CSLB LAW & BUSINESS EXAM
QUESTIONS WITH COMPLETE
SOLUTIONS
Business & Professions Code 7163 - Answer-Ensures that a contract is unenforceable
in situations where the contractor provides financing, refers the buyer to a lender, or
helps them arrange a loan.
3 business days - Answer-What's the time limit for a buyer to cancel a contract?
10 days - Answer-If a burger cancels a contract, the contractor must return anything
paid within what time frame?
10%, 180 days (Price gouging) - Answer-A contractor may not offer services priced at
more than ___% above the normally charged price for ___ days following a natural
disaster or state of emergency.
4 years - Answer-How many years do consumers have to file a complaint with the CSLB
regarding a faulty project?
4 years - Answer-How many years is the contractor liable for patent defects (obvious or
visible defects)?
10 years - Answer-How many years is the contractor liable for Latent (structural)
defects?
4 years - Answer-The CSLB has how long to investigate unlicensed contractors from
the date of the illegal act?
C) The work must be completed in less than 2 weeks - Answer-Which of these does not
apply for Service & Repair contracts?
A) Total amount must be for $750 or less
B) The buyer must initiate contact with the contractor
C) The work must be completed in less than 2 weeks
D) No payment is due until the work is completed
Only before the contractor starts work and before they receive/sign the contract. -
Answer-When can a consumer cancel a Service & Repair contract?
, 10-pt or larger (Anything regarding CSLB must be 12 or larger) - Answer-Unless
otherwise specified, how large should font be in contracts?
Within 14 days - Answer-According to the Prompt Payment Act, payments for
construction projects must be received how long after an invoice has been issued?
7 days - Answer-Subcontractors must be paid within ___ days after a prime contractor
has received payment.
Lien - Answer-A method of securing payments for any unpaid labor or materials that
have been used to improve a property by contractors and material suppliers.
Material Breach - Answer-A major failure by any party, to perform according to the
agreed upon contract terms.
Immaterial Breach or Partial Breach - Answer-This violates minor details in a
construction contract, and does not affect the overall agreement or void the contract.
90 days - Answer-How long does a contractor have to report a small claims or civil court
decision to the CSLB?
Appellate Court - Answer-If the defendant files an appeal, the lawsuit moves from
superior court to...
County Clerk's Office - Answer-Small claims are filed at the...
Limited civil lawsuit (filed at the local superior court) - Answer-If representation by a
lawyer is desired, this is what you should file.
Limited-scope lawyer - Answer-Coaching by a lawyer without actual courtroom
representation is called...
Unlimited civil cases - Answer-Lawsuits for amounts over $25,000
2 to 4 years, depending on the type of claim. 6 months when suing a government or
public agency. - Answer-The statute of limitations for filing a claim is how long after the
event?
Non-binding arbitration - Answer-This means both parties are free to request a trial if
either party doesn't like the arbitrator's decision.
Once every 10 working days - Answer-How often should supervisors conduct toolbox or
tailgate safety meetings with their crews?
10 employees - Answer-Employers with more than ____ employees are bound by
OSHA regulations to have a written emergency plan displayed prominently.
QUESTIONS WITH COMPLETE
SOLUTIONS
Business & Professions Code 7163 - Answer-Ensures that a contract is unenforceable
in situations where the contractor provides financing, refers the buyer to a lender, or
helps them arrange a loan.
3 business days - Answer-What's the time limit for a buyer to cancel a contract?
10 days - Answer-If a burger cancels a contract, the contractor must return anything
paid within what time frame?
10%, 180 days (Price gouging) - Answer-A contractor may not offer services priced at
more than ___% above the normally charged price for ___ days following a natural
disaster or state of emergency.
4 years - Answer-How many years do consumers have to file a complaint with the CSLB
regarding a faulty project?
4 years - Answer-How many years is the contractor liable for patent defects (obvious or
visible defects)?
10 years - Answer-How many years is the contractor liable for Latent (structural)
defects?
4 years - Answer-The CSLB has how long to investigate unlicensed contractors from
the date of the illegal act?
C) The work must be completed in less than 2 weeks - Answer-Which of these does not
apply for Service & Repair contracts?
A) Total amount must be for $750 or less
B) The buyer must initiate contact with the contractor
C) The work must be completed in less than 2 weeks
D) No payment is due until the work is completed
Only before the contractor starts work and before they receive/sign the contract. -
Answer-When can a consumer cancel a Service & Repair contract?
, 10-pt or larger (Anything regarding CSLB must be 12 or larger) - Answer-Unless
otherwise specified, how large should font be in contracts?
Within 14 days - Answer-According to the Prompt Payment Act, payments for
construction projects must be received how long after an invoice has been issued?
7 days - Answer-Subcontractors must be paid within ___ days after a prime contractor
has received payment.
Lien - Answer-A method of securing payments for any unpaid labor or materials that
have been used to improve a property by contractors and material suppliers.
Material Breach - Answer-A major failure by any party, to perform according to the
agreed upon contract terms.
Immaterial Breach or Partial Breach - Answer-This violates minor details in a
construction contract, and does not affect the overall agreement or void the contract.
90 days - Answer-How long does a contractor have to report a small claims or civil court
decision to the CSLB?
Appellate Court - Answer-If the defendant files an appeal, the lawsuit moves from
superior court to...
County Clerk's Office - Answer-Small claims are filed at the...
Limited civil lawsuit (filed at the local superior court) - Answer-If representation by a
lawyer is desired, this is what you should file.
Limited-scope lawyer - Answer-Coaching by a lawyer without actual courtroom
representation is called...
Unlimited civil cases - Answer-Lawsuits for amounts over $25,000
2 to 4 years, depending on the type of claim. 6 months when suing a government or
public agency. - Answer-The statute of limitations for filing a claim is how long after the
event?
Non-binding arbitration - Answer-This means both parties are free to request a trial if
either party doesn't like the arbitrator's decision.
Once every 10 working days - Answer-How often should supervisors conduct toolbox or
tailgate safety meetings with their crews?
10 employees - Answer-Employers with more than ____ employees are bound by
OSHA regulations to have a written emergency plan displayed prominently.
