1. What are the exceptions to requiring leave to appeal to the Supreme Court of Canada?

a. A matter of national importance

b. A first degree murder conviction
c. A contravention of the Charter of Rights and Freedoms
d. All of the above
e. b and c
2. What issues are within the jurisdiction of the Divisional Court?
a. Appeals of interim orders made by a judge
b. Appeals of final orders made by a judge if the order stipulates a payment less than
$25,000
c. reviews of decisions made by government tribunals
d. all of the above
e. none of the above
3. Case management Rules are rules with:
a. The court system has adopted to expedite cases and eliminate or reduce delays
b. The law society imposes upon lawyers to ensure proper representation of clients
c. The police force uses to manage criminal prosecutions
d. All of the above
e. a and b
4. If two people want to form a business and wish to try and eliminate personal liability they
would:
a. Incorporate a provincial corporation
b. Incorporate a federal corporation
c. Set up a partnership
d. All of the above
e. a and b
5. Parliamentary Supremacy was completely eliminated by the Constitution Act and the
Charter of Rights and Freedom:
a. True
b. False
6. In which of the following project structures will an Owner be deemed to be the
Constructor under the Occupational Health and Safety Act?
a. Traditional
b. Construction management
c. Design-build
d. All of the above
e. None of the above
7. An insured party under a property insurance policy will not be covered for the following
exposures:
a. Errors in design
b. Faulty workmanship
c. Claims in excess of the policy limit
d. All of the above
e. a and b

For questions 8 to 11, assume the following:

An owner contracted with a design-builder for a design and construction of a building. The
contract price for design and construction work was $8,500,000. When the design-builder
determined that it had achieved substantial performance it advised the Owners consultant, who
inspected the work and determined that: (a) the work was ready for the purpose intended and
(b) the rectification of known defects and the completion of incomplete items would cost
$95,000:
8. What is the Owners consultants responsibility if it is the contract administrator of the
design-build agreement?
a. To not show the partiality to either the Owner or the design-builder
b. To certify the substantial performance has been achieved
c. To advise the design-builder that substantial performance has not been achieved
d. a and b
e. b and c
9. When can the owner release the basic holdback to the design-builder?
a. 45 days after the design-builder advises the Owners consultant that it has achieved
substantial performance
b. 45 days after achieving total performance
c. 45 days after publication of the certificate of substantial performance
d. 45 days after issuance of the certificate of substantial performance
e. 30 days after the publication of the certificate of total performance
10.When can the Owner release the finishing holdback?
a. 90 days after publication of the certificate of substantial performance
b. 45 days after the date of total performance
c. 45 days after the certificate of total performance is published in the Daily
Commercial News
d. None of the above
10b. what is the dollar threshold below which the value of defects to be remedied or
incomplete work to be performed must fall before Substantial Performance is achieved:
a.
b.
c.
d.
e.

$850,000
$100,000 ( 3% of $500,000 + 2% of $500,000 + 1% of rest ($7,500,000))
$85,000
$255,000
None of the above

10c. has the design-builder achieved Substantial Performance of its contract?

a. Yes
b. No
11.If a subcontractor to the design-builder is owed money and wishes to pursue a
construction lien, it must:
a. Register its lien within 45 days after the expiry of the lien
b. Commence a lawsuit within 90 days after expiry of the lien
c. Set the lawsuit down for trial within 2 years after the date of commencement of the
lawsuit
d. All of the above
e. a and c

12.Which if of the following project structures is most conducive to a fast-tracked project?

a. Traditional
b. Design-build
c. Construction management
d. All of the above
e. b and c
13.Which of the following principles apply to the theory of precedent?
a. A court must follow the decision of a higher court
b. A court must follow the decision of another judge of the same court
c. The decisions of the Supreme Court of Canada must be followed by all courts
d. All of the above
e. a and c
14.If a contractor posts a performance bond as security for performance of its obligations
under a contract:
a. The surety will make sure the obligations are fulfilled if the contractor fails to
perform
b. If the surety has to pay any monies under the bond it will be able to sue the
contractor for reimbursement of those monies
c. The issuance of the bond will impact the contractors line of credit with its bank
d. All of the above
e. a and b above
15.if two business partners choose a corporation as their business organization, can each of
them be:
a. a shareholder of the corporation
b. a director of the corporation
c. an employee of the corporation
d. all of the above
e. a and b above
16.a typical lawsuit includes the following steps:
a. Issuance of a statement of claim
b. Issuance of a statement of defence
c. Documentary and oral discoveries
d. All of the above
e. a and b
17.a party who commences a lawsuit, loses that lawsuit at trial and then commences an
appeal will at various stages of the lawsuit be referred to as:
a. plaintiff and appellant
b. defendant and appellant
c. plaintiff and respondent
d. defendant and respondent
e. none of the above
18. Piercing the corporate veil means that:
(a) A director of a corporation may be personally sued for the actions of the corporation
(b) A shareholder of a corporation may be personally sued for the actions of the
corporation
(c) An employee of a corporation may be personally sued for the actions of the
corporation
(d) All of the above
(e) (a) and (b) above
19. An agreement between two parties may require that a dispute be:
(a) Arbitrated as opposed to litigated

