CPC Contract Negotiation & Placement Agreements 2

Question 1

In a temp-to-perm conversion, a client who directly hires a temporary worker typically owes the staffing agency:

Accepted Answer

A conversion fee as specified in the original staffing agreement

Answer

No fee, since the original temp assignment was already paid

Answer

Only the remaining weeks of the original assignment billing

Answer

A fee equal to the worker's first month of permanent salary

Question 2

Which of the following is the most important element to define in a placement agreement to prevent fee disputes?

Accepted Answer

The exact definition of what constitutes a successful placement

Answer

The number of candidates the recruiter will present

Answer

The recruiter's sourcing methodology

Answer

The candidate's right to negotiate salary directly

Question 3

A 'split-fee arrangement' in recruiting refers to:

Accepted Answer

Two recruiting firms sharing a placement fee after one provides the job order and the other provides the candidate

Answer

Dividing the fee between the recruiter and the client equally

Answer

Billing the client in installments rather than a lump sum

Answer

Splitting the fee between direct placement and retained search components

Question 4

A counter-offer clause in a placement agreement is designed to protect the recruiter by:

Accepted Answer

Entitling the recruiter to a full fee even if the placed candidate accepts a counter-offer and does not join the client

Answer

Requiring the candidate to reject any counter-offer from their current employer

Answer

Allowing the recruiter to renegotiate the fee if the candidate receives a counter-offer

Answer

Preventing the client from offering more than the agreed salary range

Question 5

An indemnification clause in a staffing agreement protects the client by requiring the staffing agency to:

Accepted Answer

Hold the client harmless from claims arising from the agency's negligent actions or omissions

Answer

Verify all candidate credentials before presenting them

Answer

Maintain liability insurance equal to the client's total payroll

Answer

Guarantee that no placed candidates will file workers' compensation claims

Question 6

When negotiating payment terms in a placement agreement, 'net 30' means the client must pay:

Accepted Answer

Within 30 calendar days of the invoice date

Answer

Within 30 business days of invoicing

Answer

After a 30-day probationary period for the new hire

Answer

30 days before the candidate's start date

Question 7

A prorated fee refund schedule in a replacement guarantee clause typically means the refund amount:

Accepted Answer

Decreases as the candidate stays longer through the guarantee period

Answer

Stays the same regardless of when the candidate leaves

Answer

Increases if the candidate leaves for reasons related to job dissatisfaction

Answer

Is determined solely at the client's discretion