CA Contractors license test questions Business and Law Questions with 100% Complete Answers, A+

How much time does a contractor have to renew his license after the expiration date without retaking the exam? - 5 year When you collect sales tax from your customer for goods, which agency do you report and pay sales tax collected? - State board of equalization Sales tax is a state tax. State income taxes are payable to the franchise tax board. IRS only collects federal taxes How long is the contractor liable for patent or visible defects? - 4 years How long is the contractorr liable for latent or structural defects - Latent is an invisible or structural defect liable for up to 10 years Accounts receivable contains - Retention Retention usually 10%; it is withheld by the owner from the contract to ensure that the job is done properly and subcontractors are paid. What is considered a fixed cost to a contractor? - Office rent What is considered a variable cost to contractors? - Construction material If a home solicitation presentation is made in spanish, the contract language must be - spanish If the employer requires a pre-employement physical exam, who must pay for the exam? - Employer How often should a contractor renew his license? - 2 years Licenses become void after 5 What is the overtime pay rate after 8hrs of work - 1.5. after 12, rate doubles What should be included in the change order form - Reason for change What is the benefit of arbitration over legislation - Arbitration is cheaper When the total price of the bid is over____ the contractor must be licensed - $500 Where does a contractor/employer obtain a Federal Employer Identifacation Number - IRS In small claims court - You cannot be presented by an attorney. If the claim is appealed, you can have an attorney Who publishes the material safety data sheet? - Manufacturer The notice of cessation is filed - after labor has ceased for 30 days What is the max value of a gift which the home improvement sales person can give to a potential customer? - $5