CSLB CA LAW AND BUSINESS EXAM LESSON 1 ACTUAL QUESTIONS AND ANSWERS

CSLB CA LAWAND BUSINESS EXAM LESSON 1 ACTUAL v v v v v v v v




QUESTIONSANDANSWERS2024/2025A+ GRADE.
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Licensed contractor Requirements andQualifying Individuals - correct answer-Must be 18 Must
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v have a valid social security #
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Must hold 4 years trade experience (2 can be school) Journeyman
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Foreman

Contractor
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Owner-Builder
Proofof WorkY(Cert. of Work Experience)
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No License needed for -Ycorrect answer-Work done under $500
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v Wage paid employees (Excludes Boss)
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Public Personnel (City Officials)
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Court Officers actingw/inScope of Office Public
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Utilities under specified conditions
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Oil/GasOperations performed byowner/leaser
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Owner-
Builders hiring licensed subcontractors cannot sell more than 4 structures during a 12 month period.
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Owner-
Builders building/Improving existingYstructures on their own property if they : 1.Do the work themselves, or 2.
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Use their own employees to do work.
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- Home cannot be sold w/in 12 months after completed
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Who does NOT need to be licensed? - correct answer-Owner-
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Builders improving principal place of residence (live there for more 12mo) can only sell 2 homes for ever y 3
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years
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, Sale/Installation of product (Not to be fixed part of structure) v v v v v v v v v




A seller of installed carpets holding a retail furniture dealers license, but who contracts for installation of the
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carpet with a licensed carpet installer.
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Security alarm company operators (licensed by Bureau of Security/Investigation Services) who install, ma
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intain,monitor, sell,alter, orservice alarmsystems (fire alarmcompany operatorsmust be CSLB Licensed
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)



Persons who's activities consist only of installing satellite antenna systems onresidential structures/prop
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erty. here persons must be registered w/ Bureau of Electronic Appliance Repair
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Contractors who are not licensed - correct answer- v v v v v v v




No penalties for not being licensed as long as your workYis under $500 (labor & materials) (Cannot be divi ded
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into payments to avoid $500 mark)
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CSLB has a Statewide Investigative Fraud Team that goes after unlicensed contractor that work above tha t
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$500 limit.
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First offense - typically get a misdemeanor carrying up to six months in jail and/or a $500 fine
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v Second offense : -20% of the contract price of the work
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-$4,500 fine v




-90 County days in jail
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If the CSLB finds out that an individual is acting in the capacity of a contractor they will order a cease and desist
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with the penalty up to $15,000 (you have 15 days to appeal in writing)
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- correct answer-a felony
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In a state of emergency of disaster anybody acting in the capacity of a licensed contractor can be charged with -
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correct answer-A Felony
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