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    PPE - 1991 Sep - Q

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    Phillips Rijos

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    © All Rights Reserved
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    ‘rofessional Practice Examination - 1991 ASSOCIATION OF PROFESSIONAL ENGINEERS OF ONTARIO PROFESSIONAL PRACTICE EXAMINATION - SEPTEMBER 7, 1991 >ART “A" - PROFESSIONAL PRACTICE AND ETHICS The total examination is in two parts, and both must be completed within the three-hour derlod. Each part of the examination - A and B - must be passed independently in order to PASS" the Professional Practice Examination; the result of the combined examination, Part A plus Part B, will be declared as "PASS" or "FAL" Jse the correct colour-coded Answer Book for each part: White Answer Book for Part A white question paper; Brown Answer Book for Part B brown question paper. This is a "CLOSED BOOK" examination. No aids are permitted other than the Section from Ontario Regulation 638/84 covering "Cade of Professional Conduct” and "Code of Ethics" supplied at the examination, Dictionaries are not permitted, The marking of questions will be based not only on academic content, but also on legibility tnd the abilly to express onesal. Ifyou have any doubt sbout the meaning af a question, submit with your answer a clear statement of how you have interpreted the question. FOUR QUESTIONS constitute a complete Part A. All ull questions are of equal value. When answers for more than four questions are submitted, without stating which four are to be considered, marks will only be awarded for the first four answers in the book, Where 2 question asks if a certain action by an engineer was ethical or not, a simple "ye cr "no" answer is not sufficient; you should identify the applicable tems/sections in the Ontario Regulation 538/84 and comment on the action in each situation. Note: This examination was drafted and used in 1991, and so roquiroments were slightly difforent. In today’s examinations, question #1 In Ethics is now COMPULSORY (just as question #1 in the part of Law was always compulsory). This means that candidates must answer question #1 in both parts and choose 3 of the remaining four questions in each part. QUESTION ONE ‘8) What is the principal objective of the Association? ») Candidates for membership In the Association must meet certain Tequirements as set out in the Professional Engineers Act. What are the five most significant of these requirements? ©) There are four categories of licence in the profession. Name them and briefly explain the differences between them. 4d) Ifa licensed engineer wishes to offer consulting services to the public, additional cconsitions must be met. What are these conditions? QUESTION TWO ‘Shortly after signing a consulting contract with the XYZ Company to oversee the Construction of a new manufacturing plant, you receive a letter from Mr. Smith, P.Eng. In his letter Mr. Smith points out that he was contracted by the XYZ Company for the work that you are now doing, He goes on to state that, despite having been nolified by the XYZ. Company that his services are no longer required, he feels that he has been terminated improperly and has taken the position that until the matter is settled he is stil engaged on this project. Do you have any ethical obligation to Mr. Smith? Does the receipt of this letter and the knowledge of Mr. Smith's position with respect to the XYZ Company have any effect on your position vis a vis the XYZ Company? QUESTION THREE Waste disposal is a rapidly escalating problem of "madern society” All levels of {government appear to be aware of it, but are a long way from agreement on solutions, As Professional Engineers, because of our education and experience, we are probably as well equipped as any in the community to provide constructive leadership to local organizations ‘and public interest groups in the search for an understanding of the needs, the altemative courses of action available and the ultimate answer. ‘There appears to be a reluctance on the part of many in our profession to come out publicly with a point of view and an offer to assist, As is aften the case the public leadership is coming from lawyers and other professionals. Some engineers have expressed concem over a possible conflict of interest with thelr job which may have a connection with waste, waste management or a company that is contributing either directly oF indirectly to the problem, Have we an ethical obligation to “get involved"? How do you suggest those who may have. ‘an apparent conflict of interest deal with this situation? LEE PED -_ 7 -—s_ = 2 2 2 QUESTION FouR . Ateranany years of working together as ABC Consultants the partners have come to @ Bang of ihe ways, "A and “B" are carrying on with the old business, "C> has ostetvened 2,compattive business with his son, who is an engineer, and has