Construction Law Exam 01 – Questions With
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Terms in this set (191)
A joint venture is like a partnership, but False. (A joint venture is created with a specific
it is for more than one project. project in mind and generally dissolves)
A sole proprietorship is a business False. (is a business owned by a single person)
owned by one corporation
In general, Louisiana partnership True.
agreements do not have to be in
wringing.
"LLC" stand for limited liability False. (limited liability company)
corporation
LLC's are always taxed like a False. (LLC owners report business income and
partnership. losses on their personal tax returns.)
A Louisiana LLC must be in writing, but False. (it DOES HAVE to be filed in order to do work.)
it does not have to be filed in order to
do work.
Commingling of funds between a sole False. (Commingling of personal funds with
shareholder and the corporation is corporate funds is one of the indicia that can lead to
not a basis for piercing the corporate piercing the corporate veil.)
veil.
One of the defining characteristics of False. (centralized)
a corporation is that it has
decentralized management.
,One of the principal disadvantages of True.
a corporate form of business is that
dividends paid to the shareholders are
not deductible by the corporation.
One of the reasons for licensing of False. (keep UNTRAINED people out)
contractors is to keep trained people
out of the industry.
A licensed contrator in Louisiana may True.
lose its license if it performs
construction work in area in which it is
not licensed.
Suppliers may be required to be True.
licensed as contractors in Louisiana in
order to be able to succeed in a
lawsuit for no-payment for those
supplies.
In the construction document False.
sequence. joint venture contracts
come into being after the prime
contract is signed.
In a prime construction contract, the True.
"owner" is the source of the funding
for a project (either from owner funds
or owner borrowed funds).
In a prime construction contract, the False.
architect has control over the means,
methods, techniques, and sequences
of the construction work.
Tort liability is always the result of an False. (Tort liability is the legal requirement that a
accident. person responsible, or at fault, shall pay for the
damages and injuries caused.)
, Contract liability is always a result of a False. (Contract Liability is USUALLY BUT NOT
breach of the express conditions of ALWAYS a result)
the contract.
Strict liability requires proof of fault or False. (Strict liability is liability that does not depend
negligence. on actual negligence or intent to harm)
Statutory liability may be express or True. (Statutory Liability is a legal term indicating that
implied. any party may be held responsible for any action or
omission due to a related law that is not open to
interpretation.)
In Louisiana, a 17 - year old can never True. (must be at least 18 years of age)
legally enter into a contract.
An offer is an unconditional True.
willingness to enter into a contract.
Privity is the result of a contractual True.
relationship between two or more
parties to a contract.
An unconditional acceptance is a False. (an unconditional acceptance is using empathy
counter offer. to fully accept person as worthy with no strings
attached.) (Counter offer is an offer made in
response to another.)
A contractual requirement of strict True.
adherence to a schedule may give rise
to a third-party beneficiary
relationship.
If a contract is intended to benefit a False
third-party, that third party may have
rights under the contract provided
that the third-party has privity.
Trusted Solutions
Save
Terms in this set (191)
A joint venture is like a partnership, but False. (A joint venture is created with a specific
it is for more than one project. project in mind and generally dissolves)
A sole proprietorship is a business False. (is a business owned by a single person)
owned by one corporation
In general, Louisiana partnership True.
agreements do not have to be in
wringing.
"LLC" stand for limited liability False. (limited liability company)
corporation
LLC's are always taxed like a False. (LLC owners report business income and
partnership. losses on their personal tax returns.)
A Louisiana LLC must be in writing, but False. (it DOES HAVE to be filed in order to do work.)
it does not have to be filed in order to
do work.
Commingling of funds between a sole False. (Commingling of personal funds with
shareholder and the corporation is corporate funds is one of the indicia that can lead to
not a basis for piercing the corporate piercing the corporate veil.)
veil.
One of the defining characteristics of False. (centralized)
a corporation is that it has
decentralized management.
,One of the principal disadvantages of True.
a corporate form of business is that
dividends paid to the shareholders are
not deductible by the corporation.
One of the reasons for licensing of False. (keep UNTRAINED people out)
contractors is to keep trained people
out of the industry.
A licensed contrator in Louisiana may True.
lose its license if it performs
construction work in area in which it is
not licensed.
Suppliers may be required to be True.
licensed as contractors in Louisiana in
order to be able to succeed in a
lawsuit for no-payment for those
supplies.
In the construction document False.
sequence. joint venture contracts
come into being after the prime
contract is signed.
In a prime construction contract, the True.
"owner" is the source of the funding
for a project (either from owner funds
or owner borrowed funds).
In a prime construction contract, the False.
architect has control over the means,
methods, techniques, and sequences
of the construction work.
Tort liability is always the result of an False. (Tort liability is the legal requirement that a
accident. person responsible, or at fault, shall pay for the
damages and injuries caused.)
, Contract liability is always a result of a False. (Contract Liability is USUALLY BUT NOT
breach of the express conditions of ALWAYS a result)
the contract.
Strict liability requires proof of fault or False. (Strict liability is liability that does not depend
negligence. on actual negligence or intent to harm)
Statutory liability may be express or True. (Statutory Liability is a legal term indicating that
implied. any party may be held responsible for any action or
omission due to a related law that is not open to
interpretation.)
In Louisiana, a 17 - year old can never True. (must be at least 18 years of age)
legally enter into a contract.
An offer is an unconditional True.
willingness to enter into a contract.
Privity is the result of a contractual True.
relationship between two or more
parties to a contract.
An unconditional acceptance is a False. (an unconditional acceptance is using empathy
counter offer. to fully accept person as worthy with no strings
attached.) (Counter offer is an offer made in
response to another.)
A contractual requirement of strict True.
adherence to a schedule may give rise
to a third-party beneficiary
relationship.
If a contract is intended to benefit a False
third-party, that third party may have
rights under the contract provided
that the third-party has privity.
