CNST Law & Ethics Final Exam
Questions and Answers (Latest Update
2026)
when does accrual indebtedness occur for a sub contractor? -
correct answer ✅on the last day of the last month on which labor
was performed or material furnished
on federal projects, 2nd tier claimants whose contracts is within a
materialman do not have bond claim rights under the miller act -
correct answer ✅True
Notice of a filed affidavit for lien must be sent within ____ days by
____ for all lien claimants. -
correct answer ✅5 certified/ registered mail
Persons furnishing items which are specialy fabricated offsite must
deliver those items to the jobsite to have lien rights -
correct answer ✅False
A constitutional lien MUST be filled in the county in which the lien
is claimed to be valid -
correct answer ✅False
,CNST Law & Ethics Final Exam
Questions and Answers (Latest Update
2026)
To have a valid mechanic's lien and materialman's on a household,
there must be a written contract between the original ____and the
____. -
correct answer ✅Contractor; Homeowner
With respect to bond claims on public works in Texas the primary
difference between the 1st tier claimant requirements and the 2nd
tier claimant requirements is the_____ -
correct answer ✅2nd Month notice
Which of the following is NOT a factor the government may
consider when determining which bidder offers the best value -
correct answer ✅Bidder contributions to bond campaign financing
A bid is a written ____ to perform and is not binding until____. -
correct answer ✅Offer; accepted
What is negligence per se? -
correct answer ✅Violation of a statute intended to protect an
injured party
,CNST Law & Ethics Final Exam
Questions and Answers (Latest Update
2026)
what is the name of the theory that holds employers liable for the
negligence of their employees? -
correct answer ✅Respondeat Superior
What is the 8 corners rule in context of insurance law? -
correct answer ✅a concept of law requiring courts to look solely to
the language of the insurance policy and lawsuit in coverage
disputes
What is the Stowers doctrine? -
correct answer ✅the doctrine that requires insurance companies
to negotiate on behalf of their insureds in good faith
What is CGL insurance? -
correct answer ✅Commercial general liability
what describes the process by which an insurance company may
recover its losses after it pays a claim -
correct answer ✅Subrogation
, CNST Law & Ethics Final Exam
Questions and Answers (Latest Update
2026)
on public projects, the bond acts as security for payment of labor or
materials supplied to the project -
correct answer ✅true
under Texas law, a signatory to a contract is not bound to
documents incorporated by reference unless the documents are
actually read by the signatory -
correct answer ✅false
arbitration is a private trial to an arbitrator with subject matter
expertise, where the formal rules of procedure and evidence
generally do not apply -
correct answer ✅true
a covenant not to compete, also known as " noncompetition
agreement" is never enforceable in Texas. -
correct answer ✅false
The Texas constitution grants mechanics liens for the benefit of
original contractors. these liens are self executing -
correct answer ✅true
Questions and Answers (Latest Update
2026)
when does accrual indebtedness occur for a sub contractor? -
correct answer ✅on the last day of the last month on which labor
was performed or material furnished
on federal projects, 2nd tier claimants whose contracts is within a
materialman do not have bond claim rights under the miller act -
correct answer ✅True
Notice of a filed affidavit for lien must be sent within ____ days by
____ for all lien claimants. -
correct answer ✅5 certified/ registered mail
Persons furnishing items which are specialy fabricated offsite must
deliver those items to the jobsite to have lien rights -
correct answer ✅False
A constitutional lien MUST be filled in the county in which the lien
is claimed to be valid -
correct answer ✅False
,CNST Law & Ethics Final Exam
Questions and Answers (Latest Update
2026)
To have a valid mechanic's lien and materialman's on a household,
there must be a written contract between the original ____and the
____. -
correct answer ✅Contractor; Homeowner
With respect to bond claims on public works in Texas the primary
difference between the 1st tier claimant requirements and the 2nd
tier claimant requirements is the_____ -
correct answer ✅2nd Month notice
Which of the following is NOT a factor the government may
consider when determining which bidder offers the best value -
correct answer ✅Bidder contributions to bond campaign financing
A bid is a written ____ to perform and is not binding until____. -
correct answer ✅Offer; accepted
What is negligence per se? -
correct answer ✅Violation of a statute intended to protect an
injured party
,CNST Law & Ethics Final Exam
Questions and Answers (Latest Update
2026)
what is the name of the theory that holds employers liable for the
negligence of their employees? -
correct answer ✅Respondeat Superior
What is the 8 corners rule in context of insurance law? -
correct answer ✅a concept of law requiring courts to look solely to
the language of the insurance policy and lawsuit in coverage
disputes
What is the Stowers doctrine? -
correct answer ✅the doctrine that requires insurance companies
to negotiate on behalf of their insureds in good faith
What is CGL insurance? -
correct answer ✅Commercial general liability
what describes the process by which an insurance company may
recover its losses after it pays a claim -
correct answer ✅Subrogation
, CNST Law & Ethics Final Exam
Questions and Answers (Latest Update
2026)
on public projects, the bond acts as security for payment of labor or
materials supplied to the project -
correct answer ✅true
under Texas law, a signatory to a contract is not bound to
documents incorporated by reference unless the documents are
actually read by the signatory -
correct answer ✅false
arbitration is a private trial to an arbitrator with subject matter
expertise, where the formal rules of procedure and evidence
generally do not apply -
correct answer ✅true
a covenant not to compete, also known as " noncompetition
agreement" is never enforceable in Texas. -
correct answer ✅false
The Texas constitution grants mechanics liens for the benefit of
original contractors. these liens are self executing -
correct answer ✅true
