CSLB LAW AND BUSINESS CORE EXAMINATION
2026 QUESTIONS AND ANSWERS SURE A+
✔✔$7,000 - ✔✔DOSH may fine employers up to $_______ for each safety violation.
✔✔Bid shopping - ✔✔When a prime contractor discloses a subcontractor's bid to the
competing subcontractors in an attempt to find a lower bid.
✔✔Bid peddling - ✔✔When a subcontractor whose bid was not selected, approaches
the prime contractor of an awarded bid and lowers their price.
✔✔Bid rigging - ✔✔When multiple contractors work together to fix the outcome of an
award by artificially raising bid prices.
✔✔$100,00 - ✔✔According to the Miller Act, the bid bond on a federal government
project must be furnished on any contract over $_______.
✔✔$5,000, or other public works projects valued at more than $25,000. - ✔✔When
bidding on a state public works project valued at more than $_______, the bidder must
file two surety bonds prior to the commencement of work. These ensure the contractor
can accomplish the job.
✔✔1-2% of the contract value - ✔✔Bond premiums are typically how much?
, ✔✔Listing Law - ✔✔This requires that public works contractors list their subcontractors
by name, office location, and license number at the time of bidding.
✔✔D) Will be binding until it expires.
(If it contains a "successor clause" then the collective bargaining agreement is valid for
3 years after the sale or until the agreement expires, whichever is first.) - ✔✔When the
ownership of a company has changed, the collective bargaining agreement:
A) is effective for 1 year
B) is effective for 2 years
C) is effective for 10 years
D) will be binding until it expires
✔✔A) Double check the plans for any errors or discrepancies - ✔✔What is the
recommended practice after a contractor receives an approved set of plans?
A) Double check the plans for any errors or discrepancies
B) Have the owner sign off on the plans
C) Start with the construction process
D) Fund the construction project
✔✔Pass-through taxation - ✔✔An advantage of an S-Corporation that allows the owner
to report dividends for which they are taxed, but the corporation does not report these
earnings.
✔✔Double Taxation - ✔✔C-Corporations are taxes in earnings AND are taxed on
dividends distributed by the corporation. This is known as...
✔✔Joint venture - ✔✔When two or more companies join to perform work. They invest
their assets or resources to establish a new company or entity where profits & revenue
will be shared.
✔✔B) After obtaining building permits - ✔✔When should the project be scheduled?
A) After the bid is accepted
B) After obtaining building permits
2026 QUESTIONS AND ANSWERS SURE A+
✔✔$7,000 - ✔✔DOSH may fine employers up to $_______ for each safety violation.
✔✔Bid shopping - ✔✔When a prime contractor discloses a subcontractor's bid to the
competing subcontractors in an attempt to find a lower bid.
✔✔Bid peddling - ✔✔When a subcontractor whose bid was not selected, approaches
the prime contractor of an awarded bid and lowers their price.
✔✔Bid rigging - ✔✔When multiple contractors work together to fix the outcome of an
award by artificially raising bid prices.
✔✔$100,00 - ✔✔According to the Miller Act, the bid bond on a federal government
project must be furnished on any contract over $_______.
✔✔$5,000, or other public works projects valued at more than $25,000. - ✔✔When
bidding on a state public works project valued at more than $_______, the bidder must
file two surety bonds prior to the commencement of work. These ensure the contractor
can accomplish the job.
✔✔1-2% of the contract value - ✔✔Bond premiums are typically how much?
, ✔✔Listing Law - ✔✔This requires that public works contractors list their subcontractors
by name, office location, and license number at the time of bidding.
✔✔D) Will be binding until it expires.
(If it contains a "successor clause" then the collective bargaining agreement is valid for
3 years after the sale or until the agreement expires, whichever is first.) - ✔✔When the
ownership of a company has changed, the collective bargaining agreement:
A) is effective for 1 year
B) is effective for 2 years
C) is effective for 10 years
D) will be binding until it expires
✔✔A) Double check the plans for any errors or discrepancies - ✔✔What is the
recommended practice after a contractor receives an approved set of plans?
A) Double check the plans for any errors or discrepancies
B) Have the owner sign off on the plans
C) Start with the construction process
D) Fund the construction project
✔✔Pass-through taxation - ✔✔An advantage of an S-Corporation that allows the owner
to report dividends for which they are taxed, but the corporation does not report these
earnings.
✔✔Double Taxation - ✔✔C-Corporations are taxes in earnings AND are taxed on
dividends distributed by the corporation. This is known as...
✔✔Joint venture - ✔✔When two or more companies join to perform work. They invest
their assets or resources to establish a new company or entity where profits & revenue
will be shared.
✔✔B) After obtaining building permits - ✔✔When should the project be scheduled?
A) After the bid is accepted
B) After obtaining building permits
