project admin old Flashcards
What is the primary difference in contract formation between a Subcontract Agreement
and a Purchase Order?
A. Meeting of the minds exists in a Subcontract but not in a Purchase Order
B. Consideration exists in a Subcontract but not in a Purchase Order
C. Legal purpose exists in a Subcontract but not in a Purchase Order
D. There are not any contract differences between a Subcontract & a Purchase Order
a
Which law establishes basic rules governing the sale of goods used to establish a
Purchase Order?
A. Davis Bacon Act
B. Uniform Commercial Code
C. National Labor Relations Act
D. Uniform Transportation Code
b
Which of the following items must never be agreed upon utilizing a form titled Purchase
Order?
A. Labor
B. Materials
C. Overhead
D. Rental Equipment
a
Which test is most commonly used to determine if a contract is predominantly for
services or for the sale of goods?
A. Policy Test
B. Goods Supplied Test
C. Predominate Thrust Test
D. Predominate Service Test.
d
Which test focuses primarily on that part of the contract that UCC applies to goods and
general contract law applies to the services portion of the transaction?
A. Gravamen Test
B. Divisibility Test
C. Predominate Thrust Test
D. Contract Language Test
b
Assume that you are utilizing the verbiage Purchaser and Supplier in the terms and
conditions of the contract. How will the courts interpret this type of contract?
A. Services contract
B. Agency Fee contract
C. Sale of Goods contract
D. Guaranteed Maximum Price contract
c
Other than the most commonly utilized test, what other tests are suggested by
McLaughlin and Jensen to prove your arguments for a specific type of contract?
A. Language Test and the Divisibility Test
B. Policy Test and the Goods Supplied Test
C. Gravamen Test and the Predominate Service Test
D. Predominate Thrust Test and the Predominate Service Test
a
If the Shipping terms are FOB JOBSITE, which parties is the Bill of Lading between?
A. Vendor and the Contractor
B. Common carrier and the Vendor
C. Common carrier and the Architect
D. Common carrier and the Contractor
b
Which of the following terms refers to the process of following up on materials to ensure
that the proper quantity and quality of materials arrive at the jobsite according to
schedule?
A. Leadtime
B. Expediting
C. Purchasing
D. Procurement
b
Which of the following terms refers to the complete process of obtaining materials?
A. Leadtime
B. Expediting
C. Purchasing
D. Procurement
d
Which document is used to request payment for materials?
A. Invoice
B. Bill of lading
C. Purchase order
D. Stock requisition
a
Which of the following documents is used to request materials from the contractors
storage bins?
A. Purchase order
B. Receiving report
C. Stock requisition
D. Purchase requisition
c
A clause in the Subcontract Agreement reads that “a Subcontractor binds themselves to
the Contractor for the performance of the Subcontractor’s Work in the Same manner as
the Contractor is bound to the Owner for such performance under Contractor’s contract
with the Owner”. What is the name of this clause?
A. Flow down
B. Arbitration
C. Pay when paid
D. Condition Precedent
a
Which of the clauses below is considered a Condition Precedent?
A. Submit a claim within the time frame stated
B. The Sub will be paid when the Contractor is paid
C. Install street one block at a time and only close the block
D. The Soil Report states “For Informational Purposes Only”
b
What is the term called when a sub-bidder approaches a general who has been awarded a
project with the intent of voluntarily lowering the original price below the price level
established on bid day?
A. Bid Peddling
B. Bid Shopping
C. Condition Precedent
D. Promissory Estoppel
a
During what phase of a project must the Contractor provide the Subcontractor Agreement
to the Subcontractor to avoid the Subcontractor from refusing to sign an agreement that
they have not seen?
A. At the bid opening
B. During the bidding phase of the project
C. After the Owner-Contractor Agreement is signed
D. At the signing of the Contractor-Subcontractor Agreement
b
What are the agreed upon terms and conditions on a purchase order?
A. Freight and Insurance costs
B. Delivery date of the materials
C. Material prices and merchant warranty
D. Subcontracted labor and material prices
c
