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Chapter 1: THE CANADIAN LEGAL SYSTEM

Q155 What is Canadian common law system?


Common Law: The system of specific remedies was called Common Law.
Canadian common law system: The Canadian legal system of common law is based upon the
British Law. The Canadian common-law system evolved, developed & improved from the old
common-law system & the courts of equity.
Q156 As an engineer in Canada, which law you, have to follow?
The engineer complies with federal and provincial statues of relevance to his or her practice.
But, the Engineering, Geological, & Geophysical Professions Act, Regulations including the
Code of Ethics and Bi-laws are according with the permission of the Provincial Government.
Q157 Define statute?
Statute: Statute is codification of law enacted by the legislature determines at the time of
enactment. The provincial legislatures are generally empowered to enact statutes dealing with
matters of a provincial nature, including property rights.
Q158 What are subjects of provincial legislation?
Subjects of exclusive provincial legislation are:
# Direct taxation within province in order to raising Revenue for provincial purposes
# Management & sale of public lands belonging to province & of the timber & wood
# Lines of steam & other ships, railways, canals, telegraphs etc
# Property & civil rights in the province
# Administration of justice in the province including construction, maintenance & organization
of provincial courts civil or criminal)
Chapter 2: BUSINESS ORGANIZATIONS
Q159 Define different types of business organization?
The basic forms of business organizations are Sole proprietorship, Partnership and Corporation
Sole proprietorship: An individual carries on business by & for him. The proprietor enjoys the
profit & losses of the enterprise personally.
Partnerships: Persons who conduct a business in common view to profit. The death or
bankruptcy or insolvency of one of its partners dissolves a partnership.
Corporations: Corporation is an entity unto itself, distinct from its shareholder owners. The
Corporation described as fictitious person The Corporation itself owns its assets & incurs its
own liabilities. A shareholder of a corporation can contract with or sue that corporation and
the death of a shareholder does not have the effect of dissolving a corporation.
Q160 What are Private & public corporation?
Public Corporation: The shares of which are offered and distributed to the public in
accordance with the securities legislation and stock exchange requirements.
Private Corporation: is that in which the right to transfer is restricted, the number of its
shareholders is not more than 50, and any invitation to the public to subscribe for its securities is
prohibited.

Q161What is joint venture?


The joint venture: A form of business organization / partnership limited to one particular project
Privity of contract describes the legal relationship between parties to a contract.
Chapter 4: TORT LIABILITY
Q162 What are the Principles of tort law?
The principles of tort laws are (i) The defendant owed the plaintiff a duty of care (ii) The
defendant breached that duty by his / her conduct, and (iii) The defendants conduct caused
the injury to the plaintiff
# No contractual relationship is necessary for Tort liability
Q163 What is trite law?
Trite law: It is a law that an engineer is liable for incompetence, carelessness or negligence that
results in damages to his employer.
Q164 What is Libel and Slander?
Libel: A Written untrue statement publicly made by the defendant against the plaintiff.
Slander: A Verbal untrue statement publicly made by the defendant against the plaintiff.
Q165 What is Strict Liability and Vicarious Liability?
Strict Liability: A manufacturer is strictly liable for any damage that results from the use of the
product even though the manufacturer was not negligent in producing it.
Vicarious Liability: The employer is vicariously liable for the negligent performance of an
employee. If an employee commits a tort in the course of employment, the employer will be
vicariously liable.
Q166 What is Concurrent Tortfeasors?
Concurrent Tortfeasors: It is possible for more than one party to be liable a tort action. The
defendants are said to be Concurrent Tortfeasors.
Q167 How the reasonable care for engineers are measured?
The reasonable cares for engineers are measured by applicable professional standards of the
engineering profession at the time services are performed.

Chapter 5: LIMITATION PERIODS


Q168 What are the limitation period of breach of contract action?
The limitation period for tort and breach of contract are commenced as follows:
- 6 (Six) years from tort action arose
- 6 (Six) years for simple contracts and 20 (Twenty) years for contracts under seal.