(b) That the decision of the arbitrator(s) be final and binding

(c) That the parties will share the administrative cost of any arbitration
(d) All of the above
(e) (a) and (c) above
20. If an owner retains a designer to produce a set of drawings and that owner wishes to be able
to use the drawings to make future modifications to the building it must:
(a) Have the copyright in the drawings assigned to it
(b) Have a license granted to it to make such use of the drawings
(c) Have the moral rights of the designer waived
(d) (a) and (c) or (b) and (c)
(e) (a), (b) and (c) above
21. Where an expert engineer is called to testify at a trial of an engineer who has been accused
of negligence:
(a) it is the judges duty to select the expert
(b) the judge must abide by the experts opinion on engineering matters
(c) (a) and (b)
(d) the expert witness may express his or her opinions
22. According to the law of negligence, an engineer who prepares and delivers to a client a
report which contains a negligent misstatement:
(a) may be protected by a disclaimer in the report
(b) may be protected by the terms of the engineers contract with the client
(c) both of the above
(d) will be liable even if no damages result
23. Under product liability law, the ultimate consumer of a product:
(a) is owed a duty of care by the manufacturer of the product
(b) is owed a duty of care by the seller of the product
(c) is entitled to sue for injuries caused by the product even if the consumer did not
purchase the product
(d) all of the above
24. The law of negligence imposes duties:
(a) on professional engineers, only
(b) on professional persons, only
(c) on professional persons and corporations, only
(d) on all persons, generally
25. ln a trial of an engineer who has been accused of negligence, the applicable standard of care
is:
(a) the standard which would be used by a reasonable engineer
(b) the subjective standard
(c) the standard contained in provincial regulations of common law provinces
(d) none of the above
26. Slander and defamation:
(a) are the same as fraud
(b) are torts
(c) both of the above

(d) are the same thing

27. The Donoghue vs. Stevenson case establishes that:
(a) reliance on professional skill and judgment can give rise to a duty of care
(b) a disclaimer will protect a professional from liability for negligent advice
(c) engineers may be liable for economic loss
(d) none of the above
28. The Hedley Byrne vs. Heller case is important to engineers because it establishes that:
(a) professionals may be liable for negligent advice
(b) reliance on professional skill and judgment can give rise to a duty of care
(c) a disclaimer may protect a professional from liability for negligent advice
(d) all of the above
29. A defendant who is concurrently liable in tort and contract:
(a) is liable to more than one plaintiff at the same time
(b) is liable under tort and contract at the same time
(c) has limited liability under the new Limitations Act, 2002
(d) none of the above
30. If Defendant A and Defendant B are concurrent tortfeasors:
(a) Defendant A and Defendant B are equally liable
(b) Defendant A and Defendant B are vicariously liable
(c) (a) and (b)
(d) Defendant A and Defendant B both committed a tort
31. An employee engineer would not be liable for negligence if he or she:
(a) was not licensed by the PEO
(b) tried his or her best
(c) did what a reasonable engineer would have done in all the circumstances
(d) was inexperienced
32. lf a plaintiff is successful in a tort claim, the plaintiff will recover:
(a) damages for unforeseeable losses
(b) damages for physical loss but never damages for economic loss
(c) damages that are remote
(d) damages for physical loss and possibly damages for economic loss
33. If a plaintiff is successful in a tort claim, the damages are intended to:
(a) put the plaintiff in the position in which he or she would have been had the tort not
occurred
(b) put the plaintiff and the defendant in the position in which they would have been had
the tort not occurred
(c) compensate the defendant
(d) punish the defendant
34. According to the law of negligence, an engineer performing services owes a duty of care to:
(a) anyone whom the engineer knows is relying on the engineer
(b) only the person who is responsible for paying the engineer
(c) anyone whom a reasonable engineer would be expected to know is relying on the
engineer
(d) (a) and (c)
35. According to the law of tort, the engineering standard of care:
(a) is a subjective standard
(b) is an objective standard
(c) is a reasonable standard
(d) (b) and (c)
36. According to tort law, assuming a traditional project structure, the engineer owes a duty to:
(a) the owner
(b) the contractor
(c) the owner and the contractor
(d) the PEO
37. Vicarious liability means that:

