CSLB CONTRACTOR'S LAW &
BUSINESS EXAM (Actual Exam
2026) | Complete Questions and Correct
Answers | Graded A+ | Latest Version |
Verified Answers | Brand New Version!
California Contractor License Exam
Questions and Correct Answers
1. How must a client submit a claim for service or repair of
a defect on fit and finish items after a remodel?
A. by certified mail
B. by overnight mail
C. by personal delivery
D. any of the above
Correct Answer: D. Any of the above.
2. What is the maximum allowed travel distance from any
point of a work area to a fire extinguisher?
A. 25 feet
B. 50 feet
,C. 75 feet
D. 150 feet
Correct Answer: 75 feet.
3. When should you renew contractor's bond?
Correct Answer: 30 days before the bond expires.
4. If, during excavation, you unearth human remains or
burial artifacts at a construction site, what should you do?
A. Notify the owner of the property.
B. Stop work and place a warning ribbon three feet from the
remains around the perimeter of the site.
C. Stop work immediately at that site.
D. Stop work immediately at that site and any other nearby
area that may have remains.
Correct Answer: D. Stop work immediately at that site and
any other nearby area that may have remains.
5. Direct costs are $37,000, overhead is 12%, and profit is
5%. What is the selling price?
,A. $39,272.47
B. $41,373.45
C. $43,383.37
D. $44,578.31
Correct Answer: D. $44,578.31.
6. Who pays FUTA?
A. employer
B. employee
C. 50% employer and 50% employee
D. 90% employer and 10% employee
Correct Answer: A. Employer.
7. When you get an approved set of plans, what should you
do first?
Correct Answer: Read any notes from the building
department.
, 8. 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?
Correct Answer: Critical path method.
9. Which of the following provisions may not be included
in a home improvement contract?
A. Owner must pay for materials after they are delivered.
B. Owner must pay for materials before they are delivered.
C. The contractor may require a downpayment.
D. Owner may make progress payments.
Correct Answer: B. Owner must pay for materials before
they are delivered.
10. How many times may you take the contractor's license
exam before your original application is voided?
Correct Answer: As many times as necessary within 18
months.
BUSINESS EXAM (Actual Exam
2026) | Complete Questions and Correct
Answers | Graded A+ | Latest Version |
Verified Answers | Brand New Version!
California Contractor License Exam
Questions and Correct Answers
1. How must a client submit a claim for service or repair of
a defect on fit and finish items after a remodel?
A. by certified mail
B. by overnight mail
C. by personal delivery
D. any of the above
Correct Answer: D. Any of the above.
2. What is the maximum allowed travel distance from any
point of a work area to a fire extinguisher?
A. 25 feet
B. 50 feet
,C. 75 feet
D. 150 feet
Correct Answer: 75 feet.
3. When should you renew contractor's bond?
Correct Answer: 30 days before the bond expires.
4. If, during excavation, you unearth human remains or
burial artifacts at a construction site, what should you do?
A. Notify the owner of the property.
B. Stop work and place a warning ribbon three feet from the
remains around the perimeter of the site.
C. Stop work immediately at that site.
D. Stop work immediately at that site and any other nearby
area that may have remains.
Correct Answer: D. Stop work immediately at that site and
any other nearby area that may have remains.
5. Direct costs are $37,000, overhead is 12%, and profit is
5%. What is the selling price?
,A. $39,272.47
B. $41,373.45
C. $43,383.37
D. $44,578.31
Correct Answer: D. $44,578.31.
6. Who pays FUTA?
A. employer
B. employee
C. 50% employer and 50% employee
D. 90% employer and 10% employee
Correct Answer: A. Employer.
7. When you get an approved set of plans, what should you
do first?
Correct Answer: Read any notes from the building
department.
, 8. 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?
Correct Answer: Critical path method.
9. Which of the following provisions may not be included
in a home improvement contract?
A. Owner must pay for materials after they are delivered.
B. Owner must pay for materials before they are delivered.
C. The contractor may require a downpayment.
D. Owner may make progress payments.
Correct Answer: B. Owner must pay for materials before
they are delivered.
10. How many times may you take the contractor's license
exam before your original application is voided?
Correct Answer: As many times as necessary within 18
months.