Chapter 7: CONTRACTS
Q169 What are the elements of a contract?
The essential elements of a contract are (i) An offer made and accepted (ii) Mutual interest to
enter into the contract (iii) Consideration (iv) Capacity to contract (v) Lawful purpose.
Q170 Can contract be altered?
Parties can alter an existing contract, contractual agreement by mutual agreement, provided the
amendment is effected within the framework of the essential contract elements.

Chapter 8: OFFER AND ACCEPTANCE


Q171 What is Offer?
Offer: An offer is a promise made by one person to another. The offer may be communicated
orally. For the purpose of evidence, it is preferable to effect communications in writing. The
communication of the acceptance of an offer is effected only when it is actually received by the
offeror.
Q172 What is Option contract?
The option contract is another means of keeping an offer open for a certain period of time.
Chapter 9: INTENT
Q173 What is Letter of Intent?
Letters of Intent: Businesses use the letter to express interest in proceeding with a particular
transaction on the basis of further negotiation and subsequent agreement, known as Letter of
Intent.
Letters of intents are clearly agreements to agree but the agreement to agree does not constitute
enforceable contracts and does not contain all essential terms. It is in fact, no agreement at all.

Chapter 10: CONSIDERATION


Q174 What is Consideration?
Consideration: Consideration can be described as something of value that is exchanged between
contracting parties. Consideration is an essential part of an enforceable contract

Q175 What is Gratuitous promise?


Gratuitous means a promise without obligation. An offer without consideration or a seal is
strictly moral, no legal binding but can raise an equitable nature, is a gratuitous promise. No
contract is formed unless the document is sealed.
Q176 What is Equitable Estoppel?
Equitable Estoppel: is a concept that can be applied to prevent a party to a contract from
enforcing its strict contractual terms.
No contract is formed unless the document is sealed.

Chapter 11: CAPACITY


Q177 What is the age of majority?
The age of majority is 18 years in Ontario, Manitoba, Saskatchewan, Alberta and PEI; it is 19
years in Nova Scotia, New Brunswick, and Newfoundland.
Q178 When a contract is not enforceable?
# If it is beyond the capacity/power to enter into contract, the contract will not be enforceable.
# No contract is formed unless the document is sealed.
# A contract will not be enforced if the purpose of the contract is unlawful.
# Although a verbal contract may be unenforceable because of the Statute of Frauds, it will not
be treated as void
Minors are not normally eligible for contract. Contracts are enforceable by the lunatic (crazy) or
drunkard but unenforceable by the other party.
Chapter 12: LEGALITY
Q179 What is legality in contract?
Any transaction that is tainted by illegality in which both parties are equally involved is beyond
the pale of the law. No person can claim any right or remedy whatsoever under an illegal
transaction in which he has participated.
# A contract will not be enforced if the purpose of the contract is unlawful. For examples, if a
property is transferred between related parties & the transferor becomes bankrupt within 1 year
of the transfer, the transfer is void as far as the trustee in Bankruptcy in concerned.
# A contract that contravenes statutory law may be illegal and / or void. Also, a contract that is
against public policy may be illegal and / or void according to common law.
Chapter 13: THE STATUTE OF FRAUDS

Q180 What is contract and agreement?


