ACTUAL EXAM 2 VERSIONS (VERSION A AND B) COMPLETE
450 QUESTIONS WITH DETAILED VERIFIED ANSWERS
(100% CORRECT ANSWERS) / ALREADY GRADED A+
VERSION 1
Question 1
According to the CSLB, what is the primary role of a "general building
contractor" (B license)?
A) To install specialized flooring only.
B) To manage and supervise projects that require at least two unrelated
building trades or crafts.
C) To perform plumbing work exclusively.
D) To only build swimming pools.
E) To design architectural plans.
Correct Answer: B) To manage and supervise projects that require at
least two unrelated building trades or crafts.
Rationale: A General Building Contractor (B) is defined as a
contractor whose principal contracting business is in connection
with any structure built, being built, or to be built, requiring the use
of at least two unrelated building trades or crafts, or to superintend
the whole or any part thereof.
Question 2
Which of the following is required for a contractor to perform work for which
the combined contract price (including labor, materials, and profit) is $500 or
more?
A) A business license only.
B) A CSLB contractor's license.
C) A federal tax ID number.
D) A local building permit only.
E) A professional liability insurance policy.
Correct Answer: B) A CSLB contractor's license.
Rationale: California law mandates that any contractor performing
,work totaling $500 or more (including labor, materials, and all other
items) must hold a current and valid CSLB contractor's license for
that classification.
Question 3
Before starting work on a residential remodel project, what type of insurance
is a CSLB contractor legally required to carry?
A) Life insurance.
B) Disability insurance.
C) Workers' Compensation insurance (if employing anyone) and commercial
general liability insurance.
D) Professional liability insurance.
E) Automotive insurance only.
Correct Answer: C) Workers' Compensation insurance (if employing
anyone) and commercial general liability insurance.
Rationale: The CSLB requires all contractors with employees to carry
Workers' Compensation. Commercial General Liability (CGL)
insurance is also generally required or highly recommended to cover
potential property damage and bodily injury claims.
Question 4
What is the purpose of the "Notice to Owner" document provided by a
contractor to a client in California?
A) To inform the client of potential delays.
B) To inform the client of their right to receive a copy of the contract.
C) To inform the client that they have 3 business days to cancel the contract.
D) To inform the client about the contractor's insurance coverage.
E) To advise the client of the specific steps the contractor will take.
Correct Answer: C) To inform the client that they have 3 business days
to cancel the contract.
Rationale: California law grants consumers a "3-Day Right to Cancel"
for home solicitation contracts (which many residential
,improvement contracts are), and the contractor must provide
specific notice of this right.
Question 5
According to CSLB regulations, who is legally responsible for the acts of a
salesperson working under a licensed contractor?
A) The salesperson only.
B) The contractor (license holder).
C) The client.
D) The CSLB.
E) The supplier of materials.
Correct Answer: B) The contractor (license holder).
Rationale: The licensed contractor is ultimately responsible for the
actions of their employees and salespersons, including ensuring
they comply with all laws and regulations.
Question 6
What is "Stop Work Order" issued by a building official?
A) An order to speed up construction.
B) A legal order to immediately cease all construction activities due to unsafe
conditions or permit violations.
C) An order to change building materials.
D) An order to modify the construction schedule.
E) An order to increase worker compensation.
Correct Answer: B) A legal order to immediately cease all construction
activities due to unsafe conditions or permit violations.
Rationale: A Stop Work Order is a serious enforcement action, halting
construction until the identified issues are resolved, often for safety
or code compliance reasons.
Question 7
Which of the following is NOT typically a component of a valid construction
contract in California?
, A) Contractor's license number.
B) Start and completion dates.
C) Price and payment schedule.
D) A detailed list of the contractor's personal assets.
E) Scope of work description.
Correct Answer: D) A detailed list of the contractor's personal assets.
Rationale: A valid contract focuses on the project itself, its terms, and
the parties' obligations. Personal financial details of the contractor
(beyond what's necessary for licensing or bonding) are not required
components.
Question 8
What is the maximum penalty for a first offense of contracting without a
license in California?
A) A warning letter.
B) A fine of up to $5,000 and/or six months in county jail.
C) Immediate license revocation.
D) Mandatory community service.
E) A fine of $100.
Correct Answer: B) A fine of up to $5,000 and/or six months in county
jail.
Rationale: Contracting without a license is a serious misdemeanor
offense in California, carrying substantial penalties to deter illegal
activity and protect consumers.
Question 9
What is the purpose of a "preliminary notice" (or "20-day preliminary notice")
in California construction?
A) To inform the client of the start date.
B) To inform the property owner and general contractor that a subcontractor
or material supplier has provided work or materials and intends to pursue a
mechanics lien if not paid.