CSLB Exam Law and
Business Questions and
Answers Updated 2026
HowBmuchBtimeBdoesBaBcontractorBhaveBtoBrenewBhis/herBlicenseBafterBtheBexpiratio
nBdateBwithoutBretakingBtheBlicenseBexam?B-
BAnswerBTheBcontractorBisBnotBrequiredBtoBretakeBtheBexamBifBtheBlicenseBisBrenew
edBwithinB5Byears,BfromBtheBexpirationBdate
IfBtheBcontractorBunlawfullyBremovesBasbestosBhe/sheBmayBbeBfined....B-
BAnswerBminimumBofB$1,000BandBorBhaveBhis/herBlicenseBrevokedBorBsuspended
whenByouBcollectBsalesBtaxBfromByourBcustomersBgoods,BtoBwhichBagencyBdoByouBre
portBandBpayBsalesBtaxBcollected?B-
BAnswerBsalesBtaxBisBaBstateBtaxBandBisBpayableBtoBtheBstateBboardBofBequalization.
WhoBdoByouBpayBstateBincomeBtaxBtoB-
BAnswerBstateBincomeBtaxesBareBpayableBtoBtheBfranchiseBtaxBboard
WhoBcollectsBfederalBtaxB-BAnswerBIRSBonlyBcollectsBfederalBtaxes
HowBlongBisBtheBcontractorBliableBforBpatentBorBvisibleBdefectsB-
BAnswerBpatentBisBaBvisibleBdefectBforBwhichBtheBcontractorBisBliableBforBupBtoB4By
ears
howBlongBisBtheBcontractorBliableBforBlatentBorBstructuralBdefectsB-
BAnswerBlatentBisBanBinvisibleBorBstructuralBdefectBforBwhichBtheBcontractorBisBliable
BforBupBtoB10Byears
accountBreceivableBcontains?B-
BAnswerBretention,BwhichBisBusuallyB10%,BitBisBwithheldBbyBtheBownerBfromBtheBco
Business Questions and
Answers Updated 2026
HowBmuchBtimeBdoesBaBcontractorBhaveBtoBrenewBhis/herBlicenseBafterBtheBexpiratio
nBdateBwithoutBretakingBtheBlicenseBexam?B-
BAnswerBTheBcontractorBisBnotBrequiredBtoBretakeBtheBexamBifBtheBlicenseBisBrenew
edBwithinB5Byears,BfromBtheBexpirationBdate
IfBtheBcontractorBunlawfullyBremovesBasbestosBhe/sheBmayBbeBfined....B-
BAnswerBminimumBofB$1,000BandBorBhaveBhis/herBlicenseBrevokedBorBsuspended
whenByouBcollectBsalesBtaxBfromByourBcustomersBgoods,BtoBwhichBagencyBdoByouBre
portBandBpayBsalesBtaxBcollected?B-
BAnswerBsalesBtaxBisBaBstateBtaxBandBisBpayableBtoBtheBstateBboardBofBequalization.
WhoBdoByouBpayBstateBincomeBtaxBtoB-
BAnswerBstateBincomeBtaxesBareBpayableBtoBtheBfranchiseBtaxBboard
WhoBcollectsBfederalBtaxB-BAnswerBIRSBonlyBcollectsBfederalBtaxes
HowBlongBisBtheBcontractorBliableBforBpatentBorBvisibleBdefectsB-
BAnswerBpatentBisBaBvisibleBdefectBforBwhichBtheBcontractorBisBliableBforBupBtoB4By
ears
howBlongBisBtheBcontractorBliableBforBlatentBorBstructuralBdefectsB-
BAnswerBlatentBisBanBinvisibleBorBstructuralBdefectBforBwhichBtheBcontractorBisBliable
BforBupBtoB10Byears
accountBreceivableBcontains?B-
BAnswerBretention,BwhichBisBusuallyB10%,BitBisBwithheldBbyBtheBownerBfromBtheBco