CSLB GENERAL BUILDING (B)
CONTRACTOR EXAMINATION Actual
Questions and Verified Answers (2026/2027
Edition)
Division 1: Law and Business (60 Questions)
Section A: Licensing and Regulatory Requirements
Q1: A homeowner signs a contract for a kitchen remodel with a total price of $45,000.
The contractor asks for a down payment to cover the cost of custom cabinets that must
be ordered immediately. Under California law (B&P Code Section 7159), what is the
MAXIMUM down payment the contractor may legally collect at the time of signing?
A. $4,500
B. $1,000
C. $10,000
D. $1,000 or 10% of the contract price, whichever is less [CORRECT]
Correct Answer: D
Rationale: California Business & Professions Code Section 7159.5 requires that for
home improvement contracts, the down payment cannot exceed $1,000 or 10% of the
contract price, whichever is less. For a $45,000 contract, 10% would be $4,500, but the
$1,000 cap applies because it is the lesser amount. Answer A ($4,500) represents 10%
but ignores the statutory cap. Answer B ($1,000) is correct but incomplete without the
10% explanation. Answer C ($10,000) exceeds both limits.
Q2: A contractor holds a valid B-General Building license and wants to bid on a project
that involves both structural framing and standalone electrical work. According to CSLB
classification rules, which statement is correct?
,A. The B license allows unlimited electrical work as long as it's part of a larger project
B. The B license permits only incidental electrical work that is an integral part of the
building structure
C. A B license holder may perform any electrical work with a C-10 subcontractor
D. The B license allows electrical work up to $500 per trade [CORRECT]
Correct Answer: B
Rationale: Under California Code of Regulations Title 16, Section 832.08, a General
Building contractor can only perform work in trades other than framing and carpentry if
it is incidental and supplemental to the primary building construction work. Incidental
electrical work (like rough wiring during construction) is permitted, but standalone
electrical work requires a C-10 license. Answer A is incorrect because there are limits to
incidental work. Answer C misstates the role of subcontractors—the B contractor
cannot personally perform C-10 work. Answer D confuses the minor work exemption
with trade classification rules.
Q3: A licensed contractor's qualifier leaves the company abruptly. According to CSLB
regulations, how many days does the licensee have to replace the qualifier before the
license becomes inactive?
A. 30 days
B. 60 days
C. 90 days [CORRECT]
D. 120 days
Correct Answer: C
Rationale: California Code of Regulations Title 16, Section 823 requires that a
replacement qualifier be secured within 90 days of the date the qualifier disassociates
from the license. If a replacement is not secured within this timeframe, the license
becomes inactive. Answer A (30 days) is too short and may represent confusion with
notice requirements. Answer B (60 days) has no basis in current regulations. Answer D
(120 days) exceeds the statutory grace period.
Q4: During a CSLB investigation, a contractor is found to have committed multiple
violations of contracting law. The CSLB initiates disciplinary action. What is the
maximum administrative fine the Registrar can impose per violation under Business &
Professions Code Section 7095?
,A. $1,000
B. $5,000
C. $8,000
D. $15,000 [CORRECT]
Correct Answer: D
Rationale: Business & Professions Code Section 7095 authorizes administrative fines of
up to $15,000 per violation for serious violations of contracting law. This amount was
increased from previous limits to provide stronger deterrent against illegal contracting
practices. Answer A represents outdated fine amounts. Answer B represents the
previous statutory maximum. Answer C represents confusion with civil penalty
amounts.
Q5: A contractor is advertising services online. According to California advertising
requirements for contractors, which statement is TRUE regarding license number
display?
A. License numbers only need to be included in written contracts, not advertisements
B. License numbers must appear in all forms of advertising, including business cards,
online listings, and vehicle signage [CORRECT]
C. Only display of the business name is required; license numbers are optional in
advertising
D. License numbers are only required for advertisements exceeding $500 in cost
Correct Answer: B
Rationale: Business & Professions Code Section 7027.1 mandates that contractors
display their license number in all forms of advertising, including business cards, online
listings, vehicle signage, and promotional materials. This ensures consumers can verify
licensure. Answer A is incorrect because the requirement applies to advertising, not just
contracts. Answer C is false—license numbers are mandatory, not optional. Answer D
has no basis in statute.
