LAW 2026 COMPREHENSIVE
PRACTICE QUESTIONS AND VERIFIED
CORRECT ANSWERS CSLB LAW AND
BUSINESS EXAMINATION COMPLETE
STUDY GUIDE
On home-improvement contracts, the contractor must list his name,
address and license number, and the name and registration number of his
salesman, if any. - CORRECT ANSWER -TRUE
A contract for more than $500 must be in the language of the buyer. -
CORRECT ANSWER -FALSE The address of the contractors State license
Board is required to appear on all contracts. - CORRECT ANSWER -TRUE
Business licenses are required by state and they can be acquired at any state
office. - CORRECT ANSWER -FALSE
Rights of lien can be waived in certain cases if supplier or sub signs such a
waiver. - CORRECT ANSWER -FALSE
The purpose of a surety bond is to protect the contractors should anything
go wrong - CORRECT ANSWER -FALSE
, Customers may appeal the results of arbitration if the decision was
unfavorable - CORRECT ANSWER -FALSE
A suspended license may not be reinstated unless the contractor waits one
year. - CORRECT ANSWER -FALSE
Any substitution of a sub on the Public Works job must be approved by the
boarding authority. - CORRECT ANSWER -TRUE
The prime contractor awarded the Public Works job by an awarding
authority would lose his bond should he decide not to begin the job. -
CORRECT ANSWER -TRUE
Customers must use the cancellation form furnished by the contractor if
they wish to cancel the contract. - CORRECT ANSWER -FALSE
The language of the contract must reflect the language by which the
contract was sold to the customer. - CORRECT ANSWER -TRUE
On a contract that has been canceled by customer, the contractor is entitled
to compensation for any work done up to the date of cancellation. -
CORRECT ANSWER -FALSE
A contractor may ask customers to waive their right to cancel in emergency
cases only. - CORRECT ANSWER -TRUE