CSLB Contractor's Law practice test
Part 2
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 ✔✔ correct answer 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 ✔✔ correct answer 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 ✔✔
correct answer 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 ✔✔ correct answer 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
, CSLB Contractor's Law practice test
Part 2
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 ✔✔ correct answer 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
writting ✔✔ correct answer A. When registered salespersons enter into an agreement, verbal or
written, they are bound by it. They are acting as the agent of the contractor. Verbal improvement
contracts are legal and binding
Which type of contract can be cancelled by a consumer?
A. Sub contract
B. Home solicitation contract which involves fencing, burglar alarm, carpentry and texture coating
C. Prime construction contract
D. Home improvement contract involving free standing bookcases, rugs and window air conditioner
✔✔ correct answer B. Home solicitation contract which involves fencing, burglar alarm, carpentry
and texture coating - only home solicited contracts can be cancelled which contain "permanent
fixtures"
A consumer may cancel a home solicitation contract at any time prior to midnight of the ___
business day after the date of the transaction.
A. 1st
B. 2nd
C. 3rd
Part 2
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 ✔✔ correct answer 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 ✔✔ correct answer 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 ✔✔
correct answer 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 ✔✔ correct answer 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
, CSLB Contractor's Law practice test
Part 2
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 ✔✔ correct answer 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
writting ✔✔ correct answer A. When registered salespersons enter into an agreement, verbal or
written, they are bound by it. They are acting as the agent of the contractor. Verbal improvement
contracts are legal and binding
Which type of contract can be cancelled by a consumer?
A. Sub contract
B. Home solicitation contract which involves fencing, burglar alarm, carpentry and texture coating
C. Prime construction contract
D. Home improvement contract involving free standing bookcases, rugs and window air conditioner
✔✔ correct answer B. Home solicitation contract which involves fencing, burglar alarm, carpentry
and texture coating - only home solicited contracts can be cancelled which contain "permanent
fixtures"
A consumer may cancel a home solicitation contract at any time prior to midnight of the ___
business day after the date of the transaction.
A. 1st
B. 2nd
C. 3rd
