CSLB Law & Business Set 1 Questions with 100% Correct Answers

Question 1: How must a client submit a claim for service or repair of a defect on fit and finish items after a remodel? A.) by certified mail B.) by overnight mail C.) by personal delivery D.) any of the above Correct Answer D. A client may use the normal customer-service procedures agreed to between the client and the contractor, but the client must notify the contractor of the defect in writing by certified mail, overnight mail, or personal delivery before the client may file an action in court. Question 2: What is the maximum allowed travel distance from any point of a work area to a fire extinguisher? a.)25 feet b.)50 feet c.)75 feet d.)150 feet Correct Answer 75 feet When should you renew contractors bond? Correct Answer 30 days before bond expires Question 4: If, during excavation, you unearth human remains or burial artifacts at a construction site, what should you do? Click here to select answer B. Notify the owner of the property. Click here to select answer B. Stop work and place a warning ribbon three feet from the remains around the perimeter of the site. Click here to select answer C. Stop work immediately at that site. Click here to select answer D. Stop work immediately at that site and any other nearby area that may have remains. Correct Answer Stop work immediately at that site and any other nearby area that may have remains. Question 5: Direct costs are $37,000, overhead is 12%, and profit is 5%. What is the selling price? Click here to select answer A. $39,272.47 Click here to select answer B. $41,373.45 Click here to select answer C. $43,383.37 Click here to select answer D. $44,578.31 Correct Answer D. The following solution is based on one of the references listed in the CSLB Study Guide. The solution may seem unorthodox, but you must follow each step to arrive at the State's answer. Sum of overhead and profit percentages = 12% + 5% = 17% Percent of selling price that is direct costs = 100% - 17% = 83% = .83 Selling price = $37,000 ÷ .83 = $44,578.31 To check these calculations, add the subtotals: Direct costs = $44,578.31 × .83 = $37,000.00 Overhead = $44,578.31 × .12 = $5,349.40 Profit = $44,578.31 × .05 = $2,228.92 $37,000.00 + $5,349.40 + $2,228.92 = $44,578.32 Who pays FUTA? a. employer b. employee c. 50% employer and 50% employee d. 90% employer and 10% employee Correct Answer A.) Employer When you get an approved set of plans, what should you do first? Correct Answer Read any notes from the building department. 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? Correct Answer critical path method Which of the following provisions may not be included in a home improvement contract? Click here to select answer A. Owner must pay for materials after they are delivered.