Woolpert Risk Awareness Program - Module 3

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Woolpert Risk Awareness Program - Module 3 - Quiz


This quiz covers the material from Module 3. You MUST submit your name (First Name Last Name) so as to receive credit for your score.


Questions and Answers
  • 1. 

    Not having a contract or having a bad contract can cost Woolpert money in: I. Defense costs, II. Inability to bill for additional services, and/or III. Not being able to prevent scope creep. Choose an answer from the following options:

    • A.

      II

    • B.

      I and III

    • C.

      II and III

    • D.

      All of the above

    Correct Answer
    D. All of the above
    Explanation
    Not having a contract or having a bad contract can cost Woolpert money in multiple ways. Firstly, it can result in defense costs, as without a proper contract, the company may face legal disputes or litigation that require financial resources to defend. Secondly, a lack of contract or a poorly drafted one may lead to an inability to bill for additional services provided to the client, resulting in lost revenue. Lastly, not having a contract or a poorly defined one can lead to scope creep, where the client demands additional work beyond the agreed-upon scope, causing additional costs for Woolpert. Therefore, all of the above options - II, I and III - are correct.

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  • 2. 

    True or false? You don’t need a contract to have contract liability.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    False. Contract liability refers to the legal obligation that arises from a contract. In order to have contract liability, there must be a valid and enforceable contract in place. Without a contract, there can be no contract liability as there is no agreement or legal relationship between the parties involved.

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  • 3. 

    True or false? The term warranty and guarantee are often used interchangeably.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    The statement is true because the terms warranty and guarantee are commonly used interchangeably. Both terms refer to a promise made by a manufacturer or seller to repair or replace a product if it is found to be defective or does not meet certain standards. While there may be slight differences in legal definitions or specific terms used in different industries, in general, warranty and guarantee are used synonymously to describe the assurance provided to customers regarding the quality and performance of a product.

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  • 4. 

    True or false? Professional liability insurance covers warranties made by the consultant.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    Warranties are excluded from our policy.

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  • 5. 

    The legal elements of a contract are:

    • A.

      Mutual assent and consideration

    • B.

      Mutual assent, consideration, and no legal defenses

    • C.

      A signed writing defining mutual assent and consideration

    • D.

      A signed writing containing a scope of services, schedule, and fee

    Correct Answer
    B. Mutual assent, consideration, and no legal defenses
    Explanation
    The legal elements of a contract include mutual assent, consideration, and no legal defenses. Mutual assent refers to the agreement between the parties involved, where they understand and accept the terms of the contract. Consideration is the exchange of something of value, such as money or goods, between the parties. This element ensures that both parties have a stake in the contract. Lastly, the absence of legal defenses means that there are no valid reasons for the contract to be deemed unenforceable, such as fraud or duress. These three elements are essential for a contract to be legally binding and enforceable.

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  • 6. 

    If party A verbally agrees with party B for party B to cut party A’s grass for $25, the parties have entered into:

    • A.

      An express contract

    • B.

      A written contract

    • C.

      An implied contract

    • D.

      A joint contract

    Correct Answer
    A. An express contract
    Explanation
    A verbal contract made between two parties is an express contract.

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  • 7. 

    Woolpert prefers not to use letter agreements because:

    • A.

      They tend to be more conversational and don’t cover all relevant issues

    • B.

      They are not legal contracts

    • C.

      The statute of limitations begins after the letter is signed

    • D.

      They are not insurable

    Correct Answer
    A. They tend to be more conversational and don’t cover all relevant issues
    Explanation
    Woolpert prefers not to use letter agreements because they tend to be more conversational and don't cover all relevant issues. This implies that letter agreements lack the necessary formality and specificity required to address all the important aspects of a legal contract. It suggests that Woolpert prefers to use more comprehensive and legally binding agreements to ensure that all relevant issues are adequately addressed.

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  • 8. 

    True or false? A purchase order is a contract.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    A purchase order is considered a contract because it is a legally binding document that outlines the terms and conditions of a purchase between a buyer and a seller. It includes details such as the product or service being purchased, quantity, price, delivery date, and payment terms. Both parties are obligated to fulfill their responsibilities as stated in the purchase order, making it a contractual agreement.

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  • 9. 

    True or false? Woolpert will not work under a purchase order.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    Woolpert will work under a purchase order.

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  • 10. 

    True or false? The Woolpert standard contracts are located on the legal intranet.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    The statement is false because the Woolpert standard contracts are not located on the legal intranet.

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  • 11. 

    The Woolpert short form agreement can be used for project fees less than:

    • A.

      $75,000

    • B.

      $25,000

    • C.

      $50,000

    • D.

      $10,000

    Correct Answer
    D. $10,000
    Explanation
    The Woolpert short form agreement can be used for project fees less than $10,000.

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  • 12. 

    True or false? As long as an individual has contract signing authority, they can sign a contract for another service line provided the value is within their dollar limits.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    Contract signing authority is only valid within the individual’s service line and only with respect to projects originating from the immediate staff that the individual manages.