Section B: Contracts and Consumer Protection
Q6: A homeowner signs a home improvement contract on March 1st. The contractor
begins work on March 3rd without providing the required "Notice of Cancellation" rights.
, The homeowner discovers this omission on March 10th. What is the homeowner's legal
right regarding cancellation?
A. The homeowner may cancel within 3 days of March 1st only
B. The homeowner may cancel until March 13th (3 days from discovery of the omission)
[CORRECT]
C. The homeowner loses the right to cancel once work begins
D. The homeowner has up to one year to cancel due to the violation
Correct Answer: B
Rationale: Under Business & Professions Code Section 7159, if the contractor fails to
provide the required Notice of Cancellation, the homeowner's right to cancel extends
until three days after the contractor provides the notice or until the homeowner
discovers the omission, whichever occurs first. Since the homeowner discovered the
omission on March 10th, they have until March 13th to cancel. Answer A is incorrect
because the timeline extends from discovery when the notice is omitted. Answer C is
false—work commencement doesn't extinguish cancellation rights for notice violations.
Answer D confuses this with statute of limitations for contract violations.
Q7: A residential remodeling contract contains the following clause: "Contractor shall
complete all work in a workmanlike manner according to standard practices." An
argument arises over what constitutes "standard practices." In California contract
interpretation, how would this clause likely be interpreted?
A. As a specific measurable requirement that allows precise enforcement
B. As an implied warranty of quality that references industry customs and building
codes [CORRECT]
C. As an unenforceable vague term that voids the contract
D. As a limitation on the contractor's liability for defects
Correct Answer: B
Rationale: Under California contract law and Business & Professions Code Section
7159, phrases like "workmanlike manner" and "standard practices" create implied
warranties that reference objective industry standards, applicable building codes, and
customary trade practices. Courts enforce these as quality standards. Answer A is
incorrect because the term is intentionally flexible rather than precise. Answer C is
CONTRACTOR EXAMINATION Actual
Questions and Verified Answers (2026/2027
Edition)
Division 1: Law and Business (60 Questions)
Section A: Licensing and Regulatory Requirements
Q1: A homeowner signs a contract for a kitchen remodel with a total price of $45,000.
The contractor asks for a down payment to cover the cost of custom cabinets that must
be ordered immediately. Under California law (B&P Code Section 7159), what is the
MAXIMUM down payment the contractor may legally collect at the time of signing?
A. $4,500
B. $1,000
C. $10,000
D. $1,000 or 10% of the contract price, whichever is less [CORRECT]
Correct Answer: D
Rationale: California Business & Professions Code Section 7159.5 requires that for
home improvement contracts, the down payment cannot exceed $1,000 or 10% of the
contract price, whichever is less. For a $45,000 contract, 10% would be $4,500, but the
$1,000 cap applies because it is the lesser amount. Answer A ($4,500) represents 10%
but ignores the statutory cap. Answer B ($1,000) is correct but incomplete without the
10% explanation. Answer C ($10,000) exceeds both limits.
Q2: A contractor holds a valid B-General Building license and wants to bid on a project
that involves both structural framing and standalone electrical work. According to CSLB
classification rules, which statement is correct?
,A. The B license allows unlimited electrical work as long as it's part of a larger project
B. The B license permits only incidental electrical work that is an integral part of the
building structure
C. A B license holder may perform any electrical work with a C-10 subcontractor
D. The B license allows electrical work up to $500 per trade [CORRECT]
Correct Answer: B
Rationale: Under California Code of Regulations Title 16, Section 832.08, a General
Building contractor can only perform work in trades other than framing and carpentry if
it is incidental and supplemental to the primary building construction work. Incidental
electrical work (like rough wiring during construction) is permitted, but standalone
electrical work requires a C-10 license. Answer A is incorrect because there are limits to
incidental work. Answer C misstates the role of subcontractors—the B contractor
cannot personally perform C-10 work. Answer D confuses the minor work exemption
with trade classification rules.
