The total examination is in two parts, and both must be completed within the three-hour period. Dictionaries are not permitted. The marking of questions will be based not only on academic content, but also on legibility and the ability to express oneself. If you have any doubt about the meaning of a question, submit with your answer a clear statement of how you have interpreted the question. Question number 1 must be answered by all candidates.
All full questions are of equal value.
Ace Furniture and Appliance Distributors Inc. In order to improve its distribution facilities, ACE decided to build a new warehouse in Markham, Ontario to replace two smaller warehouses which it was currently leasing. During the backfilling, one of the construction workers on the site noticed cracks appearing in the warehouse's foundation and quickly motioned to Phil Scooper to stop the backfilling because there was a problem. On closer examination, it turned out that there were several severe cracks in two of the foundation walls. As a result of the cracking, ACE incurred extra costs in repairing the foundation.