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License Law & Business Exam – CSLB |
2026/2027 Edition | Verified Questions &
Answers
Which of the following statements about advertising is correct?
A)An unlicensed contractor may advertise for jobs submitting an application for a contractors
license
B) Unlicensed contractors may advertise for jobs under $500 if the ads state they are unlicensed.
C) A licensed general engineering or building may not advertise as a "general contractor."
D) All of the above
B) Unlicensed contractors may advertise for jobs under $500 if the ads state they are unlicensed.
Which of the following requires a contractors license?
A) A person who hires employees to build structures on his or her own property.
B) A person who installs satellite antenna systems on residences.
C) A person who only installs electric fire alarm systems.
D) A person who only installs security alarm systems.
C) A person who only installs electric fire alarm systems.
A contractor must notify the Registrar in writing of a change of business address within ____
days.
A)15
B)20
C)60
D)90
D)90
A contractor may renew an expired license up to ___ years from the date it expired.
A) 1
B)2
C)5
D)7
C) 5
An active contractor's license must be renewed every ___ years.
A) 2
B) 3
C) 4
D) 10
A) 2
,Which of the following is NOT true of an inactive license?
A) An inactive license must be renewed every four years.
B) Inactivating a license will not prevent disciplinary action against the contractor.
C) You may not practice as a contractor until the license has been reactivated.
D) An inactive license requires a contractors bond.
D) An inactive license required a contractors bond.
Which of the following is NOT a cause for disciplinary action by the Registrar?
A) Abandonment of a job without lawful excuse.
B) Not paying subcontractors immediately upon receipt of a progress payment.
C) Diversion of funds or materials from one job to another.
D) Willful departure from or disregard of approved plans or specifications.
B) Not paying subcontractors immediately upon receipt of a progress payment.
How many days does a contractor have to appeal a citation from the Registrar?
A)10
B)15
C)30
D)90
B) 15
Which fees are NOT paid for by the Registrar in a CSLB arbitration?
A) Arbitrator's fee
B) Administrative fee
C) Expert witness fee
D) Attorney's fees
D) Attorney's fees
The Underground Service Alert color code for a sewer line is:
A) Green
B)Blue
C)Purple
D)Orange
A) Green
A contractor must notify the CSLB in writing within how many days from the time a registered
home improvement salesperson ceases to be employed?
A) 10
B) 15
C) 30
D) 90
D) 90
A contractor and owner agree to a price of $35,800 for a home improvement project and sign a
contract. What is the maximum down payment that the contractor may require before starting
work?
A) up to 50 percent of the contract price
B) $1,000
, C) $3,580
D) $7,160
B) $1,000
Home improvement contracts must include all of the following, except:
A) the name, address, and license number of the contractor
B) statement that the contractor has a workers' comp policy or is exempt
C) exact dates when work will begin and be completed
D) "Mechanics' Lien Warning"
C) Exact dates when work will begin and be completed
A joint control is primarily a third party management of the:
A) safety equipment and procedures
B) job scheduling
C) inspections by a building official
D) construction funds
D) Construction funds
If a contractor's bilingual salesperson makes a presentation to a customer in Spanish, the home
solicitation contract:
A) may be written in English if the contract is clear and legible.
B) must be signed by an english speaking representative of the customer.
C) must be in Spanish
D) must be notarized
C) must be in Spanish
The maximum time an owner has to cancel a home solicitation contract is:
A) 24hrs from midnight of the day the contract was signed
B) until midnight of the second business day after the day the contract was signed
C) until midnight of the third business day after the day the contract was signed
D) 7 days
C) until midnight of the third business day after the day the contract was signed.
How many days does a contractor have to refund any payments from the date that a home
solicitation contract is canceled?
A) 10
B) 15
C) 20
D) 30
A) 10
The contract price of a service and repair contract may not exceed:
A) $750
B) $1,000
C) $1,500
D) $5,000
A)$750
License Law & Business Exam – CSLB |
2026/2027 Edition | Verified Questions &
Answers
Which of the following statements about advertising is correct?