(a) the employer is responsible

(b) the employee is not responsible
(c) the employee is responsible
(d) (a) and (c)
38. The new Limitations Act, 2002:
(a) places a dollar limit on an engineers liability
(b) places a time limit on an engineer's liability
(c) places a limit on the type of liability of an engineer
(d) places a limit on the degree of inspection expected from engineers
39. In a civil trial:
(a) the plaintiff has the burden of proof
(b) the defendant has the burden of proof
(c) the case must be proved beyond a reasonable doubt
(d) the case must be proved beyond the shadow of a doubt
40. If an engineer prepares a design, the negligence standard of care means that:
(a) the engineer's design must have no flaws
(b) the engineers design must be reasonable
(c) the engineer must pay for any failure of the design
(d) the engineer must comply with PEO's Code of Ethics
41. Which of the following are necessary elements of an enforceable contract?
(a) an irrevocable offer made and accepted
(b) capacity and mutual intent
(c) a promise and estoppel
(d) both (a) and (b)
(e) All of the above.
42. Which of the following statements are true?
(a) An offer must always be in writing to be capable of acceptance.
(b) Acceptance of an offer may be communicated by mail or by fax.
(c) Irrevocable offers cannot be revoked if made in writing.
(d) Both (b) and (c).
(e) All of the above.
43. Which of the following statements are true?
(a) Consideration can simply be the exchange of $1.00 between two parties to a contract.
(b) Most offers are revocable even if stated to be irrevocable unless special formalities are
followed.
(c) Quantum meruit is the legal principle applied by courts to determine whether a
limitation of liability clause is enforceable. -> False
(d) Both (a) and (b).
(e) All of the above.
44. Which of following statements are false?
(a) Letters of intent are always enforceable, ->False
(b) The Statute of Frauds requires all contracts to be in writing. ->False
(c) All corporations have the same capacity to enter into contracts as a natural person.
->True
(d) Both (a) and (b).
(e) All of the above.
45. Which of the following statements are false?
(a) A minor does not have the capacity to enter into any types contracts. -> False
(b) Penalty clauses are enforceable under contract law.->False
(c) The case of Canwest Exploration v. Letain is one of the leading cases in Canada dealing
with the concept of equitable estoppel.
(d) Both (a) and (b).
(e) None of the above.

46. Which of the following statements are correct?

(a) Equitable estoppel is a legal principle applied to ensure that one party to a contract
does not take advantage of the other partys mistake. -> False
(b) The case of Hunter v. Syncude is a leading case dealing with fundamental breach of
contractT
(c) A limitation of liability clause which limits one partys liability to $1.00 is not
enforceable.
(d) Both (b) and (c).
(e) None of the above.
47. Which of the following statements are correct?
(a) Mediation is an alternative dispute resolution mechanism.
(b) The decisions of an arbitrator are always final and binding.
(c) The Arbitration Act (Ontario) provides for certain rights to have decisions of an
arbitrator appealed to a court of law.
(d) The use of dispute resolution boards is an illegal method of dealing with disputes.
(e) Both (a) and (c).
48. Which of the following will affect the enforceability of a contract?
(a) The contract requires that all disputes must be resolved using mediation before using
arbitration or the courts.
(b) One of the parties to the contract is a minor and the contract is not for a necessity of
life.
(c) The acceptance of the offer was communicated by mail.
(d) The contract is for the sale of land, but is not in writing.
(e) Both (b) and (d).
49. Which of the following statements are correct?
(a) Three types of misrepresentation include innocent misrepresentation, negligent
misrepresentation and irrefutable misrepresentation.
(b) An engineering company providing services under a contract with an owner can only
be liable for breach of contract.
(c) An engineer retained by a contractor on a design-build project to prepare construction
drawings for a construction project owes a duty of care to the owner of the project.
(d) Both (a) and (c).
(e) None of the above.
50. Which of the following statements are false?
(a) If one party makes an innocent misrepresentation, the other party has the right to sue
for damages.
(b) Contra proferentum is the legal principle whereby a court will interpret an ambiguous
clause in favour of the party that drafted the clause. -> False
(c) A stipulated price contract contains unit prices and the final contract price is
determined by the actual number of units to complete the work. -> False
(d) A guaranteed maximum price contract is a hybrid between a fixed price contract and a
stipulated price contract.
(e) All of the above.

