Question 1

Owners can increase price certainty in fixed-cost contracts by requiring the contractor to bear more risk.

Accepted Answer

In fixed-cost contracts, if the contractor bears more risk, they are responsible for cost overruns, which increases price certainty for the owner.

Question 2

Why is the name of fixed-price contracts somewhat misleading?

Accepted Answer

Under a fixed-price contract, the owner rarely pays just the fixed price. Typically, design changes or contractor claims result in price increases.

Question 3

The public-private partnership model is most similar to which other model?&#10;A) cost-plus&#10;B) alliance&#10;C) design-bid-build&#10;D) construction management

Accepted Answer

Alliances and public-private partnerships both involve a team effort to implement a successful project, and the parties share in the success or failure.

Question 4

Which of the following is false regarding the issue of time under a contract?&#10;A) typically, time is of the essence for both parties&#10;B) since the contractor will be liable for late completion, only he need be concerned with the feasibility of the construction schedule&#10;C) when scheduling, minor tasks should be given as much consideration as major tasks&#10;D) all of the above

Accepted Answer

The owner will be affected by late completion, and therefore also has an interest in ensuring a feasible construction schedule.

Question 5

Which is the typical sequence in which dispute resolution options are tried?&#10;A) negotiation, mediation, arbitration&#10;B) mediation, negotiation, arbitration&#10;C) negotiation, arbitration, mediation&#10;D) arbitration, negotiation, mediation

Accepted Answer

Parties normally try to resolve the dispute themselves, then ask someone to help them resolve it themselves, and finally have someone else resolve it for them.

Question 6

A contractor who builds a house and then sells it to the first owner will generally not be contractually liable to the second owner of the property for defective construction.

Accepted Answer

Generally, the contractor's contractual obligations are to the first owner with whom they have a direct contract. Subsequent owners, like the second owner, do not have a contractual relationship with the contractor, limiting the contractor's liability to them for defects.

Question 7

What is the key difference between obligations imposed under tort law compared to those imposed under contract law?

Accepted Answer

The answer of What is the key difference between obligations...

Question 8

Between which of the following parties is there clearly a duty of care for negligence?&#10;A) an architect and a contractor&#10;B) a geoscientist and an investor who inadvertently obtains a copy of the geoscientist's report&#10;C) a car manufacturer and the owner of the car&#10;D) none of the above

Accepted Answer

A car manufacturer has a duty of care towards the owner of the car to ensure that the vehicle is safe for use. This relationship is established through the purchase of the car, where the manufacturer is expected to have ensured the car's safety and reliability, thus creating a clear duty of care towards the consumer.

Question 9

To establish causation, the plaintiff must show that:&#10;A) the defendant owed a duty to the plaintiff and breached that duty&#10;B) but for the breach of duty by the defendant, the loss would not have occurred, and that the defendant's breach was the proximate cause of the loss&#10;C) the plaintiff took all reasonable steps to prevent the loss after the defendant breached his duty to the plaintiff, and that the defendant's breach was the proximate cause of the loss&#10;D) none of the above

Accepted Answer

The "but for" test must be satisfied and the cause must be proximate.

Question 10

Which of the following is a strict liability tort?&#10;A) breach of confidence&#10;B) nuisance&#10;C) negligence&#10;D) negligent misrepresentation

Accepted Answer

Nuisance is considered a strict liability tort because the defendant can be held liable regardless of intent or negligence, simply for causing a substantial and unreasonable interference with the plaintiff's use or enjoyment of their property.

Question 11

&#34;A&#34; mistakenly builds his farm boundary fence 5 cm beyond his property boundary such that it is on his neighbour's property. His neighbour, &#34;B&#34;, sues for trespass. Will B's claim succeed? What remedy will the court likely grant to B? (Hint: consider public policy)

Accepted Answer

The answer of &#34;A&#34; mistakenly builds his farm boundary fence...

Deck 7: Torts, Specific Contracts and Clauses