hited twe cones Professional Engineers from the old fim, {hes been brought to "As attention by one of his cients that “C* has sent out a rmalling to aoe aasanents Including the clients of the ABC Company, announcing the naw erect cotter 8 ork Spportunits fort "A" has also heard that in some dred! pertered Salifations °C" has questioned the ability of his ot fim to portorm on carta Spee of thors. eae he fact that senior staff members with specie expertise are ne longer seapae ager "Bn discussion wih a potential client has wamed of the danger of sealing with engineer “Cs new fm because ofits lack of rack rocord working se a company, iit ce Fit, emg Discuss all aspects ofthe ethics of this situation Weng Freie ave okey go fun eu 2k 1s Clay (ti e3) (QUESTION Five Yourare a Professional Engineer in the mochanical depariment ofa large genoral ang fim: You have recently fallen heirto shares of stock in a company that rrgaageatures ar hendling equipment. You hold this company's products n vary high ‘gard and often speci them on projects that your company is bul ow tna you are @ shareholder ofthis company can you ethically continue to specty ts Prpauucts? Ifyou feel that you can, is there any action that you should take te de ee ethically? cc. omc “cublict oF interegp LD,3 4 _ ~ Yon can ditelse te omplyea reas euneahie In evi dy, + ve py mt Se Hel. Aherwire sed the shares or romave otal fan decision wraliing PART "B" - ENGINEERING LAW AND PROFESSIONAL LIABILITY ‘The total examination is in two parts, and both must be completed within the three-hour period. Each part of the examination - A and B - must be passed independently in order to "PASS" the Professional Practice Examination; the result of the combined examination, Part A plus Part B, will be declared as "PASS" or "FAIL". Use the correct colour-coded Answer Book for each part White Answer Book for Part A white question paper; Brown Answer Book for Part B brown question paper. ‘This is a "CLOSED BOOK™ examination. No aids are permitted other than the Section fram Ontario Regulation 538/84 covering "Code of Professional Conduct" and "Code of Ethics", supplied al the examination. Dictionaries are nat permitted, “The marking of questions will be based not only on academic content, but also on legibility and the abilly to express oneself. Ifyou have any doubt about the meaning of a question, submit with your answer a clear statement of how you have interpreted the question, Question number 1 must be answered by all candidates. Three other questions may be selected, and four questions constitute a complete Part B. All full questions are of equal value, When answers for more than the three optional questions are submitted (in addition to Question 4) without stating which three are to be considered, marks will nly’ be awarded forthe frst four answers in the book. "== ERE BERR PPE (25)2. Ace Fumie and Appliance Distributors Ine. CAGE") 's compet primarily (2) fod in tho disbuton of househeld appliances and furiture mn OPT ‘and Quebec. engage prove is dstibutlon facies, ACE decked fo buld a new werchoe 1rd ero to replace two smaller warchouses which twas current leasing |ACE engaged Super Projects Enginoating Consulting Services Inc. (SPECS) engineering company, and ontered into an engineering cervicos ‘agreement with it. Under ones SPECS was to propa the design ofthe new warshouse 28° provide the aaffon services to ensure thatthe warehouse was constructed n aocordance with the plans and specications for the project. ‘AGE, onthe basis of compaiive tenders, aad the contract fo the constuction ef Re AACE, on th oa bongo Li, (RINGS) During the cours of construction, ENG wars th Queen Equprmat SUP C1. COUEEN an eaipmen shi contacted wi lr and equtpen o baci to Toudaton a8 wl 8 2 uk 0 Brow an oper ata torre parform he backliling operation QUEEN supped away ay ee oft employees, Phil Scoopar, to operate the backhoe. During the baciling, one ofthe constuction workers onthe site noid Graces See Orie e's undaton and quickly motioned to Phil Scoopeo stop the Packing because there was a problem. on closer examination, it turned out that there were several severe cracks in two of he cocoa, Ae. fosult ofthe cracking, ACE Incuted extra cost repaing the foundation. In addition, the project was delayed for four weeks. ACE retsined an independent engineering consultant io investigate the cause of 6 Ae tal acid ons review of to projet documents the consultant detern nee that ac Ba rsttvted KING to commence backfling after only two days of curing time Sees ret olowtng the pou of tho concrete foundation. The consultant's poe had ee fine National Bulding Code of Canada recommended a minizur Pet of Inclcated “yen days and that no such requiem was inuded in SPECS! plans and specifications. ‘The report also indicated that according to several winesses on the job she. EM ‘Scooper The report ait material dec Ino the tench beside the foundation while the Sacks vias during nthe