CSLB CONTRACTORS STATE BOARD LAW UPDATED ACTUAL EXAM QUESTIONS CORRECT
ANSWERS GRADED A PLUS
Question:
How must a client submit a claim for service or repair of a defect on fit and finish items after a
remodel?
Answer:
By certified mail By overnight mail By personal delivery
Question:
A contractor meets Mr. Jones at his home to discuss remodeling. The contractor and Mr. Jones sign
a contract that includes a three-day cancellation form. After the contractor leaves, Mr. Jones decides
not to have the work done. Instead of using the cancellation form, Mr. Jones sends the contractor a
letter by first-class mail stating that he is canceling the contract. Is Mr. Jones' cancellation effective?
Answer:
Yes. Mr. Jones' letter does cancel the contract because it indicates his intention not to be bound by
the contract.
Question:
If a contractor forgets to renew his or her license on time, the expired license may be renewed any
time within _____ after its expiration without reapplying for a license and fulfilling the exam or
waiver requirements again.
Answer:
Five years
Question:
You are the qualifier for an active contractor's license. How do you inactivate the license?
,Answer:
Write to the CSLB, requesting that the license be made inactive.
Question:
When a subcontractor does work on a public works contract, the public agency considers the
subcontractor to be:
Answer:
a subcontractor of the prime contractor
Question:
A contractor hires a subcontractor to demolish a concrete wall. Who is responsible for supplying
safety goggles?
Answer:
subcontractor
Question:
Sometimes contracts prove to be too vague to interpret without disagreement between owner and
contractor. Which of the following steps would best prevent such problems?
Answer:
Review the plans and specifications with the owner.
Question:
A contractor is looking for an insurance policy to cover a high degree of exposure to risk. Of the
following, which policy would be best for this purpose?
Answer:
umbrella
Question:
,To whom do you report and pay sales tax?
Answer:
Board of Equalization
Question:
The federal Employer Identification Number (EIN) is issued by the:
Answer:
Internal Revenue Service
Question:
When purchasing insurance, what is the best way to choose among different companies?
Answer:
cost and coverage
Question:
As required by the Immigration Reform and Control Act, all employees hired on or after November
7, 1986 must complete Form _____ to verify their employment eligibility status.
Answer:
I-9
Question:
If required safety devices are missing from tools, what should an employee do?
Answer:
Notify the contractor, who is responsible for safety.
Question:
, Of the following, which document is usually delivered first in a transaction involving a home
improvement contract?
Answer:
"Notice to Owner"
Question:
Who is ultimately responsible for seeing that safety equipment is actually put to use on the jobsite?
Answer:
contractor
Question:
A mechanics' lien is a written document that must be signed and verified by the claimant. The first
and third steps a contractor should take in filing a lien are listed below. Step 1: Obtain the exact
legal description of the property. Step 2: Step 3: Find out if the person requesting the work of
improvement is the owner. What is Step 2?
Answer:
Find out the name of the legal owner of the property as well as the percent of ownership.
Question:
A(n) _____ represents a company's financial position on a specified date.
Answer:
balance sheet
Question:
When you get an approved set of plans, what should you do first?
Answer:
Read any notes from the building department.
ANSWERS GRADED A PLUS
Question:
How must a client submit a claim for service or repair of a defect on fit and finish items after a
remodel?
Answer:
By certified mail By overnight mail By personal delivery
Question:
A contractor meets Mr. Jones at his home to discuss remodeling. The contractor and Mr. Jones sign
a contract that includes a three-day cancellation form. After the contractor leaves, Mr. Jones decides
not to have the work done. Instead of using the cancellation form, Mr. Jones sends the contractor a
letter by first-class mail stating that he is canceling the contract. Is Mr. Jones' cancellation effective?
Answer:
Yes. Mr. Jones' letter does cancel the contract because it indicates his intention not to be bound by
the contract.
Question:
If a contractor forgets to renew his or her license on time, the expired license may be renewed any
time within _____ after its expiration without reapplying for a license and fulfilling the exam or
waiver requirements again.
Answer:
Five years
Question:
You are the qualifier for an active contractor's license. How do you inactivate the license?
,Answer:
Write to the CSLB, requesting that the license be made inactive.
Question:
When a subcontractor does work on a public works contract, the public agency considers the
subcontractor to be:
Answer:
a subcontractor of the prime contractor
Question:
A contractor hires a subcontractor to demolish a concrete wall. Who is responsible for supplying
safety goggles?
Answer:
subcontractor
Question:
Sometimes contracts prove to be too vague to interpret without disagreement between owner and
contractor. Which of the following steps would best prevent such problems?
Answer:
Review the plans and specifications with the owner.
Question:
A contractor is looking for an insurance policy to cover a high degree of exposure to risk. Of the
following, which policy would be best for this purpose?
Answer:
umbrella
Question:
,To whom do you report and pay sales tax?
Answer:
Board of Equalization
Question:
The federal Employer Identification Number (EIN) is issued by the:
Answer:
Internal Revenue Service
Question:
When purchasing insurance, what is the best way to choose among different companies?
Answer:
cost and coverage
Question:
As required by the Immigration Reform and Control Act, all employees hired on or after November
7, 1986 must complete Form _____ to verify their employment eligibility status.
Answer:
I-9
Question:
If required safety devices are missing from tools, what should an employee do?
Answer:
Notify the contractor, who is responsible for safety.
Question:
, Of the following, which document is usually delivered first in a transaction involving a home
improvement contract?
Answer:
"Notice to Owner"
Question:
Who is ultimately responsible for seeing that safety equipment is actually put to use on the jobsite?
Answer:
contractor
Question:
A mechanics' lien is a written document that must be signed and verified by the claimant. The first
and third steps a contractor should take in filing a lien are listed below. Step 1: Obtain the exact
legal description of the property. Step 2: Step 3: Find out if the person requesting the work of
improvement is the owner. What is Step 2?
Answer:
Find out the name of the legal owner of the property as well as the percent of ownership.
Question:
A(n) _____ represents a company's financial position on a specified date.
Answer:
balance sheet
Question:
When you get an approved set of plans, what should you do first?
Answer:
Read any notes from the building department.