A contract may be verbal or written. An agreement between parties is best set out in the form
of a single written contract that clearly details the agreement.
# There is an obvious problem with any verbal agreement & a verbal contract is unenforceable.
Best is if the contracts are written form
Chapter 14: MISREPRESENTATION, DURESS, AND UNDUE INFLUENCE
Q181 What is Misrepresentation?
Misrepresentation: A misrepresentation is a false statement or assertion of fact. To induce a
party to enter into a contract, if a misrepresentation is made, the misleading party may apply to
the court to have the contract rescinded.
Q182 What is Innocent misrepresentation?
Innocent misrepresentation: An innocent misrepresentation is a false assertion made by a party
who does not appreciate that the statement is false. An innocent misrepresentation is remedied by
rescission (cancellation) of the contract. The deceived party must repudiate the contract within a
reasonable length of time and is also entitled to claim compensation for damages in respect of
any costs sustained.
Q183 What is Fraudulent misrepresentation?
Fraudulent misrepresentation: A fraudulent misrepresentation is a statement made knowingly, or
without belief in its truth, or recklessly, careless whether it be true or false.
If the contract is fraudulent misrepresentation, the deceived party is entitled to rescind the
contract and to claim compensation for reasonable costs incurred as a result of entering into the
contract. The party can also sue for damages for deceit.
Q184 Define Duress, Economic Duress and undue influence
Duress: If a contract is induced by means of intimidation, it is void able and termed as duress.
It can be defined as threatened or actual violence or imprisonment used as a means of
persuading a party to enter into a contract.
If the amount evaluated in financial amount occurred under duress situation that is called
economic Duress.
Undue Influence: Undue influence is similar to duress, but arises in less drastic circumstances.
It occurs where one party to a contract dominates the free will of the other party to such an extent
as to be able to coerce the dominated party into an unfair agreement. It is an equitable concept.

Chapter 15: MISTAKE


Q185 Define common mistake in contract
Common mistake: If contracting parties have clearly reached agreement but have recorded the
provisions of the agreement inaccurately in a written contract, a common mistake has
occurred. One of the parties to the agreement can apply to the court for an order of rectification.
Q186 What is unilateral mistake in contract
Unilateral mistake: A unilateral mistake is a mistake made by only one party to a contract.

Chapter 17: CONTRACT INTERPRETATION


Q187 What is rule of contra proferentem?
Rule of Contra Proferentem: A contract rule of interpretation that underscores the importance of
clear and unambiguous language in the drafting of contract is the rule of contra proferentem.
Q188 What is Parol Evidence Rule?
Parol Evidence Rule: If a condition is agreed upon verbally but is not included in the contract,
the condition is not part of the contract. The contract law rule that precludes evidence of the
omitted condition is called the parol evidence rule.

Chapter 18: DISCHARGE OF CONTRACTS


Q187 How long a contract is in effect?
So long as any obligations described in the contract remain unfulfilled, the contract
remains in effect. Some contracts provide that obligation will continue beyond initial
performance and payment.
Example: for supply contract contains warranty provisions, for manufacturer undertakes to
remedy defects within a specified time period and for building contracts normally contains
warranty obligation
Q188 What is agreement to discharge?
Agreement to discharge: The parties to a contract are always free to amend the contract: they
can agree to cancel or terminate the contract upon mutually agreeable terms and conditions.

Q189 What is discharge by frustration and force majeure?


Discharge by frustration: Without default by either party to a contract, changing circumstances
may radically change the obligations of the parties. If this happens, the contract will have been
frustrated and is discharge by frustration.
The force majeure: The force majeure clause usually provides that time for completion will be
extended in the event of war, riot, insurrection, flood, labour dispute, or other events that
arise beyond the control of either party.
Chapter 19: BREACH OF CONTRACT
Q190 Define breach of contract?
Breach of Contract: If a party to a contract fails to perform obligations specified in the
contract, then the defaulting party has breached the contract.
If the engineer determines that the contractors performance has been inadequate, the contract
may terminate by the engineers client, the owner.
Q191 Define breach of contract?
Repudiation: When one party to a contract expressly tells the other party that he or she has no
intention of performing contractual obligations, the declaring party has repudiated the
contract.
A non-defaulting party is entitled to damages for losses incurred as a result of breach of the
contract.
Q192 Define the term Duty to Mitigate?
Duty to Mitigate: A party that suffers a loss through a breach of contract must take reasonable
steps to mitigate or reduce the amount of damages suffered. The plaintiff is expected to behave in
a reasonable manner in mitigating damages.
Q193 Define the term Liquidated damage?
Contracts often contain provisions whereby a party is required to pay prescribed damages if a
certain event occurs. In contracts these pre-estimated damages are called liquidated damages
and are very common on equipment supply & construction contracts.
Q194 Define the term quantum meruit?
Quantum Meruit: Certain services have been requested and performed, but no express
agreement was reached between the parties as to what payment would be provided in return for
the services. In such a situation, the court will award payment by implying that the party
performing the services ought to be paid a reasonable amount, that is an amount determined on
the basis of quantum meruit.
Q195 Define the term Specific performance and Injunction?
Specific performance: To remedy a contract dispute, the courts may require a party to a contract
to perform a contractual obligation. This remedy is called specific performance.

