Contracts test 2

Front Page Newspaper Test

Act in such a manner that would not embarrass you if your acts were to appear on the front page of local newspaper

Categorical imperative

Act in such a way that your actions could be universal law- if all people or organizations were to act in that manner, would it be proper?

Limited liability

Advantage of corporations

Subjective theories

Are theories holding that no laws, ethics, and morality is true or correct according to any outside standard but rather according to internal beliefs.

One principle achievements of capitalism

Has developed a market system which actually uses innate human desire to maximize personal well-being in such a manner that all parties involved in a transaction have their personal well-being increased.

Investment

Ina corporation, owners share profit, but liability is limited to

State

Law are corporations formed under

Corporation

Legal entity is considered perpetual

Escalation

Name of the clause that is sometimes used if the contract has the potential of uncertainty in either labor or material prices

Divine command theory

Objective theory 2 called

Design assist

One type of service provided by a subcontractor that involves supplementing the engineer of records design by providing supporting engineering services either in house or subcontracted is often referred to as

Unlimited liability

Pay for all debt accrued by business including using personal assets

Sole Proprietorship

What kind of business is best described as the only owner of the business and I take all of the risks and keep all of the profit

Design-bid-build

What project delivery method typically involves design being 100 percent complete

Engineering, Procurement and Construction

What services does an EPC firm provide?

Fast-Tracking

When construction begins before the design is 100 percent complete, it is commonly referred to as

When individuals maximize their individual satisfaction by decreasing someone else's satisfication

When is the fundamental characteristic of the human race a problem?

Corporation

Which legal entity affords an individual the most protection of individual assets from creditors of the business

Corporation

Which legal entity can sell stock, sue others and be sued?

Partnership

Which legal entity exposes the personal assets of a person to pay for actions of other people involved in the business

Joint Venture

Which legal entity is a cooperative enterprise entered into by two or more business entities to share resources for a specific project

Ethics

Which normally requires a higher or better level of behavior: law or ethics?

Owner

Which party is ultimately responsible for design errors on a construction project

Owner

Which party selects the contract type

Because the underlining values of the two(or more) conflicting groups may be difference and this difference causes discomfort

Why are International ethics different from domestic ethics

To offset the desire of individuals to maximize their own personal wealth and to ease interpersonal relations and to contribute to the fair distribution of benefits from social cooperation

Why did objective theory 1 evolve

Fixed price or guaranteed maximum Price

What are the two FEE methods that an Agency CM firm may offer an Owner

Human Social interaction

What did objective theory 1 come from

Unit Price

A clause in the contract states that if the quantities of an item of work varies from the estimated quantities by more than 20 percent, then the price will be adjusted. Which type of contract will this clause be primarily used in?

Turn Key

A contract has been entered into whereby the contractor agrees to design, build, purchase the land and finance the project.

Unit Price

A contract is entered into whereby the bid quantities are stated and payment for the work is based upon the actual quantities placed.

Construction Management- Agency

A contract is entered into whereby the design and scope are partially undefined, the owner holds a contract with the A/E, the Owner holds the contacts with each trade and the owner also holds a contract with a management service company to perform the trade coordination, cost control and scheduling services.

Cost Plus

A contract is entered into whereby the design and scope are undefined and the owner agrees to pay for all direct labor, materials, equipment, plus some agreed upon allowance to the contractor for their services.

Joint Venture

A contract is entered into whereby two contractors agree to combine their resources to bid and build a specific project.

Corporation

A form of business organization that is authorized to act as a legal entity regardless of the number of owners

Morality

A system or code of behavior adopted by a particular person and it is a characteristic of that individual

Ethics

A system or code of behavior adopted by a particular profession or group and it is a characteristic of that particular group.

Integrated project delivery

Delivery method involves a multiparty agreement where the procurement option in selecting the team is qualifications based

Possibility of personality conflict

Disadvantage of partnerships

Golden Rule

Do unto others as you would have done unto you

Offer, Acceptance, meeting of the minds and consideration

Following contract formation principles are needed to form a valid contract?

Designed to prevent U.S. firms from paying bribes to a foreign official

Reason that congress passed the foreign corrupt trade practices act

Ignorance, Greed, Cost of acting ethically is too high

Some reasons that people are unethical

Nihilism Theory

Subjective theory 1 called

Relativism Theory

Subjective theory 2 called

Means and methods

Techniques applied by contractors to assist them in constructing the permanent structure are typically referred to as

Relativism theory

The belief that moral/ethical standards are relative to a particular culture and only moral/ethical in relation to a particular culture

Nihilism

The belief that there is no correct or incorrect moral/ethical code. There is no right or wrong and because of this no behavior can be prohibited or required. Does not support business ethics

Fundamental characteristic of the human race

The desire to maximize personal well-being or individual satisfaction

Law-acceptable behavior

The legal standard of behavior and it is generally the lowest level of acceptable behavior in society

Design-Build

The owner wants to fast-track a construction project, which project delivery system best supports this process?

Obey local laws, do not interfere in intergovernmental relationships, do not engage in improper political actions, do not take or give bribes

What are the four basic ethical standards for operating in foreign countries?

Veil of Ignorance

The proper action is the one the affected group of people or organizations would recommend.

Utilitarianism

The proper behavior is the one that will produce the greatest good or the least harm for the greatest number of people

Divine Command

The true standard of legal and ethical right and wrong is God's law. The advantage is eternal life after death.

Objective Theories 1

Theories holding that laws, ethics, and morality can be judged against a standard that is right or correct

Objective theories, subjective theories

Two types of theories of law, ethics and morality

Owner

Under the construction management at risk (CMAR) delivery method, which of the following entities holds the primary contract for design of the project with the design Professional

Values

Values are the judgments of good or bad relating to worth or importance of any particular behavior