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ARE 5.0 PCM Questions with Correct
Answers | Updated (100% Correct Answers)
Party Dispute Answer: Problems that arise on a project (i.e. delays,
failures, fee controversies)
Administrative Proceeding Answer: Problems that arise from civil
statutes (i.e. licensing, code compliance, regulations)
Standard of Care Answer: What a reasonably prudent architect
would do, in the same time and place, given the same or similar
facts and circumstances. The law does not require perfection.
Duty Answer: A set of terms or requirements that defines what one
person "owes" another in a particular relationship. They are either
stated (codified in contracts, building codes, building regulations,
and zoning documents) or implied (manifested by following a code
of ethics).
Negligence Answer: In order to prove negligence, the plaintiff must
prove 4 things: duty, breach, cause, and damage.
Statute of Limitations Answer: Time limit within which a claim can
be made. After the time limit, the claim is permanently barred. Each
state has its own statute of limitations on construction claims
against architecture, typically 3-10 years.
© 2025 All rights reserved
,2
Statute of Repose Answer: Similar to a statute of limitations, except
that the time limit is usually much shorter and doesn't begin until
either the problem is first discovered or substantial completion.
Betterment Answer: Typically applies to negligence claims.
Ex: If the architect forgets to include carpeting in the design, the
architect would only be responsible for a fraction of the cost (i.e.
change order fee or premium difference) because the client would
have had to pay for carpeting anyway, had it been shown in the
original plans.
Joinder Answer: Adding or joining another party to an existing
arbitration
Consolidation Answer: Act of combining multiple lawsuits into a
single suit
Copyright Law Answer: Under copyright law, the architect who
prepares the architectural plans and drawings has ownership. The
architect owns the copyright, and the exclusive legal right to
reproduce, publish and sell the drawings.
Provisions for copyright are in AIA Document B101. There is no
separate AIA form for architectural copyright protection.
Instruments of Service Answer: Any representations of the tangible
and intangible creative work of the architect and the architect's
© 2025 All rights reserved
,3
consultants. Includes studies, surveys, models, sketches, drawings,
specs, etc.
Efficiency-Based Firms Answer: Firms that specialize in one project
type or a narrow range of services. Quick turnaround time.
Profitability depends on standard production processes and
repeatable project elements.
Experience-Based Firms Answer: Firms that have a diversity of
project types. Profitability depends on well-managed projects and
skillful use of staff resources.
Expertise-Based Firms Answer: Firms headed by starchitects.
Profitability depends on high fees or expert/unique services.
Unincorporated Answer: The individual and the firm are legally one
and the same, so all personal assets are at risk if there is a claim.
Unincorporated businesses include sole proprietorships and
partnerships.
Pass-Through Entity Answer: A business entity that has no federal
tax liability. Individuals report their shares of the business's income
and losses on their personal tax returns. Includes sole
proprietorships, partnerships, S-corporations, and limited liability
companies.
© 2025 All rights reserved
, 4
Sole Proprietorship Answer: A business owned by one person.
Simplest form of practice. Unincorporated business, so all personal
assets are at risk if there is a claim. Not required to pay
federal/income tax; income and expenses are included in the
individual's personal tax return. Partnership dissolves upon the
owner's death.
Advantages: ease of setup, total management control by the owner,
and possible tax advantages to the owner
Disadvantages: ability to share ownership and risk, and potential
difficulty in raising capital and establishing credit (depends entirely
on the owner's personal credit rating)
General Partnership Answer: Owned by 2 or more partners, who
may share ownership equally or unequally. Joint and several liability.
Not required to pay federal/income tax; each partner reports their
share of the partnership's profit (or loss) on their personal tax
return.
Joint and Several Liability Answer: Each partner is liable for actions
of every other partner, to the full extent of each partner's personal
assets.
Limited Partnership Answer: A partnership with at least one general
partner and one limited partner.
