following statement: “The lowest of any tender not necessarily accepted.” The tender documents required each bidder to submit a bid deposit in the form of a letter of credit or certified cheque for 10% of the bid price. The tender instructions stated that the WGI will automatically reject any non-compliant bids.
BC submitted the lowest bid of $10,00,000.00, but prior to bid closing, it advised the WGI that it had made a mistake in its bid by failing to add GST and that the actual price should have been $10,700,000.00. ORU submitted a bid of $l0,500,000.00, but fails to submit a letter of credit or certified cheque for $10,500,000.00 as required by the terms of the tender documents. ABC submits a bid of $11,000,000.00 plain and simple. After much deliberation, WGI decides to select ORU as the winning bidder and entered into a construction contract with ORU.

WGI owed a duty of good faith to which of the following contractors?

(a) Both BC and ORU
(b) ORU
(c) ABC
(d) None of the bidders.
(e) To all three bidders.

Answer 230

(e) To all three bidders.

Question 231

The following fact situation applies:

Wise Guys Inc. (“WGI”) issues a call for tenders for a contract to build a new head office to three bidders: Build’em Co. (“BC”), Offices-R-Us (“ORU”) and ABC Brothers Inc. (“ABC”). The call for tenders contains the following statement: “The lowest of any tender not necessarily accepted.” The tender documents required each bidder to submit a bid deposit in the form of a letter of credit or certified cheque for 10% of the bid price. The tender instructions stated that the WGI will automatically reject any non-compliant bids.
BC submitted the lowest bid of $10,00,000.00, but prior to bid closing, it advised the WGI that it had made a mistake in its bid by failing to add GST and that the actual price should have been $10,700,000.00. ORU submitted a bid of $l0,500,000.00, but fails to submit a letter of credit or certified cheque for $10,500,000.00 as required by the terms of the tender documents. ABC submits a bid of $11,000,000.00 plain and simple. After much deliberation, WGI decides to select ORU as the winning bidder and entered into a construction contract with ORU.

Which of the following statements are correct?

(a) The old approach to tendering disputes was based on the court decision of Belle River which applied the legal doctrine of mistake.
(b) The new approach to tendering disputes is based on the court decision of Ron Engineering which applied the Contract A / Contract B approach.
(c) The Supreme Court of Canada in the MJB Enterprises decision established that an owner owes a duty of good faith to all contractors submitting a compliant bid.
(d) Both (a) and (b).
(e) All of the above

Answer 231

(d) Both (a) and (b).

Question 232

The following fact situation applies:

Wise Guys Inc. (“WGI”) issues a call for tenders for a contract to build a new head office to three bidders: Build’em Co. (“BC”), Offices-R-Us (“ORU”) and ABC Brothers Inc. (“ABC”). The call for tenders contains the following statement: “The lowest of any tender not necessarily accepted.” The tender documents required each bidder to submit a bid deposit in the form of a letter of credit or certified cheque for 10% of the bid price. The tender instructions stated that the WGI will automatically reject any non-compliant bids.
BC submitted the lowest bid of $10,00,000.00, but prior to bid closing, it advised the WGI that it had made a mistake in its bid by failing to add GST and that the actual price should have been $10,700,000.00. ORU submitted a bid of $l0,500,000.00, but fails to submit a letter of credit or certified cheque for $10,500,000.00 as required by the terms of the tender documents. ABC submits a bid of $11,000,000.00 plain and simple. After much deliberation, WGI decides to select ORU as the winning bidder and entered into a construction contract with ORU.

Which of the following statements would be correct?

(a) By accepting ORU’s bid, WGI was in breach of Contract A
(b) ABC could sue WGI for breach of Contract A.
(c) There were two Contract A’s which came into existence, one between WGI and ORU and one between WGI and ABC.
(d) None of the above.
(e) Both (a) and (b).

Answer 232

(a) By accepting ORU’s bid, WGI was in breach of Contract A

Question 233

Which of the following statements are true?

(a) Two types of duress are threatened violence and undue influence
(b) Courts always adopt a strict construction approach to contract interpretation.
(c) Courts will always look to extraneous evidence when interpreting the terms of a contract.
(d) Both (a) and (c).
(e) None of the above

Answer 233

(a) Two types of duress are threatened violence and undue influence

Question 234

Which of the following statements are false?

(a) Courts will imply a term into a contract when necessary to give the contract business efficacy
(b) The parole evidence rule applies to documents or happenings prior to, or contemporaneously with the making of the contract
(c) Specific performance is a remedy which is always available to a non-defaulting party where there has been a breach of contract.
(d) The legal principle of frustration requires that performance of the contract becomes impossible and not just more expensive.
(e) None of the above.

Answer 234

(c) Specific performance is a remedy which is always available to a non-defaulting party where there has been a breach of contract.

