Module 4 missed

Question 1

Which of the following is NOT true regarding fiduciary responsibility?
Fiduciaries are bound by legal and ethical requirements.
Written contracts are required to establish a fiduciary relationship.
Fiduciaries have duties of diligence and due care.
Ethical issues for a fiduciary relationship can be addressed by clear terms in a written agreement.

Answer 1

Written contracts are required to establish a fiduciary relationship.

Question 2

Which organization sets lead paint regulations?
EPA
ASHI
InterNACHI
None of the above

Answer 2

EPA

Question 3

When would it be acceptable to recommend your brother’s contractor business to do minor home maintenance for a client based on the results of your inspection?
never
when your brother has paid you a referral fee
when you haven’t been compensated by any other parties besides the client
anytime

Answer 3

when you haven’t been compensated by any other parties besides the client

Question 4

Typical general liability insurance coverage has a _____ aggregate limit.
$100,000
$150,000
$200,000
$250,000

Answer 4

$200,000

Question 5

The person or entity that creates a letter of authorization is called the _____.
agent
principal
promisee
promisor

Answer 5

principal

Question 6

Which document tends to grant power for a more limited purpose in a shorter period?
letter of authorization
power of attorney
pre-inspection agreement
limited liability agreement

Answer 6

letter of authorization

Question 7

Why should limited liability clauses be used with caution?
because they completely eliminate any liability for the inspector
because they completely eliminate any liability for the client
because they are prohibited in many states
all of the above

Answer 7

because they are prohibited in many states

Question 8

What are the two different categories of liability for an inspector?
operational and administrative
contractual and fiduciary
general and limited
physical and implied

Answer 8

operational and administrative

Question 9

A potential client wants you to perform an inspection. The client’s need and your capacity to fulfill the need are essential for which element of a contract?
acceptance
legality
consideration
contractual offer

Answer 9

contractual offer

Question 10

The legality of a contract may affected by which of the following?
the language used in the contract
jurisdictional requirements
agreements to perform an illegal action
all of the above

Answer 10

all of the above

Question 11

Expressed conditions are _____.
superceded by implied conditions
more definitive and objective than implied conditions
harder to enforce than implied conditions
all of the above

Answer 11

more definitive and objective than implied conditions

Question 12

Which element of a contract is critical to ensuring that the terms of the contract are compliant with contract loss?
legality
consideration
capacity
mutuality

Answer 12

legality

Question 13

What is the best way for inspectors to protect themselves from liability?
having a pre-inspection agreement in place
good field practices
financial protection
fulfilling fiduciary duties and contractual obligations

Answer 13

fulfilling fiduciary duties and contractual obligations

Question 14

What type of professional liability insurance policy will over cover claims while the policy is in effect?
claims-made policy
general liability policy
occurrence policy
series policy

Answer 14

claims-made policy