CSLB Law and Business 2026 |\ |\ |\ |\ |\
exam practice with answers |\ |\ |\
What is the minimum bond amount required for a
|\ |\ |\ |\ |\ |\ |\ |\ |\
contractor license in California? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔$25.000
What is the penalty for acting as a contractor without a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
license in California? - CORRECT ANSWERS ✔✔it is a
|\ |\ |\ |\ |\ |\ |\ |\ |\
MISDEMEANOR
What does the CSLB issue to a contractor for a minor
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
violation as a warning? - CORRECT ANSWERS ✔✔Advisory
|\ |\ |\ |\ |\ |\ |\ |\
Notice
How long are citations against licensed contractors
|\ |\ |\ |\ |\ |\ |\
disclosed to the public? - CORRECT ANSWERS ✔✔5 years
|\ |\ |\ |\ |\ |\ |\ |\
What is the maximum allowable down payment for a
|\ |\ |\ |\ |\ |\ |\ |\ |\
home improvement contract in California? - CORRECT
|\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔$1,000 or 10% of the contract price,
|\ |\ |\ |\ |\ |\ |\ |\
Whichever is less |\ |\
,Home improvements contracts must include which of the
|\ |\ |\ |\ |\ |\ |\ |\
following? - CORRECT ANSWERS ✔✔•description of
|\ |\ |\ |\ |\ |\
materials |\
•start and completion dates
|\ |\ |\
•permissible delays |\
Which business structures provides liability protection
|\ |\ |\ |\ |\ |\
similar to a corporation but has different tax treatment? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔Limited Liability Company (LLC)
|\ |\ |\ |\ |\
What type of bond guarantees both job completion and
|\ |\ |\ |\ |\ |\ |\ |\ |\
payment of all labor and materials? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔Contract Bond |\
What is the minimum liability insurance required for a
|\ |\ |\ |\ |\ |\ |\ |\ |\
limited liability company (LLC) with 5 or fewer personnel?
|\ |\ |\ |\ |\ |\ |\ |\
- CORRECT ANSWERS ✔✔$1 million
|\ |\ |\ |\ |\
What is the purpose of a disciplinary bond for a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
contractor? - CORRECT ANSWERS ✔✔To ensure |\ |\ |\ |\ |\ |\
compliance with licensing rules following disciplinary
|\ |\ |\ |\ |\ |\
action
, What agency is responsible for licensing and regulating
|\ |\ |\ |\ |\ |\ |\ |\
contractors in California? - CORRECT ANSWERS |\ |\ |\ |\ |\ |\
✔✔Contractors State Licensing Board (CSLB) |\ |\ |\ |\
What is the main purpose of the contractors state license
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
board? (CSLB) - CORRECT ANSWERS ✔✔To protect
|\ |\ |\ |\ |\ |\ |\
consumers by regulating the construction industry
|\ |\ |\ |\ |\
Which of the following violations could be lead to a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
contractors license suspension? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\
✔✔•advertising without a license number |\ |\ |\ |\ |\
•failing to pay subcontractor
|\ |\ |\ |\
•poor workmanship
|\
Which license classification requires workers'
|\ |\ |\ |\ |\
compensation insurance, even if the contractor has no |\ |\ |\ |\ |\ |\ |\ |\
employees? - CORRECT ANSWERS ✔✔C-39 Roofing |\ |\ |\ |\ |\
Whats is the role of the Statewide Investigative Fraud
|\ |\ |\ |\ |\ |\ |\ |\ |\
Team? (SWIFT) - CORRECT ANSWERS ✔✔To investigate
|\ |\ |\ |\ |\ |\ |\
unlicensed contractors activity |\ |\
What is the maximum civil penalty CSLB can impose for
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
serious violations? - CORRECT ANSWERS ✔✔$30,000
