Chapter 15 Quiz PDF

Property Management Instructor Materials Chapter 15 Quiz 1. A maintenance worker employed by a manage-   ,QIRUPDWLRQ DERXW KRZ WR VKXW R൵ XWLOLWLHV ment company assaults a tenant. For the tenant should be found in the: to be able to successf...

Property Management Instructor Materials Chapter 15 Quiz 1. A maintenance worker employed by a manage-   ,QIRUPDWLRQ DERXW KRZ WR VKXW R൵ XWLOLWLHV ment company assaults a tenant. For the tenant should be found in the: to be able to successfully sue the company a) emergency procedures manual under a theory of negligent hiring, the tenant b) employee handbook will need to prove all of the following, except: c) insurance binder a) the danger posed by the employee should d) lease agreement have been known at the time of hiring b) the manager should have known the em- 7. An emergency procedures manual for a prop- ployee was a danger to tenants HUW\ VWDWHV WKDW ZKRHYHU ¿QGV DQ HPHUJHQF\ c) the reason the employee was dangerous was problem will telephone the maintenance su- related to the injury he caused pervisor, who in turn will call the property d) the tenant did not provoke the employee manager and the skilled maintenance worker. This is known as a: 2. Before hiring an independent contractor to a) delegation schedule perform a task, a manager should request that b) phone schedule the contractor has: c) phone tree a) proof of insurance d) work log b) a policy of errors and omissions insurance c) an employee handbook 8. Occupational Safety and Health Administration d) no criminal history whatsoever regulations may require workplaces to:  D KDYHD¿UVWDLGNLGDYDLODEOH   $Q HPSOR\HH KDQGERRN VKRXOG JLYH VSHFL¿F  E KDYHDVWD൵PHPEHUWUDLQHGLQ¿UVWDLG instructions on how to avoid all of the follow-  F KDYHDOOVWD൵PHPEHUVWUDLQHGLQ¿UVWDLG ing, except: d) Both A and B a) discriminatory practices b) sexual harassment 9. State or local laws may require all of the fol-  F WD[OLDELOLW\RQRSHUDWLRQDOSUR¿WV lowing, except: d) unacceptable behavior toward tenants  D  FHUWDLQ QXPEHU RI ¿UH H[WLQJXLVKHUV SHU ÀRRU 4. All of the following would be regulated by state b) emergency lighting in hallways or federal labor laws, except:  F  QRWLI\LQJWHQDQWVRIORFDWLRQRI¿UHH[WLQ- a) number of hours that can be worked guishers b) overtime requirements  G  WUDLQLQJWHQDQWVLQ¿UH¿JKWLQJWHFKQLTXHV c) remodeling apartment buildings d) workers’ compensation  5HWUR¿WWLQJDQROGHUEXLOGLQJFDQR൵HUSURWHF- tion against serious damage from: 5. To reduce risk from the property, a manager  D ÀRRGLQJ should do all of the following, except: b) an earthquake a) avoid keeping permanent records of mainte- c) dry rot nance problems so as not to create liability d) termites b) inspect the property frequently c) notify tenants of problems that can’t be promptly repaired d) repair problems promptly 14  Chapter 15: Risk Management 11. A shopping center employs several security 15. A property’s hazard insurance policy will pay guards. Concerning techniques for dealing with up to $100,000 per incident, or up to $250,000 suspected shoplifters, the management should SHU\HDU7KHEXLOGLQJVX൵HUVLQGDP- JLYHVSHFL¿FLQVWUXFWLRQVWRWKHJXDUGVDERXW age to several balconies from a falling tree a) how much force they can use early in the year, and then later that year, it suf- b) how they can detain persons fers $275,000 in damage to several units from c) under what conditions they can detain D¿UH+RZPXFKZLOOWKHLQVXUDQFHFRPSDQ\ persons pay toward the second claim? d) All of the above a) $25,000 b) $100,000 c) $225,000 12. To make sure a building is secure, a property d) $250,000 manager should do all of the following, except:  D  DYRLG VDIHW\ LQVSHFWLRQV R൵HUHG E\ ORFDO police to avoid creating liability 16. An older building’s depreciated value is b) eliminate overgrowing landscaping near the $280,000. It would cost $450,000 to build a building new building with the same size and use, how- c) have the tenant sign a form stating that she ever. It sits on a lot that is valued at $100,000. has been shown how to set the alarm system ,I WKH EXLOGLQJ LV GHVWUR\HG E\ ¿UH DQG LW LV d) test the alarm system before a new tenancy insured under a policy that pays replacement begins value, how much will the owner receive from the insurance company? (Ignore any deduct- ible.) 13. An apartment building’s manager has cast a a) $280,000 blind eye to drug activity on a property for b) $380,000 years, and now the property has been declared c) $450,000 a public nuisance. This can lead to all of the d) $550,000 following, except: a) criminal charges  E ¿QHV 17. A basic homeowner insurance policy, without c) forfeiture of the property any endorsements, will cover which of the fol- d) punitive damages lowing perils? a) Earthquake b) Flood 14. Which of the following individuals would have c) Water damage from broken plumbing an insurable interest, in regard to a