1. Which of the following best expresses the approach of the National Society of Professional Engineers toward contractual provisions that seek to shift risks to the engineer? [Mark only one answer choice]

• A.

Such provisions shift risks to the parties that are unlikely to be in the best positions to control them.

• B.

Such provisions are illegal.

• C.

Such provisions unnecessarily supplant the ethical obligations of engineers.

• D.

Such provisions supplant the ethical obligations of engineers and cannot satisfy the requirements of a valid contract because they lack consent.

• E.

Such provisions shift risks to the parties that are unlikely to be in the best positions to control them and unnecessarily supplant the ethical obligations of engineers.

• F.

Such provisions are the work of unethical lawyers.

2. Which of following statements are accurate? [Mark all accurate answer choices; multiple answers possible]

A. Contracts are valuable tools for structuring relationships and setting the expectations of parties. Uncertainty about contract formation, terms, or consequences can be a source of risk/liability. Therefore, they should be left to lawyers, who are experts in this area. Interference by engineers should not be authorized by the contracting company.
B. Contracts are valuable tools for structuring relationships and setting the expectations of parties. Uncertainty about contract formation, terms, or consequences can be a source of risk/liability. While lawyers should be an important part of contracting processes, engineers offer important domain-specific expertise and should engage with contracting processes, be proactive about addressing potential risks and uncertainties, and should ensure that operations and contracts work together to do so.
C. Torts are ever-present sources of risk and liability. While lawyers might offer important guidance on avoiding tort risks, engineers offer important domain-specific expertise and should be proactive about addressing potential risks and uncertainties, ensuring that training, processes, and operations aim to avoid tort harms happening in the first place.
D. Torts are ever-present sources of risk and liability. Because this is a complicated area of law, engineers avoid taking on these issues and should instead rely on lawyers to ensure that tort harms are mitigated and addressed.
E. Torts are not nearly as delicious as tortes.

3. Which of the following best represents how an engineering manager should think about authority to contract? [Mark only one answer choice]

• A.

There is nothing a manager can do to deal with the uncertainty of contracts. It's hopeless. These employees are out of control! This world is dark and lonely. And I'm hungry.

• B.

Because contracts are promises enforceable by law, they represent opportunities for companies to make money from other parties. Therefore, a good manager will ensure that multiple agents/employees can bind a principal/company in various contracts. As such, a good manager will ensure that all employees have maximum authority to contract on behalf of the company.

• C.

Because contracts are promises enforceable by law, they represent a source of potential liability, especially where multiple agents/employees can bind a principal/company in various contracts. Therefore, a good risk manager will take care to ensure that all employees have clear instructions and training on when they can enter into contracts and will make clear to outside parties the steps that need to be taken to for the company to be bound to any contract.