C-61 Limited Specialty Contractor Exam
California Prep ACTUAL EXAM 2026/2027 |
CA C-61 Contractor License | Verified Q&A
Pass Guaranteed - A+ Graded
Section 1: California Contractor Licensing Law & Business Management
Q1: A contractor with a C-61/D-12 (concrete) license installs a new concrete driveway for a homeowner
in Fresno. The contract amount is $12,500. Which of the following is required under California law for
this home improvement contract?
A. Provide the homeowner with a written contract that includes a 3-day right to cancel notice.
[CORRECT]
B. Obtain a separate performance bond of $15,000 before pouring concrete.
C. Include an arbitration clause requiring any dispute to be resolved in Los Angeles County.
D. Collect full payment of $12,500 before beginning any excavation work.
Correct Answer: A
Rationale: California Business and Professions Code Section 7159 requires a written home improvement
contract for any project over $500, and for contracts over $35 (including all home improvement
contracts), the contractor must provide a separate, signed and dated "Notice of Right to Cancel"
granting the homeowner three business days to cancel without penalty. A $15,000 contractor license
bond is required for license issuance but not as a per-project performance bond. Arbitration clauses
cannot force homeowners to travel outside their local jurisdiction. Collecting full payment before work
begins violates the down payment limit of 10% or $1,000, whichever is less.
Exam Tip: Memorize the 3-day right to rescind for home improvement contracts.
,Q2: A homeowner in San Diego wants to hire a contractor to paint the interior of their house for a total
cost of $450. The homeowner asks if the contractor needs to provide a written contract. What is the
correct response according to CSLB rules?
A. A written contract is required because the total cost exceeds the $100 threshold.
B. A written contract is not required because the total cost is under $500. [CORRECT]
C. A written contract is required because all painting work must be documented regardless of price.
D. A written contract is only required if the work takes more than two days to complete.
Correct Answer: B
Rationale: Under B&P Code Section 7159, home improvement contracts are only required to be in
writing if the total contract price, including labor and materials, exceeds $500. Because the quoted price
of $450 is below this statutory threshold, the contractor is not legally obligated to provide a written
contract, though it is always a best practice to document the agreement to avoid disputes.
Exam Tip: The $500 threshold applies to the total contract price, not a daily rate or per-task cost.
Q3: A C-61/D-6 (Cabinets, Millwork, and Countertops) contractor in Sacramento is advertising their
services online. Which of the following advertising statements violates California law?
A. "Licensed C-61/D-6 Contractor serving the greater Sacramento area."
B. "Free estimates for custom kitchen cabinetry."
C. "We can beat any unlicensed contractor's price by 20%." [CORRECT]
D. "Over 15 years of experience in residential millwork."
Correct Answer: C
Rationale: B&P Code Section 7027.8 prohibits licensed contractors from making any statement that
implies an unlicensed contractor can legally perform the work being bid upon, or that encourages a
consumer to hire an unlicensed person. Stating "we can beat any unlicensed contractor's price"
indirectly validates unlicensed contracting as a legal alternative. Advertising the specific license number
or classification and offering free estimates are legal, provided no deceptive claims are made.
Exam Tip: Never imply in advertising that unlicensed work is a legal option for consumers.
,Q4: A C-61/D-8 (Fencing) contractor enters into a joint venture with a general building contractor to
construct a large commercial fence and gate system in San Jose. Under CSLB regulations, how must this
joint venture be licensed?
A. The joint venture must obtain a separate joint venture license if the project exceeds $500.
B. The joint venture must be licensed in the classification required for the work being performed.
[CORRECT]
C. The general building contractor's license covers the joint venture, so no additional licensing is needed.
D. The C-61/D-8 contractor's license is sufficient since fences are their specialty.
Correct Answer: B
Rationale: According to B&P Code Section 7068.1, a joint venture acting as a contractor in California
must obtain a specific joint venture contractor's license for the classification of work being performed
before submitting bids or starting work. Relying solely on the license of one partner is not permitted; the
joint venture is a separate legal entity that must qualify for its own license.
Exam Tip: A joint venture is treated as a separate entity requiring its own license.