Question 235

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

(a) The non-defaulting party is required to increase its damages as much as possible.
(b) The non-defaulting party may in certain circumstance be entitled to terminate the contract.
(c) The defaulting party may be required to compensate the non-defaulting party for its indirect or consequential damages suffered as a result of the breach of contract.
(d) Both (b) and (c).
(e) All of the above

Answer 235

(d) Both (b) and (c).

Question 236

Which of the following statements are true?

(a) A party to a contract may be considered to have repudiated a contract if that party announces by its words or actions that it has no intention of completing the contract.
(b) The innocent party may elect to accept the other party’s repudiation or continue with the contract (if possible).
(c) In the case of a repudiation, the damages are calculated for the date of signing the contract.
(d) Both (a) and (b).
(e) All of the above.

Answer 236

(d) Both (a) and (b).

Question 237

Which of the following statements are true?

(a) The breach of a fundamental term or condition of a contract will entitle the non- defaulting party to terminate the contract.
(b) Some of the remedies which may be available to a non-defaulting party in the event of a breach of contract include: termination, specific performance and frustration.
(c) Liquidated damages clauses are enforceable if they are a genuine pre—estimate of damages.
(d) Both (a) and (c)
(e) All of the above.

Answer 237

(d) Both (a) and (c)

Question 238

Which if the following statements are true?

(a) Arbitration agreements usually specify how the arbitrators will be chosen, what rules and procedures will be used and timing of the arbitration process.
(b) Engineers may be concurrently liable for breach of contract and for negligence.
(c) In administering the terms of a construction contract, an engineer may be required to make decisions affecting the rights of the owner and the contractor.
(d) Both (a) and (b)
(e) All of the above.

Answer 238

(d) Both (a) and (b)

Question 239

Parliamentary Supremacy was completely eliminated by the Constitution Act and the Charter of Rights and Freedom:

(a) True
(b) False

Answer 239

(b) False

Question 240

Does the Province of Ontario have the right to enact a law that puts conditions on a person’s ability to seek a patent?

(a) Yes
(b) No

Answer 240

(b) No

Question 241

Which of the following dispute resolution techniques entail the assistance of a third party?

(a) Partnering
(b)Negotiation
(c) Mediation
(d) Arbitration
(e) All of (a), (c) and (d)

Answer 241

(e) All of (a), (c) and (d)

Question 242

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

(a) the DRB can be set up with panellists who are experts in construction matters;
(b) the DRB is established at the beginning of the project and is available to respond to disputes as they arise;
(c) the decisions of the DRB are never subject to appeal;
(d) All of (a), (b) and (c)
(e) Both (a) and (b)

Answer 242

(e) Both (a) and (b)

Question 243

A contractor that arranges for the posting of a surety bond will never be liable to the surety company if the surety company has to pay out any monies under the bond:

(a) True
(b) False

Answer 243

(b) False

Question 244

assume the following facts:

An Owner entered into a contract with General Electric for the design, manufacture, delivery, installation and testing of a gas turbine for the Owner’s new power project (the “Gas Turbine Contract”). The Owner also entered into a contract with a general contractor to build the building and ancillary services for the gas turbine. The contract price for the Gas Turbine
Contract is $85,000,000. As part of General Electric’s obligations under the Gas Turbine Contract, General Electric is to carry out a performance test after installation is complete (the value of the performance test component of the work is $1,000,000). As well, as part of General Electric’s obligation under the Gas Turbine Contract, General Electric is to provide spare parts worth $750,000. You are the consultant retained by the Owner to carry out the contract administration of the Gas Turbine Contract.
General Electric advises the Owner that it has achieved Substantial Performance. The gas
turbine is ready to be operated. The Owner contracts you to advise as to whether Substantial
Performance of the Gas Turbine Contract has been achieved. You carry out an inspection and
determine that General Electric has not carried out the performance test nor has it supplied the
spare parts.

What is the dollar threshold below which the value of defects to be remedied or incomplete work to be performed must fall before Substantial Performance is achieved:

(a) $865,000
(b) $850,000
(c) $847,500
(d) $8,500,000 _
(e) none of the above

Answer 244

(a) $865,000

Question 245

assume the following facts:

An Owner entered into a contract with General Electric for the design, manufacture, delivery, installation and testing of a gas turbine for the Owner’s new power project (the “Gas Turbine Contract”). The Owner also entered into a contract with a general contractor to build the building and ancillary services for the gas turbine. The contract price for the Gas Turbine
Contract is $85,000,000. As part of General Electric’s obligations under the Gas Turbine Contract, General Electric is to carry out a performance test after installation is complete (the value of the performance test component of the work is $1,000,000). As well, as part of General Electric’s obligation under the Gas Turbine Contract, General Electric is to provide spare parts worth $750,000. You are the consultant retained by the Owner to carry out the contract administration of the Gas Turbine Contract.
General Electric advises the Owner that it has achieved Substantial Performance. The gas
turbine is ready to be operated. The Owner contracts you to advise as to whether Substantial
Performance of the Gas Turbine Contract has been achieved. You carry out an inspection and
determine that General Electric has not carried out the performance test nor has it supplied the
spare parts.

