Business Operations & Law Flashcards
7 cards from real Master Plumber Exam 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 Operations & Law flashcards as text
Which document establishes the legal scope of work, timeline, and payment terms between a plumbing contractor and a property owner?
Answer: Written contract or agreement
A written contract defines the mutual obligations of both parties, including scope, price, and schedule, and is the primary legal document governing the project.
OSHA's Hazard Communication Standard (29 CFR 1910.1200) requires employers to provide employees with Safety Data Sheets (SDS) for hazardous chemicals. How long must SDS records be retained?
Answer: 30 years
OSHA requires SDS records to be retained for 30 years to support long-term occupational health monitoring.
A plumbing contractor bids on a public works project. Under the Davis-Bacon Act, the contractor must pay workers:
Answer: Prevailing wages as determined by the U.S. Department of Labor
The Davis-Bacon Act requires federal contractors to pay locally prevailing wages and fringe benefits as determined by the DOL for each labor classification.
A plumbing company wants to protect its customer list and pricing formulas from being disclosed by former employees. The best legal tool is a:
Answer: Non-disclosure agreement (NDA)
An NDA (confidentiality agreement) legally prohibits employees from sharing proprietary business information with outside parties.
When a plumbing contractor submits a change order for additional work, what must the change order include to be enforceable?
Answer: Written description of work, revised price, and signatures of both parties
A valid change order must be in writing, describe the added or changed work, state the adjusted price, and bear signatures from both parties.
Which type of business structure provides its owners with limited personal liability while allowing profits and losses to pass through to personal tax returns?
Answer: Limited Liability Company (LLC)
An LLC combines the liability protection of a corporation with the pass-through taxation of a partnership or sole proprietorship.
A customer refuses to pay the final invoice, claiming the work was defective. The contractor believes the work was code-compliant. The most appropriate first step is to:
Answer: Send a certified demand letter outlining the dispute and resolution timeline
A certified demand letter creates a written record of the dispute and gives the customer formal notice before escalating to legal remedies.