Q5: A subcontractor performing D-13 (Drywall) work on a residential project in Oakland was not paid by
the prime contractor. The prime contractor recorded a Notice of Completion 10 days ago. How many
days does the subcontractor have left to file a mechanics lien?
A. 30 days
B. 50 days
C. 60 days [CORRECT]
D. 90 days
Correct Answer: C
Rationale: Under California Civil Code Section 8414, a subcontractor must record a mechanics lien within
90 days after completion of the work of improvement. However, if a Notice of Completion or Cessation
is recorded by the owner or prime contractor, the subcontractor's deadline is shortened to 60 days from
, the date that notice is recorded. Since 10 days have already passed, the subcontractor has 50 days
remaining, but the statutory lien period allowed from the notice is 60 days.
Exam Tip: A Notice of Completion slashes the mechanics lien filing period from 90 days to 60 days for
subs and suppliers.
Q6: A C-61/D-7 (Floor Covering) contractor is hired to install laminate flooring in a commercial retail
space in Long Beach. The contractor has employees but has not secured workers' compensation
insurance. What is the maximum penalty the CSLB can assess for this violation?
A. A fine of $1,000 and a 30-day license suspension.
B. A fine of $5,000 and automatic license revocation.
C. An administrative penalty of up to $10,000 and a one-year license suspension. [CORRECT]
D. No penalty, as commercial projects do not require workers' compensation coverage.
Correct Answer: C
Rationale: B&P Code Section 7125 mandates that all licensed contractors with employees must secure a
valid workers' compensation insurance policy and provide a Certificate of Insurance to the CSLB. Failure
to do so can result in an automatic suspension of the license, and if the contractor performs work
without coverage, they face a penalty of up to $10,000 and a potential one-year license revocation. This
requirement applies to all projects, regardless of residential or commercial status.
Exam Tip: Operating without workers' comp when you have employees is a "death sentence" for a CA
contractor's license.
Q7: A homeowner in San Francisco signs a home improvement contract on a Thursday for a D-10
(Elevated Decks) project. The contractor begins work on Friday morning. When does the homeowner's
right to rescind the contract expire?
A. Saturday at midnight
B. Sunday at midnight [CORRECT]
C. Monday at midnight
D. Tuesday at midnight
California Prep ACTUAL EXAM 2026/2027 |
CA C-61 Contractor License | Verified Q&A
Pass Guaranteed - A+ Graded
Section 1: California Contractor Licensing Law & Business Management
Q1: A contractor with a C-61/D-12 (concrete) license installs a new concrete driveway for a homeowner
in Fresno. The contract amount is $12,500. Which of the following is required under California law for
this home improvement contract?
A. Provide the homeowner with a written contract that includes a 3-day right to cancel notice.
[CORRECT]
B. Obtain a separate performance bond of $15,000 before pouring concrete.
C. Include an arbitration clause requiring any dispute to be resolved in Los Angeles County.
D. Collect full payment of $12,500 before beginning any excavation work.
Correct Answer: A
Rationale: California Business and Professions Code Section 7159 requires a written home improvement
contract for any project over $500, and for contracts over $35 (including all home improvement
contracts), the contractor must provide a separate, signed and dated "Notice of Right to Cancel"
granting the homeowner three business days to cancel without penalty. A $15,000 contractor license
bond is required for license issuance but not as a per-project performance bond. Arbitration clauses
cannot force homeowners to travel outside their local jurisdiction. Collecting full payment before work
begins violates the down payment limit of 10% or $1,000, whichever is less.
Exam Tip: Memorize the 3-day right to rescind for home improvement contracts.
,Q2: A homeowner in San Diego wants to hire a contractor to paint the interior of their house for a total
cost of $450. The homeowner asks if the contractor needs to provide a written contract. What is the
correct response according to CSLB rules?
A. A written contract is required because the total cost exceeds the $100 threshold.
B. A written contract is not required because the total cost is under $500. [CORRECT]
C. A written contract is required because all painting work must be documented regardless of price.
D. A written contract is only required if the work takes more than two days to complete.
Correct Answer: B
Rationale: Under B&P Code Section 7159, home improvement contracts are only required to be in
writing if the total contract price, including labor and materials, exceeds $500. Because the quoted price
of $450 is below this statutory threshold, the contractor is not legally obligated to provide a written
contract, though it is always a best practice to document the agreement to avoid disputes.
