CSLB CONTRACTOR'S LAW &
BUSINESS EXAM WITH VERIFIED
ANSWERS
An employer remits State disability taxes withheld from an employees
|| || || || || || || || || ||
wages to what agency? - correct answer ✔Employment Development
|| || || || || || || || ||
Department
Which act establishes the rights of workers to organize into unions and
|| || || || || || || || || || || ||
negotiate contracts? - correct answer ✔National Labor Relations Act of 1935
|| || || || || || || || || ||
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?
|| || || || || || || ||
||
A. It is legal to ask prospective employees about arrests not leading to
|| || || || || || || || || || || || ||
convictions.
||
B. It is not legal to ask prospective employees about arrests not leading to
|| || || || || || || || || || || || || ||
convictions.
||
C. It is legal for a private employer to ask about arrests not leading to
|| || || || || || || || || || || || || || ||
convictions, but it would not be legal for city or county agencies to ask
|| || || || || || || || || || || || || ||
about such arrests. || ||
||
D. It is legal for a private employer to ask about arrests leading to
|| || || || || || || || || || || || || ||
convictions, but it would not be legal for a federal, state, or local public
|| || || || || || || || || || || || || ||
,agency to do so. - correct answer ✔It is not legal to ask prospective
|| || || || || || || || || || || || || ||
employees about arrest not leading to convictions. || || || || || ||
Why would a contractor have a case in Superior Court? - correct answer
|| || || || || || || || || || || || ||
✔If it is a dispute of more than $25,000 it can be transferred to Superior
|| || || || || || || || || || || || || || ||
Court.
Which would not have to be reported to DOSH immediately or within 24
|| || || || || || || || || || || || ||
hours?
A. Death from a three-story fall.
|| || || || ||
B. Drunken crane operator hits a high-voltage power line
|| || || || || || || ||
C. Car accident in which an employee steps onto a public road, gets hit by
|| || || || || || || || || || || || || || ||
a car, and suffers a concussion.
|| || || || ||
D. Employee falls off forklift and suffers a sever back injury. - correct
|| || || || || || || || || || || || ||
answer ✔Car accident in which an employee steps onto a public road, gets
|| || || || || || || || || || || || ||
hit by a car, and suffers a concussion.
|| || || || || || ||
A general contractor has obtained bids from several subcontractors for a
|| || || || || || || || || || ||
private project. He notices that one bid is substantially lower than the rest.
|| || || || || || || || || || || ||
Is it ethical and a good business practice for this contractor to inform the
|| || || || || || || || || || || || || || ||
subcontractor that the bid is substantially lower than the bids of the other || || || || || || || || || || || || ||
subcontractors? - correct answer ✔Yes. If the contractor has reason to || || || || || || || || || || ||
believe that the subcontractor has made an error in preparing his bid, the
|| || || || || || || || || || || || ||
contractor should notify the subcontractor of the apparent error, but the
|| || || || || || || || || || ||
contractor may not disclose the amounts of the other bids.
|| || || || || || || || ||
An employer must furnish an employee with a completed IRS Form W-2
|| || || || || || || || || || || ||
(Wage and Tax Statement) by: - correct answer ✔The 31st of January.
|| || || || || || || || || || ||
,After a job is completed, the owner decides to have additional work done.
|| || || || || || || || || || || || ||
How should the contractor proceed? - correct answer ✔Write a new
|| || || || || || || || || || ||
contract and ask the owner to sign it.|| || || || || || ||
The purpose of a 20-day preliminary notice for private work is to? - correct
|| || || || || || || || || || || || ||
answer ✔Notify the owner that the person or firm who sent the notice
|| || || || || || || || || || || || || ||
has improved the property.
|| || ||
Is it legal for a contractor to pay employees in cash? - correct answer
|| || || || || || || || || || || || || ||
✔Yes, if the contractor provides each employee with a wage deduction
|| || || || || || || || || || ||
statement semimonthly or at the time of each wage payment.
