Utah General Contractor Business & Law Exam
| Study Guide & Practice Test
Utah General Contractor – Business & Law Exam (Practice Set)
1. Which agency regulates general contractors in Utah?
A. Utah Division of Corporations
B. Utah Department of Commerce
C. Utah Division of Occupational and Professional Licensing (DOPL)
D. Utah Labor Commission
✅ Answer: C
Explanation:
All contractor licensing, discipline, and enforcement in Utah are handled by DOPL, under the
Department of Commerce.
2. What is the minimum age required to hold a contractor license in Utah?
A. 18
B. 19
C. 21
D. 25
✅ Answer: B
Explanation:
Utah requires contractors to be at least 19 years old.
3. Which document proves financial responsibility for a Utah general contractor?
A. Business plan
B. Surety bond
C. Operating agreement
D. Articles of incorporation
,✅ Answer: B
Explanation:
A surety bond protects the public and ensures compliance with laws and contracts.
4. How long is a Utah contractor license valid before renewal is required?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
✅ Answer: B
Explanation:
Utah contractor licenses must be renewed every 2 years.
5. What is the primary purpose of a mechanic’s lien?
A. Secure insurance coverage
B. Guarantee employee wages
C. Protect payment rights for labor and materials
D. Transfer property ownership
✅ Answer: C
Explanation:
A mechanic’s lien ensures contractors and suppliers are paid for work performed.
6. In Utah, when must a preliminary notice be filed to preserve lien rights?
A. Before work begins
B. Within 20 days of starting work
C. At project completion
D. After final payment
✅ Answer: B
Explanation:
Utah requires filing a preliminary notice within 20 days of first furnishing labor or materials.
7. Which contract type places the most financial risk on the contractor?
, A. Cost-plus
B. Time and materials
C. Lump sum (fixed price)
D. Unit price
✅ Answer: C
Explanation:
In a lump sum contract, the contractor absorbs cost overruns.
8. What is considered an express contract?
A. A verbal agreement implied by actions
B. A written or oral agreement with clear terms
C. An agreement enforced by law
D. A contract without consideration
✅ Answer: B
Explanation:
An express contract clearly states terms either orally or in writing.
9. Which element is NOT required for a valid contract?
A. Offer
B. Acceptance
C. Consideration
D. Licensing
✅ Answer: D
Explanation:
Licensing is legally required to perform work, but not an element of contract formation.
10. Which insurance protects against employee job-related injuries?
A. General liability
B. Professional liability
C. Workers’ compensation
D. Builder’s risk
✅ Answer: C
11. What does “scope of work” define in a construction contract?
| Study Guide & Practice Test
Utah General Contractor – Business & Law Exam (Practice Set)
1. Which agency regulates general contractors in Utah?
A. Utah Division of Corporations
B. Utah Department of Commerce
C. Utah Division of Occupational and Professional Licensing (DOPL)
D. Utah Labor Commission
✅ Answer: C
Explanation:
All contractor licensing, discipline, and enforcement in Utah are handled by DOPL, under the
Department of Commerce.
2. What is the minimum age required to hold a contractor license in Utah?
A. 18
B. 19
C. 21
D. 25
✅ Answer: B
Explanation:
Utah requires contractors to be at least 19 years old.
3. Which document proves financial responsibility for a Utah general contractor?
A. Business plan
B. Surety bond
C. Operating agreement
D. Articles of incorporation
,✅ Answer: B
Explanation:
A surety bond protects the public and ensures compliance with laws and contracts.
4. How long is a Utah contractor license valid before renewal is required?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
✅ Answer: B
Explanation:
Utah contractor licenses must be renewed every 2 years.
5. What is the primary purpose of a mechanic’s lien?
A. Secure insurance coverage
B. Guarantee employee wages
C. Protect payment rights for labor and materials
D. Transfer property ownership
✅ Answer: C
Explanation:
A mechanic’s lien ensures contractors and suppliers are paid for work performed.
6. In Utah, when must a preliminary notice be filed to preserve lien rights?
A. Before work begins
B. Within 20 days of starting work
C. At project completion
D. After final payment
✅ Answer: B
Explanation:
Utah requires filing a preliminary notice within 20 days of first furnishing labor or materials.
7. Which contract type places the most financial risk on the contractor?
, A. Cost-plus
B. Time and materials
C. Lump sum (fixed price)
D. Unit price
✅ Answer: C
Explanation:
In a lump sum contract, the contractor absorbs cost overruns.
8. What is considered an express contract?
A. A verbal agreement implied by actions
B. A written or oral agreement with clear terms
C. An agreement enforced by law
D. A contract without consideration
✅ Answer: B
Explanation:
An express contract clearly states terms either orally or in writing.
9. Which element is NOT required for a valid contract?
A. Offer
B. Acceptance
C. Consideration
D. Licensing
✅ Answer: D
Explanation:
Licensing is legally required to perform work, but not an element of contract formation.
10. Which insurance protects against employee job-related injuries?
A. General liability
B. Professional liability
C. Workers’ compensation
D. Builder’s risk
✅ Answer: C
11. What does “scope of work” define in a construction contract?
