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AIC Exam > Vendor and Subcontracor Agreement > Flashcards

Vendor and Subcontracor Agreement Flashcards

1
Q
  1. 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

A. Meeting of the minds exists in a Subcontract but not in a Purchase Order

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2
Q
  1. 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

A

B. Uniform Commercial Code

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3
Q
  1. 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

A. Labor

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4
Q
  1. 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.

A

C. Predominate Thrust Test

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5
Q
  1. 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

A

B. Divisibility Test

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6
Q
  1. 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

A

C. Sale of Goods contract

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7
Q
  1. 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

A. Language Test and the Divisibility Test

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8
Q
  1. The terms on the purchase order indicate F.O.B. Factory; at which point does the responsibility for the goods change?

A. Passes at the invoice date
B. Passes at the payment due date
C. Passes at time of pickup by carrier
D. Passes at time of receipt at the jobsite

A

C. Passes at time of pickup by carrier

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9
Q
  1. 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

A

B. Common carrier and the Vendor

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10
Q
  1. If Damages should occur during shipment of construction materials and the terms on the Bill of Lading are FOB Factory, who would be required to recover the loss from the common carrier?

A. Vendor
B. Owner
C. Architect
D. Purchaser

A

D. Purchaser

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11
Q
  1. 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

A

B. Expediting

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12
Q
  1. Which of the following terms refers to the complete process of obtaining materials?

A. Leadtime
B. Expediting
C. Purchasing
D. Procurement

A

D. Procurement

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13
Q
  1. Which document is used to request payment for materials?

A. Invoice
B. Bill of lading
C. Purchase order
D. Stock requisition

A

A. Invoice

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14
Q
  1. Which of the following documents is a contractual agreement used to move (ship) the goods from the vendor to the jobsite?

A. Invoice
B. Bill of lading
C. Packaging list
D. Purchase order

A

B. Bill of lading

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15
Q
  1. 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

A

C. Stock requisition

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16
Q
  1. The Vendor has quoted you a price of $9,270 CIF for an item. Which of the following is this price quote telling you?

A. The $9,270 is the total to be paid and includes freight and insurance
B. The $9,270 is the total item cost, plus the freight and insurance will be added
C. The $9,270 will be collected on delivery and includes freight and insurance
D. The $9,270 will be collected on delivery in cash or certified check

A

B. The $9,270 is the total item cost, plus the freight and insurance will be added

17
Q
  1. Which of the following descriptions defines the term 2/10 Net 30?

A. 2% Discount can be deducted if paid within 10 days of the arrival of goods. Full payment due in thirty days
B. 2% discount can be deducted if paid within 10 days of the invoice date.
Full payment due in thirty days
C. 2% discount is available for thirty days
D. 2% discount is available through the tenth of the month following the receipt of goods. Full payment due in thirty days

A

B. 2% discount can be deducted if paid within 10 days of the invoice date

18
Q
  1. Which of the following documents is used internally to request the Contractor’s purchasing department to obtain the prices for the materials needed for a project?

A. Invoice
B. Purchase order
C. Stock Requisition
D. Purchase Requisition

A

D. Purchase Requisition

19
Q
  1. Which of the following are the best steps of a good material receiving procedure?

A. Inspect delivery, note damages, count items and compare to the bill of lading
B. Inspect delivery, note damages, count items and compare to the accounting terms
C. Review specifications, follow up on materials orders and call for delivery date
D. Award contract, vendor prepare shop drawings, reviews, fabricate and deliver

A

A. Inspect delivery, note damages, count items and compare to the bill of lading

20
Q
  1. 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

A. Flow down

21
Q
  1. For labor services to be considered under the formation principles, which form shall they be placed on?

A. Purchase Order
B. Vendor Agreement
C. Subcontract Agreement
D. Owner-Contractor Agreement

A

C. Subcontract Agreement

22
Q
  1. 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”

A

B. The Sub will be paid when the Contractor is paid

23
Q
  1. 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

A. Bid Peddling

24
Q
  1. What is the name of the law principle that allows the Contractor to receive an oral or a printed quotation and then incorporate this price quotation into their bid proposal to the Owner, and if awarded the prime contract they can hold the Subcontractor to their quotation?

A. Flow Down
B. Condition Precedent
C. Promissory Estoppel
D. Incorporated by Reference

A

C. Promissory Estoppel

25
Q
  1. 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

A

B. During the bidding phase of the project

26
Q
  1. A clause in the specifications states under 15333 1.3 A. Design and installation of an engineered fire detection and INERGEN total flooding, gaseous agent, fire suppression system shall be solely responsible for the performance of the fire suppression systems as specified and shall modify, add to, or alter the equipment as necessary, without any additional cost to Owner, to provide satisfactory performance. Which party has the responsibility for the design of this system?

A. Owner
B. Contractor
C. Subcontractor
D. Architect/Engineer

A

C. Subcontractor

27
Q
  1. 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

A

C. Material prices and merchant warranty

AIC Exam (19 decks)

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