Legal Aspects of Architecture, Engineering and the Construction Process, 9th Edition

Sweet & Schneier

Chapter 3 Review Questions

1. A sole proprietor not using his own name in which to do business is usually required
under state law to:

A. Have stationery printed with the name of his or her business

B. Pay payroll taxes
C. Apply to the county in which he or she does business for a fictitious business name
D. Hire his or her own employees

2. It is important to have a written partnership agreement to ensure that:

A. All partners are clear on their respective obligations to the partnership

B. The partnership is not required to have a business license
C. The partners are not liable for the partnership debts
D. The partnership does not have to file a fictitious business name statement

3. Articles of Incorporation generally set forth:

A. The permissible activities of a corporation

B. The rights of shareholders
C. The authority employees have to handle corporate matters
D. How the corporation will operate

4. A significant difference between a profit and non‐profit corporation is:

A. An elected board of directors

B. Having Articles of Incorporation
C. The sale of shares
D. Tax exempt‐status

5. Construction companies may form a joint venture because:

A. Each member cannot handle the project individually

B. The creation of a joint venture avoids obtaining a business license
C. It avoids liability of the joint venturers for claims beyond $500,000
D. It avoids compliance with minority set‐asides for subcontracting

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 Legal Aspects of Architecture, Engineering and the Construction Process, 9th Edition
Sweet & Schneier

6. All of the following are important functions of professional associations, such as the
AIA (American Institute of Architects), except:

A. Educating members in matters related to their profession

B. Representing the interests of members
C. Sending unethical members of the association to prison
D. Issuing and making available standard documents as the basis for contracts

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© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.