CSLB Law & Business Exam | Exam Revision Questions and Correct Answers
With 100% Correct Answers | Latest 2025 Update.
You are the qualifier for an active contractor's license. How do you inactivate the license? -
ANSWER- Complete app to Inactivate License
The federal Employer Identification Number (EIN) is issued by the: - ANSWER- IRS
If there is a problem with a code violation after the project is complete, who is responsible? -
ANSWER- Architect and Contractor
Business records must be kept and made available for inspection by the Registrar of Contractors
for a period of _____ after completion of a construction project or operation. - ANSWER- 5
years
What does it mean when a subcontractor signs a waiver and release form on a public works project?
- ANSWER- The subcontractor gives up the right to lien the construction funds.
Some counties have an additional sales tax added to the base rate. Which of the following is a
correct statement regarding this additional tax? - ANSWER- You must pay the additional tax
in the county where the materials were purchased.
What possible reason would an owner have for requiring an unconditional lien release from a
subcontractor? - ANSWER- The owner's property covered by the release may not be liened.
How much money can a contractor take as a down payment for work? - ANSWER- 10% or
$1000, whichever is less
If a contract is canceled and materials have already been delievered to the project, how many days
do you have to pick up the unused materials? - ANSWER- 20 days
,As required by the Immigration Reform and Control Act, all employees hired on or after November
7, 1986 must complete Form _____ to verify their employment eligibility status. - ANSWER-
I-9
What building code must a contractor follow? - ANSWER- Local Code
The employer is required to provide employee information, training, and certification as per T8
CCR. As required by T8 CCR, the employer shall ensure that all employees and supervisors that
perform any lead-related construction work are trained by an accredited training provider and are
then certified by the______________________. - ANSWER- California Department of Health
Services
If a sales presentation is made in Spanish, the home solicitation contract: - ANSWER- Must be
made in spanish
A "hard" laborer cannot be younger than: - ANSWER- 16 years old
Of the following, who is required to be registered as a home improvement salesperson? -
ANSWER- Salesperson who is soliciting business by calling potential customers on the
telephone.
Who must sign a joint control addendum to a home improvement contract? - ANSWER- owner,
contractor, and joint control officer
Who pays FICA? - ANSWER- 50% employer and 50% employee
Which of the following are the most effective when used together on a private works project? -
ANSWER- notice of non-responsibility and mechanics lien
, A subcontractor or material supplier has _____ days to file a lien once a notice of completion has
been recorded. - ANSWER- 30 days
Where is the "Notice of Right to Cancel" found on a home improvement contract? - ANSWER-
Near the client signature
What sort of notes are you looking for when you get a set of as-built plans? - ANSWER-
Changes
Insured employers must report every work-related illness or injury to their workers' compensation
carrier within _____ of the incident. - ANSWER- 5 days
Every employer of _____ or more full- or part-time employees must keep written health and safety
records for _____ years. - ANSWER- 11 & 5
Which of the following financial ratios is the strictest measure of liquidity? - ANSWER- Quick
ratio
DOSH must investigate a complaint charging a serious violation of health or safety standards
within: - ANSWER- Three working days
How often are you required to pay sales tax? - ANSWER- It depends on the expected amount
of taxable sales.
Why would a contractor have a case in the Unlimited Jurisdiction Superior Court? - ANSWER-
if it is a dispute of more than $25,000
What kind of discount do lumber yards and other suppliers offer to contractors who pay their bills
promptly? - ANSWER- 1-2%
With 100% Correct Answers | Latest 2025 Update.
You are the qualifier for an active contractor's license. How do you inactivate the license? -
ANSWER- Complete app to Inactivate License
The federal Employer Identification Number (EIN) is issued by the: - ANSWER- IRS
If there is a problem with a code violation after the project is complete, who is responsible? -
ANSWER- Architect and Contractor
Business records must be kept and made available for inspection by the Registrar of Contractors
for a period of _____ after completion of a construction project or operation. - ANSWER- 5
years
What does it mean when a subcontractor signs a waiver and release form on a public works project?
- ANSWER- The subcontractor gives up the right to lien the construction funds.
Some counties have an additional sales tax added to the base rate. Which of the following is a
correct statement regarding this additional tax? - ANSWER- You must pay the additional tax
in the county where the materials were purchased.
What possible reason would an owner have for requiring an unconditional lien release from a
subcontractor? - ANSWER- The owner's property covered by the release may not be liened.
How much money can a contractor take as a down payment for work? - ANSWER- 10% or
$1000, whichever is less
If a contract is canceled and materials have already been delievered to the project, how many days
do you have to pick up the unused materials? - ANSWER- 20 days
,As required by the Immigration Reform and Control Act, all employees hired on or after November
7, 1986 must complete Form _____ to verify their employment eligibility status. - ANSWER-
I-9
What building code must a contractor follow? - ANSWER- Local Code
The employer is required to provide employee information, training, and certification as per T8
CCR. As required by T8 CCR, the employer shall ensure that all employees and supervisors that
perform any lead-related construction work are trained by an accredited training provider and are
then certified by the______________________. - ANSWER- California Department of Health
Services
If a sales presentation is made in Spanish, the home solicitation contract: - ANSWER- Must be
made in spanish
A "hard" laborer cannot be younger than: - ANSWER- 16 years old
Of the following, who is required to be registered as a home improvement salesperson? -
ANSWER- Salesperson who is soliciting business by calling potential customers on the
telephone.
Who must sign a joint control addendum to a home improvement contract? - ANSWER- owner,
contractor, and joint control officer
Who pays FICA? - ANSWER- 50% employer and 50% employee
Which of the following are the most effective when used together on a private works project? -
ANSWER- notice of non-responsibility and mechanics lien
, A subcontractor or material supplier has _____ days to file a lien once a notice of completion has
been recorded. - ANSWER- 30 days
Where is the "Notice of Right to Cancel" found on a home improvement contract? - ANSWER-
Near the client signature
What sort of notes are you looking for when you get a set of as-built plans? - ANSWER-
Changes
Insured employers must report every work-related illness or injury to their workers' compensation
carrier within _____ of the incident. - ANSWER- 5 days
Every employer of _____ or more full- or part-time employees must keep written health and safety
records for _____ years. - ANSWER- 11 & 5
Which of the following financial ratios is the strictest measure of liquidity? - ANSWER- Quick
ratio
DOSH must investigate a complaint charging a serious violation of health or safety standards
within: - ANSWER- Three working days
How often are you required to pay sales tax? - ANSWER- It depends on the expected amount
of taxable sales.
Why would a contractor have a case in the Unlimited Jurisdiction Superior Court? - ANSWER-
if it is a dispute of more than $25,000
What kind of discount do lumber yards and other suppliers offer to contractors who pay their bills
promptly? - ANSWER- 1-2%