al. The repo indicatod thatthe operat should have pushed bucket was Fgh the wench and that he operator’ procedure of high dumping! of he Ft A ai not conform with the general pracice of Ns trade. Inthe consultants pinion, high dumping was a factor in the cracking Wet potential abies in tort aw ais in this case Explain how the essential principals tart Taw apply to this case. Indicate likely outcome to the matter. (QUESTION 1 To BE ANSWERED BY EACH CANDIDATE) (MARKS) 1, Briefly dotine any fv of tho folowing (25) 0) Statutory Holdback (i) Theory of Precedent (i) Frustration of Contract (v) Parol Evidence Rule (0) Performance Bond (0) Th 5 Essentials of @ Binding Contract (ist only) (vid Concurrent Tortfeasors (ii) Secret Commission (©) $4)Deseribe the circumstances in which ‘penalty clauses" are enforceable a fPIBtiety describe he basis upon which damages for breach of contract are caleulated at common law. Explain also the meaning “miigaing demagers (7) (Godin a construction contract, itis common for an engineer who is not a party to the the onner au autorized to judge te performance af the work bythe contacin ines ing gamer and contacter agree thal the engineer shal be se suivensea tea possible that srocan|nge”s decisions may be chalonged by ether the ovmer or the conor ‘ccount of how the engineer performs his or her duties? Explain, aap tt (25) 4. anGuinaend a Gontalapentered into a wten contract forthe constuction of a e300 (at ceamial pant Sema, Ontario, The contac provided tat te pant would aaaaee ta mnaceotéanco withthe plans and specifeation tat had been prepared by Bere eyC engineering coneitant. User the contact, te owner, through the oe eae ant wae permed to make changes tothe design ofthe plant wih the eae re oe io he contactor being adusted accordingly. However, the contrac futher aa tat the contractor gould not proceed win any change inthe wok without a ‘written order signa by the owner and tral no claim for adcitional compensation oh {3bSintot a chango would be vac without sucha wten order. ‘As the work progressed, the engineering consultant certified payments for amounts due to the contractar on the basis ofthe amount of work performed during each month. Several of the monthly payments included additional compensation for extra work performed by the Contractor on account of relatively minor changes to the design ofthe plant. In total there ‘were 85 euch minor changes. In each case, the contractor had proceeded wit the extra wwork and was pald additional compensation despite the fact that no writen order was tgiven by the owner authorizing the extra work or the additional compensation. During the course of the work, the engineering consultant made a major change to the design of the plant. It was anticipated that the change would require an additonal $1.7 to $2.0 milion of work by the contractor and would require four months to complete. The ‘ontracior requested the owner's approval before proceeding with the extra work. The mer indicated orally to the contractor thatthe contractor should proceed with the work ‘nd that a writtem order authoring the change would be issued once the details of the design change were finalized. “The contractor commenced performing the adlitonal work for the major design change in January, 1990 and invoiced the owner on a monthly basis. Although the owner never did issue 2 written order authorizing the additional work, the contractor was paid for the extra ‘work that was performed in January, February and March of 1980. The contractor ‘completed all of the extra work in April 1990 and submitted an invoice for payment which included $950,000 on account of extra work performed in Apri “The owner refused to pay the $950,000 on the basis that no written order by the owner was given authorizing any extra work, as required by the written contract. Is the contractor entitled to the $950,000? Explain. (25) 5. Hyper Eutectoid Steel Inc. (HESI") is a company which produces various types of Steel for industrial applications. in crder to increase the strength of its stee! products, HESI lises @ process of quenching and tempering. During the quenching stage, hol steel is ‘auickly cooled with water. During the tempering stage, the steel is then heat treated for an ‘appropriate timo. The process requires large amounts of water and heat Faced with rising costs for energy, HESI decided to install a heat recovery system. The system would include a heat exchanger by which heat could be recovered from the cooling water in the quenching stage. The recovered heat, then, would be used to heal the steal in the tempering stage. HES! entered into an equipment supply contract with Energy Recovery and Recyclings ‘Systems Inc. (‘ERRS"). ERRS agreed to design, supply and installa heat recovery unit for ® contract price of $600,000. After an analysis of HES's processes ERRS determined and guaranteed in the contract Tat the heat recovery system would recover 40% ofthe heat in