Injunction: An injunction is a court order that prohibits or restrains a party from the performance
of some act, such as breach of contract.
Chapter 20: FUNDAMENTAL BREACH
Q196 Define the term Fundamental breach?
Fundamental breach: Fundamental breach is a breach of such a nature as to go to the very root of
the contract.
Chapter 21: THE AGREEMENT BETN. CLIENT & ENGINEER
Q197 Define the term Fundamental breach?
An engineer is liable for incompetence, carelessness, or negligence that results in damages to
the client, where the engineer is responsible as a professional for not performing with an
ordinary & reasonable degree of care and skill.
Q198 An engineer served without agreeing the remuneration, how he will be paid?
The law implies that the engineer shall be paid a reasonable amount for services on a quantum
meruit basis if an engineer performs services without agreeing with the client on the amount of
remuneration to be received.
Chapter 22: CONCURRENT LIABILITY IN TORT & CONTRACT
Q198 What is meant concurrent liability?
If a contractor and an engineer is liable in tort as well as in contract for negligent performance of
contractual duties, the engineer and the contractor are concurrently liable in tort as well as in
contract.
Chapter 23: THE DUTY OF HONESTY
Q199 What is duty of care?
When an engineer enters into a contract, he or she assumes a duty of care in performing services.
The duty of care is the duty of the engineer to act with absolute honesty.
Q 200 What is different between Fraud and Offence?
Fraud: Fraud is a criminal offence it is punishable on conviction by imprisonment for 10 years
Offence: Offence deals with- bribes and kickbacks; it is punishable, by imprisonment for 5 years.
Chapter 24: CONSTRUCTION CONTRACTS

Q 201 What is the rule of an engineer in a construction contract?


The engineer is not normally a party to a construction contact; the engineer usually has a
separate contract with the owner / client.
Under the separate contract, the engineer undertakes (i) to prepare plans and specifications, (ii) to
assists in the tendering process and (iii) to administer the construction contract, between the
owner and the contractor
In a construction contract, the engineer is normally expected to inspect rather than actually
supervise the work method of the contractor.
Q 202 What is Tender?
Tender: A tender is a contractors offer to complete construction as described in the bid
submission. Some tendering procedures are set up so that the owners acceptance of the
contractors offer will constitute a contract between the owner and the contractor.
Q 203 Describe the different types of construction contract
Stipulated-price or Lump-Sum Contract: owner the benefited of knowing the total price for the
completion of the construction, subject to additions or deductions to or from the work
Unit-price Contract: for projects where it is difficult to predetermine the quantities.
Cost-plus Contract: (i) Cost plus percentage: often used on large-scale projects where there is
not enough time to finalize detailed plans and specifications.
(ii) Cost plus Lump-Sum Fee: provides compensation to the contractor for its costs incurred and
a fixed amount to cover the contractors overhead & profit.
(iii) Cost plus Lump-Sum Fee plus Bonus: provides with an incentive to reduce costs.
Guaranteed Maximum Price plus Bonus (GMP): the contractor receives a fixed fee as well as an
agreed-upon percentage of savings. The guaranteed maximum price contract offers the owner a
further advantage over a basic cost plus contract: the guaranteed maximum price feature.
Design-Build Contracts: normally the contractor arranges to obtain the necessary engineering
design services; to finalize the design detail and the detailed design is often finalized as the
construction work proceeds. The work proceeds on a cost plus bonus basis.
Q 204 Define Privity of contract
In construction contract, the owner enters into a constructional contract with a general
contractor, who in turn enters into subcontracts with various subcontractors, a contractual
relationship known as privity of contracts. exists between them.
The privity of contract exists between the owner and the general contractor & between the
general contractor and each of its trade subcontractors. But no privity of contract exists
between the owner and any of the subcontractors.
Chapter 25: RISKS IN CONSTRUCTION

Q 205 Why risk assessment are in force in construction contract?