Has General Electric achieved Substantial Performance of the Gas Turbine Contract:

(a) Yes
(b) No

Answer 245

(b) No

Question 246

assume the following facts:

An Owner entered into a contract with General Electric for the design, manufacture, delivery, installation and testing of a gas turbine for the Owner’s new power project (the “Gas Turbine Contract”). The Owner also entered into a contract with a general contractor to build the building and ancillary services for the gas turbine. The contract price for the Gas Turbine
Contract is $85,000,000. As part of General Electric’s obligations under the Gas Turbine Contract, General Electric is to carry out a performance test after installation is complete (the value of the performance test component of the work is $1,000,000). As well, as part of General Electric’s obligation under the Gas Turbine Contract, General Electric is to provide spare parts worth $750,000. You are the consultant retained by the Owner to carry out the contract administration of the Gas Turbine Contract.
General Electric advises the Owner that it has achieved Substantial Performance. The gas
turbine is ready to be operated. The Owner contracts you to advise as to whether Substantial
Performance of the Gas Turbine Contract has been achieved. You carry out an inspection and
determine that General Electric has not carried out the performance test nor has it supplied the
spare parts.

**Does your answer change for (Has General Electric achieved Substantial Performance of the Gas Turbine Contract?) if General Electric had already carried out the performance
test:
**

(a) Yes
(b) No

Answer 246

(a) Yes

Question 247

assume the following facts:

An Owner entered into a contract with General Electric for the design, manufacture, delivery, installation and testing of a gas turbine for the Owner’s new power project (the “Gas Turbine Contract”). The Owner also entered into a contract with a general contractor to build the building and ancillary services for the gas turbine. The contract price for the Gas Turbine
Contract is $85,000,000. As part of General Electric’s obligations under the Gas Turbine Contract, General Electric is to carry out a performance test after installation is complete (the value of the performance test component of the work is $1,000,000). As well, as part of General Electric’s obligation under the Gas Turbine Contract, General Electric is to provide spare parts worth $750,000. You are the consultant retained by the Owner to carry out the contract administration of the Gas Turbine Contract.
General Electric advises the Owner that it has achieved Substantial Performance. The gas
turbine is ready to be operated. The Owner contracts you to advise as to whether Substantial
Performance of the Gas Turbine Contract has been achieved. You carry out an inspection and
determine that General Electric has not carried out the performance test nor has it supplied the
spare parts.

Once you issue the Certificate of Substantial Performance and deliver it to General Electric, when does the Construction Lien Act allow the Owner to release the basic holdback:

(a) 45 days after the date of the Certificate of Substantial Performance
(b) 45 days after the Certificate of Substantial Performance is delivered to General
Electric
(c) 45 days after the Certificate of Substantial Performance is published in the Daily
Commercial News
(d) None of the above

Answer 247

(c) 45 days after the Certificate of Substantial Performance is published in the Daily

Question 248

assume the following facts:

An Owner entered into a contract with General Electric for the design, manufacture, delivery, installation and testing of a gas turbine for the Owner’s new power project (the “Gas Turbine Contract”). The Owner also entered into a contract with a general contractor to build the building and ancillary services for the gas turbine. The contract price for the Gas Turbine
Contract is $85,000,000. As part of General Electric’s obligations under the Gas Turbine Contract, General Electric is to carry out a performance test after installation is complete (the value of the performance test component of the work is $1,000,000). As well, as part of General Electric’s obligation under the Gas Turbine Contract, General Electric is to provide spare parts worth $750,000. You are the consultant retained by the Owner to carry out the contract administration of the Gas Turbine Contract.
General Electric advises the Owner that it has achieved Substantial Performance. The gas
turbine is ready to be operated. The Owner contracts you to advise as to whether Substantial
Performance of the Gas Turbine Contract has been achieved. You carry out an inspection and
determine that General Electric has not carried out the performance test nor has it supplied the
spare parts.

When can the Owner release the finishing holdback:

(a) 45 days after the date that the contract is completed
(b) 45 days after the Certificate of Total Performance is delivered to General Electric
(c) 45 days after the Certificate of Total Performance is published in the Daily
Commercial News
(d) none of the above

Answer 248

(a) 45 days after the date that the contract is completed

Question 249

Nuisance law:

(a) may result in an injunction
(b) prevents a person from making unreasonable use of his or her land
(c) protects a person’s right to make reasonable use if his or her land
(d) all of the above

Answer 249

(d) all of the above