the cooling water and that this would result in substential savings in energy costs ‘The contract also contained a provision limiting ERRS's total iabilty to $600,000 for any oss, damage or injury resulting from ERRS's performance of is services under the contract. ‘The heat recovery system was installed and was operational; however, certain defects in the heat exchanger prevented the system from ever recovering more than 5% of the heat In the cooling water. After repeated unsuccessful attempts by ERRS fo remedy the defect, HES! hired another supplier, wh, fur en adtonal $800,U0U, replaced the heat exchanger ‘and was able to achieve the level of performance originally promised by ERRS. The total ‘amount received by ERRS under its contract was $600,000 Explain and discuss what claim HES! can make against ERRS in the circumstances. In answering, please include a summary of the development of relevant case precedents Exemplion ~ Exe clanre Uniting Gabi ty Tah et ef Fan Lemental breach moet ‘Sample Ethics Question 1 (April, 2002) Epsilon, PEng., is the environmental manager of a well-known chemical manufacturing plant, located near a resort town. Epsilon's monitoring of the plant's testing laboratory Fesulls indicates that the plant's effluent, which goes into a nearby lake, is causing slight ‘more pollution than is legally permitted by the provincial ministry’ environmental guideline Epsilon reasoned that to inform the Ministry would cause negative publicity for the plant and could adversely affect the lakeside town's resort business. In addition, Epsilon ‘estimated that it would cost the company in excess of $300,000 to introduce remedial ‘measures. Epsiton does not belive that the company WoUld Be wiling to spend this ‘amount of money to address the problem. On the other hand, Epsilon rationalized that the Violation poses litle danger to the public and may only endanger afew fish In the lake. Epsilon is therefore unsure what to do. What should Epsilon do? In your answer, discuss the relevant ethical considerations that shouid bear on Epson's decision making cE em, “Shy fe Raort ” 20) Lcd Zt jmpermmd that epsilerr reports Phe siheerti In 4 proferional rmamer Colic Lili Jord ke tuetd mot go te Ane omedia etcCe tile B) Sample Ethics Question 2 ( April 2003) ‘Tau, P.Eng., employed by a large well-known automobile parts testing laboratory, Fepresents the firm on an intemational standards advisory committee. Eight meinbers of {he ten-person committee are licensed professional engineers. After an extensive discussion on a standard at a recent meeting, the committee voted in fevour. Although Tau was the only dissenting vote, the committee considered Tau's reasons for objecting: and, after further discussion, it agreed that they were unsubstantiated and passed a ‘motion to accept and publish the standard, Subsequently, the laboratory where Tau is employed received a contract to test automobile parts to tis standard and Tau was assigned the job of supervising the tests, preparing the final report indicating thatthe parts meet the standard, and signing ton behalf of the fin, However, Tau is still vohemently opposed to the standard and therefore refuses the assignmont. Tau argues that signing a report attesting to the conformance of the parts to the standard would suggest endorsement of i |s Tau's argument for refusing to undertake the work correct? What action might Tau have taken? ~ Tats arzument For rehaing 30 sndekte Pha ore i In correc}. ~ Tu Aas ditty te by eamnpleyer Celbina i) cared sion Aly Yehue to de the tests hoo mot fui thn cht hy 1S Ty me wy productive, - edhics © Clocoperste uth ther probessiend ) ~_ emt d) - BF tun ty yneble to live vith the Ueciijen of the Sanslard Commitice cmd he yy ssengloce oo hitny Hye Fleet T emul sugges Shak he gyip ie ‘Sample Ethles Question 3 (Auqust 2003) ‘You are a licensed professional engineer and Chief Director of a federal government Contract-granting agency. Prior to taking on your new position, you were a partner in a Very successful Consulting engineering firm. Atthe end of the summer last year, you sold ‘your intorest in the partnership to your partner, who is also a professional engineer, and XGon thereafter you accepted an appointment to your current position. Afew days later, much {o your surprise, you learned that your former partner sold the firm to Octopus Enterprises, Inc. and became an officer of the corporation. itis now several months later. in your new capacity, you are presented with documents recammending that you approve the award of a major engineering contract to Octopus. In ight of PEO’s Code of Eth, discuss your ethical obligations, any, pertaining to the situation at hand. Won flick of inter?” Eties Yq Mini) Redimidple te avume old fadner may influence Svelyemey heey aot oe eee thtce. Z would neelte ranore myat From the decion the Bact that IPS recemmanded by aes aking fret

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