PROGRAM: M.E.

LAWS, CONTRACTS & ETHICS SEMESTER/ SY: 2nd/2018 - 19 DATE: April 12-13, 2019
SUBJECT: MEET 524 TERM/ PERIOD: MIDTERM EXAMS ROOM: VBH104/LDH104B
NAME: __VERDEFLOR, JAYSON__________________ SECTION: __________ SET B
INSTRUCTIONS: 1) Encircle the correct answer for each question; 2) Keep notes away; 3) Refrain from talking or
coaching to each other; 4) No cellphone and keep it silent; 5) For correction, draw line across the wrong answer
2. Which statement is TRUE?
a) The young engineer seriously indulge in one apprenticeship trying to explore which professional career will
he be pursuing.
b) The young engineer must develop attributes of success to a greater and less degree.
c) The young engineer must be susceptible to learn to the things that are currently in his control.
d) Both a) and b)
3. In a contract, the engineer is one of the important elements in creating uncertainties in a given project. Which
statement justifies this?
a) The honesty and competency are in doubt. b) Plans and specifications are incomplete.
c) Commitments are expressed with no assurance c) All of the above
4. What is a step in the initial public offering process whereby an underwriter submits a sealed bid to a
company that is making its first issue of stock?
a) Invitation to bid b) Public bidding c) Private offering d) Competitive bidding
8. What is the most common method that pays the contractor the actual cost of the construction work with
a specified percentage?
a) Piece Rate Contract b) Cost Plus Percentage
c) Fixed Price contract d) Both a) and c)
9. Which statement makes a Cost Plus an advantage over Fixed Price Contract?
a) The contractor is relieved of the risk or hazard of the construction.
b) The Owner is not compelled to assume the risk of construction.
c) The workers are oblige to perform more than what is expected to make profit.
d) All of the above
10. The factory owner agreed to pay the machine installer a lump sum amount that covers everything and to
complete the installation and commissioning within two months. What is this type of contract?
a) Cost Plus Percentage b) Fixed – Price Contract c) Piece Rate d) Lump sum price
12. Which statement is FALSE?
a) The cost plus contract allows the owner to make changes in the plans and pays for it.
b) A successful contractor charges prices which sufficient to cover all costs except contingencies.
c) In the Fixed Price Contract, the project owner is not bothered by uncertainty issues of the
Contractor.
d) None of the above
13. What would be consider as the common neglect when business men undertake construction projects?
a) The health and safety requirements of the project at hand.
b) The licenses and permits required from the local government.
c) The beginning of the undertaking which they are ignorant and relying on their personal
advisors.
d) Both a) and b)
14. What is an invitation to contractors or equipment suppliers to submit a proposal on a specific project to
be realized or product or service to be furnished?
a) Invitation to Sell b) Notice of Auction c) Invitation to Bid d) Request for Quotation
17. Which statement is TRUE?
a) Every increase in costs of the project lessens the amount payable to the Contractor.
 b) Every reduction in costs lessens the amount payable to the Contractor.
c) No amount is payable to the contractor either the costs of the project increases or not.
d) None of the above
18. What is the outgrowth of the daily association of individuals in a business capacity wherein A agrees to do some
lawful act for B in exchange for a valuable return from B?
a) Agreement b) Contract c) Memorandum d) Understanding
20. All agreements between two competent parties are contracts.
a) True b) False
21.. Implied Contract are neither written nor oral contracts.
a) True b) False
23. Rose puts up an advertisement outside her junk shop offering five pesos per kilo of old newspaper and 2.50 per
piece of plastic bottle. Daniel delivers 5 kilos of their old newspaper and 30 pcs of plastic bottles. What
contract classification is this?
a) Unilateral b) Implied c) Bilateral d) Trilateral
25. If Arnold offered to enter into a contract with Bodie, whereby Arnold was to pay Boodie Php50,000 to design a
fresh prawn pond for Arnold's farm, the said designs to be completed by March 1, and Bodie accepted this offer with
the provision that he would design such fresh prawn farm system for Php 0,000 the same to be completed by April
1,. Which one would you select in this case?
a) There will be a negotiation and both will agree to sign the same contract.
