CSLB Contractor's Law practice test Part 2 Frequently Tested
Actual Questions and Answers
Question 1.
When should you let your attorney see a construction contract?
A. Before you let the client see the contract
B. After the contract is prepared but before you sign it
C. After the building permit is obtained
D. After the contract is signed by you and the client
Correct Answer: B. After the contract is prepared but before you sign it
Question 2.
Which is the most correct statement as to what must be included in every home
improvement contract?
A. Notice of right to cancel
B. Contractor's license number
C. Truth-in-lending notice
D. Name of the project
Correct Answer: B. Contractor's license number
Question 3.
Which is NOT required on a home improvement contract?
A. A notice, in at least 10 point print, in close proximity to the signature, and a statement
that the owner has a right to require a performance and payment bond
B. The name and home address of all the personnel listed on the license
C. An approximate date when work will begin and be substantially completed
D. A description of the work to be done and materials and equipment to be used or
installed
Correct Answer: B. The name and home address of all the personnel listed on
the license. Know that A, C and D are required. Only the contractor's name,
address and license number are required.
Question 4.
When a home improvement contract is signed, the contractor must substantially begin
work within ____ days of the date specified in the contract?
A. 5
B. 10
C. 15
D. 20
Correct Answer: D. 20
, Question 5.
Which is true concerning home improvement sales persons?
A. They must register with the Registrar's office and may work for only one contractor at a
time
B. Anyone who sells home improvement contracts for a licensed contractor outside the
contractor's normal place of business is required to be registered with the Attorney
General's office
C. They must be at least 18 years of age. There are no residency or educational
requirements
D. They may begin to negotiate home improvement contracts as soon as they have filled
out the appropriate application and paid the required fees
Correct Answer: C. They must be at least 18 years of age. There are no residency
or educational requirements - must register for "each" contractor with the
Registrar and receive a registration number first
Question 6.
Judy, a contractor, employs Sam as her registered home improvement salesperson. Sam
meets with Mr. And Mrs. Jones and negotiates home improvement work that totals $350.
When Sam returns to his boss and tells her of the verbal contract, his employer says she
will not work for the contracted price. The Contractor's License Law states:
A. The contractor is required by law to abide by the verbal agreement since verbal home
improvement contracts under $500 are binding
B. The contractor is not bound by a verbal agreement
C. The contractor may cancel a home improvement contract that she did not negotiate
D. The contractor is not bound by the contract since all home improvement contracts must
be in writting
Correct Answer: A. When registered salespersons enter into an agreement,
verbal or written, they are bound by it. They are acting as the agent of the
contractor. Verbal improvement contracts are legal and binding
Question 7.
Which type of contract can be cancelled by a consumer?
A. Sub contract
B. Home solicitation contract which involves fencing, burglar alarm, carpentry and texture
coating
C. Prime construction contract
D. Home improvement contract involving free standing bookcases, rugs and window air
conditioner
Correct Answer: B. Home solicitation contract which involves fencing, burglar
alarm, carpentry and texture coating - only home solicited contracts can be
cancelled which contain "permanent fixtures"
Actual Questions and Answers
Question 1.
When should you let your attorney see a construction contract?
A. Before you let the client see the contract
B. After the contract is prepared but before you sign it
C. After the building permit is obtained
D. After the contract is signed by you and the client
Correct Answer: B. After the contract is prepared but before you sign it
Question 2.
Which is the most correct statement as to what must be included in every home
improvement contract?
A. Notice of right to cancel
B. Contractor's license number
C. Truth-in-lending notice
D. Name of the project
Correct Answer: B. Contractor's license number
Question 3.
Which is NOT required on a home improvement contract?
A. A notice, in at least 10 point print, in close proximity to the signature, and a statement
that the owner has a right to require a performance and payment bond
B. The name and home address of all the personnel listed on the license
C. An approximate date when work will begin and be substantially completed
D. A description of the work to be done and materials and equipment to be used or
installed
Correct Answer: B. The name and home address of all the personnel listed on
the license. Know that A, C and D are required. Only the contractor's name,
address and license number are required.
Question 4.
When a home improvement contract is signed, the contractor must substantially begin
work within ____ days of the date specified in the contract?
A. 5
B. 10
C. 15
D. 20
Correct Answer: D. 20
, Question 5.
Which is true concerning home improvement sales persons?
A. They must register with the Registrar's office and may work for only one contractor at a
time
B. Anyone who sells home improvement contracts for a licensed contractor outside the
contractor's normal place of business is required to be registered with the Attorney
General's office
C. They must be at least 18 years of age. There are no residency or educational
requirements
D. They may begin to negotiate home improvement contracts as soon as they have filled
out the appropriate application and paid the required fees
Correct Answer: C. They must be at least 18 years of age. There are no residency
or educational requirements - must register for "each" contractor with the
Registrar and receive a registration number first
Question 6.
Judy, a contractor, employs Sam as her registered home improvement salesperson. Sam
meets with Mr. And Mrs. Jones and negotiates home improvement work that totals $350.
When Sam returns to his boss and tells her of the verbal contract, his employer says she
will not work for the contracted price. The Contractor's License Law states:
A. The contractor is required by law to abide by the verbal agreement since verbal home
improvement contracts under $500 are binding
B. The contractor is not bound by a verbal agreement
C. The contractor may cancel a home improvement contract that she did not negotiate
D. The contractor is not bound by the contract since all home improvement contracts must
be in writting
Correct Answer: A. When registered salespersons enter into an agreement,
verbal or written, they are bound by it. They are acting as the agent of the
contractor. Verbal improvement contracts are legal and binding
Question 7.
Which type of contract can be cancelled by a consumer?
A. Sub contract
B. Home solicitation contract which involves fencing, burglar alarm, carpentry and texture
coating
C. Prime construction contract
D. Home improvement contract involving free standing bookcases, rugs and window air
conditioner
Correct Answer: B. Home solicitation contract which involves fencing, burglar
alarm, carpentry and texture coating - only home solicited contracts can be
cancelled which contain "permanent fixtures"
