CSLB CONTRACTOR'S LAW & BUSINESS
EXAM
An employer remits State disability taxes withheld from an employee’s
wages to what agency? - Employment Development Department
Which act establishes the rights of workers to organize into unions and
negotiate contracts? - National Labor Relations Act of 1935
A contractor has had a problem with employees stealing tools and
equipment from job sites. When conducting job interviews, may the
contractor ask prospective employees about their arrest records?
A.It is legal to ask prospective employees about arrests not leading to
convictions.
B.It is not legal to ask prospective employees about arrests not leading to
convictions.
C.It is legal for a private employer to ask about arrests not leading to
convictions, but it
would not be legal for city or county agencies to ask about such arrests.
D.It is legal for a private employer to ask about arrests leading to convictions,
but it
would not be legal for a federal, state, or local public agency to do so. - It is
not legal to ask prospective employees about arrest not leading to
convictions.
Why would a contractor have a case in Superior Court? - If it is a dispute of
more than
$25,000 it can be transferred to Superior Court.
Which would not have to be reported to DOSH immediately or within 24
hours?
A.Death from a three-story fall.
B.Drunken crane operator hits a high-voltage power line
C.Car accident in which an employee steps onto a public road, gets hit by
a car, and suffers a concussion.
D.Employee falls off forklift and suffers a sever back injury. - Car accident
in which an employee steps onto a public road, gets hit by a car, and
suffers a concussion.
A general contractor has obtained bids from several subcontractors for a
private project. He notices that one bid is substantially lower than the rest. Is
it ethical and a good business practice for this contractor to inform the
subcontractor that the bid is substantially lower than the bids of the other
subcontractors? - Yes. If the contractor has reason to believe that the
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subcontractor has made an error in preparing his bid, the contractor should
notify the subcontractor of the apparent error, but the contractor may not
disclose the amounts of the other bids.
2 / 4
An employer must furnish an employee with a completed IRS Form W-2
(Wage and Tax Statement) by: - The 31st of January.
After a job is completed, the owner decides to have additional work done.
How should the contractor proceed? - Write a new contract and ask the
owner to sign it.
The purpose of a 20-day preliminary notice for private work is to? - Notify the
owner that the person or firm who sent the notice has improved the property.
Is it legal for a contractor to pay employees in cash? - Yes, if the
contractor provides each employee with a wage deduction statement
semimonthly or at the time of each wage payment.
You are bidding on a job with plans drawn by the owner. You notice a code
violation and bring it to the attention of the owner. The owner declines to
remedy the code violation and tells you not to worry. What should you do? -
Decline to bid the work.
On a time-and-materials job, you should: - Add profit and overhead to labor
and materials
Your employee sets a cabinet wrong. The cabinet falls from the wall and
damages the client's counter top. What should you do?
A.Claim the damage on your general liability insurance policy.
B.Require the employee to pay for the damage to the countertop.
C.Tell the client to claim the damaged counter top on his or her
homeowner's insurance policy.
D.No action is required: The client must assume the risk of damage. -
Claim the damage on your general liability insurance policy.
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?
A. Bar graph and
chart B. Cash
analysis chart C.
Review plans
D. Critical path method - The critical path method.
Is it legal for a contractor to require employees to take a lie detector test? -
It is not legal for the contractor to require lie detector tests, but it would be
legal for a federal, state, or local public agency to require lie detector tests
of their employees.
If a newly hired employee does not have a SSN, what should be done? - The
employee must apply for a SSN.
3 / 4
How many times may you take the contractors license exam before
your original application is voided? - As many times as necessary
within 18 months.
When should a contractor renew the contractor's license bond? - 30 days
before it expires.
The qualifying RME for a construction firm must work at least: - A qualifying
RME for a construction firm must work at least 32 hours per week or 80% of
the work week.
The federal Employer Identification Number (EIN) is issued by the: - The
Internal Revenue Service
Every employer of or more full or part time employees must keep
written health and safety records for years.
A. 1-3
B. 7-4
C. 10-3
D. 11-5 - Every employer of 11 or more full or part time employees must keep
written health and safety records for 5 years.
After you have read the plans and specifications, what is the next important
step in writing a bid?
A. Talk to and select
subs. B. Walk the job.
C. Call about materials, price, and availability.
D. Talk to the crew leader about labor. - Walk the job.
Once a budget is finalized, the:
A.Contractor should stick to the budget no matter what happens.
B.Contractor should do the best possible job of staying within
the budget. C. Budget should be revised each month.
D. Budget should be referred to only if the business has cashflow problems. -
The contractor should do the best possible job of staying within budget. `
Who must sign a joint control addendum to a home improvement contract? -
Owner, contractor, and joint control officer.
When purchasing insurance, what is the best way to chose among different
companies?
-Cost and Coverage
Sometimes contracts can prove to be too vague to interpret without
disagreement between owner and contractor. Which of the following steps
would best prevent such problems?Powered by TCPDF (www.tcpdf.org)
4 / 4
EXAM
An employer remits State disability taxes withheld from an employee’s
wages to what agency? - Employment Development Department
Which act establishes the rights of workers to organize into unions and
negotiate contracts? - National Labor Relations Act of 1935
A contractor has had a problem with employees stealing tools and
equipment from job sites. When conducting job interviews, may the
contractor ask prospective employees about their arrest records?
A.It is legal to ask prospective employees about arrests not leading to
convictions.
B.It is not legal to ask prospective employees about arrests not leading to
convictions.
C.It is legal for a private employer to ask about arrests not leading to
convictions, but it
would not be legal for city or county agencies to ask about such arrests.
D.It is legal for a private employer to ask about arrests leading to convictions,
but it
would not be legal for a federal, state, or local public agency to do so. - It is
not legal to ask prospective employees about arrest not leading to
convictions.
Why would a contractor have a case in Superior Court? - If it is a dispute of
more than
$25,000 it can be transferred to Superior Court.
Which would not have to be reported to DOSH immediately or within 24
hours?
A.Death from a three-story fall.
B.Drunken crane operator hits a high-voltage power line
C.Car accident in which an employee steps onto a public road, gets hit by
a car, and suffers a concussion.
D.Employee falls off forklift and suffers a sever back injury. - Car accident
in which an employee steps onto a public road, gets hit by a car, and
suffers a concussion.
A general contractor has obtained bids from several subcontractors for a
private project. He notices that one bid is substantially lower than the rest. Is
it ethical and a good business practice for this contractor to inform the
subcontractor that the bid is substantially lower than the bids of the other
subcontractors? - Yes. If the contractor has reason to believe that the
1 / 4
subcontractor has made an error in preparing his bid, the contractor should
notify the subcontractor of the apparent error, but the contractor may not
disclose the amounts of the other bids.
2 / 4
An employer must furnish an employee with a completed IRS Form W-2
(Wage and Tax Statement) by: - The 31st of January.
After a job is completed, the owner decides to have additional work done.
How should the contractor proceed? - Write a new contract and ask the
owner to sign it.
The purpose of a 20-day preliminary notice for private work is to? - Notify the
owner that the person or firm who sent the notice has improved the property.
Is it legal for a contractor to pay employees in cash? - Yes, if the
contractor provides each employee with a wage deduction statement
semimonthly or at the time of each wage payment.
You are bidding on a job with plans drawn by the owner. You notice a code
violation and bring it to the attention of the owner. The owner declines to
remedy the code violation and tells you not to worry. What should you do? -
Decline to bid the work.
On a time-and-materials job, you should: - Add profit and overhead to labor
and materials
Your employee sets a cabinet wrong. The cabinet falls from the wall and
damages the client's counter top. What should you do?
A.Claim the damage on your general liability insurance policy.
B.Require the employee to pay for the damage to the countertop.
C.Tell the client to claim the damaged counter top on his or her
homeowner's insurance policy.
D.No action is required: The client must assume the risk of damage. -
Claim the damage on your general liability insurance policy.
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?
A. Bar graph and
chart B. Cash
analysis chart C.
Review plans
D. Critical path method - The critical path method.
Is it legal for a contractor to require employees to take a lie detector test? -
It is not legal for the contractor to require lie detector tests, but it would be
legal for a federal, state, or local public agency to require lie detector tests
of their employees.
If a newly hired employee does not have a SSN, what should be done? - The
employee must apply for a SSN.
3 / 4
How many times may you take the contractors license exam before
your original application is voided? - As many times as necessary
within 18 months.
When should a contractor renew the contractor's license bond? - 30 days
before it expires.
The qualifying RME for a construction firm must work at least: - A qualifying
RME for a construction firm must work at least 32 hours per week or 80% of
the work week.
The federal Employer Identification Number (EIN) is issued by the: - The
Internal Revenue Service
Every employer of or more full or part time employees must keep
written health and safety records for years.
A. 1-3
B. 7-4
C. 10-3
D. 11-5 - Every employer of 11 or more full or part time employees must keep
written health and safety records for 5 years.
After you have read the plans and specifications, what is the next important
step in writing a bid?
A. Talk to and select
subs. B. Walk the job.
C. Call about materials, price, and availability.
D. Talk to the crew leader about labor. - Walk the job.
Once a budget is finalized, the:
A.Contractor should stick to the budget no matter what happens.
B.Contractor should do the best possible job of staying within
the budget. C. Budget should be revised each month.
D. Budget should be referred to only if the business has cashflow problems. -
The contractor should do the best possible job of staying within budget. `
Who must sign a joint control addendum to a home improvement contract? -
Owner, contractor, and joint control officer.
When purchasing insurance, what is the best way to chose among different
companies?
-Cost and Coverage
Sometimes contracts can prove to be too vague to interpret without
disagreement between owner and contractor. Which of the following steps
would best prevent such problems?Powered by TCPDF (www.tcpdf.org)
4 / 4