b) There will be no contract as one made an offer an not accepted by the other party.
c) Both will wait for sometime to think things over.
d) All of the above
28. What is the system in which the all positions in the organization is employed and the procurement of materials by
the Project owners and the work activities are handled by the contractors.
a) Contract System b) Lump Labor System c) Piece Rate System d) Day Labor System
29. What is the system in which the businessmen or companies who are engaged in construction business are
contracted to undertake certain activities.
a) Piece Rate System b) Day Labor System c) Contract System d) All of these
30. What contract is known when the interest of the project owners and the Contractors are on the opposite side?
a) Fixed Sum Contract b) Lump Sum Contract c) Day Labor System d) None of these
33. The Project Manager handles the Expansion project for LNG Terminal Plant and had to submit all drawings to be
completed to the Client but in the course of time he was replaced due to mismanagement. What is the probable
uncertainties experienced in the project?
a) Expansion project requires only important drawings sufficient for areas under expansion phase.
b) The project employees does not have the capabilities to accomplish the drawing on time.
c) The project considered some priorities that may well put the completion of the drawings in proper timing.
d) All of the above.
34. The completion of the project necessitate the site survey in order to have the overview of the engineering
design document to be accomplished in a given time schedule. However, the scope of the project does
not cover such trip. Which statement render difficulties in the contract?
a) Project employees had to communicate with the site engineer to provide them with information.
b) The project had to consume much time in coordinating each design with the site engineers to get needed
information.
c) The Project Management submit request for a change in the lump sum contract.
d) All of the above
35 Most contractors under the cost plus a percentage system have the tendency to get all works offered.
What would be the likely pitfall or consequences in this aspect?
a) It can generate more profit b) it can retain skilled workers
c) It’s a disastrous scheme especially to low cost projects d) Reputation is at stake
36 It is mentioned that in the cost plus a percentage form of contract , the contractor cannot profit by any
increase in cost but on the other hand, what would the benefit the contractor have in this case?
a) The contractor secures the greatest return to himself by savings on expenditures and time.
b) It eliminates inefficient methods and unsatisfactory labor conditions.
 c) It settles the priorities and make these more aligned with the project schedule
d) All of the above.
37 Which statement is TRUE?
a) The letting of contracts for public works have been made mandatory by legislation.
b) Proposals are submitted earlier than what is specified.
c) The bids are opened and kept in confidence until the public request it to be read.
d) Both a) and c)
38 Why is it possible to have a collusion between public officials and contractors by avoiding public
advertising or by so limiting the time after the advertisement is published?
a) So that favored bidders can be accommodated.
b) So that undesired competitors cannot submit intelligent and safe bids.
c) So that malpractices in bidding could be controlled.
d) All of the above.
40 An invitation to bid was delayed by one week and the project owner planned to go ahead with the negotiated
contract to a selected contractor instead of a bidding system so as not to further delay the whole project. What is
preferable justification must the Owner have?
a) Bidding could further delay the project.
b) The most trusted contractor will benefit the project.
c) The project alignment would further be improved and well balanced.
d) All of the above.
43 What is the thing that is lawful about the contract?
a) The thing that is not covered by the contract is unlawful.
b) The thing sought to be accomplished by the contract.
c) The thing that is not fair to one party but favorable to other party.
d) All of the above.
46 A agreed to pay certain group to dumped his garbage in the adjacent lot producing an unhealthy condition and
depreciate its value so he can buy it at lower price. What is unlawful on this contract?
a) Hygiene regulations b) Illegal dumping c) Injury to public health d) Ordinance violation
47 If dealers in a necessary commodity combine for the purpose of controlling the output of such commodities and
increasing the price thereof. What is unlawful in this case?
a) Supply & Price Cartel b) Illegal Hoarding c) Unlawful monopolies d) Economic Sabotage
48 Sigfried agreed to sign a contract for the supply of lumber products for six months to Pete who owns a
hardware store but a few days later, Pete had suffered a heart attack and died. What does this case implied in a
contract?
a) Unavoidable b) Voidable c) Neither d) Destiny
49 What will govern when there is contradiction between printed and written parts of the contract thereof?
a) Written contract b) Printed contract c) Recoded contract d) Neither a) nor b)