CSLB CONTRACTOR LAW UPDATED ACTUAL EXAM QUESTIONS CORRECT ANSWERS
GRADED A PLUS
Question:
Which act establishes the rights of workers to organize into unions and negotiate contracts?
Answer:
National Labor Relations Act of 1935
Question:
A contractor has had a problem with employees stealing tools and equipment from job sites. When
conducting job interviews, may the contractor ask prospective employees about their arrest records?
A. It is legal to ask prospective employees about arrests not leading to convictions. B. It is not legal
to ask prospective employees about arrests not leading to convictions. C. It is legal for a private
employer to ask about arrests not leading to convictions, but it would not be legal for city or county
agencies to ask about such arrests. D. It is legal for a private employer to ask about arrests leading to
convictions, but it would not be legal for a federal, state, or local public agency to do so.
Answer:
It is not legal to ask prospective employees about arrest not leading to convictions.
Question:
Why would a contractor have a case in Superior Court?
Answer:
If it is a dispute of more than $25,000 it can be transferred to Superior Court.
Question:
Which would not have to be reported to DOSH immediately or within 24 hours? A. Death from a
three-story fall. B. Drunken crane operator hits a high-voltage power line C. Car accident in which
an employee steps onto a public road, gets hit by a car, and suffers a concussion. D. Employee falls
,off forklift and suffers a sever back injury.
Answer:
Car accident in which an employee steps onto a public road, gets hit by a car, and suffers a
concussion.
Question:
A general contractor has obtained bids from several subcontractors for a private project. He notices
that one bid is substantially lower than the rest. Is it ethical and a good business practice for this
contractor to inform the subcontractor that the bid is substantially lower than the bids of the other
subcontractors?
Answer:
Yes. If the contractor has reason to believe that the subcontractor has made an error in preparing his
bid, the contractor should notify the subcontractor of the apparent error, but the contractor may not
disclose the amounts of the other bids.
Question:
An employer must furnish an employee with a completed IRS Form W-2 (Wage and Tax Statement)
by:
Answer:
The 31st of January.
Question:
After a job is completed, the owner decides to have additional work done. How should the
contractor proceed?
Answer:
Write a new contract and ask the owner to sign it.
Question:
The purpose of a 20-day preliminary notice for private work is to?
,Answer:
Notify the owner that the person or firm who sent the notice has improved the property.
Question:
Is it legal for a contractor to pay employees in cash?
Answer:
Yes, if the contractor provides each employee with a wage deduction statement semimonthly or at
the time of each wage payment.
Question:
You are bidding on a job with plans drawn by the owner. You notice a code violation and bring it to
the attention of the owner. The owner declines to remedy the code violation and tells you not to
worry. What should you do?
Answer:
Decline to bid the work.
Question:
On a time-and-materials job, you should:
Answer:
Add profit and overhead to labor and materials
Question:
Your employee sets a cabinet wrong. The cabinet falls from the wall and damages the client's
counter top. What should you do? A. Claim the damage on your general liability insurance policy.
B. Require the employee to pay for the damage to the countertop. C. Tell the client to claim the
damaged counter top on his or her homeowner's insurance policy. D. No action is required: The
client must assume the risk of damage.
Answer:
Claim the damage on your general liability insurance policy.
, Question:
Of the following, which is best for determining the number of hours required for different phases of
a project and for making sure the job is on schedule? A. Bar graph and chart B. Cash analysis chart
C. Review plans D. Critical path method
Answer:
The critical path method.
Question:
Is it legal for a contractor to require employees to take a lie detector test?
Answer:
It is not legal for the contractor to require lie detector tests, but it would be legal for a federal, state,
or local public agency to require lie detector tests of their employees.
Question:
If a newly hired employee does not have a SSN, what should be done?
Answer:
The employee must apply for a SSN.
Question:
How many times may you take the contractors license exam before your original application is
voided?
Answer:
As many times as necessary within 18 months.