|\ |\ |\ |\ |\
exam practice with answers |\ |\ |\
What is the minimum bond amount required for a
|\ |\ |\ |\ |\ |\ |\ |\ |\
contractor license in California? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\
✔✔$25.000
What is the penalty for acting as a contractor without a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
license in California? - CORRECT ANSWERS ✔✔it is a
|\ |\ |\ |\ |\ |\ |\ |\ |\
MISDEMEANOR
What does the CSLB issue to a contractor for a minor
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\
violation as a warning? - CORRECT ANSWERS ✔✔Advisory
|\ |\ |\ |\ |\ |\ |\ |\
Notice
How long are citations against licensed contractors
|\ |\ |\ |\ |\ |\ |\
disclosed to the public? - CORRECT ANSWERS ✔✔5 years
|\ |\ |\ |\ |\ |\ |\ |\
What is the maximum allowable down payment for a
|\ |\ |\ |\ |\ |\ |\ |\ |\
home improvement contract in California? - CORRECT
|\ |\ |\ |\ |\ |\ |\
ANSWERS ✔✔$1,000 or 10% of the contract price,
|\ |\ |\ |\ |\ |\ |\ |\
Whichever is less |\ |\
,Home improvements contracts must include which of the
|\ |\ |\ |\ |\ |\ |\ |\
following? - CORRECT ANSWERS ✔✔•description of
|\ |\ |\ |\ |\ |\
materials |\
•start and completion dates
|\ |\ |\
•permissible delays |\
Which business structures provides liability protection
|\ |\ |\ |\ |\ |\
similar to a corporation but has different tax treatment? -
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
CORRECT ANSWERS ✔✔Limited Liability Company (LLC)
|\ |\ |\ |\ |\
What type of bond guarantees both job completion and
|\ |\ |\ |\ |\ |\ |\ |\ |\
payment of all labor and materials? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\ |\ |\ |\
✔✔Contract Bond |\
What is the minimum liability insurance required for a
|\ |\ |\ |\ |\ |\ |\ |\ |\
limited liability company (LLC) with 5 or fewer personnel?
|\ |\ |\ |\ |\ |\ |\ |\
- CORRECT ANSWERS ✔✔$1 million
|\ |\ |\ |\ |\
What is the purpose of a disciplinary bond for a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
contractor? - CORRECT ANSWERS ✔✔To ensure |\ |\ |\ |\ |\ |\
compliance with licensing rules following disciplinary
|\ |\ |\ |\ |\ |\
action
, What agency is responsible for licensing and regulating
|\ |\ |\ |\ |\ |\ |\ |\
contractors in California? - CORRECT ANSWERS |\ |\ |\ |\ |\ |\
✔✔Contractors State Licensing Board (CSLB) |\ |\ |\ |\
What is the main purpose of the contractors state license
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
board? (CSLB) - CORRECT ANSWERS ✔✔To protect
|\ |\ |\ |\ |\ |\ |\
consumers by regulating the construction industry
|\ |\ |\ |\ |\
Which of the following violations could be lead to a
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
contractors license suspension? - CORRECT ANSWERS
|\ |\ |\ |\ |\ |\
✔✔•advertising without a license number |\ |\ |\ |\ |\
•failing to pay subcontractor
|\ |\ |\ |\
•poor workmanship
|\
Which license classification requires workers'
|\ |\ |\ |\ |\
compensation insurance, even if the contractor has no |\ |\ |\ |\ |\ |\ |\ |\
employees? - CORRECT ANSWERS ✔✔C-39 Roofing |\ |\ |\ |\ |\
Whats is the role of the Statewide Investigative Fraud
|\ |\ |\ |\ |\ |\ |\ |\ |\
Team? (SWIFT) - CORRECT ANSWERS ✔✔To investigate
|\ |\ |\ |\ |\ |\ |\
unlicensed contractors activity |\ |\
What is the maximum civil penalty CSLB can impose for
|\ |\ |\ |\ |\ |\ |\ |\ |\ |\
serious violations? - CORRECT ANSWERS ✔✔$30,000
|\ |\ |\ |\ |\
