CSLB Law & Business Set 1 n n n n n
Question 1: n
How must a client submit a claim for service or repair of a defect on fit and finish it
n n n n n n n n n n n n n n n n n n
ems after a remodel?
n n n
A.) by certified mail n n
B.) by overnight mail n n
C.) by personal delivery n n
D.) any of the above n n n
(Ans- D. A client may use the normal customer-
n n n n n n n n
service procedures agreed to between the client and the contractor, but the c
n n n n n n n n n n n n
lient must notify the contractor of the defect in writing by certified mail, overni
n n n n n n n n n n n n n
ght mail, or personal delivery before the client may file an action in court.
n n n n n n n n n n n n n
Question 2: n
What is the maximum allowed travel distance from any point of a work area to
n n n n n n n n n n n n n n
a fire extinguisher?
n n n
a.) 25nfeet
b.) 50nfeet
c.) 75nfeet
d.) 150nfeet
n (Ans- 75 feet n n
When should you renew contractors bond? (Ans-
n n n n n n
30 days before bond expires
n n n n n
Question 4: n
,If, during excavation, you unearth human remains or burial artifacts at a construc
n n n n n n n n n n n n
tion site, what should you do?
n n n n n
Click here to select answer B. Notif
n n n n n n
y the owner of the property.
n n n n n
Click here to select answer B.
n n n n n n
Stop work and place a warning ribbon three feet from the remains around the
n n n n n n n n n n n n n n
perimeter of the site. n n n
Click here to select answer C. Sto
n n n n n n n
p work immediately at that site.
n n n n n
nClick here to select answer D.
n n n n n
Stop work immediately at that site and any other nearby area that may hav
n n n n n n n n n n n n n
e remains.
n
(Ans-
nStop work immediately at that site and any other nearby area that may have r
n n n n n n n n n n n n n n
emains.
Question 5: n
Direct costs are $37,000, overhead is 12%, and profit is 5%. What is the sellin
n n n n n n n n n n n n n n
g price?
n
Click here to select answer A.
n n n n n n
$39,272.47
Click here to select answer B.
n n n n n n
$41,373.45
Click here to select answer C.
n n n n n n
$43,383.37
nClick here to select answer D.
n n n n n
$44,578.31
(Ans-
nD. The following solution is based on one of the references listed in the CSL
n n n n n n n n n n n n n n
B Study Guide. The solution may seem unorthodox, but you must
n n n n n n n n n n
,follow each step to arrive at the State's answer. Sum of overhead and profit p
n n n n n n n n n n n n n n
ercentages = 12% + 5% = 17% Percent of selling price that is direct costs
n n n n n n n n n n n n n n
= 100% - 17% = 83% = .83 Selling price = $37,000 ÷ .83 = $44,578.31 To
n n n n n n n n n n n n n n n n
check these calculations, add the subtotals: Direct costs = $44,578.31 ×
n n n n n n n n n n
.83 = $37,000.00 Overhead = $44,578.31 × .12 = $5,349.40 Profit =
n n n n n n n n n n n
$44,578.31 × .05 = $2,228.92 $37,000.00 + $5,349.40 + $2,228.92 =
n n n n n n n n n n
$44,578.32
Who pays FUTA? n n
a. employer
b. employee
c. 50% employer and 50% employee n n n n
d. 90% employer and 10% employee n n n n n
(Ans- A.) Employer n n
When you get an approved set of plans, what should you do first?
n n n n n n n n n n n n
(Ans- Read any notes from the building department.
n n n n n n n n
Of the following, which is best for determining the number of hours required fo
n n n n n n n n n n n n n
r different phases of a project and for making sure the job is on schedule? (An
n n n n n n n n n n n n n n n
s- critical path method
n n n
Which of the following provisions may not be included in a home improvemen
n n n n n n n n n n n n
t contract?
n
Click here to select answer A.
n n n n n n
Owner must pay for materials after they are delivered.
n n n n n n n n
Click here to select answer B.
