Cslb Law & Business 2024 Questions With Complete Solutions Already Passed

Bonds can be purchased from bonding companies for ___% of the original contract price. - CORRECT ANSWER 1-2% This acts as an assurance that the contractor will be able to complete the job as described in the contract. - CORRECT ANSWER Bid Bond This guarantees a contractor will complete the project according to the agreed upon terms & conditions. - CORRECT ANSWER Performance Bond or Contract Bond This guarantees that subcontractors and suppliers will be paid by the contractor for properly performed work. - CORRECT ANSWER Payment Bond Payment Bonds are required for federal government contracts over $__________. - CORRECT ANSWER $35,000 This covers the business owner in case of employee dishonesty or theft. - CORRECT ANSWER Fidelity Bond Contractors must file a contractors bond OR submit a cash deposit with the CSLB for $_______. - CORRECT ANSWER $15,000 The value of a contractors bond must be $________ - CORRECT ANSWER $15,000 The contractors bond must be filed with the CLSB within ___ days from the bond effective date. - CORRECT ANSWER 90 True or False: A contractor must identify their type of insurance when referring to themselves as "bonded" or "insured" in advertisements or publications. - CORRECT ANSWER True A business must submit a separate $________ bond for RMEs or RMOs. - CORRECT ANSWER $12,500 (They can be exempt if the RMO can certify ownership of 10% or more of the voting stock in the company.) A Limited Liability Surety Bond for $__________ is required in addition to the contractors bond for an LLC license. - CORRECT ANSWER $100,000 This must be filed with the Registrar after a license has been revoked or denied. - CORRECT ANSWER Disciplinary Bond True or False: A Disciplinary Bond can be combined with any other bond. - CORRECT ANSWER False. It's an additional requirement and may not be filed in place of another bond. The Disciplinary bond amount ranges from _______ to _______, depending on the violation. - CORRECT ANSWER $15,000 up to 10x the amount of the contractor's bond The Disciplinary Bond must be valid & on file with the Registrar for how long? - CORRECT ANSWER 2 years