Page 1 of 167
LAW & BUSINESS (CSLB) LEGAL TEST EXAM A, B & C
WITH COMPLETE 500 QUESTIONS AND CORRECT
AND SOLUTIONS JUST RELEA SED THIS YEAR
CSLB LAW AND BUSINESS REVIEW A
Question: A consumer may cancel a home solicitation contract at any time prior to
midnight of the ____ business day after the date of the transaction.
1. 1st
2. 2nd
3. 3rd.
4. 4th - CORRECT ANSWER✔✔3rd
Question: If an owner cancels a home solicitation contract on March 20., by what date
must the contractor return the down payment?
1. April 23
2. March 30
3. April 1
4. April 20 - CORRECT ANSWER✔✔March 30
(10 Days)
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Question: A notice canceling a home solicitation contract becomes effective:
1. When the written notice is deposited in the mail.
2. When signed by the owner
3. The day the owner cancels by telephone
4. When the contractor receives it - CORRECT ANSWER✔✔When the written notice is
deposited in the mail
Question: An "emergency" job has been contracted for between the owner and a
contractor. The materials have been purchased. If the owner decides to cancel, who is
responsible for the materials?
1. The Owner
2. The contractor
3. The supplier
4. No one - CORRECT ANSWER✔✔The Owner
(During emergencies, the cancellation period is waived)
Question: Which of the following is NOT true concerning a joint-control addendum to a
contract?
1. It prevents the contractors from being paid more than the value of the work
completed
2. It safeguards the consumer's property from liens by requiring contractors supply lien
releases
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3. It analyzes the contract, plans, breakdown of costs and prepares an account from
which funds
4. It is controlled by the Contractor's State License Board - CORRECT ANSWER✔✔It is
controlled by the Contractors State License Board
Question: Who must sign a joint-control addendum to a home improvement contract?
1. Contractor's only
2. Owner and contractor
3. Owner, contractor and notary public
4. Owner, contractor and joint-control officer - CORRECT ANSWER✔✔Owner,
Contractors and joint control officer
Question: When a joint-control addendum is used, which of the following does NOT
have to be included in a home improvement contract?
1. Owner's signature
2. Schedule of payments
3. Notice to Owner
4. License number of the contractor - CORRECT ANSWER✔✔Schedule of payments
Question: Which of the following is true concerning surety bonds?
1. They are required in order to obtain a contractor's license number
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2. They are valued at $7500 for all contractors
3. They are required in case you accidentally damage the customer's property
4. All of the above - CORRECT ANSWER✔✔They are required in order to obtain a
contractor's license number
(Bonds do not cover damage)
Question: Of the following, who will NOT stand to benefit from a contractor's bond?
1. Any client damaged as a result of regulation violations by the contractor
2. Any person damaged due to fraud on the part of the contractor
3. Any subcontractor damaged due to an accident
4. Any employee damaged by the contractor's failure to pay wages - CORRECT
ANSWER✔✔Any subcontractor damaged due to an accident
Question: When should you let your attorney see a construction contract?
1. Before you let the client see the contract
2. After the contract is prepared but before you sign it
3. After the building permit is obtained
4. After the contract is signed by you and the client - CORRECT ANSWER✔✔After the contract is
prepared but before you sign it
LAW & BUSINESS (CSLB) LEGAL TEST EXAM A, B & C
WITH COMPLETE 500 QUESTIONS AND CORRECT
AND SOLUTIONS JUST RELEA SED THIS YEAR
CSLB LAW AND BUSINESS REVIEW A
Question: A consumer may cancel a home solicitation contract at any time prior to
midnight of the ____ business day after the date of the transaction.
1. 1st
2. 2nd
3. 3rd.
4. 4th - CORRECT ANSWER✔✔3rd
Question: If an owner cancels a home solicitation contract on March 20., by what date
must the contractor return the down payment?
1. April 23
2. March 30
3. April 1
4. April 20 - CORRECT ANSWER✔✔March 30
(10 Days)
, Page 2 of 167
Question: A notice canceling a home solicitation contract becomes effective:
1. When the written notice is deposited in the mail.
2. When signed by the owner
3. The day the owner cancels by telephone
4. When the contractor receives it - CORRECT ANSWER✔✔When the written notice is
deposited in the mail
Question: An "emergency" job has been contracted for between the owner and a
contractor. The materials have been purchased. If the owner decides to cancel, who is
responsible for the materials?
1. The Owner
2. The contractor
3. The supplier
4. No one - CORRECT ANSWER✔✔The Owner
(During emergencies, the cancellation period is waived)
Question: Which of the following is NOT true concerning a joint-control addendum to a
contract?
1. It prevents the contractors from being paid more than the value of the work
completed
2. It safeguards the consumer's property from liens by requiring contractors supply lien
releases
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3. It analyzes the contract, plans, breakdown of costs and prepares an account from
which funds
4. It is controlled by the Contractor's State License Board - CORRECT ANSWER✔✔It is
controlled by the Contractors State License Board
Question: Who must sign a joint-control addendum to a home improvement contract?
1. Contractor's only
2. Owner and contractor
3. Owner, contractor and notary public
4. Owner, contractor and joint-control officer - CORRECT ANSWER✔✔Owner,
Contractors and joint control officer
Question: When a joint-control addendum is used, which of the following does NOT
have to be included in a home improvement contract?
1. Owner's signature
2. Schedule of payments
3. Notice to Owner
4. License number of the contractor - CORRECT ANSWER✔✔Schedule of payments
Question: Which of the following is true concerning surety bonds?
1. They are required in order to obtain a contractor's license number
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2. They are valued at $7500 for all contractors
3. They are required in case you accidentally damage the customer's property
4. All of the above - CORRECT ANSWER✔✔They are required in order to obtain a
contractor's license number
(Bonds do not cover damage)
Question: Of the following, who will NOT stand to benefit from a contractor's bond?
1. Any client damaged as a result of regulation violations by the contractor
2. Any person damaged due to fraud on the part of the contractor
3. Any subcontractor damaged due to an accident
4. Any employee damaged by the contractor's failure to pay wages - CORRECT
ANSWER✔✔Any subcontractor damaged due to an accident
Question: When should you let your attorney see a construction contract?
1. Before you let the client see the contract
2. After the contract is prepared but before you sign it
3. After the building permit is obtained
4. After the contract is signed by you and the client - CORRECT ANSWER✔✔After the contract is
prepared but before you sign it