The administration process of a Contract document should ensure the various aspects of risk
assessment. The risk assessments, all are in the interest of minimizing or avoiding the
undesirable cost and disruptive impacts of project dispute.
Q 206 Name some project risks
The risk assessment and allocation process needs to be carried out on a project-by-project basis.
Some specific projects risks are: International projects often involve additional risks relating to
currency exchange, convertibility of foreign currencies, inflation risks, political risk, operational
risk, contract interpretation difficulties etc.
Q 206 What is concealed or unknown risk
In a construction contract, when the subsurface or concealed physical conditions of the
Workplace or physical conditions of a nature differ materially from those indicated in the
Contract document and generally recognize as inherent in construction activities are termed as
concealed or unknown risk.
The observing party shall notify the other party in writing before conditions are disturbed and in
no event later than 5 working days after first observance of the conditions.
Q 207 In construction contract, what are the solution of Delays?
The Contractor will be entitled to both reimbursement and extension of time in the event of a
delay caused by an act or omission of the owner, the consultant, stop work order issued by a
court or other public authority, provided that the order was not issued as a result of the fault
of the contractor.
But under the force majeure provisions the contract time is to be appropriately extended and the
contractor is not entitled to payment for costs incurred unless such delays result from actions by
the owner.
Q 208 Name some force majure
Force majure: labour disputes, strikes, lockouts, fire, and unusual delay by common carriers, or
unavoidable casualties.
Q 209 What are the owners responsibilities for presence of toxic/hazardous construction site?
Prior to the Contractor commencing the work, the owner shall
(i) take all reasonable step to determine any toxic or hazardous are present at the workplace.
(ii) Provide the consultant and the contractor with a written list of any toxic or hazardous.
(iii) shall take all reasonable steps to ensure that no person suffers injury, sickness or death
(iv) shall take all reasonable steps to ensure that that no property is injured or destroyed as a
result of exposure to or the presence of toxic or hazardous substances or materials.

Q 210 What are the contractors responsibilities for presence of toxic/hazardous in construction
site?
If the contractor encounters or has reasonable grounds to believe that toxic or hazardous
substances or materials are present at the workplace, which were not disclosed by the owner, the
contractor shall
(i) take all reasonable steps including stopping the work to ensure that no person suffers injury,
sickness or death and that no property is injured or destroyed
(ii) immediately report the circumstances to the consultant and the owner in writing.
Q 210 What is CCDC?
CCDC: Canadian Construction Documents Committee publishes & deals with the Standard
form contact document for the Canadian construction industry.
Q 211 Who is responsible for the construction safety risks?
The contractor shall be solely responsible (i) for construction safety at the workplace (ii) for
compliance with the rules, regulation & practices required by construction health & safety
legislation, and (iii) for initiating, maintaining & supervising all safety precautions programs.
Q 212 What is Dispute resolution risks?
The purpose of the mandatory negotiation & mediation provisions in the CCDC form, is to bring
the parties to the settlement table to determine if their differences can be resolved without
proceeding to arbitration or litigation.
Q 213 What are the Construction risks?
The Construction Risks include:
the availability of sufficient labour forces in the area of the project to carry out the construction
the responsibility to obtain various building permits & approvals of regulatory authorities
the risk of access to the site being suitable for the project
the sufficiency of drawings and specifications
the likelihood adverse weather conditions
the risk of cost escalations during the course of project
the likelihood of delays in obtaining required approvals from the owner
the risks relating to owner supplied materials and equipment
the risks relating to impact of environmental assessments
the risks relating to archaeological discoveries during the performance of work
Q 214 What is the warranty period for Construction contract?
The warranty period (short) is one year from the date substantial performance of the work,
(longer) six years or those periods specified in the contract documents for certain portions of
the work.
The contractor shall be responsible for obtaining product warranties in excess of one year on
behalf of the owner from the manufacturer. The manufacturer shall issue this product warranty to
the benefit of the owner.
Chapter 26: BONDS AND INTERNATIONAL PERFORMANCE GUARANTEES

Q 215 What is Bond?


