CONTRACTORS LICENSE LAW ACTUAL EXAM
PAPER 2026 QUESTIONS SOLUTIONS GRADED
A+
◉ 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
, ◉ 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
PAPER 2026 QUESTIONS SOLUTIONS GRADED
A+
◉ 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
, ◉ 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