|| || || || || || || || ||
You are bidding on a job with plans drawn by the owner. You notice a
|| || || || || || || || || || || || || || ||
code violation and bring it to the attention of the owner. The owner
|| || || || || || || || || || || || ||
declines to remedy the code violation and tells you not to worry. What
|| || || || || || || || || || || || ||
should you do? - correct answer ✔Decline to bid the work.
|| || || || || || || || || ||
On a time-and-materials job, you should: - correct answer ✔Add profit and
|| || || || || || || || || || || ||
overhead to labor and materials || || || ||
Your employee sets a cabinet wrong. The cabinet falls from the wall and
|| || || || || || || || || || || || ||
damages the client's counter top. What should you do?
|| || || || || || || ||
A. Claim the damage on your general liability insurance policy.
|| || || || || || || || ||
B. Require the employee to pay for the damage to the countertop.
|| || || || || || || || || || ||
C. Tell the client to claim the damaged counter top on his or her
|| || || || || || || || || || || || || ||
homeowner's insurance policy. || ||
, D. No action is required: The client must assume the risk of damage. -
|| || || || || || || || || || || || || ||
correct answer ✔Claim the damage on your general liability insurance
|| || || || || || || || || ||
policy.
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?
||
A. Bar graph and chart
|| || || ||
B. Cash analysis chart
|| || ||
C. Review plans
|| ||
D. Critical path method - correct answer ✔The critical path method.
|| || || || || || || || || ||
Is it legal for a contractor to require employees to take a lie detector test?
|| || || || || || || || || || || || || ||
- correct answer ✔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.
|| || || || || ||
If a newly hired employee does not have a SSN, what should be done? -
|| || || || || || || || || || || || || || ||
correct answer ✔The employee must apply for a SSN.
|| || || || || || || ||
How many times may you take the contractors license exam before your
|| || || || || || || || || || || ||
original application is voided? - correct answer ✔As many times as
|| || || || || || || || || || ||
necessary within 18 months. || || ||
When should a contractor renew the contractor's license bond? - correct
|| || || || || || || || || || ||
answer ✔30 days before it expires. || || || || ||
BUSINESS EXAM WITH VERIFIED
ANSWERS
An employer remits State disability taxes withheld from an employees
|| || || || || || || || || ||
wages to what agency? - correct answer ✔Employment Development
|| || || || || || || || ||
Department
Which act establishes the rights of workers to organize into unions and
|| || || || || || || || || || || ||
negotiate contracts? - correct answer ✔National Labor Relations Act of 1935
|| || || || || || || || || ||
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?
|| || || || || || || ||
||
A. It is legal to ask prospective employees about arrests not leading to
|| || || || || || || || || || || || ||
convictions.
||
B. It is not legal to ask prospective employees about arrests not leading to
|| || || || || || || || || || || || || ||
convictions.
||
C. It is legal for a private employer to ask about arrests not leading to
|| || || || || || || || || || || || || || ||
convictions, but it would not be legal for city or county agencies to ask
|| || || || || || || || || || || || || ||
about such arrests. || ||
||
D. It is legal for a private employer to ask about arrests leading to
|| || || || || || || || || || || || || ||
convictions, but it would not be legal for a federal, state, or local public
|| || || || || || || || || || || || || ||
,agency to do so. - correct answer ✔It is not legal to ask prospective
|| || || || || || || || || || || || || ||
employees about arrest not leading to convictions. || || || || || ||
Why would a contractor have a case in Superior Court? - correct answer
|| || || || || || || || || || || || ||
✔If it is a dispute of more than $25,000 it can be transferred to Superior
|| || || || || || || || || || || || || || ||
Court.
Which would not have to be reported to DOSH immediately or within 24
|| || || || || || || || || || || || ||
hours?