Bonds: Bonds are contract & commonly used on construction projects and many equipmentsupply contracts. Bonds are essentially contracts among three parties, the surety, the principal,
and the obligee. (i) the bonding company (the surety) agreeing to guarantee the performance of
a specified contractual obligation (ii) the principal (contractor or subcontractor) is the party
whose performance of the contractual obligation is guaranteed by the bonding company or surety
(iii) the obligee is the party for whose benefit the bond is provided.
* The Bond is not insurance.
* The surety indemnifies the obligee against loss arising from the principals failure to perform
the contractual obligation.
Q 216 What is Bid bond, Performance bond, Labour & material bond?
Bid bond: The bid bond is used in tendering. If the principals tender or bid is accepted the
principal is required to enter into a formal contract with the obligee. If the principal fails to enter
into the formal contract, he / she must pay to the obligee the difference in money between the
amount of the bid and the amount the obligee must pay another party for the work, up to
the face amount of the bid bond. Should the principal fail to pay, the surety has to pay it.
Performance bond: A performance bond indemnifies the obligee, if the principal doesnt
perform his / her contractual obligations. The indemnity is limited to the amount specified in the
performance bond. The performance bond is normally provided when the formal contract is
executed.
Labour & material bond: The purpose of a labour and material payment bond is to guarantee
that all claims will be paid for labour and materials provided to the principal for the project
described in the bond. Because there is usually no contract between the claimants and the
bonding company, the oblige acts as trustee for the benefit of such claimants.
Q 217 What is Letter of Credit?
Letter of Credit: The Letters of credit provide an assurance that funds are available if, contractor
defaults in performance. Normally the chartered banks or trust companies provide the letters.

Chapter 28: ARBITRATION AND ADR


Q 217 What is Arbitration?
Arbitration A lawsuit is always the best way to resolve a dispute between contracting parties.
The dispute may be resolved by a somewhat less formal procedure called arbitration.
Arbitration has developed to provide an alternative that is intended to be lass costly, less
protracted and less public than litigation. Arbitration is now a common approach to dispute
resolution, in Canada and abroad.
Q 218 What is ADR?

ADR (Alternative to Dispute Resolution): ADR is an important feature where disputes require
resolution on a timely basis so as to minimize, or at least, reduce the impact of the dispute on the
scheduling of the project. It is to bring the parties to the settlement table to determine if their
differences can be resolved without proceeding to arbitration or litigation.
Q 219 What is Mediation?
Mediation: Mediation is an important step in achieving a negotiated settlement dispute between
the participants in the construction industry.

Chapter 30: LIEN LEGISLATION


Q 220 Define Lien
Lien: a right to keep possession of anothers property till the owner pays a debt.
Provincial legislation creates certain lien rights and that requires amounts to be held back from
contractors until a specified time. For Alberta, after completion or abandonment of the contract,
the Percentage holdback is 15% and Time before holdback can be released 45 days

Chapter 31: THE COMPETITION ACT


Q 220 What are scope of Offense?
The scope of the offences under the Competition Act deals with (i) formation of monopoly (ii)
misleading advertising (iii) bid-rigging (iv) price fixing and (v) conspiracy to unduly limit
competition
Q 221 What is Misleading Advertisement?
No person shall make a representation to the public that is false or misleading in a material, in
the form of a statement, warranty or guarantee of the performance, efficacy or length of life of a
product that is not based on the adequate and proper test, warranty or guarantee of a product
or a promise to replace, maintain or repair an article if the warranty or guarantee or promise is
materially misleading.
Q 222 What is fine for misleading advertisement?
Conviction can result in a fine (no maximum limit) in the discretion of the Court or to
imprisonment for 5 (five) years, or to both.
Q 223 What is Bid-Rigging?
Bid-Rigging: Bid rigging means an agreement or arrangement between two or more persons, not
to submit a bid in response to a call or request for bids or tenders.
Every one who is a party to bid rigging is guilty of an indictable offence & liable on conviction
to a fine in the discretion of the court or to imprisonment for a term not exceeding 5 (five) years
or both.

