CPC Contract Negotiation & Placement Agreements 3

Question 1

Co-employment risk in temporary staffing arrangements primarily exposes the client to:

Accepted Answer

Potential obligations for employee benefits and employment law compliance as if the temp were a direct employee

Answer

Liability for paying the staffing agency's corporate taxes

Answer

Responsibility for the agency's workers' compensation premiums

Answer

Fines for not converting temps to full-time employees within 90 days

Question 2

Which contractual provision best protects a recruiting firm from having a client hire a presented candidate directly after the agreement expires?

Accepted 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

Answer

A non-disclosure agreement signed by the candidate

Answer

A non-compete agreement with the client company

Answer

A clause requiring the client to notify the recruiter of any internal hires

Question 3

In executive search, fees expressed as a percentage of first-year total compensation are most commonly set in the range of:

Accepted Answer

25–35%

Answer

5–10%

Answer

15–20%

Answer

40–50%

Question 4

A 'scope of work' section in a placement agreement is critical because it:

Accepted Answer

Clearly defines the position, qualifications, compensation range, and recruiter's responsibilities to manage expectations

Answer

Sets the maximum number of interviews the client must conduct

Answer

Legally binds the candidate to accept the position if offered

Answer

Determines the geographic area in which the recruiter can source candidates

Question 5

When a dispute arises over a placement fee, what clause in the agreement would determine whether the matter goes to arbitration or litigation?

Accepted Answer

The dispute resolution clause

Answer

The indemnification clause

Answer

The guarantee clause

Answer

The exclusivity clause

Question 6

A 'most favored nation' clause in a staffing agreement benefits the client by ensuring:

Accepted Answer

The client receives the lowest fee rate the recruiter offers to any comparable client

Answer

The recruiter gives the client first access to top candidates before offering them to other clients

Answer

The recruiter works exclusively for that client in the industry sector

Answer

The client is not charged more than competitors for the same position type

Question 7

Which of the following best describes a 'no-poach' agreement between two client companies managed by the same recruiting firm?

Accepted Answer

An agreement where the recruiter will not present candidates from one client to the other without consent

Answer

A legal contract preventing either client from hiring the recruiter's own internal staff

Answer

A clause preventing the recruiter from charging different fees to each client

Answer

An arrangement allowing both clients to share candidate resumes for mutual benefit