CSLB Law & Business Exam Questions With
Accurate Answers 2025\2026 A+ Grade.
1-2%
- accurate answers-Bonds can be purchased from bonding companies for ___%
of the original contract price.
Bid Bond
- accurate answers-This acts as an assurance that the contractor will be able
to complete the job as described in the contract.
Performance Bond or Contract Bond
- accurate answers-This guarantees a contractor will complete the project
according to the agreed upon terms & conditions.
Payment Bond
- accurate answers-This guarantees that subcontractors and suppliers will be
paid by the contractor for properly performed work.
$35,000
- accurate answers-Payment Bonds are required for federal government
contracts over $__________.
Fidelity Bond
- accurate answers-This covers the business owner in case of employee
dishonesty or theft.
$15,000
- accurate answers-Contractors must file a contractors bond OR submit a cash
deposit with the CSLB for $_______.
$15,000
- accurate answers-The value of a contractors bond must be $________
90
- accurate answers-The contractors bond must be filed with the CLSB within
___ days from the bond effective date.
,True
- accurate answers-True or False: A contractor must identify their type of
insurance when referring to themselves as "bonded" or "insured" in
advertisements or publications.
$12,500 (They can be exempt if the RMO can certify ownership of 10% or
more of the voting stock in the company.)
- accurate answers-A business must submit a separate $________ bond for RMEs
or RMOs.
$100,000
- accurate answers-A Limited Liability Surety Bond for $__________ is required
in addition to the contractors bond for an LLC license.
Disciplinary Bond
- accurate answers-This must be filed with the Registrar after a license has
been revoked or denied.
False. It's an additional requirement and may not be filed in place of another
bond.
- accurate answers-True or False: A Disciplinary Bond can be combined with
any other bond.
$15,000 up to 10x the amount of the contractor's bond
- accurate answers-The Disciplinary bond amount ranges from _______ to
_______, depending on the violation.
2 years
- accurate answers-The Disciplinary Bond must be valid & on file with the
Registrar for how long?
Within 90 days
- accurate answers-How soon should the Disciplinary bond be filed with the
CSLB?
C) Stocks or fluctuating investments
- accurate answers-All of these are approved alternatives to surety bonds
except:
, A) Certificate of deposit
B) Cash
C) Stocks/fluctuating investments
D) Savings & loan investments
E) U.S. government bearer bond
D) All of the above
- accurate answers-A license may be suspended if:
A) One or more of the required bonds are canceled by their surety company
B) The bond amount is reduced by a judgment or payment claim
C) There's failure to maintain either the Disciplinary bond or cash deposit for
the required time period
D) All of the above
Proof of worker's compensation insurance
- accurate answers-What must a contractor submit before a contractor's
license is issued?
Within 30 days
- accurate answers-How soon must an employee provide written notification
of an injury to their employer?
$2000
(Increases to $10,000 if a jobsite injury occurs, maxing out at $100,000.)
- accurate answers-An employer is fined $_________ per uninsured employee if
they don't provide workers comp.
County Recorder
- accurate answers-A mechanics lien must be filed with the...
A) Date the funds were due
- accurate answers-The mechanics lien must include all of the following
details EXCEPT:
Accurate Answers 2025\2026 A+ Grade.
1-2%
- accurate answers-Bonds can be purchased from bonding companies for ___%
of the original contract price.
Bid Bond
- accurate answers-This acts as an assurance that the contractor will be able
to complete the job as described in the contract.
Performance Bond or Contract Bond
- accurate answers-This guarantees a contractor will complete the project
according to the agreed upon terms & conditions.
Payment Bond
- accurate answers-This guarantees that subcontractors and suppliers will be
paid by the contractor for properly performed work.
$35,000
- accurate answers-Payment Bonds are required for federal government
contracts over $__________.
Fidelity Bond
- accurate answers-This covers the business owner in case of employee
dishonesty or theft.
$15,000
- accurate answers-Contractors must file a contractors bond OR submit a cash
deposit with the CSLB for $_______.
$15,000
- accurate answers-The value of a contractors bond must be $________
90
- accurate answers-The contractors bond must be filed with the CLSB within
___ days from the bond effective date.
,True
- accurate answers-True or False: A contractor must identify their type of
insurance when referring to themselves as "bonded" or "insured" in
advertisements or publications.
$12,500 (They can be exempt if the RMO can certify ownership of 10% or
more of the voting stock in the company.)
- accurate answers-A business must submit a separate $________ bond for RMEs
or RMOs.
$100,000
- accurate answers-A Limited Liability Surety Bond for $__________ is required
in addition to the contractors bond for an LLC license.
Disciplinary Bond
- accurate answers-This must be filed with the Registrar after a license has
been revoked or denied.
False. It's an additional requirement and may not be filed in place of another
bond.
- accurate answers-True or False: A Disciplinary Bond can be combined with
any other bond.
$15,000 up to 10x the amount of the contractor's bond
- accurate answers-The Disciplinary bond amount ranges from _______ to
_______, depending on the violation.
2 years
- accurate answers-The Disciplinary Bond must be valid & on file with the
Registrar for how long?
Within 90 days
- accurate answers-How soon should the Disciplinary bond be filed with the
CSLB?
C) Stocks or fluctuating investments
- accurate answers-All of these are approved alternatives to surety bonds
except:
, A) Certificate of deposit
B) Cash
C) Stocks/fluctuating investments
D) Savings & loan investments
E) U.S. government bearer bond
D) All of the above
- accurate answers-A license may be suspended if:
A) One or more of the required bonds are canceled by their surety company
B) The bond amount is reduced by a judgment or payment claim
C) There's failure to maintain either the Disciplinary bond or cash deposit for
the required time period
D) All of the above
Proof of worker's compensation insurance
- accurate answers-What must a contractor submit before a contractor's
license is issued?
Within 30 days
- accurate answers-How soon must an employee provide written notification
of an injury to their employer?
$2000
(Increases to $10,000 if a jobsite injury occurs, maxing out at $100,000.)
- accurate answers-An employer is fined $_________ per uninsured employee if
they don't provide workers comp.
County Recorder
- accurate answers-A mechanics lien must be filed with the...
A) Date the funds were due
- accurate answers-The mechanics lien must include all of the following
details EXCEPT:
