CSLB Contractor's Law practice Test Part 2: Questions & Answers: Updated Solution

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 (Ans- B. After the contract is prepared but before you sign it 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 (Ans- B. Contractor's license number 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 (Ans- 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. 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 (Ans- D. 20 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 (Ans- 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 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 writing