CSLB CONTRACTOR'S LAW PRACTICE TEST PART 2 UPDATED ACTUAL
QUESTIONS AND CORRECT ANSWERS VERIFIED 2027 EDITION
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
B. After the contract is prepared but before you sign it
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
B. Contractor's license number
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
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.
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
D. 20
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
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
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
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
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
B. Home solicitation contract which involves fencing, burglar alarm, carpentry and texture coating - only
home solicited contracts can be cancelled which contain "permanent fixtures"
1
, 8. A consumer may cancel a home solicitation contract at any time prior to midnight of the ___
business day after the date of the transaction. A. 1st B. 2nd C. 3rd D. 5th
C. 3rd
9. If an owner cancels a home solicitation contract on March 20, by what date must the contractor
return the down payment? A. April 23 B. March 30 C. April 1 D. April 20
B. March 30 -10 Days
10. A notice canceling a home solicitation contract becomes effective: A. When the written notice is
deposited in the mail B. When signed by the owner C. The day the owner cancels by telephone D. When
the contractor receives it
A. When the written notice is deposited in the mail
11. An "emergency" job has been contracted for between the owner and a contractor. The materials
have been purchased. If the owner decides to cancel, who is responsible for the materials? A. The
owner B. The contractor C. The supplier D. No one
A. The owner - During emergencies, the cancelation period is waived
12. Which of the following is NOT true concerning a joint-control addendum to a contract? A. It
prevents the contractor from being paid more than the value of the work completed B. It safeguards
the consumer's property from liens by requiring contractor's to supply lien releases C. It analyzes the
contract, plans, breakdown of costs and prepares an account from which funds will be disbursed D. It
is controlled by the Contractor's State License Board
D. It is controlled by the Contractor's State License Board
13. Who must sign a joint-control addendum to a home improvement contract? A. Contractor's only B.
Owner and contractor C. Owner, contractor and Notary Public D. Owner,contractor and joint control
officer
D. Owner,contractor and joint control officer
14. When a joint-control addendum is issued, which of the following does NOT have to be included in a
home improvement contract? A. Owner's signature B. Schedule of payments C. Notice to owner D.
License number of the contractor
B. Schedule of payments
15. Which of the following is true concerning surety bonds? A. They are required in order to obtain a
contractor's license number B. They are valued at $7500 for all contractor's C. They are required in
case you accidentally damage the customer's property D. All of the above
A. They are required in order to obtain a contractor's license number -Bonds do not cover damage
16. Of the following, who will NOT stand to benefit from a contractor's bond? A. Any client damaged
as a result of regulation violations by the contractor B. Any person damaged due to fraud on the part
of the contractor C. Any subcontractor damaged due to an accident D. Any employee damaged by the
contractor's failure to pay wages
C. Any subcontractor damaged due to an accident
17. Which of the following is NOT eligible to receive benefits from a contractor's license bond? A. A
customer who was defrauded by the contractor B. A subcontractor involved in an accident on the job
site C. An employee who was not paid wages that where due D. A homeowner with a valid claim that
the contractor abandoned the job
B. A subcontractor involved in an accident on the job site
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QUESTIONS AND CORRECT ANSWERS VERIFIED 2027 EDITION
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
B. After the contract is prepared but before you sign it
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
B. Contractor's license number
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
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.
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
D. 20
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
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
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
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
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
B. Home solicitation contract which involves fencing, burglar alarm, carpentry and texture coating - only
home solicited contracts can be cancelled which contain "permanent fixtures"
1
, 8. A consumer may cancel a home solicitation contract at any time prior to midnight of the ___
business day after the date of the transaction. A. 1st B. 2nd C. 3rd D. 5th
C. 3rd
9. If an owner cancels a home solicitation contract on March 20, by what date must the contractor
return the down payment? A. April 23 B. March 30 C. April 1 D. April 20
B. March 30 -10 Days
10. A notice canceling a home solicitation contract becomes effective: A. When the written notice is
deposited in the mail B. When signed by the owner C. The day the owner cancels by telephone D. When
the contractor receives it
A. When the written notice is deposited in the mail
11. An "emergency" job has been contracted for between the owner and a contractor. The materials
have been purchased. If the owner decides to cancel, who is responsible for the materials? A. The
owner B. The contractor C. The supplier D. No one
A. The owner - During emergencies, the cancelation period is waived
12. Which of the following is NOT true concerning a joint-control addendum to a contract? A. It
prevents the contractor from being paid more than the value of the work completed B. It safeguards
the consumer's property from liens by requiring contractor's to supply lien releases C. It analyzes the
contract, plans, breakdown of costs and prepares an account from which funds will be disbursed D. It
is controlled by the Contractor's State License Board
D. It is controlled by the Contractor's State License Board
13. Who must sign a joint-control addendum to a home improvement contract? A. Contractor's only B.
Owner and contractor C. Owner, contractor and Notary Public D. Owner,contractor and joint control
officer
D. Owner,contractor and joint control officer
14. When a joint-control addendum is issued, which of the following does NOT have to be included in a
home improvement contract? A. Owner's signature B. Schedule of payments C. Notice to owner D.
License number of the contractor
B. Schedule of payments
15. Which of the following is true concerning surety bonds? A. They are required in order to obtain a
contractor's license number B. They are valued at $7500 for all contractor's C. They are required in
case you accidentally damage the customer's property D. All of the above
A. They are required in order to obtain a contractor's license number -Bonds do not cover damage
16. Of the following, who will NOT stand to benefit from a contractor's bond? A. Any client damaged
as a result of regulation violations by the contractor B. Any person damaged due to fraud on the part
of the contractor C. Any subcontractor damaged due to an accident D. Any employee damaged by the
contractor's failure to pay wages
C. Any subcontractor damaged due to an accident
17. Which of the following is NOT eligible to receive benefits from a contractor's license bond? A. A
customer who was defrauded by the contractor B. A subcontractor involved in an accident on the job
site C. An employee who was not paid wages that where due D. A homeowner with a valid claim that
the contractor abandoned the job
B. A subcontractor involved in an accident on the job site
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