A)An unlicensed contractor may advertise for jobs submitting an application for a contractors
license
B) Unlicensed contractors may advertise for jobs under $500 if the ads state they are unlicensed.
C) A licensed general engineering or building may not advertise as a "general contractor."
D) All of the above
B) Unlicensed contractors may advertise for jobs under $500 if the ads state they are unlicensed.
Which of the following requires a contractors license?
A) A person who hires employees to build structures on his or her own property.
B) A person who installs satellite antenna systems on residences.
C) A person who only installs electric fire alarm systems.
D) A person who only installs security alarm systems.
C) A person who only installs electric fire alarm systems.
A contractor must notify the Registrar in writing of a change of business address within ____
days.
A)15
B)20
C)60
D)90
D)90
A contractor may renew an expired license up to ___ years from the date it expired.
A) 1
B)2
C)5
D)7
C) 5
An active contractor's license must be renewed every ___ years.
A) 2
B) 3
C) 4
D) 10
A) 2
,Which of the following is NOT true of an inactive license?
A) An inactive license must be renewed every four years.
B) Inactivating a license will not prevent disciplinary action against the contractor.
C) You may not practice as a contractor until the license has been reactivated.
D) An inactive license requires a contractors bond.
D) An inactive license required a contractors bond.
Which of the following is NOT a cause for disciplinary action by the Registrar?
A) Abandonment of a job without lawful excuse.
B) Not paying subcontractors immediately upon receipt of a progress payment.
C) Diversion of funds or materials from one job to another.
D) Willful departure from or disregard of approved plans or specifications.
B) Not paying subcontractors immediately upon receipt of a progress payment.
How many days does a contractor have to appeal a citation from the Registrar?
A)10
B)15
C)30
D)90
B) 15
Which fees are NOT paid for by the Registrar in a CSLB arbitration?
A) Arbitrator's fee
B) Administrative fee
C) Expert witness fee
D) Attorney's fees
D) Attorney's fees
The Underground Service Alert color code for a sewer line is:
A) Green
B)Blue
C)Purple
D)Orange
A) Green
A contractor must notify the CSLB in writing within how many days from the time a registered
home improvement salesperson ceases to be employed?
A) 10
B) 15
C) 30
D) 90
D) 90
A contractor and owner agree to a price of $35,800 for a home improvement project and sign a
contract. What is the maximum down payment that the contractor may require before starting
work?
A) up to 50 percent of the contract price
B) $1,000
, C) $3,580
D) $7,160
B) $1,000
Home improvement contracts must include all of the following, except:
A) the name, address, and license number of the contractor
B) statement that the contractor has a workers' comp policy or is exempt
C) exact dates when work will begin and be completed
D) "Mechanics' Lien Warning"
C) Exact dates when work will begin and be completed
A joint control is primarily a third party management of the:
A) safety equipment and procedures
B) job scheduling
C) inspections by a building official
D) construction funds
D) Construction funds
If a contractor's bilingual salesperson makes a presentation to a customer in Spanish, the home
solicitation contract:
A) may be written in English if the contract is clear and legible.
B) must be signed by an english speaking representative of the customer.
C) must be in Spanish
D) must be notarized
C) must be in Spanish
The maximum time an owner has to cancel a home solicitation contract is:
A) 24hrs from midnight of the day the contract was signed
B) until midnight of the second business day after the day the contract was signed
C) until midnight of the third business day after the day the contract was signed
D) 7 days
C) until midnight of the third business day after the day the contract was signed.
How many days does a contractor have to refund any payments from the date that a home
solicitation contract is canceled?
A) 10
B) 15
C) 20
D) 30
A) 10
The contract price of a service and repair contract may not exceed:
A) $750
B) $1,000
C) $1,500
D) $5,000
A)$750
