CSLB Practice Law B Questions With Correct Answers Graded to Pass A+

A subcontractor or material supplier has _____ days to file a lien once a notice of completion has been recorded. - 30 How must a client submit a claim for service or repair of a defect on fit and finish items after a remodel? - By certified mail By overnight mail By personal delivery A contractor meets Mr. Jones at his home to discuss remodeling. The contractor and Mr. Jones sign a contract that includes a three-day cancellation form. After the contractor leaves, Mr. Jones decides not to have the work done. Instead of using the cancellation form, Mr. Jones sends the contractor a letter by first-class mail stating that he is canceling the contract. Is Mr. Jones' cancellation effective? - Yes. Mr. Jones' letter does cancel the contract because it indicates his intention not to be bound by the contract. If a contractor forgets to renew his or her license on time, the expired license may be renewed any time within _____ after its expiration without reapplying for a license and fulfilling the exam or waiver requirements again. - Five years You are the qualifier for an active contractor's license. How do you inactivate the license? - Write to the CSLB, requesting that the license be made inactive. When a subcontractor does work on a public works contract, the public agency considers the subcontractor to be: - a subcontractor of the prime contractor A contractor hires a subcontractor to demolish a concrete wall. Who is responsible for supplying safety goggles? - subcontractor Sometimes contracts prove to be too vague to interpret without disagreement between owner and contractor. Which of the following steps would best prevent such problems? - Review the plans and specifications with the owner. A contractor is looking for an insurance policy to cover a high degree of exposure to risk. Of the following, which policy would be best for this purpose? - umbrella To whom do you report and pay sales tax? - Board of Equalization The federal Employer Identification Number (EIN) is issued by the: - Internal Revenue Service When purchasing insurance, what is the best way to choose among different companies? - cost and coverage As required by the Immigration Reform and Control Act, all employees hired on or after November 7, 1986 must complete Form _____ to verify their employment eligibility status. - I-9 If required safety devices are missing from tools, what should an employee do? - Notify the contractor, who is responsible for safety. Of the following, which document is usually delivered first in a transaction involving a home improvement contract? - "Notice to Owner" Who is ultimately responsible for seeing that safety equipment is actually put to use on the jobsite? - contractor A mechanics' lien is a written document that must be signed and verified by the claimant. The first and third steps a contractor should take in filing a lien are listed below. Step 1: Obtain the exact legal description of the property. Step 2: Step 3: Find out if the person requesting the work of improvement is the owner. What is Step 2? - Find out the name of the legal owner of the property as well as the percent of ownership. A(n) _____ represents a company's financial position on a specified date. - balance sheet When you get an approved set of plans, what should you do first? - Read any notes from the building department. When bidding on work, which of the following would you NOT include in the price of your bid? - worker's compensation insurance premium The purpose of a "Preliminary 20-day Notice" for private work is to: - notify the property owner that the subcontractor or firm who sent the notice will be making improvements on the property When should you let your attorney see a construction contract? - After the contract is prepared, but before you sign it. When is an employee allowed to view their own personnel file? - whenever they wish to Before beginning work, an employer or contractor must inquire whether asbestos is present in any building constructed prior to: - 1978 Is it legal for a contractor to require employees to take lie detector tests? - 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. When is the last day a customer can cancel a contract that was signed on Friday, December 21st? - the following Wednesday Which of the following provisions may not be included in a home improvement contract? - Owner must pay for materials before they are delivered. When can a material supplier perfect a mechanics lien? - After the goods have been installed in the structure. Every employer of _____ or more full- or part-time employees must keep written health and safety records for _____ years. - 11 ... 5 The qualifying RME for a construction firm must work at least: - 32 hr per week or 80% of the work week Where is the "Notice of Right to Cancel" found on a home improvement contract? - near the client signature An employer remits State disability taxes withheld from an employee's wages to what agency? - Employment Development Department An applicant for a contractor's license receives a notice from the Contractors' State License Board, dated October 1, that the applicant passed the written exams. To receive an active license, the applicant must file a license bond and fee no later than: - 30-Dec A contract can be canceled when there is consent through fraud or duress by: - the other party. What possible reason would an owner have for requiring an unconditional lien release from a subcontractor? - The owner's property covered by the release may not be liened. Equity is: - Total Assets less Total Liabilities. Insured employers must report every work-related illness or injury to their workers' compensation carrier within _____ of the incident. - 5 days If, during excavation, you unearth human remains or burial artifacts at a construction site, what should you do? - Stop work immediately at that site and any other nearby area that may have remains. 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? - It is not legal to ask prospective employees about arrests not leading to convictions. Which act establishes the rights of workers to organize into unions and negotiate contracts? - National Labor Relations Act of 1935