CSLB CONTRACTOR'S LAW & BUSINESS EXAM STUDY GUIDE 2026/2027 ACCURATE QUESTIONS WITH CORRECT DETAILED SOLUTIONS || 100% GUARANTEED PASS NEWEST VERSION

CSLB CONTRACTOR'S LAW & BUSINESS EXAM STUDY GUIDE 2026/2027 ACCURATE QUESTIONS WITH CORRECT DETAILED SOLUTIONS || 100% GUARANTEED PASS NEWEST VERSION 1. CSLB Stands For ? - ANSWER Contractors State License Board 2. CSLB Established Year Date? - ANSWER 1929 3. CSLB Rules And Regulations Enforced By? - ANSWER CSLB Registrar & SWIFT 4. Notify The CSLB Registrar Workers Compensation Exempt Or Workers Compensation Insurance Policy Number Within How Many Days To Activate Your License? - ANSWER 90 days 5. To Activate Your License You Must Notify The CSLB Registrar Within 90 Days? - ANSWER Bond Policy Workers Compensation Form Of Exempt or Policy 6. CSLB Registrar Enforces Rules & Regulations On Behalf Of The Following...? - ANSWER 1) Application Review & Audit. 2) Contractor Licensing. 3) Contractor License Suspension or Revoke. 4) Verification of Insurance Policy Of Workers Compensation or Exemption Form. 5) Verification Of Policy For Contractor Bond Insurance. 6) Contractor Laws 7) License Status Verification (Inactive , Active, Renewal) 7. How many Members Are Involved In The (CSLB) Contractors State License Board - ANSWER 15 8. By Law A Contractors License Is Required If ? - ANSWER Construction Work Permit. An individual contracts a project to improve a property that cost more than $500.00 which includes labor and material. 9. Contractor's License Operates By A Legal - ANSWER Business Entity 10. What Business Entity May A QI Obtain A License For Construction? - ANSWER Sole S Corporation (Small Business ) C Corporation LLC - Limited Liability Company 11. QI - ANSWER Qualified Individual 12. Individual - ANSWER Person 13. RME - ANSWER Responsible Managing Employee 14. RMO - ANSWER Responsible Managing Officer 15. An employer must file federal Form 1099-MISC to report payments of _____ or more per calendar year to persons not treated as employees (e.g., independent contractors) for services performed for the business. - ANSWER $600 16. A notice canceling a home solicitation contract becomes effective when? - ANSWER When the written notice is deposited in the mail. 17. Which of the following is considered a fixed expense? A. Office rent B. Wages C. Office supplies D. Materials - ANSWER Office rent would be considered a fixed expense. 18. How often should a job supervisor or responsible managing employee visit the job site? - ANSWER Once a day 19. A supplier who is furnishing a contractor with equipment or materials without any form of security other than the reputation of the contractor for paying debts when due has extended what type of credit? - ANSWER This would be an open account type of credit. 20. A client wants the house painted and carpet installed. What license classification(s) is/are required for this work? - ANSWER Painting and decorating C-33 and floor covering C-15. 21. Who is in charge of safety at a job site? - ANSWER The contractor is responsible for safety at the job site. 22. An employer hires one part-time and two full-time employees. The full-time employees are covered by workers' compensation insurance, but not the part-time employee. Is this lawful? - ANSWER No, even part time employees must be covered by workers compensation insurance. 23. If no notice of completion or cessation is given on a job, how many days does a contractor have to file a mechanics' lien after completion of work? - ANSWER If NO notice of completion or cessation is given a contractor has 90 days to file a mechanics' lien after completion. 24. You are bidding on a job with plans drawn by a homeowner. You notice that the dimensions on the plans do not add up. What should you do? - ANSWER Inform the homeowner that you cannot bid until the numbers add up. 25. Disabled access laws went into effect in _____ for public buildings and in _____ for private buildings. - ANSWER 1968 for public buildings and 1970 for private buildings. 26. Your bid on a job was accepted, but you inadvertently left out a part of that job. What should you do? - ANSWER The contractor is responsible for the work wether or not it was included in the bid. 27. Who must pay for a pre-employment physical? - ANSWER The employer must pay for a pre-employment physical. 28. A contractor finds a 6" discrepancy on a set of plans. The contractor should: - ANSWER Contact the architect or the building designer. 29. Who cannot file a mechanic's lien? A. An unlicensed contractor who has done a job for $500 B. A general contractor with wage earners C. Subcontractors and material suppliers D. All contractor's may file a lien - ANSWER A. An unlicensed contractor who has done a job for $500 - Must be licensed to file a lien 30. 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 - ANSWER D. None of the above - Filed at the county recorder in the county where the PRIVATE property is located 31. 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 - ANSWER D. Sam automatically has lien rights - If a home improvement, a Notice to Owner would also be required