Cslb Contractor's Law & Business Exam Questions And Answers

CSLB CONTRACTOR'S LAW &
BUSINESS EXAM QUESTIONS AND
ANSWERS

AnvgemployervgremitsvgStatevgdisabilityvgtaxesvgwithheldvgfromvganvgemployeesvgwagesvgt
ovgwhatvgagency?vg-vganswer--EmploymentvgDevelopmentvgDepartment

Whichvgactvgestablishesvgthevgrightsvgofvgworkersvgtovgorganizevgintovgunionsvgandvgnegoti
atevgcontracts?vg-vganswer--NationalvgLaborvgRelationsvgActvgofvg1935

Avgcontractorvghasvghadvgavgproblemvgwithvgemployeesvgstealingvgtoolsvgandvgequipmentvg
fromvgjobvgsites.vgWhenvgconductingvgjobvginterviews,vgmayvgthevgcontractorvgaskvgprospe
ctivevgemployeesvgaboutvgtheirvgarrestvgrecords?vg
vg

A.vgItvgisvglegalvgtovgaskvgprospectivevgemployeesvgaboutvgarrestsvgnotvgleadingvgtovgconvic
tions.
vg

B.vgItvgisvgnotvglegalvgtovgaskvgprospectivevgemployeesvgaboutvgarrestsvgnotvgleadingvgtovgco
nvictions.
vg

C.vgItvgisvglegalvgforvgavgprivatevgemployervgtovgaskvgaboutvgarrestsvgnotvgleadingvgtovgconvic
tions,vgbutvgitvgwouldvgnotvgbevglegalvgforvgcityvgorvgcountyvgagenciesvgtovgaskvgaboutvgsuchvg
arrests.
vg

D.vgItvgisvglegalvgforvgavgprivatevgemployervgtovgaskvgaboutvgarrestsvgleadingvgtovgconvictions
,vgbutvgitvgwouldvgnotvgbevglegalvgforvgavgfederal,vgstate,vgorvglocalvgpublicvgagencyvgtovgdovgs
o.vg-vganswer--
Itvgisvgnotvglegalvgtovgaskvgprospectivevgemployeesvgaboutvgarrestvgnotvgleadingvgtovgconvic
tions.

WhyvgwouldvgavgcontractorvghavevgavgcasevginvgSuperiorvgCourt?vg-vganswer--
Ifvgitvgisvgavgdisputevgofvgmorevgthanvg$25,000vgitvgcanvgbevgtransferredvgtovgSuperiorvgCourt.

WhichvgwouldvgnotvghavevgtovgbevgreportedvgtovgDOSHvgimmediatelyvgorvgwithinvg24vghour
s?

A.vgDeathvgfromvgavgthree-storyvgfall.
B.vgDrunkenvgcranevgoperatorvghitsvgavghigh-voltagevgpowervgline
C.vgCarvgaccidentvginvgwhichvganvgemployeevgstepsvgontovgavgpublicvgroad,vggetsvghitvgbyvga
vgcar,vgandvgsuffersvgavgconcussion.

D.vgEmployeevgfallsvgoffvgforkliftvgandvgsuffersvgavgsevervgbackvginjury.vg-vganswer--
Carvgaccidentvginvgwhichvganvgemployeevgstepsvgontovgavgpublicvgroad,vggetsvghitvgbyvgavgca
r,vgandvgsuffersvgavgconcussion.

Avggeneralvgcontractorvghasvgobtainedvgbidsvgfromvgseveralvgsubcontractorsvgforvgavgprivat
evgproject.vgHevgnoticesvgthatvgonevgbidvgisvgsubstantiallyvglowervgthanvgthevgrest.vgIsvgitvgeth

,icalvgandvgavggoodvgbusinessvgpracticevgforvgthisvgcontractorvgtovginformvgthevgsubcontract
orvgthatvgthevgbidvgisvgsubstantiallyvglowervgthanvgthevgbidsvgofvgthevgothervgsubcontractors?
vg-vganswer--

Yes.vgIfvgthevgcontractorvghasvgreasonvgtovgbelievevgthatvgthevgsubcontractorvghasvgmadevg
anvgerrorvginvgpreparingvghisvgbid,vgthevgcontractorvgshouldvgnotifyvgthevgsubcontractorvgofvg
thevgapparentvgerror,vgbutvgthevgcontractorvgmayvgnotvgdisclosevgthevgamountsvgofvgthevgoth
ervgbids.

AnvgemployervgmustvgfurnishvganvgemployeevgwithvgavgcompletedvgIRSvgFormvgW-
2vg(WagevgandvgTaxvgStatement)vgby:vg-vganswer--Thevg31stvgofvgJanuary.

Aftervgavgjobvgisvgcompleted,vgthevgownervgdecidesvgtovghavevgadditionalvgworkvgdone.vgHo
wvgshouldvgthevgcontractorvgproceed?vg-vganswer--
Writevgavgnewvgcontractvgandvgaskvgthevgownervgtovgsignvgit.

Thevgpurposevgofvgavg20-dayvgpreliminaryvgnoticevgforvgprivatevgworkvgisvgto?vg-vganswer--
Notifyvgthevgownervgthatvgthevgpersonvgorvgfirmvgwhovgsentvgthevgnoticevghasvgimprovedvgth
evgproperty.

Isvgitvglegalvgforvgavgcontractorvgtovgpayvgemployeesvginvgcash?vg-vganswer--
Yes,vgifvgthevgcontractorvgprovidesvgeachvgemployeevgwithvgavgwagevgdeductionvgstateme
ntvgsemimonthlyvgorvgatvgthevgtimevgofvgeachvgwagevgpayment.

