CSLB CONTRACTORS LAW PRACTICE TEST
PART TWO CERTIFICATION SCRIPT 2026
FULL ANSWERS GRADED A+
⩥ For which of the following would you not obtain a short term loan?
A. Wages
B. Bid Bond
C. Job materials
D. Office rent
Answer: Office rent.
⩥ Construction or alteration of any building, highway, excavation, or
other structure in the State of California requires a contractor's license if
the total cost of one or more contracts on the project is:
Answer: $500 or more in labor and materials.
⩥ A contractor meets Mr. Jones at his home to discuss remodeling. The
contractor and Mr. Jones sign a contract that includes a three-day
cancellation form. After the contractor leaves, Mr. Jones decides not to
have the work done. Instead of using the cancellation form, Mr. Jones
sends the contractor a letter by first-class mail stating that he is
canceling the contract. Is Mr. Jones' cancellation effective?
,Answer: Yes. Mr. Jones' letter does cancel the contract because it
indicates his intention not to be bound by the contract.
⩥ As part of the safety training process, contractors's supervisors are
required to conduct "toolbox" or "tailgate" safety meetings. How often
must these meetings be held.
Answer: At least once every ten working days.
⩥ Which of the following statements about home improvement laws is
("most correct")
A. A subcontractor may give a salesperson a bonus.
B. A general contractor may give a salesperson a bonus.
C. A subcontractor may not give the general contractor a bonus.
D. The homeowner may give the salesperson a bonus.
Answer: The homeowner may give the sales person a bonus.
⩥ As required by the Immigration Reform and Control Act, all
employees hired on or after November 7, 1986 must complete what form
to verify their employment eligibility status?
Answer: I-9
, ⩥ A contractor entered into a home improvement contract for more than
$500 with Mrs. Swenson to remodel her kitchen and bathroom. The
contract calls for a down payment before work is to begin. According to
the Business and Professions Code, how much may the contractor accept
from Mrs. Swenson as down payment for the work?
Answer: The down payment is limited to $1,000 or 10% of the total
price, which ever is less.
⩥ Some counties have an additional sales tax added to the base rate.
Which of the following is a correct statement regarding this additional
tax?
A. This additional tax does not apply to contractors.
B. You do not have to pay this additional tax if your home office is in
another county.
C. You may pay the additional tax charged in your county if the rate is
lower than the county where the materials were purchased.
D. You must pay the additional tax in the county where the materials
were purchased.
Answer: You must pay the additional tax in the county where the
materials were purchased.
PART TWO CERTIFICATION SCRIPT 2026
FULL ANSWERS GRADED A+
⩥ For which of the following would you not obtain a short term loan?
A. Wages
B. Bid Bond
C. Job materials
D. Office rent
Answer: Office rent.
⩥ Construction or alteration of any building, highway, excavation, or
other structure in the State of California requires a contractor's license if
the total cost of one or more contracts on the project is:
Answer: $500 or more in labor and materials.
⩥ A contractor meets Mr. Jones at his home to discuss remodeling. The
contractor and Mr. Jones sign a contract that includes a three-day
cancellation form. After the contractor leaves, Mr. Jones decides not to
have the work done. Instead of using the cancellation form, Mr. Jones
sends the contractor a letter by first-class mail stating that he is
canceling the contract. Is Mr. Jones' cancellation effective?
,Answer: Yes. Mr. Jones' letter does cancel the contract because it
indicates his intention not to be bound by the contract.
⩥ As part of the safety training process, contractors's supervisors are
required to conduct "toolbox" or "tailgate" safety meetings. How often
must these meetings be held.
Answer: At least once every ten working days.
⩥ Which of the following statements about home improvement laws is
("most correct")
A. A subcontractor may give a salesperson a bonus.
B. A general contractor may give a salesperson a bonus.
C. A subcontractor may not give the general contractor a bonus.
D. The homeowner may give the salesperson a bonus.
Answer: The homeowner may give the sales person a bonus.
⩥ As required by the Immigration Reform and Control Act, all
employees hired on or after November 7, 1986 must complete what form
to verify their employment eligibility status?
Answer: I-9
, ⩥ A contractor entered into a home improvement contract for more than
$500 with Mrs. Swenson to remodel her kitchen and bathroom. The
contract calls for a down payment before work is to begin. According to
the Business and Professions Code, how much may the contractor accept
from Mrs. Swenson as down payment for the work?
Answer: The down payment is limited to $1,000 or 10% of the total
price, which ever is less.
⩥ Some counties have an additional sales tax added to the base rate.
Which of the following is a correct statement regarding this additional
tax?
A. This additional tax does not apply to contractors.
B. You do not have to pay this additional tax if your home office is in
another county.
C. You may pay the additional tax charged in your county if the rate is
lower than the county where the materials were purchased.
D. You must pay the additional tax in the county where the materials
were purchased.
Answer: You must pay the additional tax in the county where the
materials were purchased.
