NAME__________________
CE 3331 Professional Practice
FINAL EXAM (Quiz 4)
1) Match the term on the left with the most appropriate definition or descriptor from the right column
(5 pts each; 90 points total)
_____Joint Liability
_____Indemnity Action
_____Severability
_____Broad Form Indemnity
_____Additional Insured
_____Contribution Action
_____Debtor-in-Possession
_____Automatic Stay
_____Mechanic’s Lien
_____Fraudulent Transfer
_____Retainage
_____Mediation
_____Arbitration
_____Executory Contract
_____Litigation
_____Flow Down Clauses
_____Self Performed Work
_____Tortfeasor
A. Parties in a dispute tell their side, 3rd party then makes ruling
B. Percentage of payments withheld by owner
C. Legal filing by supplier or subcontractor preventing transfer of
assets to owner until pay disputes have been resolved
D. Company goes bankrupt but is still allowed to own assets and
operate business
E. Obligations to the owner are transferred from contractor to
subcontractor-supplier-manufacturer
F. Attempt to unethically move money out of a financially
troubled company- can be nullified by bankruptcy trustee
G. Type of contract with a bankrupt company that the trustee
orders enforced to increase value of assets in place
H. Each party pays damages according to their portion of cause
I. Company pays damages and attempts to recover a portion
from another company it feels contributed to the fault
J. Bringing in a party that the victim believes is partly liable
K. Dispute resolution involving government court system
L. One party will pay all damages even if they weren’t liable
M. Action by the courts as soon as bankruptcy is filed to prevent
creditors from attempting to collect debts
N portion of total work the contractor does, usually division 2-6.
O. Company accused of negligent act causing damage or harm
P. Tortfeasors are each liable if one of the other parties can’t pay
Q. 3rd party facilitates discussion of disputes to help find remedy
R. Contractor’s insurance is extended to these parties to cover
their interests in a project
2) Compare the advantages and disadvantages a contractor should consider in deciding to
subcontracting or perform the work themselves (40 pts)
3) Describe how a bankruptcy proceeding works in general (10 pts) and then discuss the specific rules
for each of the three different types of bankruptcy covered in class (10 pts each) (40 pts total)
Multiple Choice (10 points each)
4) Which of the following best represents the benefits of standards as described by Octave Du
Temple and the brochure from the American Nuclear Society?
_____A. acquire best knowledge, establish safe practice, provide tested principles and solutions
_____B. allow volunteer experts to ensure bids go to established industry firms
_____C. stifle differing opinions and to make sure technology changes slowly so profits are safe
_____D. none of the above
5) What is the fastest growing tort arena in new construction cases?
_____A. unsafe stairs and skywalks
_____B. mold and the resulting “sick building syndrome”
_____C. roof leaks
_____D. shattering glass from poorly designed windows
6) What is one of the primary benefits of arbitration (e.g. as opposed to going to court)?
_____A. arbitration decisions can be ignored if you don’t like the decision
_____B. arbitration does not require testimony or evidence
_____C. records and testimony will not become part of the public record
_____D. 3rd party arbitrators are more impartial than court judges
7) Which of the following clauses is NOT one of the recent developments in contracting requiring
close attention before signing any contract?
_____A. termination for convenience
_____B. pay-when-paid clauses
_____C. waiver of claim (bid certifies plans are complete and coordinated)
_____D. owner location clause
8) Which of the following is NOT one of the keys to successful negotiation/mediation?
_____A. have lawyers in the room doing the negotiating
_____B. have decision-makers for the parties in the room during negotiation
_____C. focus on issues, not positions
_____D. keep emotion out of the negotiation
9) You are visiting a construction site to inspect some of the structural work in place. The
manlift (a temporary elevator) has been rented by the general contractor from a local
construction rental company. The operator of the manlift is an employee of the structural steel
installer. The structure above the second floor has just been fireproofed by the fireproofing
contractor and the deck is very slippery from the wet cellulose. The fire protection sprinkler
contractor is carrying a load of fittings in a box across the second floor. Just as the operator
opens the doors on the manlift at the second floor, the fire protection sprinkler installer slips on
the wet fireproofing and the fittings go flying into the manlift. The operator cannot close the
door in time and your are struck in the eye by a sprinkler head. You have to have $10,000
worth of surgery and miss 15 days of work. You are a contract employee (no benefits) with an
annualized salary of $60,000.
Answer the following questions:
a) why do you have a tort claim in this case? (5 pts)
b) what would you estimate as the damages (actual and punitive) for your claim (10 pts)
c) which companies will be held liable and how will the damages by distributed (35 pts)
9) List and briefly describe four of the emerging issues in construction that were discussed
in class and in Chapter 19 of the book (30 pts).