LARE EXAM 1 2025 WITH 100% ACCURATE SOLUTIONS
1. Describe the significance of the owner accepting the lowest bid in the
Design-Bid-Build process.
It allows for more flexibility in project design.
It guarantees the highest quality of construction materials.
It ensures cost-effectiveness while maintaining project
standards.
It eliminates the need for contractor selection criteria.
2. What is the primary reason courts pierce the corporate veil in closely
held organizations?
To promote corporate transparency.
To prevent individuals from shielding themselves from personal
accountability.
To enhance shareholder rights.
To increase corporate profits.
3. Describe the significance of a maintenance bond in the context of
construction contracts.
A maintenance bond is a financial guarantee that the project will
be completed on time.
A maintenance bond protects the contractor from claims made by
subcontractors.
A maintenance bond ensures that the contractor is responsible
for fixing defects in the work for a specified duration, providing
security to the property owner.
, A maintenance bond is used to cover the costs of materials used
in construction.
4. If a closely held corporation is found to be using its structure to commit
fraud, what legal action might a court take regarding the shareholders?
Pierce the corporate veil to hold shareholders personally liable.
Impose fines on the corporation only.
Dissolve the corporation without further action.
Require the corporation to change its name.
5. If two companies are found to be engaging in collusion to fix prices,
what legal consequences might they face?
They will be allowed to continue their practices under new
regulations.
They will be required to disclose their financial records to the
public.
They will receive a warning and be required to change their
pricing strategy.
They may face fines and legal action from regulatory
authorities.
6. What is the term used to describe the collective needs of individuals
represented by government?
Private interest
Individual rights
Corporate responsibility
Public purpose
7. What does the term 'liable' refer to in a legal context?
, Ethically bound
Morally accountable
Legally obligated
Financially responsible
8. A marketing system in which there are no agents and insurance is sold
through direct mail or...
a captive agency system
an independent agency system
an exclusive agency system
a direct response system
9. What is the definition of promissory estoppel?
Promissory estoppel only applies in business transactions.
Promissory estoppel is when a promise is made and the
promisee relies on that promise in a way that is detrimental to
them, making the promise enforceable.
Promissory estoppel is a type of contract that requires
consideration from both parties.
Promissory estoppel requires a written contract to be
enforceable.
10. Describe the role of a design-build firm in the landscape architecture
industry.
A design-build firm only focuses on the design aspect and hires
separate contractors for construction.
A design-build firm operates independently of landscape
architects and focuses on general construction.
, A design-build firm integrates both the design and
construction processes, allowing landscape architects to
oversee the entire project from concept to completion.
A design-build firm is primarily concerned with urban planning
and zoning laws.
11. Difference in Conditions insurance is written to provide:
Coverage for the gaps in coverage left by other property
insurance forms.
Earthquake coverage only.
Open peril coverage only.
Flood coverage only.
12. What are the typical components included in the General Conditions of
the Contract?
Insurance requirements, bond requirements, termination of the
contract, arbitration, and incorporation of plans and
specifications.
Safety regulations, labor laws, environmental impact assessments,
and project budgets.
Payment schedules, project timelines, contractor qualifications,
and dispute resolution methods.
Design specifications, material lists, contractor licenses, and
project completion dates.
13. Describe the significance of the term 'merchant' in the context of the
Uniform Commercial Code (UCC).
The term 'merchant' is irrelevant to the UCC.
The term 'merchant' indicates that the contract is invalid.
1. Describe the significance of the owner accepting the lowest bid in the
Design-Bid-Build process.
It allows for more flexibility in project design.
It guarantees the highest quality of construction materials.
It ensures cost-effectiveness while maintaining project
standards.
It eliminates the need for contractor selection criteria.
2. What is the primary reason courts pierce the corporate veil in closely
held organizations?
To promote corporate transparency.
To prevent individuals from shielding themselves from personal
accountability.
To enhance shareholder rights.
To increase corporate profits.
3. Describe the significance of a maintenance bond in the context of
construction contracts.
A maintenance bond is a financial guarantee that the project will
be completed on time.
A maintenance bond protects the contractor from claims made by
subcontractors.
A maintenance bond ensures that the contractor is responsible
for fixing defects in the work for a specified duration, providing
security to the property owner.
, A maintenance bond is used to cover the costs of materials used
in construction.
4. If a closely held corporation is found to be using its structure to commit
fraud, what legal action might a court take regarding the shareholders?
Pierce the corporate veil to hold shareholders personally liable.
Impose fines on the corporation only.
Dissolve the corporation without further action.
Require the corporation to change its name.
5. If two companies are found to be engaging in collusion to fix prices,
what legal consequences might they face?
They will be allowed to continue their practices under new
regulations.
They will be required to disclose their financial records to the
public.
They will receive a warning and be required to change their
pricing strategy.
They may face fines and legal action from regulatory
authorities.
6. What is the term used to describe the collective needs of individuals
represented by government?
Private interest
Individual rights
Corporate responsibility
Public purpose
7. What does the term 'liable' refer to in a legal context?
, Ethically bound
Morally accountable
Legally obligated
Financially responsible
8. A marketing system in which there are no agents and insurance is sold
through direct mail or...
a captive agency system
an independent agency system
an exclusive agency system
a direct response system
9. What is the definition of promissory estoppel?
Promissory estoppel only applies in business transactions.
Promissory estoppel is when a promise is made and the
promisee relies on that promise in a way that is detrimental to
them, making the promise enforceable.
Promissory estoppel is a type of contract that requires
consideration from both parties.
Promissory estoppel requires a written contract to be
enforceable.
10. Describe the role of a design-build firm in the landscape architecture
industry.
A design-build firm only focuses on the design aspect and hires
separate contractors for construction.
A design-build firm operates independently of landscape
architects and focuses on general construction.
, A design-build firm integrates both the design and
construction processes, allowing landscape architects to
oversee the entire project from concept to completion.
A design-build firm is primarily concerned with urban planning
and zoning laws.
11. Difference in Conditions insurance is written to provide:
Coverage for the gaps in coverage left by other property
insurance forms.
Earthquake coverage only.
Open peril coverage only.
Flood coverage only.
12. What are the typical components included in the General Conditions of
the Contract?
Insurance requirements, bond requirements, termination of the
contract, arbitration, and incorporation of plans and
specifications.
Safety regulations, labor laws, environmental impact assessments,
and project budgets.
Payment schedules, project timelines, contractor qualifications,
and dispute resolution methods.
Design specifications, material lists, contractor licenses, and
project completion dates.
13. Describe the significance of the term 'merchant' in the context of the
Uniform Commercial Code (UCC).
The term 'merchant' is irrelevant to the UCC.
The term 'merchant' indicates that the contract is invalid.
