CSLB CONTRACTOR'S LAW & BUSINESS \| \| \| \| \|
EXAM QUESTIONS WITH CORRECT \| \| \| \|
ANSWERS
An employer remits State disability taxes withheld from an
\| \| \| \| \| \| \| \| \|
employees wages to what agency? - CORRECT ANSWERS \| \| \| \| \| \| \| \|
✔✔Employment Development Department \| \|
Which act establishes the rights of workers to organize into
\| \| \| \| \| \| \| \| \| \|
unions and negotiate contracts? - CORRECT ANSWERS
\| \| \| \| \| \| \|
✔✔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 ANSWERS ✔✔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 ANSWERS ✔✔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 ANSWERS ✔✔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 ANSWERS ✔✔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 ANSWERS
\| \| \| \| \| \| \| \| \| \|
✔✔The 31st of January. \| \| \|
,After a job is completed, the owner decides to have additional
\| \| \| \| \| \| \| \| \| \| \|
work done. How should the contractor proceed? - CORRECT
\| \| \| \| \| \| \| \| \|
ANSWERS ✔✔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 ANSWERS ✔✔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
\| \| \| \| \| \| \| \| \| \| \| \| \|
ANSWERS ✔✔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 ANSWERS
\| \| \| \| \| \| \| \| \| \|
✔✔Decline to bid the work. \| \| \| \|
On a time-and-materials job, you should: - CORRECT ANSWERS
\| \| \| \| \| \| \| \| \|
✔✔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 ANSWERS ✔✔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 ANSWERS ✔✔The critical
\| \| \| \| \| \| \| \| \|
path method. \|
Is it legal for a contractor to require employees to take a lie
\| \| \| \| \| \| \| \| \| \| \| \| \|
detector test? - CORRECT ANSWERS ✔✔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 ANSWERS ✔✔The employee must apply for a
\| \| \| \| \| \| \| \| \| \|
SSN.
How many times may you take the contractors license exam
\| \| \| \| \| \| \| \| \| \|
before your original application is voided? - CORRECT ANSWERS
\| \| \| \| \| \| \| \| \|
✔✔As many times as necessary within 18 months.
\| \| \| \| \| \| \|
When should a contractor renew the contractor's license bond? -
\| \| \| \| \| \| \| \| \| \|
CORRECT ANSWERS ✔✔30 days before it expires. \| \| \| \| \| \|
The qualifying RME for a construction firm must work at least: -
\| \| \| \| \| \| \| \| \| \| \| \|
CORRECT ANSWERS ✔✔A qualifying RME for a construction firm
\| \| \| \| \| \| \| \| \|
must work at least 32 hours per week or 80% of the work week.
\| \| \| \| \| \| \| \| \| \| \| \| \|
The federal Employer Identification Number (EIN) is issued by
\| \| \| \| \| \| \| \| \|
the: - CORRECT ANSWERS ✔✔The Internal Revenue Service
\| \| \| \| \| \| \|
Every employer of ______ or more full or part time employees
\| \| \| \| \| \| \| \| \| \| \|
must keep written health and safety records for _______ years.
\| \| \| \| \| \| \| \| \|
EXAM QUESTIONS WITH CORRECT \| \| \| \|
ANSWERS
An employer remits State disability taxes withheld from an
\| \| \| \| \| \| \| \| \|
employees wages to what agency? - CORRECT ANSWERS \| \| \| \| \| \| \| \|
✔✔Employment Development Department \| \|
Which act establishes the rights of workers to organize into
\| \| \| \| \| \| \| \| \| \|
unions and negotiate contracts? - CORRECT ANSWERS
\| \| \| \| \| \| \|
✔✔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 ANSWERS ✔✔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 ANSWERS ✔✔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 ANSWERS ✔✔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 ANSWERS ✔✔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 ANSWERS
\| \| \| \| \| \| \| \| \| \|
✔✔The 31st of January. \| \| \|
,After a job is completed, the owner decides to have additional
\| \| \| \| \| \| \| \| \| \| \|
work done. How should the contractor proceed? - CORRECT
\| \| \| \| \| \| \| \| \|
ANSWERS ✔✔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 ANSWERS ✔✔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
\| \| \| \| \| \| \| \| \| \| \| \| \|
ANSWERS ✔✔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 ANSWERS
\| \| \| \| \| \| \| \| \| \|
✔✔Decline to bid the work. \| \| \| \|
On a time-and-materials job, you should: - CORRECT ANSWERS
\| \| \| \| \| \| \| \| \|
✔✔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 ANSWERS ✔✔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 ANSWERS ✔✔The critical
\| \| \| \| \| \| \| \| \|
path method. \|
Is it legal for a contractor to require employees to take a lie
\| \| \| \| \| \| \| \| \| \| \| \| \|
detector test? - CORRECT ANSWERS ✔✔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 ANSWERS ✔✔The employee must apply for a
\| \| \| \| \| \| \| \| \| \|
SSN.
How many times may you take the contractors license exam
\| \| \| \| \| \| \| \| \| \|
before your original application is voided? - CORRECT ANSWERS
\| \| \| \| \| \| \| \| \|
✔✔As many times as necessary within 18 months.
\| \| \| \| \| \| \|
When should a contractor renew the contractor's license bond? -
\| \| \| \| \| \| \| \| \| \|
CORRECT ANSWERS ✔✔30 days before it expires. \| \| \| \| \| \|
The qualifying RME for a construction firm must work at least: -
\| \| \| \| \| \| \| \| \| \| \| \|
CORRECT ANSWERS ✔✔A qualifying RME for a construction firm
\| \| \| \| \| \| \| \| \|
must work at least 32 hours per week or 80% of the work week.
\| \| \| \| \| \| \| \| \| \| \| \| \|
The federal Employer Identification Number (EIN) is issued by
\| \| \| \| \| \| \| \| \|
the: - CORRECT ANSWERS ✔✔The Internal Revenue Service
\| \| \| \| \| \| \|
Every employer of ______ or more full or part time employees
\| \| \| \| \| \| \| \| \| \| \|
must keep written health and safety records for _______ years.
\| \| \| \| \| \| \| \| \|