n n n n n n
Owner must pay for materials before they are delivered.
n n n n n n n n
Click here to select answer C.
n n n n n n
The contractor may require a downpayment.
n n n n n
, nClick here to select answer D. Owner
n n n n n n n
may make progress payments.
n n n
(Ans- Owner must pay for materials before they are delivered.
n n n n n n n n n
B. The CONTRACTORS LICENSE LAW states: It is against the law for a c
n n n n n n n n n n n n n
ontractor to collect payment for work not yet completed, or for materials not
n n n n n n n n n n n n
yet delivered. However, a contractor may require a downpayment.
n n n n n n n n n
How many times may you take the contractor's license exam before your original
n n n n n n n n n n n n
napplication is voided? n n
(Ans- as many times as necessary within 18 months
n n n n n n n n
If it is discovered that the construction materials in an area contain more than
n n n n n n n n n n n n n n
0.1% asbestos: n
Click here to select answer A
n n n n n
the crew should try not to disturb the area but keep working.
n n n n n n n n n n n
nClick here to select answer B
n n n n n
the contractor should contact DOSH immediately.
n n n n n
Click here to select answer C
n n n n n
the workers should stop and remove the materials wearing masks and gloves
n n n n n n n n n n n
.
Click here to select answer D
n n n n n
the crew should wet down the area with water and continue working. (
n n n n n n n n n n n n
Ans- the contractor should contact DOSH immediately.
n n n n n n
B. Any manufactured material containing more than one-
n n n n n n n
tenth of one percent (0.1%) asbestos by weight meets the definition of "asbes
n n n n n n n n n n n n
tos-
ncontaining material"." Even if the surface area of these materials is less than
n n n n n n n n n n n n n
100 square feet, the contractor must file a report with the Occupational Carcin
n n n n n n n n n n n n
ogen Control Unit of DOSH.
n n n n
Which of the following are the most effective when used together on a private
n n n n n n n n n n n n n n
works project? n
Click here to select answer A
n n n n n
stop payment notice and mechanics lien
n n n n n
Question 1: n
How must a client submit a claim for service or repair of a defect on fit and finish it
n n n n n n n n n n n n n n n n n n
ems after a remodel?
n n n
A.) by certified mail n n
B.) by overnight mail n n
C.) by personal delivery n n
D.) any of the above n n n
(Ans- D. A client may use the normal customer-
n n n n n n n n
service procedures agreed to between the client and the contractor, but the c
n n n n n n n n n n n n
lient must notify the contractor of the defect in writing by certified mail, overni
n n n n n n n n n n n n n
ght mail, or personal delivery before the client may file an action in court.
n n n n n n n n n n n n n
Question 2: n
What is the maximum allowed travel distance from any point of a work area to
n n n n n n n n n n n n n n
a fire extinguisher?
n n n
a.) 25nfeet
b.) 50nfeet
c.) 75nfeet
d.) 150nfeet
n (Ans- 75 feet n n
When should you renew contractors bond? (Ans-
n n n n n n
30 days before bond expires
n n n n n
Question 4: n
,If, during excavation, you unearth human remains or burial artifacts at a construc
n n n n n n n n n n n n
tion site, what should you do?
n n n n n
Click here to select answer B. Notif
n n n n n n
y the owner of the property.
n n n n n
Click here to select answer B.
n n n n n n
Stop work and place a warning ribbon three feet from the remains around the
n n n n n n n n n n n n n n
perimeter of the site. n n n
Click here to select answer C. Sto
n n n n n n n
p work immediately at that site.
n n n n n
nClick here to select answer D.
n n n n n
Stop work immediately at that site and any other nearby area that may hav
n n n n n n n n n n n n n
e remains.
n
(Ans-
nStop work immediately at that site and any other nearby area that may have r
n n n n n n n n n n n n n n
emains.
