CONSTRUCTION LAW AND ETHICS
FINAL EXAM QUESTIONS AND
ANSWERS 100% PASS 2026/2027
Under the Uniform Commercial Code (U.C.C.), what is the primary purpose of its adoption
across most U.S. states?
A. To regulate labor and service contracts equally across states
B. To create uniformity in commercial laws governing business transactions
C. To replace state civil codes entirely in commercial matters
D. To enforce international trade agreements - ANS B. To create uniformity in commercial
laws governing business transactions
In the construction industry, Article 2 of the U.C.C. typically applies to which of the following
situations?
A. A contractor hiring a subcontractor to perform specialized labor
B. A construction manager preparing a project timeline and schedule
C. The purchase of materials or equipment incorporated into a project
D. The negotiation of employee wage contracts - ANS C. The purchase of materials or
equipment incorporated into a project
Which of the following best describes the "Predominant Purpose Rule" under Article 2?
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,A. It requires all contract terms to be agreed upon before the contract is valid.
B. It determines whether a hybrid contract is primarily for goods or for services.
C. It allows buyers to reject any nonconforming goods regardless of value.
D. It enforces contracts only when written and signed by both parties. - ANS B. It determines
whether a hybrid contract is primarily for goods or for services.
Under the U.C.C., when does the risk of loss pass to the buyer in a shipment contract?
A. When the goods are received by the buyer
B. Only after payment in full has been received
C. When the goods are inspected and accepted by the buyer
D. When the seller delivers the goods to the carrier - ANS D. When the seller delivers the
goods to the carrier
Which of the following is not an available seller's remedy under the U.C.C. when a buyer
wrongfully rejects goods or fails to pay?
A. Withholding or stopping delivery of goods
B. Reselling goods and suing for losses
C. Forcing the buyer to accept nonconforming goods
D. Canceling the contract - ANS C. Forcing the buyer to accept nonconforming goods
Under design professional liability, the design professional is responsible for construction means
and methods the contractor used for the project?
True
False - ANS False
Some states statutes allow public agencies to reuse plans purchased for one project on later one
True
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,False - ANS True
Liability may arise when a design professional:
a. Provides perfect plans
b. Negligently inspects a site
c. Refuses to certify non-compliant work
d. Follows contract requirements exactly - ANS b. Negligently inspects a site
Which of the following is not an administrative function of a Design Professional
a.Interpretation of the Plans and Specifications
b.Review and Approval of Shop Drawings and Submittals
c.Inspections and Testing
d.Provide advice on accounting,and bonds. - ANS d.Provide advice on accounting,and bonds.
What type of clause is this related to "Limit subcontractor's delay damages to percentage of
amount paid by owner"?
a. Lump Sum
b. No damage for delay clause
C. Guaranteed Maximum Price
D. Scope of work - ANS b. No damage for delay clause
True or False A "pay when paid" clause allows a general contractor to delay payment to a
subcontractor until the owner pays the general contractor.
a. True
b. False - ANS a. True
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, What's the flow down effect of dispute resolution?
a. Mediation, court, arbitration
b. Arbitration, mediation, court
c. Court, mediation, arbitration
d. Litigation, arbitration, mediation - ANS c. Court, mediation, arbitration
Preparation for subcontract agreement includes?
a. Inspection
b. Scope of work checklist
c. Lump Sum
d. Bid contingency - ANS b. Scope of work checklist
What is true about a performance bond
a. Surety will complete performance or pay damages up
b. Ensure labor and materials used in work are paid.
c. Pay contractor even with a project delay
d. Extend project time - ANS a. Surety will complete performance or pay damages up
Who is authorized to order changes?
a. Port of authority
b. Design Professional
c. Contractor
d. Subcontractor - ANS b. Design Professional
Which one is a cardinal change?
a. Inspection
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FINAL EXAM QUESTIONS AND
ANSWERS 100% PASS 2026/2027
Under the Uniform Commercial Code (U.C.C.), what is the primary purpose of its adoption
across most U.S. states?
A. To regulate labor and service contracts equally across states
B. To create uniformity in commercial laws governing business transactions
C. To replace state civil codes entirely in commercial matters
D. To enforce international trade agreements - ANS B. To create uniformity in commercial
laws governing business transactions
In the construction industry, Article 2 of the U.C.C. typically applies to which of the following
situations?
A. A contractor hiring a subcontractor to perform specialized labor
B. A construction manager preparing a project timeline and schedule
C. The purchase of materials or equipment incorporated into a project
D. The negotiation of employee wage contracts - ANS C. The purchase of materials or
equipment incorporated into a project
Which of the following best describes the "Predominant Purpose Rule" under Article 2?
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,A. It requires all contract terms to be agreed upon before the contract is valid.
B. It determines whether a hybrid contract is primarily for goods or for services.
C. It allows buyers to reject any nonconforming goods regardless of value.
D. It enforces contracts only when written and signed by both parties. - ANS B. It determines
whether a hybrid contract is primarily for goods or for services.
Under the U.C.C., when does the risk of loss pass to the buyer in a shipment contract?
A. When the goods are received by the buyer
B. Only after payment in full has been received
C. When the goods are inspected and accepted by the buyer
D. When the seller delivers the goods to the carrier - ANS D. When the seller delivers the
goods to the carrier
Which of the following is not an available seller's remedy under the U.C.C. when a buyer
wrongfully rejects goods or fails to pay?
A. Withholding or stopping delivery of goods
B. Reselling goods and suing for losses
C. Forcing the buyer to accept nonconforming goods
D. Canceling the contract - ANS C. Forcing the buyer to accept nonconforming goods
Under design professional liability, the design professional is responsible for construction means
and methods the contractor used for the project?
True
False - ANS False
Some states statutes allow public agencies to reuse plans purchased for one project on later one
True
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,False - ANS True
Liability may arise when a design professional:
a. Provides perfect plans
b. Negligently inspects a site
c. Refuses to certify non-compliant work
d. Follows contract requirements exactly - ANS b. Negligently inspects a site
Which of the following is not an administrative function of a Design Professional
a.Interpretation of the Plans and Specifications
b.Review and Approval of Shop Drawings and Submittals
c.Inspections and Testing
d.Provide advice on accounting,and bonds. - ANS d.Provide advice on accounting,and bonds.
What type of clause is this related to "Limit subcontractor's delay damages to percentage of
amount paid by owner"?
a. Lump Sum
b. No damage for delay clause
C. Guaranteed Maximum Price
D. Scope of work - ANS b. No damage for delay clause
True or False A "pay when paid" clause allows a general contractor to delay payment to a
subcontractor until the owner pays the general contractor.
a. True
b. False - ANS a. True
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, What's the flow down effect of dispute resolution?
a. Mediation, court, arbitration
b. Arbitration, mediation, court
c. Court, mediation, arbitration
d. Litigation, arbitration, mediation - ANS c. Court, mediation, arbitration
Preparation for subcontract agreement includes?
a. Inspection
b. Scope of work checklist
c. Lump Sum
d. Bid contingency - ANS b. Scope of work checklist
What is true about a performance bond
a. Surety will complete performance or pay damages up
b. Ensure labor and materials used in work are paid.
c. Pay contractor even with a project delay
d. Extend project time - ANS a. Surety will complete performance or pay damages up
Who is authorized to order changes?
a. Port of authority
b. Design Professional
c. Contractor
d. Subcontractor - ANS b. Design Professional
Which one is a cardinal change?
a. Inspection
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