Oregon Construction Contractors (CCB) Practice Test

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What type of employment relationship is characterized by mutual agreement and defined terms?

At-will
Contractual
Temporary
Permanent

The correct answer is: Contractual

The correct answer is defined as a contractual employment relationship. This type of relationship is formally established through a written or verbal agreement between the employer and employee, outlining specific terms and conditions regarding the job. These terms typically include job duties, compensation, duration of employment, and other relevant expectations, ensuring clarity and mutual understanding. In contrast, at-will employment does not require a mutual agreement on the employment terms and allows either party to terminate the relationship at any time, with or without cause. Temporary employment refers to jobs that are intended to last for a limited duration, which may not include a comprehensive set of defined terms applicable for the entire employment span. Permanent employment suggests an ongoing relationship without a fixed end date but does not necessarily imply a formalized agreement with specified terms as in a contractual situation. Thus, the contractual relationship stands out for its clear definitions and mutual consent, making it the most appropriate answer in this context.