Contract Negotiation & Placement Agreements Flashcards
7 cards from real CPC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contract Negotiation & Placement Agreements flashcards as text
Co-employment risk in temporary staffing arrangements primarily exposes the client to:
Answer: Potential obligations for employee benefits and employment law compliance as if the temp were a direct employee
When clients direct and control temp workers similarly to their own employees, courts may deem them co-employers, making them liable for benefits, discrimination claims, and other employment law obligations.
Which contractual provision best protects a recruiting firm from having a client hire a presented candidate directly after the agreement expires?
Answer: A tail clause specifying that a fee is owed if the client hires a presented candidate within a defined period after the agreement ends
A tail clause (or fall-off clause) extends the fee obligation for a specified period — commonly 6 to 12 months — after the contract ends, preventing clients from waiting out the agreement to avoid paying for referred candidates.
In executive search, fees expressed as a percentage of first-year total compensation are most commonly set in the range of:
Answer: 25–35%
Executive search fees typically range from 25% to 33% of the placed executive's first-year total compensation, reflecting the specialized nature of senior-level searches.
A 'scope of work' section in a placement agreement is critical because it:
Answer: Clearly defines the position, qualifications, compensation range, and recruiter's responsibilities to manage expectations
A detailed scope of work prevents misunderstandings by documenting exactly what role is being filled, what qualifications are required, and what each party is expected to contribute during the search.
When a dispute arises over a placement fee, what clause in the agreement would determine whether the matter goes to arbitration or litigation?
Answer: The dispute resolution clause
A dispute resolution clause specifies the agreed mechanism for resolving disagreements — such as mandatory arbitration, mediation, or litigation — and the governing jurisdiction, avoiding costly and uncertain legal proceedings.
A 'most favored nation' clause in a staffing agreement benefits the client by ensuring:
Answer: The client receives the lowest fee rate the recruiter offers to any comparable client
A most favored nation (MFN) clause requires the staffing firm to extend to the client the same or better fee terms it offers to any comparable client, preventing preferential pricing for others.
Which of the following best describes a 'no-poach' agreement between two client companies managed by the same recruiting firm?
Answer: An agreement where the recruiter will not present candidates from one client to the other without consent
A no-poach arrangement between clients through a shared recruiter restricts the recruiter from sourcing employees of one client and presenting them to the other, maintaining the off-limits obligations to both parties.