A subcontractor agrees to perform the electrical work on a project. Shortly after beginning work, he fails to complete the work. In response, the general contractor terminates the subcontract. Can the general contractor legally take that action?

A. Only if the subcontract has a termination for cause clause.

B. Only if the general contractor pays a percentage of the subcontractors lost profits.

C. Only if the subs failure to complete the work is a material breach of contract.

D. Only if the general contractor first pays the current invoices to the subcontractor.

What is true about express warranties?

A. Express warranties are included in the terms of the contract.

B. Express warranties are implied by law into a contract even if they are not written or stated.

C. The terms of express warranties are set out in federal statutes.

D. Express warranties begin to run upon commencement of the project.

A subcontractor must provide a Notice of Right to a Lien to the owner of an owner-occupied residence in Oregon within eight working days from when the subcontractor begins to provide labor, materials, equipment, or services in order to maintain the right to claim a construction lien for all of the subcontractors work.

True

False

A subcontractor works on a project to build a new Portland public school and is paid by the general contractor but the subcontractor does not pay its supplier. The supplier has the following claim options.

A. A claim against the prime contractors Little Miller Act surety bond.

B. A claim against the subcontractors Miller Act surety bond.

C. A construction lien claim.

D. A claim against the subcontractors Construction Contractors Board surety bond.

E. A and B. F. A and C.

G. A and D.

A subcontract has a pay if paid clause and the general contractor has not yet been paid by the owner. That means the subcontractor cannot file a construction lien claim because the subcontractor is not yet owed the money. The project is in Oregon.

True

False

A liquidated damages clause means the parties agree ahead of time to pay a set amount of damages for a breach of the contract regardless of the actual damages caused by the breach.

True

False

As a general rule, a construction contract between the owner and the general contractor can be legally terminated:

A. Never.

B. Upon a material breach by one of the parties.

C. Upon a partial breach by one of the parties.

D. At the discretion of the owner but not the general contractor.

Injunctive relief refers to:

A. A court order requiring a party to do something or preventing a party from doing something.

B. Monetary damages paid by one party to the other.

C. A time extension, but no monetary damages.

D. Joint liability.

The normal deadline for a subcontractor to send out a claim under the federal Miller Act is _______ after completing his work.

A. 30 days

B. 75 days

C. 90 days

D. 120 days

E. 180 days

F. One year

The winning party in a lawsuit can recover their attorney fees from the losing party:

A. If the claim was for breach of contract and the contract contains an attorney fee clause.

B. If the claim is based on a statute that specifically allows the winning party to recover attorney fees.

C. Never. Each side is responsible for its own attorney fees no matter who wins.

D. Always. The loser always pays.

E. A and B.

The term mitigation of damages refers to:

A. Alternative dispute resolution.

B. Reasonable steps a party must take to minimize its damages caused by the other partys breach of the contract.

C. binding arbitration to set the amount of damages to be awarded.

D. The court or arbitrators discretion to award appropriate damages.

State agencies such as the Construction Contractors Board have the legal authority to:

A. Enact statutes

B. Enact rules and regulations

C. Interpret constitutions

D. Perform arbitrations

Failure to give an Information Notice to Owner on an owner-occupied residential project in Oregon means that the original general contractor who recorded a construction lien claim:

A. May not be able to foreclose the lien.

B. May have to pay the owners attorney fees (in addition to his own) in a lien foreclosure action.

C. May have a monetary penalty issued by the Construction Contractors Board.

D. All of the above.

As a general rule, a party has the legal right to terminate a contract for a material breach of contract, but not for a partial breach.

True

False

Joint liability refers to:

A. A plumbers liability for installing defective elbow joints.

B. Liability for bidding mistakes.

C. Liability for failing to verify insurance coverage.

D. A situation where two or more parties may be liable to a third party for damages.