Q3: A licensed contractor's qualifier leaves the company abruptly. According to CSLB
regulations, how many days does the licensee have to replace the qualifier before the
license becomes inactive?
A. 30 days
B. 60 days
C. 90 days [CORRECT]
D. 120 days
Correct Answer: C
Rationale: California Code of Regulations Title 16, Section 823 requires that a
replacement qualifier be secured within 90 days of the date the qualifier disassociates
from the license. If a replacement is not secured within this timeframe, the license
becomes inactive. Answer A (30 days) is too short and may represent confusion with
notice requirements. Answer B (60 days) has no basis in current regulations. Answer D
(120 days) exceeds the statutory grace period.
Q4: During a CSLB investigation, a contractor is found to have committed multiple
violations of contracting law. The CSLB initiates disciplinary action. What is the
maximum administrative fine the Registrar can impose per violation under Business &
Professions Code Section 7095?
,A. $1,000
B. $5,000
C. $8,000
D. $15,000 [CORRECT]
Correct Answer: D
Rationale: Business & Professions Code Section 7095 authorizes administrative fines of
up to $15,000 per violation for serious violations of contracting law. This amount was
increased from previous limits to provide stronger deterrent against illegal contracting
practices. Answer A represents outdated fine amounts. Answer B represents the
previous statutory maximum. Answer C represents confusion with civil penalty
amounts.
Q5: A contractor is advertising services online. According to California advertising
requirements for contractors, which statement is TRUE regarding license number
display?
A. License numbers only need to be included in written contracts, not advertisements
B. License numbers must appear in all forms of advertising, including business cards,
online listings, and vehicle signage [CORRECT]
C. Only display of the business name is required; license numbers are optional in
advertising
D. License numbers are only required for advertisements exceeding $500 in cost
Correct Answer: B
Rationale: Business & Professions Code Section 7027.1 mandates that contractors
display their license number in all forms of advertising, including business cards, online
listings, vehicle signage, and promotional materials. This ensures consumers can verify
licensure. Answer A is incorrect because the requirement applies to advertising, not just
contracts. Answer C is false—license numbers are mandatory, not optional. Answer D
has no basis in statute.
Section B: Contracts and Consumer Protection
Q6: A homeowner signs a home improvement contract on March 1st. The contractor
begins work on March 3rd without providing the required "Notice of Cancellation" rights.
, The homeowner discovers this omission on March 10th. What is the homeowner's legal
right regarding cancellation?
A. The homeowner may cancel within 3 days of March 1st only
B. The homeowner may cancel until March 13th (3 days from discovery of the omission)
[CORRECT]
C. The homeowner loses the right to cancel once work begins
D. The homeowner has up to one year to cancel due to the violation
Correct Answer: B
Rationale: Under Business & Professions Code Section 7159, if the contractor fails to
provide the required Notice of Cancellation, the homeowner's right to cancel extends
until three days after the contractor provides the notice or until the homeowner
discovers the omission, whichever occurs first. Since the homeowner discovered the
omission on March 10th, they have until March 13th to cancel. Answer A is incorrect
because the timeline extends from discovery when the notice is omitted. Answer C is
false—work commencement doesn't extinguish cancellation rights for notice violations.
Answer D confuses this with statute of limitations for contract violations.
Q7: A residential remodeling contract contains the following clause: "Contractor shall
complete all work in a workmanlike manner according to standard practices." An
argument arises over what constitutes "standard practices." In California contract
interpretation, how would this clause likely be interpreted?
A. As a specific measurable requirement that allows precise enforcement
B. As an implied warranty of quality that references industry customs and building
codes [CORRECT]
C. As an unenforceable vague term that voids the contract
D. As a limitation on the contractor's liability for defects
Correct Answer: B
Rationale: Under California contract law and Business & Professions Code Section
7159, phrases like "workmanlike manner" and "standard practices" create implied
warranties that reference objective industry standards, applicable building codes, and
customary trade practices. Courts enforce these as quality standards. Answer A is
incorrect because the term is intentionally flexible rather than precise. Answer C is