The following fact situation applies to questions 51 to 54:

Wise Guys Inc. ("WGI") issues a call for tenders for a contract to build a new head office to three
bidders: Buildem Co. ("BC"), Offices-R-Us ("ORU") and ABC Brothers Inc. ("ABC"). The call for
tenders contains the following statement: The lowest of any tender not necessarily accepted.
The tender documents required each bidder to submit a bid deposit in the form of a letter of

credit or certified cheque for 10% of the bid price. The tender instructions stated that the WGI
will automatically reject any non-compliant bids.
BC submitted the lowest bid of $10,00,000.00, but prior to bid closing, it advised the WGI that it
had made a mistake in its bid by failing to add GST and that the actual price should have been
$10,700,000.00. ORU submitted a bid of $l0,500,000.00, but fails to submit a letter of credit or
certified cheque for $10,500,000.00 as required by the terms of the tender documents. ABC
submits a bid of $11,000,000.00 plain and simple. After much deliberation, WGI decides to select
ORU as the winning bidder and entered into a construction contract with ORU.
51. Which of the following is a true statement?
(a) WGI was entitled to ignore BCs mistake in its bid and all else being equal, accept BCs
original bid.
(b) WGI was entitled to waive the irregularity (i.e., the failure to deliver the bid deposit) in
ORUs bid.
(c) WGI was required to award the contract to the lowest compliant bidder.
(d) All of the above.
(e) Both (a) and (c).
52. WGI owed a duty of good faith to which of the following contractors?
(a) Both BC and ORU
(b) ORU
(c) ABC
(d) None of the bidders.
(e) To all three bidders.
53. Which of the following statements are correct?
(a) The old approach to tendering disputes was based on the court decision of Belle River
which applied the legal doctrine of mistake.
(b) The new approach to tendering disputes is based on the court decision of Ron
Engineering which applied the Contract A / Contract B approach.
(c) The Supreme Court of Canada in the MJB Enterprises decision established that an
owner owes a duty of good faith to all contractors submitting a compliant bid.
(d) Both (a) and (b).
(e) All of the above.
54. Which of the following statements would be correct?
(a) By accepting ORUs bid, WGI was in breach of Contract A. -> TRUE
(b) ABC could sue WGI for breach of Contract A.
(c) There were two Contract As which came into existence, one between WGI and ORU
and one between WGI and ABC.
(d) None of the above.
(e) Both (a) and (b).
55. Which of the following statements are true?
(a) Two types of duress are threatened violence and undue influence. ->True
(b) Courts always adopt a strict construction approach to contract interpretation.
(c) Courts will always look to extraneous evidence when interpreting the terms of a
contract.
(d) Both (a) and (c).
(e) None of the above.
56. Which of the following statements are false?
(a) Courts will imply a term into a contract when necessary to give the contract business
efficacy. ->True
(b) The parole evidence rule applies to documents or happenings prior to, or
contemporaneously with the making of the contract. ->True
(c) Specific performance is a remedy which is always available to a non-defaulting party
where there has been a breach of contract.

(d) The legal principle of frustration requires that performance of the contract becomes
impossible and not just more expensive. -> True
(e) None of the above.
57. As general legal principles, in the event of a breach of contract, which of the following are
true statements?
(a) The non-defaulting party is required to increase its damages as much as possible.
(b) The non-defaulting party may in certain circumstance be entitled to terminate the
contract.
(c) The defaulting party may be required to compensate the non-defaulting party for its
indirect or consequential damages suffered as a result of the breach of contract.
(d) Both (b) and (c).
(e) All of the above.
58. Which of the following statements are true?
(a) A party to a contract may be considered to have repudiated a contract if that party
announces by its words or actions that it has no intention of completing the contract.
(b) The innocent party may elect to accept the other partys repudiation or continue with
the contract (if possible).
(c) In the case of a repudiation, the damages are calculated for the date of signing the
contract.
(d) Both (a) and (b).
(e) All of the above.
59. Which of the following statements are true?
(a) The breach of a fundamental term or condition of a contract will entitle the nondefaulting party to terminate the contract.
(b) Some of the remedies which may be available to a non-defaulting party in the event of
a breach of contract include: termination, specific performance and frustration.
(c) Liquidated damages clauses are enforceable if they are a genuine preestimate of
damages.
(d) Both (a) and (c)
(e) All of the above.
60. Which if the following statements are true?
(a) Arbitration agreements usually specify how the arbitrators will be chosen, what rules
and procedures will be used and timing of the arbitration process.
(b) Engineers may be concurrently liable for breach of contract and for negligence.
(c) In administering the terms of a construction contract, an engineer may be required to
make decisions affecting the rights of the owner and the contractor.
(d) Both (a) and (b)
(e) All of the above.