Q 224 What is fine for Conspiracy?


Every one who conspires, combines, agrees or arranges with another person is guilty of an
indictable offence and liable to imprisonment for a term not exceeding 5 (five) years or to a fine
not exceeding 10 million dollars or both.

Chapter 32: REGULATORY ASPECTS AND ETHICS


Q 225 What is the purpose and objects of regulatory body for engineers?
Purpose: The general purpose of the governing legislation is to regulate the practice of
professional engineering, to protect the public interest.
Objects: The objects are: Procedures for election to Council, Mediating disputed engineering
fees, Issuing licenses & certificates of authorization, Prescribing requisite examinations,
Designating specialists & consulting engineers, Defining professional misconduct, Setting out
minimum requirements of professional liability insurance, Specifying the Code of Ethics of
professional engineers.
Q 226 What is meant by practice of engineering?
Practice of Professional engineering: means any act of designing, composing, evaluating,
advising, reporting, directing or supervising wherein the safeguarding of life, health, property or
the public welfare is concerned and that requires the application of engineering principals
but does not include practicing as a natural scientist.
Q 227 Notes on Professional Engineers Seal
Professional Engineers Seal: - the Provincial Association issues the Seal and it indicates that
the engineer is a registered Professional Engineer. A professional member, licensee or restricted
practitioner shall sign and stamp/seal the documents/records in accordance with the resolution.
No person other than a professional member, license, permit holder or certificate holder
shall use a stamp / seal issued by the registrar
Q 228 Is practicing professional engineering without a license an offense?
Practicing professional engineering without a license or holding oneself out as engaging in the
practice of engineering without being properly licensed, includes a fine not more than $25,000
for the 1st offence and not more than $50,000 for each subsequent offence.
Q 229 Notes about Code of Ethics.
*Professional Engineers respect & implement their codes of ethics as professionals discharging
their duties to the public, their employers, their clients, their colleagues, their profession and
themselves.

* The Code of Ethics emphasizes the paramountcy of the engineers duty to public welfare,
protecting confidential information of employers, of disclosing conflicts of interest to clients, cooperating respecting & fairly dealing with other colleagues.
* The responsibility of the engineer to the engineering profession is to maintain the professions
honour & integrity. Where a professional engineer undertakes to review the work of another
professional engineer, the other professional engineer is to be notified.
* A practitioner shall act as a faithful agent or trustee and shall regard as confidential information
to the business affairs, technical methods / processes and avoid or disclose a conflict of interest
* A practitioner must disclose immediately to his client any interest (direct or indirect) that might
construed as prejudicial and must co-operate in working with other professionals engaged on a
project
*A practitioner shall give the proper credit for engineering work, uphold the principal of
adequate compensation for engineering work, provide opportunity for professional development
& advancement of the associates / subordinates
* A practitioner shall maintain the honour and integrity of the practitioners profession and
without fear or favour expose before the proper tribunals
Q 230 Define professional misconduct and negligence
Professional misconduct:
i) Failure or negligence to take action to safeguard life, health, or property or the safety or
welfare of the public, constitutes professional misconduct
ii) Failure to act to correct or report a situation that the practitioner believes may endanger the
safety or the welfare of the public
iii) Failure to make responsible provision for complying with applicable statutes, regulations,
standards, codes, by-laws & rules in connection with work
iv) Signing or sealing a final drawing, specification, plan, report or other documents not actually
prepared or checked by the practitioner
v) Failure to present clearly to his employer the consequences to be expected from a deviation
proposed in work
vi) Breach of the act or regulation or code of ethics
vii) Undertaking work the practitioner is not competent to perform by virtue of his training &
experience
viii) Failure to make prompt, voluntary and complete disclosure of an interest, direct or indirect,
that might be construed prejudicial to the professional judgement
ix) Disgraceful, dishonorable or unprofessional conduct
x) Failure by a practitioner to abide by the terms, conditions or limitations of license, limited
license, temporary license or certificate
xi) Failure to supply documents or information requested by an investigator
xii) Permitting, counseling or assisting a person whom is not a practitioner to engage in the
practice of professional engineering