Question:
When should a contractor renew the contractor's license bond?
Answer:
GRADED A PLUS
Question:
Which act establishes the rights of workers to organize into unions and negotiate contracts?
Answer:
National Labor Relations Act of 1935
Question:
A contractor has had a problem with employees stealing tools and equipment from job sites. When
conducting job interviews, may the contractor ask prospective employees about their arrest records?
A. It is legal to ask prospective employees about arrests not leading to convictions. B. It is not legal
to ask prospective employees about arrests not leading to convictions. C. It is legal for a private
employer to ask about arrests not leading to convictions, but it would not be legal for city or county
agencies to ask about such arrests. D. It is legal for a private employer to ask about arrests leading to
convictions, but it would not be legal for a federal, state, or local public agency to do so.
Answer:
It is not legal to ask prospective employees about arrest not leading to convictions.
Question:
Why would a contractor have a case in Superior Court?
Answer:
If it is a dispute of more than $25,000 it can be transferred to Superior Court.
Question:
Which would not have to be reported to DOSH immediately or within 24 hours? A. Death from a
three-story fall. B. Drunken crane operator hits a high-voltage power line C. Car accident in which
an employee steps onto a public road, gets hit by a car, and suffers a concussion. D. Employee falls
,off forklift and suffers a sever back injury.
Answer:
Car accident in which an employee steps onto a public road, gets hit by a car, and suffers a
concussion.
Question:
A general contractor has obtained bids from several subcontractors for a private project. He notices
that one bid is substantially lower than the rest. Is it ethical and a good business practice for this
contractor to inform the subcontractor that the bid is substantially lower than the bids of the other
subcontractors?
Answer:
Yes. If the contractor has reason to believe that the subcontractor has made an error in preparing his
bid, the contractor should notify the subcontractor of the apparent error, but the contractor may not
disclose the amounts of the other bids.
Question:
An employer must furnish an employee with a completed IRS Form W-2 (Wage and Tax Statement)
by:
Answer:
The 31st of January.
Question:
After a job is completed, the owner decides to have additional work done. How should the
contractor proceed?
Answer:
Write a new contract and ask the owner to sign it.
Question:
The purpose of a 20-day preliminary notice for private work is to?
,Answer:
Notify the owner that the person or firm who sent the notice has improved the property.
Question:
Is it legal for a contractor to pay employees in cash?
Answer:
Yes, if the contractor provides each employee with a wage deduction statement semimonthly or at
the time of each wage payment.
Question:
You are bidding on a job with plans drawn by the owner. You notice a code violation and bring it to
the attention of the owner. The owner declines to remedy the code violation and tells you not to
worry. What should you do?
Answer:
Decline to bid the work.
Question:
On a time-and-materials job, you should:
Answer:
Add profit and overhead to labor and materials
Question:
Your employee sets a cabinet wrong. The cabinet falls from the wall and damages the client's
counter top. What should you do? A. Claim the damage on your general liability insurance policy.
B. Require the employee to pay for the damage to the countertop. C. Tell the client to claim the
damaged counter top on his or her homeowner's insurance policy. D. No action is required: The
client must assume the risk of damage.
Answer:
Claim the damage on your general liability insurance policy.
, Question:
Of the following, which is best for determining the number of hours required for different phases of
a project and for making sure the job is on schedule? A. Bar graph and chart B. Cash analysis chart
C. Review plans D. Critical path method
Answer:
The critical path method.
Question:
Is it legal for a contractor to require employees to take a lie detector test?
Answer:
It is not legal for the contractor to require lie detector tests, but it would be legal for a federal, state,
or local public agency to require lie detector tests of their employees.
Question:
If a newly hired employee does not have a SSN, what should be done?
Answer:
The employee must apply for a SSN.
Question:
How many times may you take the contractors license exam before your original application is
voided?
Answer:
As many times as necessary within 18 months.
Question:
When should a contractor renew the contractor's license bond?
Answer:
