8/9/25, 12:47 AM CSLB CONTRACTOR'S LAW & BUSINESS EXAM
CSLB CONTRACTOR'S LAW & BUSINESS TEST BANK EXAM
2025-2026 \LATEST VERSION WITH COMPLETE QUESTIONS
AND ACCURATE DETAILED ANSWERS \VERIFIED ANSWERS
Which would not have to Car accident in which an employee steps onto a public
be reported to DOSH road, gets hit by a car, and suffers a concussion.
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.
A general contractor has Yes. If the contractor has reason to believe that the
obtained bids subcontractor has made an error in preparing his bid,
from several subcontractors
the contractor should notify the subcontractor of the
for a private project. He
apparent error, but the contractor may not disclose
notices that one bid is
the amounts of the other bids.
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?
/ 1/51
,8/9/25, 12:47 AM CSLB CONTRACTOR'S LAW & BUSINESS EXAM
An employer must furnish The 31st of January.
an employee with a
completed IRS Form W-2
(Wage and Tax Statement)
by:
After a job is completed, Write a new contract and ask the owner to sign it.
the owner decides to have
additional work done. How
should the contractor
proceed?
The purpose of a 20-day Notify the owner that the person or firm who sent the
preliminary notice for notice has improved the property.
private work is to?
Is it legal for a contractor Yes, if the contractor provides each employee with a
to pay employees in wage deduction statement semimonthly or at the time
cash? of each wage payment.
You are bidding on a job Decline to bid the work.
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?
On a time-and-materials job, Add profit and overhead to labor and materials
you should:
Your employee sets a cabinet Claim the damage on your general liability insurance policy.
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
/ 2/51
,8/9/25, 12:47 AM CSLB CONTRACTOR'S LAW & BUSINESS EXAM
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.
/ 3/51
, 8/9/25, 12:47 AM CSLB CONTRACTOR'S LAW & BUSINESS EXAM
Of the following, which is best The critical path method.
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
It is not legal for the contractor to require lie detector
Is it legal for a contractor to
require tests, but it would be legal for a federal, state, or local
employees to take a lie public agency to require lie detector tests of their
detector test? employees.
If a newly hired employee The employee must apply for a SSN.
does not have a SSN, what
should be done?
How many times may you take As many times as necessary within 18 months.
the
contractors license exam
before your original
application is voided?
When should a contractor 30 days before it expires.
renew the contractor's
license bond?
The qualifying RME for a A qualifying RME for a construction firm must work at
construction firm must work least 32 hours per week or 80% of the work week.
at least:
The federal Employer The Internal Revenue Service
Identification Number
(EIN) is issued by the:
/ 4/51
CSLB CONTRACTOR'S LAW & BUSINESS TEST BANK EXAM
2025-2026 \LATEST VERSION WITH COMPLETE QUESTIONS
AND ACCURATE DETAILED ANSWERS \VERIFIED ANSWERS
Which would not have to Car accident in which an employee steps onto a public
be reported to DOSH road, gets hit by a car, and suffers a concussion.
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.
A general contractor has Yes. If the contractor has reason to believe that the
obtained bids subcontractor has made an error in preparing his bid,
from several subcontractors
the contractor should notify the subcontractor of the
for a private project. He
apparent error, but the contractor may not disclose
notices that one bid is
the amounts of the other bids.
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?
/ 1/51
,8/9/25, 12:47 AM CSLB CONTRACTOR'S LAW & BUSINESS EXAM
An employer must furnish The 31st of January.
an employee with a
completed IRS Form W-2
(Wage and Tax Statement)
by:
After a job is completed, Write a new contract and ask the owner to sign it.
the owner decides to have
additional work done. How
should the contractor
proceed?
The purpose of a 20-day Notify the owner that the person or firm who sent the
preliminary notice for notice has improved the property.
private work is to?
Is it legal for a contractor Yes, if the contractor provides each employee with a
to pay employees in wage deduction statement semimonthly or at the time
cash? of each wage payment.
You are bidding on a job Decline to bid the work.
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?
On a time-and-materials job, Add profit and overhead to labor and materials
you should:
Your employee sets a cabinet Claim the damage on your general liability insurance policy.
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
/ 2/51
,8/9/25, 12:47 AM CSLB CONTRACTOR'S LAW & BUSINESS EXAM
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.
/ 3/51
, 8/9/25, 12:47 AM CSLB CONTRACTOR'S LAW & BUSINESS EXAM
Of the following, which is best The critical path method.
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
It is not legal for the contractor to require lie detector
Is it legal for a contractor to
require tests, but it would be legal for a federal, state, or local
employees to take a lie public agency to require lie detector tests of their
detector test? employees.
If a newly hired employee The employee must apply for a SSN.
does not have a SSN, what
should be done?
How many times may you take As many times as necessary within 18 months.
the
contractors license exam
before your original
application is voided?
When should a contractor 30 days before it expires.
renew the contractor's
license bond?
The qualifying RME for a A qualifying RME for a construction firm must work at
construction firm must work least 32 hours per week or 80% of the work week.
at least:
The federal Employer The Internal Revenue Service
Identification Number
(EIN) is issued by the:
/ 4/51
