Contractors Law Exam CA Practice Test
1 Questions And Answers
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 -d. 11 .... 5
If required safety devices are missing from tools, what should an employee do?
a. Notify the contractor, who is responsible for safety.
b. Notify the property owner, who is responsible for safety.
c. Safety devices are the employee's responsiblility.
d. Call Cal/OSHA - ANSWER -a. notify the contractor, who is responsible for
safety.
Which would not have to be reported to DOSH immediately or withing 24 hours?
a. death from a three-story fall
b. drunken crane operator its a high-voltage power line
c. car accident in which an employee steps onto a public road, gets hit by a car, and
suffers a concussion
d. employee falls off forklift and suffers a severe back injury - ANSWER -c. car
accident in which an employee steps onto a public road, gets hit by a car, and
suffers a concussion
When purchasing insurance, what is the best way to choose among different
companies?
a. referral
b. cost and converage
c. location of the company
d. word-of-mouth - ANSWER -b. cost and coverage
Insured employers must report every work-related illness or injury to their
workers' compensation carrier within ____ of the incident.
a. 24 hours
b. 2 days
,c. 5 days
d. 10 days - ANSWER -c. 5 days
Your employee sets a cabinet wrong. The cabinet falls from the wall and damages
the client's counter top. What should you do?
a. Claim the damage on your general liability insurance policy.
b. Require the employee to pay for the damage to the counter top.
c. Tell the client to claim the damaged counter top on his or her homeowner's
insurance policy.
d. No action is required. The client must assume the risk of damage. - ANSWER -
a. Claim the damage on your general liability insurance policy.
A contractor is looking for an insurance policy to cover a high degree of exposure
to risk. Of the following, which policy would be best for this purpose?
a. property
b. general liability
c. builder's risk
d. umbrella - ANSWER -d. umbrella
John Meyers, a general contractor, had a contract with Mr. and Mrs. Barnes to
construct a gazebo and deck in their back yard. John was behind schedule and
hired his 18-year-old son, Bart, to help on a part-time basis. After working on the
project for a month, Bart slipped on a plank that John had laid across the deck but
did not nail securely. As a result of the fall, Bart broke his leg. John is insured for
workers' compensation, but Bart wants to sue his father for negligence in a civil
action. Which of the following statements is CORRECT?
a. John is not liable for damages in a civil action because the employee is his son.
b. John is liable for damages in a civil action and must prove that the injury did not
result from his negligence.
c. In a civil action, John may use the defense that the injury was the result of the
contributory negligence of his son.
d. A civil action is not a possibility when the dispute involv - ANSWER -d. A civil
action is not a possiblity when the dispute involves a job-related injury, unless the
employer is not insured for workers' compensation.
A prime contractor entered into a construction contract with a subcontractor. An
employee of the subcontractor was injured, bu unfortunately, the subcontractor had
not secured workers' compensation coverage. Which of the following statements
best describes the situation, except in cased of fraud?
a. The subcontractor is guilty, but the prime contactor is not responsible.
, b. The prime contractor is guilty, but the subcontractor is not responsible.
c. Neither the prime contractor nor the subcontractor are responsible.
d. The subcontractor is guilty, but the prime contractor must take responsibility for
the injuries. - ANSWER -d. The subcontractor is guilty, but the prime contractor
must take responsibility for the injuries.
Your accountant advises you to set up a cost management system. What does this
system do?
a. It gives a cost history to analyze labor and material costs.
b. It shows where profits and losses are.
c. It shows costs of materials only.
d. It compares what others are charging for subcontracted work. - ANSWER -a. It
gives a cost history to analyze labor and material costs.
An employee workd 60 hours in one week. If the hourly wage rate is $12, what are
the gross wages?
a. $600
b. $840
c. $960
d. $1,080 - ANSWER -b. $840
Gross wages = Regular Time + Overtime
Regular Time = 40 hrs x $12/hr = $480
Overtime = 20 hrs x 1.5 x $12/hr = $360
Gross Wages = $480 + $360 = $840
A(n) _____ represents a company's financial position on a specified date.
a. balance sheet
b. income statement
c. cash flow statement
d. profit plan - ANSWER -a. balance sheet
A(n) _____ summarizes revenues, costs of sales, and operating expenses over a
period of time.
a. profit plan
b. balance sheet
c. cash flow statement
d. income statement - ANSWER -d. income statement
An employer must furnish an employee with a completed IRS Form W-2 (Wage
and Tax Statement) by:
1 Questions And Answers
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 -d. 11 .... 5
If required safety devices are missing from tools, what should an employee do?
a. Notify the contractor, who is responsible for safety.
b. Notify the property owner, who is responsible for safety.
c. Safety devices are the employee's responsiblility.
d. Call Cal/OSHA - ANSWER -a. notify the contractor, who is responsible for
safety.
