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CALIFORNIA CONTRACTORS LICENSE LAW
Questions with Answers (100% Correct Answers)
The address of the contractors State license Board is required to appear
on all contracts. Answer: TRUE
Business licenses are required by state and they can be acquired at any
state office. Answer: FALSE
Rights of lien can be waived in certain cases if supplier or sub signs such
a waiver. Answer: FALSE
The purpose of a surety bond is to protect the contractors should
anything go wrong Answer: FALSE
Customers may appeal the results of arbitration if the decision was
unfavorable Answer: FALSE
A suspended license may not be reinstated unless the contractor waits
one year. Answer: FALSE
Any substitution of a sub on the Public Works job must be approved by
the boarding authority. Answer: TRUE
© 2025 All rights reserved
, 2
The prime contractor awarded the Public Works job by an awarding
authority would lose his bond should he decide not to begin the job.
Answer: TRUE
Customers must use the cancellation form furnished by the contractor if
they wish to cancel the contract. Answer: FALSE
The language of the contract must reflect the language by which the
contract was sold to the customer. Answer: TRUE
On a contract that has been canceled by customer, the contractor is
entitled to compensation for any work done up to the date of
cancellation. Answer: FALSE
A contractor may ask customers to waive their right to cancel in
emergency cases only. Answer: TRUE
As a general rule, owner/builders do not need a contractors license.
Answer: TRUE
A general contractor may contract to do any work in the construction
industry. Answer: FALSE
The license of a sole ownership may be transferred to any family
member. Answer: FALSE
© 2025 All rights reserved
CALIFORNIA CONTRACTORS LICENSE LAW
Questions with Answers (100% Correct Answers)
The address of the contractors State license Board is required to appear
on all contracts. Answer: TRUE
Business licenses are required by state and they can be acquired at any
state office. Answer: FALSE
Rights of lien can be waived in certain cases if supplier or sub signs such
a waiver. Answer: FALSE
The purpose of a surety bond is to protect the contractors should
anything go wrong Answer: FALSE
Customers may appeal the results of arbitration if the decision was
unfavorable Answer: FALSE
A suspended license may not be reinstated unless the contractor waits
one year. Answer: FALSE
Any substitution of a sub on the Public Works job must be approved by
the boarding authority. Answer: TRUE
© 2025 All rights reserved
, 2
The prime contractor awarded the Public Works job by an awarding
authority would lose his bond should he decide not to begin the job.
Answer: TRUE
Customers must use the cancellation form furnished by the contractor if
they wish to cancel the contract. Answer: FALSE
The language of the contract must reflect the language by which the
contract was sold to the customer. Answer: TRUE
On a contract that has been canceled by customer, the contractor is
entitled to compensation for any work done up to the date of
cancellation. Answer: FALSE
A contractor may ask customers to waive their right to cancel in
emergency cases only. Answer: TRUE
As a general rule, owner/builders do not need a contractors license.
Answer: TRUE
A general contractor may contract to do any work in the construction
industry. Answer: FALSE
The license of a sole ownership may be transferred to any family
member. Answer: FALSE
© 2025 All rights reserved
