CSLB Contractor's Law Practice Test Part 2
Questions and Answers
Question 1
When does Sam, a licensed contractor who has a contract with a customer to build a
home, have lien rights?
A. Only if the rights where explained up front
B. Only if the rights are printed on the contract
C. Only when he has finished the job
D. Sam automatically has lien rights
Correct Answer
D. Sam automatically has lien rights - If a home improvement, a Notice to Owner
would also be required
Question 2
Which of the following is required in order to file a mechanic's lien?
A. Name of the owner and the amount of the claim
B. The kind of labor furnished and the person who furnished the work
C. A description of the site sufficient for identification
D. All of the above
Correct Answer
D. All of the above
Question 3
Where would a contractor obtain a surety bond?
A. Bank
B. Credit Union
C. Insurance agent
D. Contractor's State License Board
Correct Answer
C. Insurance agent
Page 1 of 69
,Question 4
Which is true of a mechanic's lien?
A. It is filed at the county clerk's office in the county where the contractor lives
B. It can be filed by any contractor at any time
C. It is a claim that can be made against private or public land to force payment
D. None of the above
Correct Answer
D. None of the above - Filed at the county recorder in the county where the
PRIVATE property is located
Question 5
Of the following, who will NOT stand to benefit from a contractor's bond?
A. Any client damaged as a result of regulation violations by the contractor
B. Any person damaged due to fraud on the part of the contractor
C. Any subcontractor damaged due to an accident
D. Any employee damaged by the contractor's failure to pay wages
Correct Answer
C. Any subcontractor damaged due to an accident
Question 6
Who is least affected by the Notice to Owner?
A. The owner
B. The lender
C. The subcontractors
D. The employees of the prime
Correct Answer
B. The lender
Page 2 of 69
,Question 7
Which of the following is true concerning surety bonds?
A. They are required in order to obtain a contractor's license number
B. They are valued at $7500 for all contractor's
C. They are required in case you accidentally damage the customer's property
D. All of the above
Correct Answer
A. They are required in order to obtain a contractor's license number -Bonds do not
cover damage
Question 8
Which of the following statements is NOT true regarding the Preliminary Notice?
A. All sub-contractors must use the Notice on all jobs
B. A copy of the Notice is sent to the owner, prime and the lender
C. The Notice must include the dollar amount of the sub-contractor's portion of the
job
D. The Notice need only be used on jobs in excess of $1000
Correct Answer
D. The Notice need only be used on jobs in excess of $1000 - it must be used on all
jobs of $500 or more.
Question 9
Which is NOT a requirement to renew your license?
A. Be sure your bond is current and on file with the Contractors State License Board
B. Return the renewal notice with the appropriate fees
C. Notify the Registrar's office of the name of your worker's compensation insurance
company if you have employees
D. Repeat the open book asbestos exam
Correct Answer
D. Repeat the open book asbestos exam
Page 3 of 69
, Question 10
If a contractor commits a serious violation of the contractor's laws, the Registrar can:
A. Require the contractor to make restitution to the owner
B. Require the contractor to correct the project
C. Fine the contractor up to $2000
D. All of the above
Correct Answer
D. All of the above
Question 11
A consumer may cancel a home solicitation contract at any time prior to midnight of
the ___ business day after the date of the transaction.
A. 1st
B. 2nd
C. 3rd
D. 5th
Correct Answer
C. 3rd
Question 12
When a home improvement contract is signed, the contractor must substantially
begin work within ____ days of the date specified in the contract?
A. 5
B. 10
C. 15
D. 20
Correct Answer
D. 20
Page 4 of 69
Questions and Answers
Question 1
When does Sam, a licensed contractor who has a contract with a customer to build a
home, have lien rights?
A. Only if the rights where explained up front
B. Only if the rights are printed on the contract
C. Only when he has finished the job
D. Sam automatically has lien rights
Correct Answer
D. Sam automatically has lien rights - If a home improvement, a Notice to Owner
would also be required
Question 2
Which of the following is required in order to file a mechanic's lien?
A. Name of the owner and the amount of the claim
B. The kind of labor furnished and the person who furnished the work
C. A description of the site sufficient for identification
D. All of the above
Correct Answer
D. All of the above
Question 3
Where would a contractor obtain a surety bond?
A. Bank
B. Credit Union
C. Insurance agent
D. Contractor's State License Board
Correct Answer
C. Insurance agent
Page 1 of 69
,Question 4
Which is true of a mechanic's lien?
A. It is filed at the county clerk's office in the county where the contractor lives
B. It can be filed by any contractor at any time
C. It is a claim that can be made against private or public land to force payment
D. None of the above
Correct Answer
D. None of the above - Filed at the county recorder in the county where the
PRIVATE property is located
Question 5
Of the following, who will NOT stand to benefit from a contractor's bond?
A. Any client damaged as a result of regulation violations by the contractor
B. Any person damaged due to fraud on the part of the contractor
C. Any subcontractor damaged due to an accident
D. Any employee damaged by the contractor's failure to pay wages
Correct Answer
C. Any subcontractor damaged due to an accident
Question 6
Who is least affected by the Notice to Owner?
A. The owner
B. The lender
C. The subcontractors
D. The employees of the prime
Correct Answer
B. The lender
Page 2 of 69
,Question 7
Which of the following is true concerning surety bonds?
A. They are required in order to obtain a contractor's license number
B. They are valued at $7500 for all contractor's
C. They are required in case you accidentally damage the customer's property
D. All of the above
Correct Answer
A. They are required in order to obtain a contractor's license number -Bonds do not
cover damage
Question 8
Which of the following statements is NOT true regarding the Preliminary Notice?
A. All sub-contractors must use the Notice on all jobs
B. A copy of the Notice is sent to the owner, prime and the lender
C. The Notice must include the dollar amount of the sub-contractor's portion of the
job
D. The Notice need only be used on jobs in excess of $1000
Correct Answer
D. The Notice need only be used on jobs in excess of $1000 - it must be used on all
jobs of $500 or more.
Question 9
Which is NOT a requirement to renew your license?
A. Be sure your bond is current and on file with the Contractors State License Board
B. Return the renewal notice with the appropriate fees
C. Notify the Registrar's office of the name of your worker's compensation insurance
company if you have employees
D. Repeat the open book asbestos exam
Correct Answer
D. Repeat the open book asbestos exam
Page 3 of 69
, Question 10
If a contractor commits a serious violation of the contractor's laws, the Registrar can:
A. Require the contractor to make restitution to the owner
B. Require the contractor to correct the project
C. Fine the contractor up to $2000
D. All of the above
Correct Answer
D. All of the above
Question 11
A consumer may cancel a home solicitation contract at any time prior to midnight of
the ___ business day after the date of the transaction.
A. 1st
B. 2nd
C. 3rd
D. 5th
Correct Answer
C. 3rd
Question 12
When a home improvement contract is signed, the contractor must substantially
begin work within ____ days of the date specified in the contract?
A. 5
B. 10
C. 15
D. 20
Correct Answer
D. 20
Page 4 of 69
