CSLB Law and Business 2025 Exam
Questions and Answers12
What is the minimum bond amount required for a contractor license in California? - ANSWERS-
$25.000
What is the penalty for acting as a contractor without a license in California? - ANSWERS-it is a
MISDEMEANOR
What does the CSLB issue to a contractor for a minor violation as a warning? - ANSWERS-
Advisory Notice
How long are citations against licensed contractors disclosed to the public? - ANSWERS-5 years
What is the maximum allowable down payment for a home improvement contract in California?
- ANSWERS-$1,000 or 10% of the contract price, Whichever is less
Home improvements contracts must include which of the following? - ANSWERS-•description of
materials
•start and completion dates
•permissible delays
Which business structures provides liability protection similar to a corporation but has different
tax treatment? - ANSWERS-Limited Liability Company (LLC)
What type of bond guarantees both job completion and payment of all labor and materials? -
ANSWERS-Contract Bond
, What is the minimum liability insurance required for a limited liability company (LLC) with 5 or
fewer personnel? - ANSWERS-$1 million
What is the purpose of a disciplinary bond for a contractor? - ANSWERS-To ensure compliance
with licensing rules following disciplinary action
What agency is responsible for licensing and regulating contractors in California? - ANSWERS-
Contractors State Licensing Board (CSLB)
What is the main purpose of the contractors state license board? (CSLB) - ANSWERS-To protect
consumers by regulating the construction industry
Which of the following violations could be lead to a contractors license suspension? - ANSWERS-
•advertising without a license number
•failing to pay subcontractor
•poor workmanship
Which license classification requires workers' compensation insurance, even if the contractor
has no employees? - ANSWERS-C-39 Roofing
Whats is the role of the Statewide Investigative Fraud Team? (SWIFT) - ANSWERS-To investigate
unlicensed contractors activity
What is the maximum civil penalty CSLB can impose for serious violations? - ANSWERS-$30,000
What is the first step CSLB takes when a complaint is filed against a license contractor? -
ANSWERS-Review the complaint to determine if it falls under CSLB jurisdiction
Questions and Answers12
What is the minimum bond amount required for a contractor license in California? - ANSWERS-
$25.000
What is the penalty for acting as a contractor without a license in California? - ANSWERS-it is a
MISDEMEANOR
What does the CSLB issue to a contractor for a minor violation as a warning? - ANSWERS-
Advisory Notice
How long are citations against licensed contractors disclosed to the public? - ANSWERS-5 years
What is the maximum allowable down payment for a home improvement contract in California?
- ANSWERS-$1,000 or 10% of the contract price, Whichever is less
Home improvements contracts must include which of the following? - ANSWERS-•description of
materials
•start and completion dates
•permissible delays
Which business structures provides liability protection similar to a corporation but has different
tax treatment? - ANSWERS-Limited Liability Company (LLC)
What type of bond guarantees both job completion and payment of all labor and materials? -
ANSWERS-Contract Bond
, What is the minimum liability insurance required for a limited liability company (LLC) with 5 or
fewer personnel? - ANSWERS-$1 million
What is the purpose of a disciplinary bond for a contractor? - ANSWERS-To ensure compliance
with licensing rules following disciplinary action
What agency is responsible for licensing and regulating contractors in California? - ANSWERS-
Contractors State Licensing Board (CSLB)
What is the main purpose of the contractors state license board? (CSLB) - ANSWERS-To protect
consumers by regulating the construction industry
Which of the following violations could be lead to a contractors license suspension? - ANSWERS-
•advertising without a license number
•failing to pay subcontractor
•poor workmanship
Which license classification requires workers' compensation insurance, even if the contractor
has no employees? - ANSWERS-C-39 Roofing
Whats is the role of the Statewide Investigative Fraud Team? (SWIFT) - ANSWERS-To investigate
unlicensed contractors activity
What is the maximum civil penalty CSLB can impose for serious violations? - ANSWERS-$30,000
What is the first step CSLB takes when a complaint is filed against a license contractor? -
ANSWERS-Review the complaint to determine if it falls under CSLB jurisdiction