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  • 13. 

    True or false? Legal typically requires 5 to 7 days to turn around contract review comments.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Legal typically requires 5 to 7 days to turn around contract review comments. This means that it usually takes them this amount of time to review and provide feedback on contracts.

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  • 14. 

    True or false? In-House Counsel has authority to negotiate and sign contracts on behalf of the company.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    In-House Counsel does not have the authority to sign contracts.

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  • 15. 

    What are the minimum contract requirements for accounting to avoid a zero fee project set up: I. Scope, II. Choice of law, III. Schedule, IV. Compensation, and/or V. Limit of liability. Choose an answer from the following options:

    • A.

      I

    • B.

      II and IV

    • C.

      I, II, and IV

    • D.

      I, III, and IV

    • E.

      I, II, III, IV, and V

    Correct Answer
    D. I, III, and IV
    Explanation
    The minimum contract requirements for accounting to avoid a zero fee project set up include: I. Scope, III. Schedule, and IV. Compensation. These requirements ensure that there is a clear understanding of the scope of work, a defined schedule for completing the project, and a mutually agreed-upon compensation for the services provided. By including these elements in the contract, it helps to avoid any misunderstandings or disputes regarding the project and ensures that the accounting services are properly compensated.

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  • 16. 

    True or false? Woolpert’s professional liability insurance permits Woolpert to indemnify, defend, and hold a client harmless from claims and damages to the extent caused by the negligent acts of Woolpert.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    The professional liability insurance does not provide defense coverage to Woolpert’s clients.

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  • 17. 

    True or false? Woolpert’s deliverables are considered products for which there is a copyright interest.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    Woolpert’s deliverables are instruments of service, not products. Woolpert maintains a copyright interest in the deliverables, unless we somehow contract that right away.

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  • 18. 

    True or false? With respect to Federal Government contracting, addendums to the contract will be enforceable provided the Technical Representative for the Government has signed the addendum.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    Addendums with the Federal Government are only binding if the Government’s Contract Officer has signed the Addendum. The Technical Representative has no authority to independently engage additional services.

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  • 19. 

    True of false? Woolpert understands that collections can be a long process; therefore, when Woolpert is in the role of subconsultant, Woolpert does not object to making payment contingent upon receipt of payment from the client to the prime consultant.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    Woolpert does not agree to make payment contingent upon receipt of payment from the client to the prime consultant when they are in the role of a subconsultant.

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  • 20. 

    With respect to professional liability claims, Woolpert can agree to which of the following requirements in an indemnification provision: I. Defense obligation, II. Indemnification for settlements, III. Indemnification of client’s agents, IV. Indemnification for the acts or omissions of Woolpert, and/or V. Indemnification for allegations of negligence. Choose an answer from the following options:

    • A.

      I, II, and III

    • B.

      I, IV, and V

    • C.

      IV

    • D.

      IV and V

    • E.

      None of the above.

    Correct Answer
    E. None of the above.
    Explanation
    Woolpert’s insurance does not provide coverage for a defense obligation or indemnification for client initiated settlements. Woolpert does not agree to indemnify for agents as it is a broad term. Indemnification must be tailored to “negligent” acts or omissions and only to the extent caused by our negligent, not for mere allegations of negligence.

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  • 21. 

    True or false? Contracts can be either express or implied?

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Contracts can be either express or implied. An express contract is one in which the terms and conditions are explicitly stated, either orally or in writing. On the other hand, an implied contract is one that is formed based on the parties' actions and conduct, rather than being explicitly stated. These contracts are legally binding and enforceable, even though they may not have been explicitly agreed upon. Therefore, it is true that contracts can be either express or implied.

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  • 22. 

    True or false? Woolpert can agree to provide its commercial general liability insurance on a primary and non-contributing basis, but only with respect to Woolpert’s operations.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Woolpert can agree to provide its commercial general liability insurance on a primary and non-contributing basis, but only with respect to Woolpert's operations. This means that Woolpert's insurance coverage will take precedence over any other insurance policies in the event of a claim, and Woolpert will not require any contribution from other insurance policies. However, this coverage is limited to Woolpert's own operations and does not extend to any other parties or entities.

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  • 23. 

    True of false? Woolpert can agree to provide additional insured status but only on its commercial general liability policy.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Woolpert can agree to provide additional insured status but only on its commercial general liability policy. This means that Woolpert can offer additional coverage to a third party by adding them as an insured on their commercial general liability policy. This coverage may not extend to other types of policies that Woolpert may have.

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  • 24. 

    True of false? A time is of the essence provision only applies to the deliverable dates.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    A time is of the essence provision does not only apply to deliverable dates. It is a contractual clause that emphasizes the importance of meeting deadlines and performing obligations promptly. This provision can apply to various aspects of the contract, such as payment dates, performance milestones, and other time-sensitive obligations. Therefore, the statement that it only applies to deliverable dates is incorrect.

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Quiz Review Timeline +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Sep 13, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Dec 03, 2008
    Quiz Created by
    Woolpert
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