CSLB CONTRACTORS LAW PRACTICE TEST 12
EXAM REVIEW STUDY NOTES
◉ Is it legal for a contractor to require employees to take a lie
detector test?
Answer: It is not legal for the contractor to require lie detector tests,
but it would be legal for a federal, state, or local public agency to
require lie detector tests of their employees.
◉ If a newly hired employee does not have a SSN, what should be
done?
Answer: The employee must apply for a SSN.
◉ How many times may you take the contractors license exam
before your original application is voided?
Answer: As many times as necessary within 18 months.
◉ When should a contractor renew the contractor's license bond?
Answer: 30 days before it expires.
◉ The qualifying RME for a construction firm must work at least:
Answer: A qualifying RME for a construction firm must work at least
32 hours per week or 80% of the work week.
,◉ The federal Employer Identification Number (EIN) is issued by
the:
Answer: The Internal Revenue Service
◉ Every employer of ______ or more full or part time employees must
keep written health and safety records for _______ years.
A. 1-3
B. 7-4
C. 10-3
D. 11-5
Answer: Every employer of 11 or more full or part time employees
must keep written health and safety records for 5 years.
◉ After you have read the plans and specifications, what is the next
important step in writing a bid?
A. Talk to and select subs.
B. Walk the job.
C. Call about materials, price, and availability.
D. Talk to the crew leader about labor.
Answer: Walk the job.
,◉ Once a budget is finalized, the:
A. Contractor should stick to the budget no matter what happens.
B. Contractor should do the best possible job of staying within the
budget.
C. Budget should be revised each month.
D. Budget should be referred to only if the business has cashflow
problems.
Answer: The contractor should do the best possible job of staying
within budget. `
◉ Who must sign a joint control addendum to a home improvement
contract?
Answer: Owner, contractor, and joint control officer.
◉ When purchasing insurance, what is the best way to chose among
different companies?
Answer: Cost and Coverage
◉ Sometimes contracts can prove to be too vague to interpret
without disagreement between owner and contractor. Which of the
following steps would best prevent such problems?
, A. Walk the job site with the owner.
B. Review the plans and specifications with the owner.
C. Show the owner the critical path schedule.
D. Include a payment schedule in the contract and review other
details of the contract with the owner.
Answer: Review the plans and specifications with the owner.
◉ When an owner signs a receipt for a stop notice, it usually means
the owner:
Answer: The owner recognizes that a lien could be placed on funds.
◉ To whom do you report and pay sales tax?
Answer: The Board of Equalization
◉ DOSH must investigate a complaint charging a serious violation of
health or safety standards within:
Answer: DOSH must investigate a complaint charging a serious
violation of health or safety standards within two working days.
◉ By law, a "hard laborer" may not be younger than ______ years old.
Answer: A hard laborer may not be younger than 16 years old.
EXAM REVIEW STUDY NOTES
◉ Is it legal for a contractor to require employees to take a lie
detector test?
Answer: It is not legal for the contractor to require lie detector tests,
but it would be legal for a federal, state, or local public agency to
require lie detector tests of their employees.
◉ If a newly hired employee does not have a SSN, what should be
done?
Answer: The employee must apply for a SSN.
◉ How many times may you take the contractors license exam
before your original application is voided?
Answer: As many times as necessary within 18 months.
◉ When should a contractor renew the contractor's license bond?
Answer: 30 days before it expires.
◉ The qualifying RME for a construction firm must work at least:
Answer: A qualifying RME for a construction firm must work at least
32 hours per week or 80% of the work week.
,◉ The federal Employer Identification Number (EIN) is issued by
the:
Answer: The Internal Revenue Service
◉ Every employer of ______ or more full or part time employees must
keep written health and safety records for _______ years.
A. 1-3
B. 7-4
C. 10-3
D. 11-5
Answer: Every employer of 11 or more full or part time employees
must keep written health and safety records for 5 years.
◉ After you have read the plans and specifications, what is the next
important step in writing a bid?
A. Talk to and select subs.
B. Walk the job.
C. Call about materials, price, and availability.
D. Talk to the crew leader about labor.
Answer: Walk the job.
,◉ Once a budget is finalized, the:
A. Contractor should stick to the budget no matter what happens.
B. Contractor should do the best possible job of staying within the
budget.
C. Budget should be revised each month.
D. Budget should be referred to only if the business has cashflow
problems.
Answer: The contractor should do the best possible job of staying
within budget. `
◉ Who must sign a joint control addendum to a home improvement
contract?
Answer: Owner, contractor, and joint control officer.
◉ When purchasing insurance, what is the best way to chose among
different companies?
Answer: Cost and Coverage
◉ Sometimes contracts can prove to be too vague to interpret
without disagreement between owner and contractor. Which of the
following steps would best prevent such problems?
, A. Walk the job site with the owner.
B. Review the plans and specifications with the owner.
C. Show the owner the critical path schedule.
D. Include a payment schedule in the contract and review other
details of the contract with the owner.
Answer: Review the plans and specifications with the owner.
◉ When an owner signs a receipt for a stop notice, it usually means
the owner:
Answer: The owner recognizes that a lien could be placed on funds.
◉ To whom do you report and pay sales tax?
Answer: The Board of Equalization
◉ DOSH must investigate a complaint charging a serious violation of
health or safety standards within:
Answer: DOSH must investigate a complaint charging a serious
violation of health or safety standards within two working days.
◉ By law, a "hard laborer" may not be younger than ______ years old.
Answer: A hard laborer may not be younger than 16 years old.
