Page 1 of 129
CSLB LAW & BUSINESS EXAM TEST 1 WITH
COMPLETE 400 QUESTIONS AND CORRECT AND
SOLUTIONS JUST RELEA SED THIS YEAR
Question:
What is the maximum allowed travel distance from any point of a work area to a fire
extinguisher?
a.)25 feet
b.)50 feet
c.)75 feet
d.)150 feet - CORRECT ANSWER✔✔75 feet
Question: When should you renew contractors bond? - CORRECT ANSWER✔✔30 days before
bond expires
Question:
, Page 2 of 129
If, during excavation, you unearth human remains or burial artifacts at a construction site, what
should you do?
Click here to select answer B.
Notify the owner of the property.
Click here to select answer B.
Stop work and place a warning ribbon three feet from the remains around the perimeter of the
site.
Click here to select answer C.
Stop work immediately at that site.
Click here to select answer D.
Stop work immediately at that site and any other nearby area that may have remains. -
CORRECT ANSWER✔✔Stop work immediately at that site and any other nearby area that may
have remains.
Question 1:
How must a client submit a claim for service or repair of a defect on fit and finish items after a
remodel?
, Page 3 of 129
A.) by certified mail
B.) by overnight mail
C.) by personal delivery
D.) any of the above - CORRECT ANSWER✔✔D. A client may use the normal customer-service
procedures agreed to between the client and the contractor, but the client must notify the
contractor of the defect in writing by certified mail, overnight mail, or personal delivery before
the client may file an action in court.
Question:
Direct costs are $37,000, overhead is 12%, and profit is 5%. What is the selling price?
Click here to select answer A.
$39,272.47
Click here to select answer B.
$41,373.45
, Page 4 of 129
Click here to select answer C.
$43,383.37
Click here to select answer D.
$44,578.31 - CORRECT ANSWER✔✔D. The following solution is based on one of the references
listed in the CSLB Study Guide. The solution may seem unorthodox, but you must follow each
step to arrive at the State's answer. Sum of overhead and profit percentages = 12% + 5% = 17%
Percent of selling price that is direct costs = 100% - 17% = 83% = .83 Selling price = $37,000 ÷ .83
= $44,578.31 To check these calculations, add the subtotals: Direct costs = $44,578.31 × .83 =
$37,000.00 Overhead = $44,578.31 × .12 = $5,349.40 Profit = $44,578.31 × .05 = $2,228.92
$37,000.00 + $5,349.40 + $2,228.92 = $44,578.32
Question: Who pays FUTA?
a. employer
b. employee
c. 50% employer and 50% employee
d. 90% employer and 10% employee - CORRECT ANSWER✔✔A.) Employer
Question: When you get an approved set of plans, what should you do first? - CORRECT
ANSWER✔✔Read any notes from the building department.
CSLB LAW & BUSINESS EXAM TEST 1 WITH
COMPLETE 400 QUESTIONS AND CORRECT AND
SOLUTIONS JUST RELEA SED THIS YEAR
Question:
What is the maximum allowed travel distance from any point of a work area to a fire
extinguisher?
a.)25 feet
b.)50 feet
c.)75 feet
d.)150 feet - CORRECT ANSWER✔✔75 feet
Question: When should you renew contractors bond? - CORRECT ANSWER✔✔30 days before
bond expires
Question:
, Page 2 of 129
If, during excavation, you unearth human remains or burial artifacts at a construction site, what
should you do?
Click here to select answer B.
Notify the owner of the property.
Click here to select answer B.
Stop work and place a warning ribbon three feet from the remains around the perimeter of the
site.
Click here to select answer C.
Stop work immediately at that site.
Click here to select answer D.
Stop work immediately at that site and any other nearby area that may have remains. -
CORRECT ANSWER✔✔Stop work immediately at that site and any other nearby area that may
have remains.
Question 1:
How must a client submit a claim for service or repair of a defect on fit and finish items after a
remodel?
, Page 3 of 129
A.) by certified mail
B.) by overnight mail
C.) by personal delivery
D.) any of the above - CORRECT ANSWER✔✔D. A client may use the normal customer-service
procedures agreed to between the client and the contractor, but the client must notify the
contractor of the defect in writing by certified mail, overnight mail, or personal delivery before
the client may file an action in court.
Question:
Direct costs are $37,000, overhead is 12%, and profit is 5%. What is the selling price?
Click here to select answer A.
$39,272.47
Click here to select answer B.
$41,373.45
, Page 4 of 129
Click here to select answer C.
$43,383.37
Click here to select answer D.
$44,578.31 - CORRECT ANSWER✔✔D. The following solution is based on one of the references
listed in the CSLB Study Guide. The solution may seem unorthodox, but you must follow each
step to arrive at the State's answer. Sum of overhead and profit percentages = 12% + 5% = 17%
Percent of selling price that is direct costs = 100% - 17% = 83% = .83 Selling price = $37,000 ÷ .83
= $44,578.31 To check these calculations, add the subtotals: Direct costs = $44,578.31 × .83 =
$37,000.00 Overhead = $44,578.31 × .12 = $5,349.40 Profit = $44,578.31 × .05 = $2,228.92
$37,000.00 + $5,349.40 + $2,228.92 = $44,578.32
Question: Who pays FUTA?
a. employer
b. employee
c. 50% employer and 50% employee
d. 90% employer and 10% employee - CORRECT ANSWER✔✔A.) Employer
Question: When you get an approved set of plans, what should you do first? - CORRECT
ANSWER✔✔Read any notes from the building department.
