CSLB LAW AND BUSINESS UPDATED EXAM
STUDY QUESTIONS AND ANSWERS SURE A+
✔✔10%, 180 days (Price gouging) - ✔✔A contractor may not offer services priced at
more than ___% above the normally charged price for ___ days following a natural
disaster or state of emergency.
✔✔4 years - ✔✔How many years do consumers have to file a complaint with the CSLB
regarding a faulty project?
✔✔4 years - ✔✔How many years is the contractor liable for patent defects (obvious or
visible defects)?
✔✔10 years - ✔✔How many years is the contractor liable for Latent (structural) defects?
✔✔4 years - ✔✔The CSLB has how long to investigate unlicensed contractors from the
date of the illegal act?
✔✔C) The work must be completed in less than 2 weeks - ✔✔Which of these does not
apply for Service & Repair contracts?
A) Total amount must be for $750 or less
B) The buyer must initiate contact with the contractor
, C) The work must be completed in less than 2 weeks
D) No payment is due until the work is completed
✔✔Only before the contractor starts work and before they receive/sign the contract. -
✔✔When can a consumer cancel a Service & Repair contract?
✔✔10-pt or larger (Anything regarding CSLB must be 12 or larger) - ✔✔Unless
otherwise specified, how large should font be in contracts?
✔✔Within 14 days - ✔✔According to the Prompt Payment Act, payments for
construction projects must be received how long after an invoice has been issued?
✔✔7 days - ✔✔Subcontractors must be paid within ___ days after a prime contractor
has received payment.
✔✔Lien - ✔✔A method of securing payments for any unpaid labor or materials that
have been used to improve a property by contractors and material suppliers.
✔✔Material Breach - ✔✔A major failure by any party, to perform according to the
agreed upon contract terms.
✔✔Immaterial Breach or Partial Breach - ✔✔This violates minor details in a construction
contract, and does not affect the overall agreement or void the contract.
✔✔90 days - ✔✔How long does a contractor have to report a small claims or civil court
decision to the CSLB?
✔✔Appellate Court - ✔✔If the defendant files an appeal, the lawsuit moves from
superior court to...
✔✔County Clerk's Office - ✔✔Small claims are filed at the...
✔✔Limited civil lawsuit (filed at the local superior court) - ✔✔If representation by a
lawyer is desired, this is what you should file.
✔✔Limited-scope lawyer - ✔✔Coaching by a lawyer without actual courtroom
representation is called...
✔✔Unlimited civil cases - ✔✔Lawsuits for amounts over $25,000
✔✔2 to 4 years, depending on the type of claim. 6 months when suing a government or
public agency. - ✔✔The statute of limitations for filing a claim is how long after the
event?
STUDY QUESTIONS AND ANSWERS SURE A+
✔✔10%, 180 days (Price gouging) - ✔✔A contractor may not offer services priced at
more than ___% above the normally charged price for ___ days following a natural
disaster or state of emergency.
✔✔4 years - ✔✔How many years do consumers have to file a complaint with the CSLB
regarding a faulty project?
✔✔4 years - ✔✔How many years is the contractor liable for patent defects (obvious or
visible defects)?
✔✔10 years - ✔✔How many years is the contractor liable for Latent (structural) defects?
✔✔4 years - ✔✔The CSLB has how long to investigate unlicensed contractors from the
date of the illegal act?
✔✔C) The work must be completed in less than 2 weeks - ✔✔Which of these does not
apply for Service & Repair contracts?
A) Total amount must be for $750 or less
B) The buyer must initiate contact with the contractor
, C) The work must be completed in less than 2 weeks
D) No payment is due until the work is completed
✔✔Only before the contractor starts work and before they receive/sign the contract. -
✔✔When can a consumer cancel a Service & Repair contract?
✔✔10-pt or larger (Anything regarding CSLB must be 12 or larger) - ✔✔Unless
otherwise specified, how large should font be in contracts?
✔✔Within 14 days - ✔✔According to the Prompt Payment Act, payments for
construction projects must be received how long after an invoice has been issued?
✔✔7 days - ✔✔Subcontractors must be paid within ___ days after a prime contractor
has received payment.
✔✔Lien - ✔✔A method of securing payments for any unpaid labor or materials that
have been used to improve a property by contractors and material suppliers.
✔✔Material Breach - ✔✔A major failure by any party, to perform according to the
agreed upon contract terms.
✔✔Immaterial Breach or Partial Breach - ✔✔This violates minor details in a construction
contract, and does not affect the overall agreement or void the contract.
✔✔90 days - ✔✔How long does a contractor have to report a small claims or civil court
decision to the CSLB?
✔✔Appellate Court - ✔✔If the defendant files an appeal, the lawsuit moves from
superior court to...
✔✔County Clerk's Office - ✔✔Small claims are filed at the...
✔✔Limited civil lawsuit (filed at the local superior court) - ✔✔If representation by a
lawyer is desired, this is what you should file.
✔✔Limited-scope lawyer - ✔✔Coaching by a lawyer without actual courtroom
representation is called...
✔✔Unlimited civil cases - ✔✔Lawsuits for amounts over $25,000
✔✔2 to 4 years, depending on the type of claim. 6 months when suing a government or
public agency. - ✔✔The statute of limitations for filing a claim is how long after the
event?