© 2025 All rights reserved
ARE 5.0 PCM Questions with Correct
Answers | Updated (100% Correct Answers)
Party Dispute Answer: Problems that arise on a project (i.e. delays,
failures, fee controversies)
Administrative Proceeding Answer: Problems that arise from civil
statutes (i.e. licensing, code compliance, regulations)
Standard of Care Answer: What a reasonably prudent architect
would do, in the same time and place, given the same or similar
facts and circumstances. The law does not require perfection.
Duty Answer: A set of terms or requirements that defines what one
person "owes" another in a particular relationship. They are either
stated (codified in contracts, building codes, building regulations,
and zoning documents) or implied (manifested by following a code
of ethics).
Negligence Answer: In order to prove negligence, the plaintiff must
prove 4 things: duty, breach, cause, and damage.
Statute of Limitations Answer: Time limit within which a claim can
be made. After the time limit, the claim is permanently barred. Each
state has its own statute of limitations on construction claims
against architecture, typically 3-10 years.
© 2025 All rights reserved
,2
Statute of Repose Answer: Similar to a statute of limitations, except
that the time limit is usually much shorter and doesn't begin until
either the problem is first discovered or substantial completion.
Betterment Answer: Typically applies to negligence claims.
Ex: If the architect forgets to include carpeting in the design, the
architect would only be responsible for a fraction of the cost (i.e.
change order fee or premium difference) because the client would
have had to pay for carpeting anyway, had it been shown in the
original plans.
Joinder Answer: Adding or joining another party to an existing
arbitration
Consolidation Answer: Act of combining multiple lawsuits into a
single suit
Copyright Law Answer: Under copyright law, the architect who
prepares the architectural plans and drawings has ownership. The
architect owns the copyright, and the exclusive legal right to
reproduce, publish and sell the drawings.
Provisions for copyright are in AIA Document B101. There is no
separate AIA form for architectural copyright protection.
Instruments of Service Answer: Any representations of the tangible
and intangible creative work of the architect and the architect's
© 2025 All rights reserved
,3
consultants. Includes studies, surveys, models, sketches, drawings,
specs, etc.
Efficiency-Based Firms Answer: Firms that specialize in one project
type or a narrow range of services. Quick turnaround time.
Profitability depends on standard production processes and
repeatable project elements.
Experience-Based Firms Answer: Firms that have a diversity of
project types. Profitability depends on well-managed projects and
skillful use of staff resources.
Expertise-Based Firms Answer: Firms headed by starchitects.
Profitability depends on high fees or expert/unique services.
Unincorporated Answer: The individual and the firm are legally one
and the same, so all personal assets are at risk if there is a claim.
Unincorporated businesses include sole proprietorships and
partnerships.
Pass-Through Entity Answer: A business entity that has no federal
tax liability. Individuals report their shares of the business's income
and losses on their personal tax returns. Includes sole
proprietorships, partnerships, S-corporations, and limited liability
companies.
© 2025 All rights reserved
, 4
Sole Proprietorship Answer: A business owned by one person.
Simplest form of practice. Unincorporated business, so all personal
assets are at risk if there is a claim. Not required to pay
federal/income tax; income and expenses are included in the
individual's personal tax return. Partnership dissolves upon the
owner's death.
Advantages: ease of setup, total management control by the owner,
and possible tax advantages to the owner
Disadvantages: ability to share ownership and risk, and potential
difficulty in raising capital and establishing credit (depends entirely
on the owner's personal credit rating)
General Partnership Answer: Owned by 2 or more partners, who
may share ownership equally or unequally. Joint and several liability.
Not required to pay federal/income tax; each partner reports their
share of the partnership's profit (or loss) on their personal tax
return.
Joint and Several Liability Answer: Each partner is liable for actions
of every other partner, to the full extent of each partner's personal
assets.
Limited Partnership Answer: A partnership with at least one general
partner and one limited partner.
© 2025 All rights reserved