A. Death from a three-story fall.
|| || || || ||
B. Drunken crane operator hits a high-voltage power line
|| || || || || || || ||
C. Car accident in which an employee steps onto a public road, gets hit by
|| || || || || || || || || || || || || || ||
a car, and suffers a concussion.
|| || || || ||
D. Employee falls off forklift and suffers a sever back injury. - correct
|| || || || || || || || || || || || ||
answer ✔Car accident in which an employee steps onto a public road, gets
|| || || || || || || || || || || || ||
hit by a car, and suffers a concussion.
|| || || || || || ||
A general contractor has obtained bids from several subcontractors for a
|| || || || || || || || || || ||
private project. He notices that one bid is substantially lower than the rest.
|| || || || || || || || || || || ||
Is it ethical and a good business practice for this contractor to inform the
|| || || || || || || || || || || || || || ||
subcontractor that the bid is substantially lower than the bids of the other || || || || || || || || || || || || ||
subcontractors? - correct answer ✔Yes. If the contractor has reason to || || || || || || || || || || ||
believe that the subcontractor has made an error in preparing his bid, the
|| || || || || || || || || || || || ||
contractor should notify the subcontractor of the apparent error, but the
|| || || || || || || || || || ||
contractor may not disclose the amounts of the other bids.
|| || || || || || || || ||
An employer must furnish an employee with a completed IRS Form W-2
|| || || || || || || || || || || ||
(Wage and Tax Statement) by: - correct answer ✔The 31st of January.
|| || || || || || || || || || ||
,After a job is completed, the owner decides to have additional work done.
|| || || || || || || || || || || || ||
How should the contractor proceed? - correct answer ✔Write a new
|| || || || || || || || || || ||
contract and ask the owner to sign it.|| || || || || || ||
The purpose of a 20-day preliminary notice for private work is to? - correct
|| || || || || || || || || || || || ||
answer ✔Notify the owner that the person or firm who sent the notice
|| || || || || || || || || || || || || ||
has improved the property.
|| || ||
Is it legal for a contractor to pay employees in cash? - correct answer
|| || || || || || || || || || || || || ||
✔Yes, if the contractor provides each employee with a wage deduction
|| || || || || || || || || || ||
statement semimonthly or at the time of each wage payment.
|| || || || || || || || ||
You are bidding on a job with plans drawn by the owner. You notice a
|| || || || || || || || || || || || || || ||
code violation and bring it to the attention of the owner. The owner
|| || || || || || || || || || || || ||
declines to remedy the code violation and tells you not to worry. What
|| || || || || || || || || || || || ||
should you do? - correct answer ✔Decline to bid the work.
|| || || || || || || || || ||
On a time-and-materials job, you should: - correct answer ✔Add profit and
|| || || || || || || || || || || ||
overhead to labor and materials || || || ||
Your employee sets a cabinet wrong. The cabinet falls from the wall and
|| || || || || || || || || || || || ||
damages the client's counter top. What should you do?
|| || || || || || || ||
A. Claim the damage on your general liability insurance policy.
|| || || || || || || || ||
B. Require the employee to pay for the damage to the countertop.
|| || || || || || || || || || ||
C. Tell the client to claim the damaged counter top on his or her
|| || || || || || || || || || || || || ||
homeowner's insurance policy. || ||
, D. No action is required: The client must assume the risk of damage. -
|| || || || || || || || || || || || || ||
correct answer ✔Claim the damage on your general liability insurance
|| || || || || || || || || ||
policy.
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?
||
A. Bar graph and chart
|| || || ||
B. Cash analysis chart
|| || ||
C. Review plans
|| ||
D. Critical path method - correct answer ✔The critical path method.
|| || || || || || || || || ||
Is it legal for a contractor to require employees to take a lie detector test?
|| || || || || || || || || || || || || ||
- correct answer ✔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.
|| || || || || ||
If a newly hired employee does not have a SSN, what should be done? -
|| || || || || || || || || || || || || || ||
correct answer ✔The employee must apply for a SSN.
|| || || || || || || ||
How many times may you take the contractors license exam before your
|| || || || || || || || || || || ||
original application is voided? - correct answer ✔As many times as
|| || || || || || || || || || ||
necessary within 18 months. || || ||
When should a contractor renew the contractor's license bond? - correct
|| || || || || || || || || || ||
answer ✔30 days before it expires. || || || || ||