Which would not have to be reported to DOSH immediately or withing 24 hours?
a. death from a three-story fall
b. drunken crane operator its a high-voltage power line
c. car accident in which an employee steps onto a public road, gets hit by a car, and
suffers a concussion
d. employee falls off forklift and suffers a severe back injury - ANSWER -c. car
accident in which an employee steps onto a public road, gets hit by a car, and
suffers a concussion
When purchasing insurance, what is the best way to choose among different
companies?
a. referral
b. cost and converage
c. location of the company
d. word-of-mouth - ANSWER -b. cost and coverage
Insured employers must report every work-related illness or injury to their
workers' compensation carrier within ____ of the incident.
a. 24 hours
b. 2 days
,c. 5 days
d. 10 days - ANSWER -c. 5 days
Your employee sets a cabinet wrong. The cabinet falls from the wall and damages
the client's counter top. What should you do?
a. Claim the damage on your general liability insurance policy.
b. Require the employee to pay for the damage to the counter top.
c. Tell the client to claim the damaged counter top on his or her homeowner's
insurance policy.
d. No action is required. The client must assume the risk of damage. - ANSWER -
a. Claim the damage on your general liability insurance policy.
A contractor is looking for an insurance policy to cover a high degree of exposure
to risk. Of the following, which policy would be best for this purpose?
a. property
b. general liability
c. builder's risk
d. umbrella - ANSWER -d. umbrella
John Meyers, a general contractor, had a contract with Mr. and Mrs. Barnes to
construct a gazebo and deck in their back yard. John was behind schedule and
hired his 18-year-old son, Bart, to help on a part-time basis. After working on the
project for a month, Bart slipped on a plank that John had laid across the deck but
did not nail securely. As a result of the fall, Bart broke his leg. John is insured for
workers' compensation, but Bart wants to sue his father for negligence in a civil
action. Which of the following statements is CORRECT?
a. John is not liable for damages in a civil action because the employee is his son.
b. John is liable for damages in a civil action and must prove that the injury did not
result from his negligence.
c. In a civil action, John may use the defense that the injury was the result of the
contributory negligence of his son.
d. A civil action is not a possibility when the dispute involv - ANSWER -d. A civil
action is not a possiblity when the dispute involves a job-related injury, unless the
employer is not insured for workers' compensation.
A prime contractor entered into a construction contract with a subcontractor. An
employee of the subcontractor was injured, bu unfortunately, the subcontractor had
not secured workers' compensation coverage. Which of the following statements
best describes the situation, except in cased of fraud?
a. The subcontractor is guilty, but the prime contactor is not responsible.
, b. The prime contractor is guilty, but the subcontractor is not responsible.
c. Neither the prime contractor nor the subcontractor are responsible.
d. The subcontractor is guilty, but the prime contractor must take responsibility for
the injuries. - ANSWER -d. The subcontractor is guilty, but the prime contractor
must take responsibility for the injuries.
Your accountant advises you to set up a cost management system. What does this
system do?
a. It gives a cost history to analyze labor and material costs.
b. It shows where profits and losses are.
c. It shows costs of materials only.
d. It compares what others are charging for subcontracted work. - ANSWER -a. It
gives a cost history to analyze labor and material costs.
An employee workd 60 hours in one week. If the hourly wage rate is $12, what are
the gross wages?
a. $600
b. $840
c. $960
d. $1,080 - ANSWER -b. $840
Gross wages = Regular Time + Overtime
Regular Time = 40 hrs x $12/hr = $480
Overtime = 20 hrs x 1.5 x $12/hr = $360
Gross Wages = $480 + $360 = $840
A(n) _____ represents a company's financial position on a specified date.
a. balance sheet
b. income statement
c. cash flow statement
d. profit plan - ANSWER -a. balance sheet
A(n) _____ summarizes revenues, costs of sales, and operating expenses over a
period of time.
a. profit plan
b. balance sheet
c. cash flow statement
d. income statement - ANSWER -d. income statement
An employer must furnish an employee with a completed IRS Form W-2 (Wage
and Tax Statement) by:
