CSLB Practice Law B | Questions and
Correct Answers Rated A+ | Latest
2025/2026 Guide
An active contractor's license is issued on January 18, 1995. On what
date will the license expire? - Correct Answer - 31-Jan-97
How often should a job supervisor or responsible managing employee
visit the job site? - Correct Answer - once a day
A licensed general contractor enters into a contract with an unlicensed
subcontractor. Who is in violation of the law if the work performed
requires a contractor's license? - Correct Answer - both the general
contractor and the subcontractor
AB 2040 requires that before work begins on a project, the contractor
must inquire of the owner whether asbestos is present in any building
constructed prior to: - Correct Answer - 1978
Social security tax for a self-employed contractor is: - Correct Answer -
based on the rate set for the self-employed for the year in which the tax
is paid
You are bidding on a job with plans drawn by a homeowner. You notice
that the dimensions on the plans do not add up. What should you do? -
,Correct Answer - Inform the homeowner that you cannot bid until the
numbers add up.
A licensed contractor contracts with a building owner to do a $900
improvement. When applying for a building permit, the contractor checks
the owner-builder box on the declaration form. Which of the following
statements is correct? - Correct Answer - The contractor may not check
the owner-builder box because the owner contracted for the
improvement.
In most construction contracts, the retention may be held for up to _____
days as a guarantee that the prime pays the subcontractors and
suppliers. - Correct Answer - 60
On a private works project, the owner failed to make a payment by the
due date specified in the contract and is not disputing the work
performed. Which of the following is a correct statement? - Correct
Answer - The prime contractor may serve the owner with a stop work
order stating that work will stop if payment is not made within ten days
from the date of service of the order.
If a building permit is required, when does the law permit a building
inspector to enter and inspect a residence? - Correct Answer - between
8 am and 6 pm unless the owner has given permission to inspect at
some other time
If a contractor violates the safety code and an employee is injured, who
will be held responsible? - Correct Answer - If a contractor violates the
safety code and an employee is injured, who will be held responsible?
,An employer must file federal Form 1099-MISC to report payments of
_____ or more per calendar year to persons not treated as employees
(e.g., independent contractors) for services performed for the business. -
Correct Answer - $600
After a home improvement contract is signed, the contractor must
substantially begin work within _____ days of the date specified in the
contract. - Correct Answer - 20
Of the following, which is the best description of "accounts receivable"? -
Correct Answer - Money due from customers who have purchased
goods or services on credit.
Which of the following is a correct statement about budgets? - Correct
Answer - A budget should allow leeway for month-to-month variations.
A client wants the house painted and carpet installed. What license
classification(s) is/are required for this work? - Correct Answer - painting
and decorating (C-33) and flooring and floor covering (C-15)
classifications
As part of the safety training process, contractors' supervisors are
required to meet with management how often? - Correct Answer - They
are required to meet monthly
A notice canceling a home solicitation contract becomes effective: -
Correct Answer - when the written notice is deposited in the mail
, A subcontractor signs an Unconditional Waiver and Release upon final
payment. This means that the: - Correct Answer - subcontractor has
waived any lien, stop payment notice, or payment bond rights.
Star Construction moved to a new office but never filed a change-of-
address form with the Registrar. Consequently, Star never received a
renewal application. If Star fails to renew its license within three years of
the date of expiration, Star will have to: - Correct Answer - pay a
delinquency fee to renew license
An employer accrues $2,400 in federal withholding, Social Security, and
Medicare taxes during a quarter. Which of the following statements
about payments of the tax liability is correct? - Correct Answer - The
taxes may be reported and paid quarterly based on a calendar year.
If the plans and specifications for a job are vague or lack details,
contractors should: - Correct Answer - review the plans and
specifications with the owner.
What is the best way to determine if your company is profitable? -
Correct Answer - Examine the income and expense statement.
Unsafe or faulty equipment is found on a job site. What should be done?
- Correct Answer - It is the contractor's responsibility to correct the
problem.
How many days of inactivity must pass before a notice of cessation may
be recorded? - Correct Answer - 30 days
Correct Answers Rated A+ | Latest
2025/2026 Guide
An active contractor's license is issued on January 18, 1995. On what
date will the license expire? - Correct Answer - 31-Jan-97
How often should a job supervisor or responsible managing employee
visit the job site? - Correct Answer - once a day
A licensed general contractor enters into a contract with an unlicensed
subcontractor. Who is in violation of the law if the work performed
requires a contractor's license? - Correct Answer - both the general
contractor and the subcontractor
AB 2040 requires that before work begins on a project, the contractor
must inquire of the owner whether asbestos is present in any building
constructed prior to: - Correct Answer - 1978
Social security tax for a self-employed contractor is: - Correct Answer -
based on the rate set for the self-employed for the year in which the tax
is paid
You are bidding on a job with plans drawn by a homeowner. You notice
that the dimensions on the plans do not add up. What should you do? -
,Correct Answer - Inform the homeowner that you cannot bid until the
numbers add up.
A licensed contractor contracts with a building owner to do a $900
improvement. When applying for a building permit, the contractor checks
the owner-builder box on the declaration form. Which of the following
statements is correct? - Correct Answer - The contractor may not check
the owner-builder box because the owner contracted for the
improvement.
In most construction contracts, the retention may be held for up to _____
days as a guarantee that the prime pays the subcontractors and
suppliers. - Correct Answer - 60
On a private works project, the owner failed to make a payment by the
due date specified in the contract and is not disputing the work
performed. Which of the following is a correct statement? - Correct
Answer - The prime contractor may serve the owner with a stop work
order stating that work will stop if payment is not made within ten days
from the date of service of the order.
If a building permit is required, when does the law permit a building
inspector to enter and inspect a residence? - Correct Answer - between
8 am and 6 pm unless the owner has given permission to inspect at
some other time
If a contractor violates the safety code and an employee is injured, who
will be held responsible? - Correct Answer - If a contractor violates the
safety code and an employee is injured, who will be held responsible?
,An employer must file federal Form 1099-MISC to report payments of
_____ or more per calendar year to persons not treated as employees
(e.g., independent contractors) for services performed for the business. -
Correct Answer - $600
After a home improvement contract is signed, the contractor must
substantially begin work within _____ days of the date specified in the
contract. - Correct Answer - 20
Of the following, which is the best description of "accounts receivable"? -
Correct Answer - Money due from customers who have purchased
goods or services on credit.
Which of the following is a correct statement about budgets? - Correct
Answer - A budget should allow leeway for month-to-month variations.
A client wants the house painted and carpet installed. What license
classification(s) is/are required for this work? - Correct Answer - painting
and decorating (C-33) and flooring and floor covering (C-15)
classifications
As part of the safety training process, contractors' supervisors are
required to meet with management how often? - Correct Answer - They
are required to meet monthly
A notice canceling a home solicitation contract becomes effective: -
Correct Answer - when the written notice is deposited in the mail
, A subcontractor signs an Unconditional Waiver and Release upon final
payment. This means that the: - Correct Answer - subcontractor has
waived any lien, stop payment notice, or payment bond rights.
Star Construction moved to a new office but never filed a change-of-
address form with the Registrar. Consequently, Star never received a
renewal application. If Star fails to renew its license within three years of
the date of expiration, Star will have to: - Correct Answer - pay a
delinquency fee to renew license
An employer accrues $2,400 in federal withholding, Social Security, and
Medicare taxes during a quarter. Which of the following statements
about payments of the tax liability is correct? - Correct Answer - The
taxes may be reported and paid quarterly based on a calendar year.
If the plans and specifications for a job are vague or lack details,
contractors should: - Correct Answer - review the plans and
specifications with the owner.
What is the best way to determine if your company is profitable? -
Correct Answer - Examine the income and expense statement.
Unsafe or faulty equipment is found on a job site. What should be done?
- Correct Answer - It is the contractor's responsibility to correct the
problem.
How many days of inactivity must pass before a notice of cessation may
be recorded? - Correct Answer - 30 days