Youvgarevgbiddingvgonvgavgjobvgwithvgplansvgdrawnvgbyvgthevgowner.vgYouvgnoticevgavgcodevg
violationvgandvgbringvgitvgtovgthevgattentionvgofvgthevgowner.vgThevgownervgdeclinesvgtovgrem
edyvgthevgcodevgviolationvgandvgtellsvgyouvgnotvgtovgworry.vgWhatvgshouldvgyouvgdo?vg-
vganswer--Declinevgtovgbidvgthevgwork.



Onvgavgtime-and-materialsvgjob,vgyouvgshould:vg-vganswer--
Addvgprofitvgandvgoverheadvgtovglaborvgandvgmaterials

Yourvgemployeevgsetsvgavgcabinetvgwrong.vgThevgcabinetvgfallsvgfromvgthevgwallvgandvgdam
agesvgthevgclient'svgcountervgtop.vgWhatvgshouldvgyouvgdo?

A.vgClaimvgthevgdamagevgonvgyourvggeneralvgliabilityvginsurancevgpolicy.
B.vgRequirevgthevgemployeevgtovgpayvgforvgthevgdamagevgtovgthevgcountertop.
C.vgTellvgthevgclientvgtovgclaimvgthevgdamagedvgcountervgtopvgonvghisvgorvghervghomeowner'
svginsurancevgpolicy.
D.vgNovgactionvgisvgrequired:vgThevgclientvgmustvgassumevgthevgriskvgofvgdamage.vg-
vganswer--Claimvgthevgdamagevgonvgyourvggeneralvgliabilityvginsurancevgpolicy.



Ofvgthevgfollowing,vgwhichvgisvgbestvgforvgdeterminingvgthevgnumbervgofvghoursvgrequiredvgf
orvgdifferentvgphasesvgofvgavgprojectvgandvgforvgmakingvgsurevgthevgjobvgisvgonvgschedule?

A.vgBarvggraphvgandvgchart
B.vgCashvganalysisvgchart
C.vgReviewvgplans
D.vgCriticalvgpathvgmethodvg-vganswer--Thevgcriticalvgpathvgmethod.

, Isvgitvglegalvgforvgavgcontractorvgtovgrequirevgemployeesvgtovgtakevgavglievgdetectorvgtest?vg-
vganswer--

Itvgisvgnotvglegalvgforvgthevgcontractorvgtovgrequirevglievgdetectorvgtests,vgbutvgitvgwouldvgbevgle
galvgforvgavgfederal,vgstate,vgorvglocalvgpublicvgagencyvgtovgrequirevglievgdetectorvgtestsvgofvgt
heirvgemployees.

IfvgavgnewlyvghiredvgemployeevgdoesvgnotvghavevgavgSSN,vgwhatvgshouldvgbevgdone?vg-
vganswer--ThevgemployeevgmustvgapplyvgforvgavgSSN.



Howvgmanyvgtimesvgmayvgyouvgtakevgthevgcontractorsvglicensevgexamvgbeforevgyourvgorigi
nalvgapplicationvgisvgvoided?vg-vganswer--
Asvgmanyvgtimesvgasvgnecessaryvgwithinvg18vgmonths.

Whenvgshouldvgavgcontractorvgrenewvgthevgcontractor'svglicensevgbond?vg-vganswer--
30vgdaysvgbeforevgitvgexpires.

ThevgqualifyingvgRMEvgforvgavgconstructionvgfirmvgmustvgworkvgatvgleast:vg-vganswer--
AvgqualifyingvgRMEvgforvgavgconstructionvgfirmvgmustvgworkvgatvgleastvg32vghoursvgpervgwee
kvgorvg80%vgofvgthevgworkvgweek.

ThevgfederalvgEmployervgIdentificationvgNumbervg(EIN)vgisvgissuedvgbyvgthe:vg-vganswer--
ThevgInternalvgRevenuevgService

Everyvgemployervgofvg______vgorvgmorevgfullvgorvgpartvgtimevgemployeesvgmustvgkeepvgwrit
tenvghealthvgandvgsafetyvgrecordsvgforvg_______vgyears.

A.vg1-3
B.vg7-4
C.vg10-3
D.vg11-5vg-vganswer--
Everyvgemployervgofvg11vgorvgmorevgfullvgorvgpartvgtimevgemployeesvgmustvgkeepvgwrittenvg
healthvgandvgsafetyvgrecordsvgforvg5vgyears.

Aftervgyouvghavevgreadvgthevgplansvgandvgspecifications,vgwhatvgisvgthevgnextvgimportantvgst
epvginvgwritingvgavgbid?

A.vgTalkvgtovgandvgselectvgsubs.
B.vgWalkvgthevgjob.
C.vgCallvgaboutvgmaterials,vgprice,vgandvgavailability.
D.vgTalkvgtovgthevgcrewvgleadervgaboutvglabor.vg-vganswer--Walkvgthevgjob.

Oncevgavgbudgetvgisvgfinalized,vgthe:

A.vgContractorvgshouldvgstickvgtovgthevgbudgetvgnovgmattervgwhatvghappens.
B.vgContractorvgshouldvgdovgthevgbestvgpossiblevgjobvgofvgstayingvgwithinvgthevgbudget.
C.vgBudgetvgshouldvgbevgrevisedvgeachvgmonth.
D.vgBudgetvgshouldvgbevgreferredvgtovgonlyvgifvgthevgbusinessvghasvgcashflowvgproblems.vg-
vganswer--

Thevgcontractorvgshouldvgdovgthevgbestvgpossiblevgjobvgofvgstayingvgwithinvgbudget.vg`