xii) Accepting compensation in any form for a particular service from more than one party.
xiii) Submitting a tender or acting as a contractor in respect of work upon which the practitioner
may be performing as a professional engineer
xiv) Participating in the supply of material or equipment to be used by the employer or client of
the practitioner
xv) Contracting the practitioners own right to perform professional engineering services for
other than the practitioners employer
xvi) Expressing opinions or making statements concerning matters within the practice of
professional engineering of public interest where the opinions or statements are inspired or paid
for by other interests

Chapter 35: THE NORTH AMERICAN FREE TRADE AGREEMENT


Q 231 Notes on NAFTA
NAFTA: North American Free Trade Agreement, Canada, USA & Mexico (1994)
FTA: Free Trade Agreement, Canada & USA, effective on January 1, 1989
*Procurement procedure under NAFTA are designed to ensure that each of the three parties
procedures are fair, equal & entitle open excess to each partys procurement opportunities.
* As a general rule, a person who is neither a citizen nor a permanent resident of Canada will be
authorized to take employment in Canada only if there is no qualified Canadian available to fill
the position in question.
* The 4 categories of businesspersons recognized under NAFTA are a) Business Visitors, b)
Traders & Investors, c) Intra-companies Transferees and d) Professionals.

Chapter 36: LAWS RELATING TO EMPLOYMENT


Q 231 Which type of legislation is under Federal law?
Federal Laws: Federal labour legislation governs labour relations & employment matters where
industries and undertakings of an inter-provincial, national or international nature &
concerned.
*The most significant of the federal statutes is the Canada Labour Code. The Canada Labour
Code covers 3 (three) general areas of employment law: i.) Employment standards ii.) Safety of
employees, and iii.) Relation between trade union & employers,
Q 232 Which type of legislation is under Provincial law?
Provincial Laws: Provincial law deals with (i) Relations between Trade union & Employers, (ii)
Labour Standards, (iii) Workers Compensation and (iv) Occupational Health & Safety

Q 233 What is CPP?


CPP: Under Canada Pension Plan, an employer is required to deduct from an employee a
percentage of the employees earnings from pensionable employment and remit that amount to
the federal government together with an amount contributed by the employer.
Q 234 When the Employment equity act was passed?
Employment equity: The federal government passed the Employment Equity Act in 1986 in
an effort to promote equity and non-discriminatory practices in the workplace.
Q 235 What is Workers compensation Act?
The Workers Compensation act: The Act provides for an employer-financed accident fund for
medical aid and for loss of earnings. The fund compensates permanent or partial disability
caused by personal injury, accident or illness that results from employment. When an
accident occurs, the employer is required to fill out an accident report. The report must be sent to
the board within three days (72 hours).
Q 236 What is Human Right Code?
The Human Right Code: The Code establishes that every person has right to equal treatment
with respect to employment, without discrimination because of race, ancestry, place of origin,
colour, ethnic origin, citizenship, creed, sex, sexual orientation, age, marital status, family
status, record of offences, or handicap.
Q 237 Notes on Occupational Health and Safety?
*The Occupational Health and Safety act: Employee safety is covered by the Occupational
Health & Safety Act. The Act provides that a health & safety committee is required at most
workplaces where twenty (20) or more workers are employed.
* This Act contains the provisions that give an employee a broad power to refuse to perform
work where the employee has reasonable cause to believe that the machine or device being
used, or the workplace in which the employee is working, IS UNSAFE.
* Breach of duties under this Act can lead to charge & prosecution. The maximum fine for
corporations is $500,000 for each offence.