CSLB BUSINESS & LAW 2025-2026 FINAL EXAM
QUESTIONS WITH 100% CORRECT ANSWERS
How long does a client have to cancel a contract for repairs that are the result of an event for which a St
ate of Emergency was declared?
5 business days
5 calendar days
7 business days
7 calendar days - CORRECT ANSWER -7 Business Days
How many days does a contractor have to notify the Registrar after being issued a workers' compensatio
n insurance policy?
5 days
10 days
30 days
90 days - CORRECT ANSWER -90 days
ARcontractor has had a problem with employees stealing tools and equipment from job sites. When con
ducting job interviews, may the contractor ask prospective employees about their arrest records?
It is legal to ask prospective employees about arrests not leading to convictions.
It is not legal to ask prospective employees about arrests not leading to convictions.
It is legal for a private employer to askRabout arrests not leading to convictions, but it would not be legal
for city or county agencies to askRabout such arrests.
,It is legal for a private employer to askRaboutRarrests leading to convictions, but it would not be legal for
a federal, state, or local public agency to do so. - CORRECT ANSWER -
It is not legal to ask prospective employees about arrests not leading to convictions.
An owner should request waiver of lien rights for work on residential property after paying the full contr
act amount:
only if a lender is involved.
to activate the home warranty.
so the prime contractor will not file a lien.
so the prime contractor, subcontractors, and other claimants will not file lien. - CORRECT
ANSWER - so the prime contractor, subcontractors, and other claimants will not file lien.
ARnotice of completion must be recorded within:
10 days after work is completed
10 days after work has ceased
30 days after work is completed
60 days after work has ceased - CORRECT ANSWER -10Rdays after work is completed
An applicant for a contractor's license receives a notice from the Contractors' State License Board, dated
October 1, that the applicant passed the written exams. To receive an active license, the applicant must
file a license bond and fee no later than:
31-Oct
29-Oct
,30-Dec
1-Jan - CORRECT ANSWER -30-Dec
Is it legal for a contractor to hire professional strikebreakers to replace striking employees?
Yes. It is legal to hire professional strikebreakers.
No. The contractor is subject to a maximum fine of $500 and/or a maximum jail sentence of 30 days.
No. The contractor is subject to a maximum fine of $1,000 and/or a maximum jail sentence of 90Rdays.
The contractor has not committed a crime but may be subject to legal action. - CORRECT ANSWER -
No. The contractor is subject to a maximum fine of $1,000 and/or a maximum jail sentence of 90Rdays.
When a subcontractor does work on a public works contract, the public agency considers the subcontra
ctor to be:
an employee of the agency
a subcontractor of the agency
an employee of the prime contractor
a subcontractor of the prime contractor - CORRECT ANSWER -an employee of the prime contractor
As part of the safety training process, contractors' supervisors are required to conduct "toolbox" or "tail
gate" safety meetings. How often mustRthese meetings be held?
daily
The correct answer is B.
at least once every ten working days
, at least once a month
at least once a quarter - CORRECT ANSWER -at least once every ten working days
Of the following, which document is usually delivered first in a transaction involving a home improveme
nt contract?
three-day notice of right to cancel
the contract
"Notice to Owner"
20-day preliminary notice - CORRECT ANSWER -"Notice to Owner"
Question 72:
Insured employers must report every work-
related illness or injury to their workers' compensation carrier within of the incident.
24 hours
2 days
5 days
10 days - CORRECT ANSWER -5 days
Which building code should a contractor follow?
the most stringent code
QUESTIONS WITH 100% CORRECT ANSWERS
How long does a client have to cancel a contract for repairs that are the result of an event for which a St
ate of Emergency was declared?
5 business days
5 calendar days
7 business days
7 calendar days - CORRECT ANSWER -7 Business Days
How many days does a contractor have to notify the Registrar after being issued a workers' compensatio
n insurance policy?
5 days
10 days
30 days
90 days - CORRECT ANSWER -90 days
ARcontractor has had a problem with employees stealing tools and equipment from job sites. When con
ducting job interviews, may the contractor ask prospective employees about their arrest records?
It is legal to ask prospective employees about arrests not leading to convictions.
It is not legal to ask prospective employees about arrests not leading to convictions.
It is legal for a private employer to askRabout arrests not leading to convictions, but it would not be legal
for city or county agencies to askRabout such arrests.
,It is legal for a private employer to askRaboutRarrests leading to convictions, but it would not be legal for
a federal, state, or local public agency to do so. - CORRECT ANSWER -
It is not legal to ask prospective employees about arrests not leading to convictions.
An owner should request waiver of lien rights for work on residential property after paying the full contr
act amount:
only if a lender is involved.
to activate the home warranty.
so the prime contractor will not file a lien.
so the prime contractor, subcontractors, and other claimants will not file lien. - CORRECT
ANSWER - so the prime contractor, subcontractors, and other claimants will not file lien.
ARnotice of completion must be recorded within:
10 days after work is completed
10 days after work has ceased
30 days after work is completed
60 days after work has ceased - CORRECT ANSWER -10Rdays after work is completed
An applicant for a contractor's license receives a notice from the Contractors' State License Board, dated
October 1, that the applicant passed the written exams. To receive an active license, the applicant must
file a license bond and fee no later than:
31-Oct
29-Oct
,30-Dec
1-Jan - CORRECT ANSWER -30-Dec
Is it legal for a contractor to hire professional strikebreakers to replace striking employees?
Yes. It is legal to hire professional strikebreakers.
No. The contractor is subject to a maximum fine of $500 and/or a maximum jail sentence of 30 days.
No. The contractor is subject to a maximum fine of $1,000 and/or a maximum jail sentence of 90Rdays.
The contractor has not committed a crime but may be subject to legal action. - CORRECT ANSWER -
No. The contractor is subject to a maximum fine of $1,000 and/or a maximum jail sentence of 90Rdays.
When a subcontractor does work on a public works contract, the public agency considers the subcontra
ctor to be:
an employee of the agency
a subcontractor of the agency
an employee of the prime contractor
a subcontractor of the prime contractor - CORRECT ANSWER -an employee of the prime contractor
As part of the safety training process, contractors' supervisors are required to conduct "toolbox" or "tail
gate" safety meetings. How often mustRthese meetings be held?
daily
The correct answer is B.
at least once every ten working days
, at least once a month
at least once a quarter - CORRECT ANSWER -at least once every ten working days
Of the following, which document is usually delivered first in a transaction involving a home improveme
nt contract?
three-day notice of right to cancel
the contract
"Notice to Owner"
20-day preliminary notice - CORRECT ANSWER -"Notice to Owner"
Question 72:
Insured employers must report every work-
related illness or injury to their workers' compensation carrier within of the incident.
24 hours
2 days
5 days
10 days - CORRECT ANSWER -5 days
Which building code should a contractor follow?
the most stringent code
