CSLB CONTRACTOR'S LAW AND BUSINESS
EXAM II COMPREHENSIVE TEST PAPER
QUESTIONS AND SOLUTIONS
◉ What must a contractor disclose to a homeowner if they do not
carry commercial general liability insurance?
Answer: They must notify the homeowner in writing.
◉ How many classifications of contractor's licenses does CSULB
regulate
Answer: Over 40
◉ In California, which type of contractor is required to carry a
$100,000 bond in addition to the $25,000 contractor bond?
Answer: Limited Liability Company (LLC)
◉ What is the statute of limitations for filing a complaint about a
contractor's home improvement contract violation?
Answer: 4 years
◉ What must contractors provide before starting any home
improvement work?
, Answer: A copy of the signed and dated contract
◉ When does the CSLB disclose accusations that result in license
suspension?
Answer: From the date the accusation is officially filed and for 5
years after settlement.
◉ What is the penalty for a contractor who uses a false or deceptive
advertising.
Answer: Disciplinary action by CSLB such as a misdemeanor charge,
fine up to $2,500, possible license suspension or revocation.
◉ What is SWIFT?
Answer: Statewide Investigative Fraud Team
◉ What document must a contractor file with CSLB if they do not
have employees and wish to avoid workers' compensation
insurance?
Answer: A Certificate of Workers' Compensation Exemption
◉ What is a joint control agreement in a home improvement
contract?
EXAM II COMPREHENSIVE TEST PAPER
QUESTIONS AND SOLUTIONS
◉ What must a contractor disclose to a homeowner if they do not
carry commercial general liability insurance?
Answer: They must notify the homeowner in writing.
◉ How many classifications of contractor's licenses does CSULB
regulate
Answer: Over 40
◉ In California, which type of contractor is required to carry a
$100,000 bond in addition to the $25,000 contractor bond?
Answer: Limited Liability Company (LLC)
◉ What is the statute of limitations for filing a complaint about a
contractor's home improvement contract violation?
Answer: 4 years
◉ What must contractors provide before starting any home
improvement work?
, Answer: A copy of the signed and dated contract
◉ When does the CSLB disclose accusations that result in license
suspension?
Answer: From the date the accusation is officially filed and for 5
years after settlement.
◉ What is the penalty for a contractor who uses a false or deceptive
advertising.
Answer: Disciplinary action by CSLB such as a misdemeanor charge,
fine up to $2,500, possible license suspension or revocation.
◉ What is SWIFT?
Answer: Statewide Investigative Fraud Team
◉ What document must a contractor file with CSLB if they do not
have employees and wish to avoid workers' compensation
insurance?
Answer: A Certificate of Workers' Compensation Exemption
◉ What is a joint control agreement in a home improvement
contract?