Exam Tip: The $500 threshold applies to the total contract price, not a daily rate or per-task cost.
Q3: A C-61/D-6 (Cabinets, Millwork, and Countertops) contractor in Sacramento is advertising their
services online. Which of the following advertising statements violates California law?
A. "Licensed C-61/D-6 Contractor serving the greater Sacramento area."
B. "Free estimates for custom kitchen cabinetry."
C. "We can beat any unlicensed contractor's price by 20%." [CORRECT]
D. "Over 15 years of experience in residential millwork."
Correct Answer: C
Rationale: B&P Code Section 7027.8 prohibits licensed contractors from making any statement that
implies an unlicensed contractor can legally perform the work being bid upon, or that encourages a
consumer to hire an unlicensed person. Stating "we can beat any unlicensed contractor's price"
indirectly validates unlicensed contracting as a legal alternative. Advertising the specific license number
or classification and offering free estimates are legal, provided no deceptive claims are made.
Exam Tip: Never imply in advertising that unlicensed work is a legal option for consumers.
,Q4: A C-61/D-8 (Fencing) contractor enters into a joint venture with a general building contractor to
construct a large commercial fence and gate system in San Jose. Under CSLB regulations, how must this
joint venture be licensed?
A. The joint venture must obtain a separate joint venture license if the project exceeds $500.
B. The joint venture must be licensed in the classification required for the work being performed.
[CORRECT]
C. The general building contractor's license covers the joint venture, so no additional licensing is needed.
D. The C-61/D-8 contractor's license is sufficient since fences are their specialty.
Correct Answer: B
Rationale: According to B&P Code Section 7068.1, a joint venture acting as a contractor in California
must obtain a specific joint venture contractor's license for the classification of work being performed
before submitting bids or starting work. Relying solely on the license of one partner is not permitted; the
joint venture is a separate legal entity that must qualify for its own license.
Exam Tip: A joint venture is treated as a separate entity requiring its own license.
Q5: A subcontractor performing D-13 (Drywall) work on a residential project in Oakland was not paid by
the prime contractor. The prime contractor recorded a Notice of Completion 10 days ago. How many
days does the subcontractor have left to file a mechanics lien?
A. 30 days
B. 50 days
C. 60 days [CORRECT]
D. 90 days
Correct Answer: C
Rationale: Under California Civil Code Section 8414, a subcontractor must record a mechanics lien within
90 days after completion of the work of improvement. However, if a Notice of Completion or Cessation
is recorded by the owner or prime contractor, the subcontractor's deadline is shortened to 60 days from
, the date that notice is recorded. Since 10 days have already passed, the subcontractor has 50 days
remaining, but the statutory lien period allowed from the notice is 60 days.
Exam Tip: A Notice of Completion slashes the mechanics lien filing period from 90 days to 60 days for
subs and suppliers.
Q6: A C-61/D-7 (Floor Covering) contractor is hired to install laminate flooring in a commercial retail
space in Long Beach. The contractor has employees but has not secured workers' compensation
insurance. What is the maximum penalty the CSLB can assess for this violation?
A. A fine of $1,000 and a 30-day license suspension.
B. A fine of $5,000 and automatic license revocation.
C. An administrative penalty of up to $10,000 and a one-year license suspension. [CORRECT]
D. No penalty, as commercial projects do not require workers' compensation coverage.
Correct Answer: C
Rationale: B&P Code Section 7125 mandates that all licensed contractors with employees must secure a
valid workers' compensation insurance policy and provide a Certificate of Insurance to the CSLB. Failure
to do so can result in an automatic suspension of the license, and if the contractor performs work
without coverage, they face a penalty of up to $10,000 and a potential one-year license revocation. This
requirement applies to all projects, regardless of residential or commercial status.
Exam Tip: Operating without workers' comp when you have employees is a "death sentence" for a CA
contractor's license.
Q7: A homeowner in San Francisco signs a home improvement contract on a Thursday for a D-10
(Elevated Decks) project. The contractor begins work on Friday morning. When does the homeowner's
right to rescind the contract expire?
A. Saturday at midnight
B. Sunday at midnight [CORRECT]
C. Monday at midnight
D. Tuesday at midnight