hazard insur- d) Windstorm ance policy for an apartment building? a) Owner b) Property manager  $QDSDUWPHQWEXLOGLQJVX൵HUVD¿UHDQGWKH c) Tenant tenants must move out while the building is d) Tenant’s guest being repaired. The owner misses out on any rental payments during those several months. What type of insurance would counteract this risk for the owner? a) Basic liability insurance b) Business interruption insurance c) Errors and omission insurance d) Hazard insurance 15  Property Management Instructor Materials  :KRZRXOGEHQH¿WIURPDQHUURUVDQGRPLV- sions insurance policy? a) Owner, to protect against liability to injured guests b) Owner, to protect against repair costs to RXWGRRU¿[WXUHV c) Property manager, to protect against claims of negligence by the property’s owner d) Tenant, to protect her own possessions  7KHSXUSRVHRID¿GHOLW\ERQGLVWRFRYHUORVVHV due to: a) automobile accidents for which an em- ployee is responsible b) embezzlement or fraud by an employee c) injuries to tenant by malfunctioning equip- ment d) physical violence committed by an em- ployee upon a tenant 16  Chapter 15: Risk Management Answer Key 1. d) To prove negligent hiring, the manager 8. d) OSHA regulations require workplaces should have known the employee was WRKDYH¿UVWDLGNLWVDOVRLQPDQ\ a danger, the danger should have been workplaces, at least one person must known at the time the employee was EHWUDLQHGLQ¿UVWDLG+RZHYHUQRWHY- hired, the employee injured a cowork- HU\SHUVRQQHHGVWREHWUDLQHGLQ¿UVW er, tenant, or third party, and the injury aid. was related to the reason that the em- ployee was dangerous. 9. d) A tenant should not be trained how to ¿JKWD¿UHEXWVKRXOGEHLQIRUPHGRI 2. a) A manager hiring an independent con- ZKHUHVPRNHGHWHFWRUVDQG¿UHH[WLQ- WUDFWRUVKRXOGUHTXHVWDFHUWL¿FDWHRI guishers are. insurance, as proof that the contractor has adequate insurance coverage. 10. b) Remodeling a building to strengthen it to increase its odds of surviving an 3. c) An employee handbook for property HDUWKTXDNHLVNQRZQDVUHWUR¿WWLQJ management employees should cover discrimination, sexual harassment, and G  'L൵HUHQWPDQDJHUV GHSHQGLQJRQ unacceptable behavior. what their insurers and/or lawyers tell WKHP PD\JLYHVHFXULW\VWD൵GL൵HUHQW 4. c) Regulation of remodeling activities is instructions on how and when to detain through building codes. The other op- suspected shoplifters, and how much tions are all regulated through labor force to use. laws.  D  $VDIHW\LQVSHFWLRQR൵HUHGE\DSROLFH 5. a) Keeping track of repair requests and agency or an insurance company, may repairs made will help protect a land- KHOSDSURSHUW\PDQDJHUVSRWDQG¿[ lord from claims that he didn’t respond problems. If an inspection reveals a in a timely fashion to safety problems. problem that the manager doesn’t seek to correct, that is what might create li- 6. a) The emergency procedures manual ability. LVSUHSDUHGWRKHOSWHQDQWVDQGVWD൵ respond to an emergency; among the 13. d) Declaration of a public nuisance can most important items it covers is how OHDGWR¿QHVFULPLQDOFKDUJHVRULQ WRVKXWR൵XWLOLWLHV extreme cases, forfeiture of the prop- erty. 7. c) A phone tree is a way of spreading word in event of an emergency so that 14. a) An insurable interest requires an own- one person isn’t tied up making phone ership interest or some other right in calls; each person will have the duty of the property being insured. The owner contacting several more persons. of an apartment building would have the insurable interest, concerning the building itself. 17  Property Management Instructor Materials 15. b) Insurance policies usually have a coverage limit per incident, and also a coverage limit per year. In this case, the second incident would be subject to the $100,000 per incident limit, even though more money would be available under the per year limit. 16. c) If an insurance policy pays replace- ment value, and the building is destroyed, the owner will receive the amount it would cost to build a re- placement building (one with the same utility), in this case $450,000. The in- surer will not pay the value of the land. 17. d) Windstorm damage is covered under a basic homeowner’s policy. Plumbing- related water damage is covered under a broad form policy, while earthquake DQGÀRRGGDPDJHUHTXLUHVSHFLDOHQ- dorsements. E  ,IDEXLOGLQJLVR൵WKHPDUNHWIRUD while because of a disaster, business interruption insurance will cover the building’s lost rental payments. 19. c) An errors and omissions insurance policy protects a professional service provider, such as a property manager, against claims of negligence by a cli- ent. In this way, it’s similar to the malpractice insurance carried by doc- tors or lawyers. E  $¿GHOLW\ERQGLVVLPLODUWRLQVXUDQFH LWR൵HUVSURWHFWLRQRIDQRZQHU¶VIXQGV or a manager’s funds, up to a certain dollar amount, against losses caused by embezzlement, fraud, or another criminal act by an employee or con- tractor. 18