Question 5: n
Direct costs are $37,000, overhead is 12%, and profit is 5%. What is the sellin
n n n n n n n n n n n n n n
g price?
n
Click here to select answer A.
n n n n n n
$39,272.47
Click here to select answer B.
n n n n n n
$41,373.45
Click here to select answer C.
n n n n n n
$43,383.37
nClick here to select answer D.
n n n n n
$44,578.31
(Ans-
nD. The following solution is based on one of the references listed in the CSL
n n n n n n n n n n n n n n
B Study Guide. The solution may seem unorthodox, but you must
n n n n n n n n n n
,follow each step to arrive at the State's answer. Sum of overhead and profit p
n n n n n n n n n n n n n n
ercentages = 12% + 5% = 17% Percent of selling price that is direct costs
n n n n n n n n n n n n n n
= 100% - 17% = 83% = .83 Selling price = $37,000 ÷ .83 = $44,578.31 To
n n n n n n n n n n n n n n n n
check these calculations, add the subtotals: Direct costs = $44,578.31 ×
n n n n n n n n n n
.83 = $37,000.00 Overhead = $44,578.31 × .12 = $5,349.40 Profit =
n n n n n n n n n n n
$44,578.31 × .05 = $2,228.92 $37,000.00 + $5,349.40 + $2,228.92 =
n n n n n n n n n n
$44,578.32
Who pays FUTA? n n
a. employer
b. employee
c. 50% employer and 50% employee n n n n
d. 90% employer and 10% employee n n n n n
(Ans- A.) Employer n n
When you get an approved set of plans, what should you do first?
n n n n n n n n n n n n
(Ans- Read any notes from the building department.
n n n n n n n n
Of the following, which is best for determining the number of hours required fo
n n n n n n n n n n n n n
r different phases of a project and for making sure the job is on schedule? (An
n n n n n n n n n n n n n n n
s- critical path method
n n n
Which of the following provisions may not be included in a home improvemen
n n n n n n n n n n n n
t contract?
n
Click here to select answer A.
n n n n n n
Owner must pay for materials after they are delivered.
n n n n n n n n
Click here to select answer B.
n n n n n n
Owner must pay for materials before they are delivered.
n n n n n n n n
Click here to select answer C.
n n n n n n
The contractor may require a downpayment.
n n n n n
, nClick here to select answer D. Owner
n n n n n n n
may make progress payments.
n n n
(Ans- Owner must pay for materials before they are delivered.
n n n n n n n n n
B. The CONTRACTORS LICENSE LAW states: It is against the law for a c
n n n n n n n n n n n n n
ontractor to collect payment for work not yet completed, or for materials not
n n n n n n n n n n n n
yet delivered. However, a contractor may require a downpayment.
n n n n n n n n n
How many times may you take the contractor's license exam before your original
n n n n n n n n n n n n
napplication is voided? n n
(Ans- as many times as necessary within 18 months
n n n n n n n n
If it is discovered that the construction materials in an area contain more than
n n n n n n n n n n n n n n
0.1% asbestos: n
Click here to select answer A
n n n n n
the crew should try not to disturb the area but keep working.
n n n n n n n n n n n
nClick here to select answer B
n n n n n
the contractor should contact DOSH immediately.
n n n n n
Click here to select answer C
n n n n n
the workers should stop and remove the materials wearing masks and gloves
n n n n n n n n n n n
.
Click here to select answer D
n n n n n
the crew should wet down the area with water and continue working. (
n n n n n n n n n n n n
Ans- the contractor should contact DOSH immediately.
n n n n n n
B. Any manufactured material containing more than one-
n n n n n n n
tenth of one percent (0.1%) asbestos by weight meets the definition of "asbes
n n n n n n n n n n n n
tos-
ncontaining material"." Even if the surface area of these materials is less than
n n n n n n n n n n n n n
100 square feet, the contractor must file a report with the Occupational Carcin
n n n n n n n n n n n n
ogen Control Unit of DOSH.
n n n n
Which of the following are the most effective when used together on a private
n n n n n n n n n n n n n n
works project? n
Click here to select answer A
n n n n n
stop payment notice and mechanics lien
n n n n n
