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a. The court system has adopted to expedite cases and eliminate or reduce delays
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b. The law society imposes upon lawyers to ensure proper representation of clients
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c. The police force uses to manage criminal prosecutions
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d. All of the above
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e. a and b
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4. If two people want to form a business and wish to try and eliminate personal liability they would:
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a. Incorporate a provincial corporation
b. Incorporate a federal corporation
c. Set up a partnership
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e. a and b
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5. Parliamentary Supremacy was completely eliminated by the Constitution Act and the Charter of Rights and
Freedom:
a. True
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b. False
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6. 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
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b. Construction management
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c. Design-build
d. All of the above
e. None of the above
7. 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
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For questions 8 to 11, 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 Owners 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:
8. What is the Owners consultants 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
9. When can the owner release the basic holdback to the design-builder?
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a. 45 days after the design-builder advises the Owners consultant that it has achieved substantial
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performance
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b. 45 days after achieving total performance
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c. 45 days after publication of the certificate of substantial performance
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d. 45 days after issuance of the certificate of substantial performance
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e. 30 days after the publication of the certificate of total performance
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10. When can the Owner release the finishing holdback?
a. 90 days after publication of the certificate of substantial performance
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c. 45 days after the certificate of total performance is published in the Daily Commercial News
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10b. 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:
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a. $850,000
b. $100,000 ( 3% of $500,000 + 2% of $500,000 + 1% of rest ($7,500,000))
c. $85,000
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d. $255,000
e. None of the above
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a. Yes
b. No
11. 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
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12. 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
13. 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
14. If a contractor posts a performance bond as security for performance of its obligations under a contract:
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a. The surety will make sure the obligations are fulfilled if the contractor fails to perform
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b. If the surety has to pay any monies under the bond it will be able to sue the contractor for
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reimbursement of those monies
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c. The issuance of the bond will impact the contractors line of credit with its bank
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d. All of the above
e. a and b above rs e
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15. if two business partners choose a corporation as their business organization, can each of them be:
a. a shareholder of the corporation
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e. a and b
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17. 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
(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
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(d) All of the above
(e) (a) and (b) above
19. An agreement between two parties may require that a dispute be:
20. 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:
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(d) (a) and (c) or (b) and (c)
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(e) (a), (b) and (c) above
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21. Where an expert engineer is called to testify at a trial of an engineer who has been accused of negligence:
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(a) it is the judges duty to select the expert
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(b) the judge must abide by the experts opinion on engineering matters
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(c) (a) and (b)
(d) the expert witness may express his or her opinions
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22. According to the law of negligence, an engineer who prepares and delivers to a client a report which contains a
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negligent misstatement:
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25. ln a trial of an engineer who has been accused of negligence, the applicable standard of care is:
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(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
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(b) reliance on professional skill and judgment can give rise to a duty of care
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(c) a disclaimer may protect a professional from liability for negligent advice
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(d) all of the above
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29. A defendant who is concurrently liable in tort and contract:
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(a) is liable to more than one plaintiff at the same time
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(b) is liable under tort and contract at the same time
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(c) has limited liability under the new Limitations Act, 2002
(d) none of the above
30. If Defendant A and Defendant B are concurrent tortfeasors:
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(b) damages for physical loss but never damages for economic loss
(c) damages that are remote
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(d) damages for physical loss and possibly damages for economic loss
33. 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
34. 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)
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(c) places a limit on the type of liability of an engineer
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(d) places a limit on the degree of inspection expected from engineers
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39. In a civil trial:
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(a) the plaintiff has the burden of proof
(b) the defendant has the burden of proof
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(c) the case must be proved beyond a reasonable doubt
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(d) the case must be proved beyond the shadow of a doubt
40. If an engineer prepares a design, the negligence standard of care means that:
(a) the engineer's design must have no flaws
(b) the engineers design must be reasonable
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(c) the engineer must pay for any failure of the design
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47. Which of the following statements are correct?
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(a) Mediation is an alternative dispute resolution mechanism.
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(b) The decisions of an arbitrator are always final and binding. (Not True) (Depending on what says on contract,
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could be non-binding as well)
(c) The Arbitration Act (Ontario) provides for certain rights to have decisions of an arbitrator appealed to a court
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of law.
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(d) The use of dispute resolution boards is an illegal method of dealing with disputes. -> False
(e) Both (a) and (c).
48. 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
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courts.
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(b) One of the parties to the contract is a minor and the contract is not for a necessity of life.
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(a) Three types of misrepresentation include innocent misrepresentation, negligent misrepresentation and
irrefutable misrepresentation. (Theres no such thing as irrefutable, but theres fraudlent)
(b) An engineering company providing services under a contract with an owner can only be liable for breach of
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The following fact situation applies to questions 51 to 54:
Wise Guys Inc. ("WGI") issues a call for tenders for a contract to build a new head office to three bidders: Buildem 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.
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(a) WGI was entitled to ignore BCs mistake in its bid and all else being equal, accept BCs original bid.
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(b) WGI was entitled to waive the irregularity (i.e., the failure to deliver the bid deposit) in ORUs bid.
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(c) WGI was required to award the contract to the lowest compliant bidder.
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(d) All of the above.
(e) Both (a) and (c).
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52. WGI owed a duty of good faith to which of the following contractors?
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(a) Both BC and ORU
(b) ORU
(c) ABC
(d) None of the bidders.
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(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).
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(a) By accepting ORUs bid, WGI was in breach of Contract A. -> TRUE
(b) ABC could sue WGI for breach of Contract A.
(c) There were two Contract As 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).
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56. Which of the following statements are false?
(a) Courts will imply a term into a contract when necessary to give the contract business efficacy. ->True
(b) The parole evidence rule applies to documents or happenings prior to, or contemporaneously with the
making of the contract. ->True
(c) Specific performance is a remedy which is always available to a non-defaulting party where there has been a
breach of contract. -> False (Its not always available, only for exceptional cases)
(d) The legal principle of frustration requires that performance of the contract becomes impossible and not just
more expensive. -> True
(e) None of the above.
57. 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.
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58. Which of the following statements are true?
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(a) A party to a contract may be considered to have repudiated a contract if that party announces by its words or
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actions that it has no intention of completing the contract.
(b) The innocent party may elect to accept the other partys repudiation or continue with the contract (if
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possible).
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(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.
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(a) The breach of a fundamental term or condition of a contract will entitle the non- defaulting party to
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(a) Arbitration agreements usually specify how the arbitrators will be chosen, what rules and procedures will be
used and timing of the arbitration process.
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(b) Engineers may be concurrently liable for breach of contract and for negligence. (Tort)
(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.
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