Business and Law Practices Flashcards
7 cards from real Licensed Electrical Contractor practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Business and Law Practices flashcards as text
Which federal agency enforces workplace safety and health regulations for electrical contractors?
Answer: OSHA (Occupational Safety and Health Administration)
OSHA enforces workplace safety standards, including electrical safety standards under 29 CFR 1910 (general industry) and 1926 (construction).
A contract clause that limits the contractor's liability to the total value of the contract is called a:
Answer: Limitation of liability clause
A limitation of liability clause caps the contractor's maximum financial exposure, often set at the contract price or a specified dollar amount.
Under the Americans with Disabilities Act (ADA), electrical contractors renovating commercial facilities must ensure that new electrical work:
Answer: Does not create barriers that reduce accessibility for persons with disabilities
ADA requires that renovations to commercial facilities not create new barriers to accessibility, including placement of outlets, panels, and controls at accessible heights.
An electrical contractor's 'markup' on materials is intended to cover:
Answer: The cost of materials plus overhead and profit attributable to procurement
Material markup covers not just the purchase price but also the overhead costs of procurement, storage, handling, and a profit margin.
Which document outlines the rights and obligations of partners in an electrical contracting business partnership?
Answer: Partnership agreement
A partnership agreement defines each partner's roles, profit/loss sharing, decision-making authority, and procedures for dissolving the partnership.
A liquidated damages clause in a construction contract specifies that:
Answer: A predetermined daily penalty applies for each day the project is completed late
Liquidated damages clauses pre-establish a daily dollar amount the contractor owes for each day of project delay beyond the completion date.
When a contractor is required to furnish a 'performance and payment bond,' which entity typically issues this bond?
Answer: A surety company (bonding company)
Performance and payment bonds are issued by surety companies, which guarantee the contractor will complete the project and pay subcontractors and suppliers.