CSLB Law and Business Exam Questions and Verified Answers Graded A+ 2026/27
When should you let your attorney see a construction contract?
A. Before you let the client see the contract
B. After the contract is prepared but before you sign it
C. After the building permit is obtained
D. After the contract is signed by you and the client - B. After the contract is prepared but
before you sign it
Which is the most correct statement as to what must be included in every home improvement
contract?
A. Notice of right to cancel
B. Contractor's license number
C. Truth-in-lending notice
D. Name of the project - B. Contractor's license number
Which is NOT required on a home improvement contract?
A. A notice, in at least 10 point print, in close proximity to the signature, and a statement that the
owner has a right to require a performance and payment bond
B. The name and home address of all the personnel listed on the license
C. An approximate date when work will begin and be substantially completed
D. A description of the work to be done and materials and equipment to be used or installed -
B. The name and home address of all the personnel listed on the license. Know that A, C
and D are required. Only the contractor's name, address and license number are required.
,When a home improvement contract is signed, the contractor must substantially begin work
within ____ days of the date specified in the contract?
A. 5
B. 10
C. 15
D. 20 - D. 20
Which is true concerning home improvement sales persons?
A. They must register with the Registrar's office and may work for only one contractor at a time
B. Anyone who sells home improvement contracts for a licensed contractor outside the
contractor's normal place of business is required to be registered with the Attorney General's
office
C. They must be at least 18 years of age. There are no residency or educational requirements
D. They may begin to negotiate home improvement contracts as soon as they have filled out the
appropriate application and paid the required fees - C. They must be at least 18 years of
age. There are no residency or educational requirements - must register for "each" contractor
with the Registrar and receive a registration number first
Judy, a contractor, employs Sam as her registered home improvement salesperson. Sam meets
with Mr. And Mrs. Jones and negotiates home improvement work that totals $350. When Sam
returns to his boss and tells her of the verbal contract, his employer says she will not work for the
contracted price. The Contractor's License Law states:
A. The contractor is required by law to abide by the verbal agreement since verbal home
improvement contracts under $500 are binding
B. The contractor is not bound by a verbal agreement
, C. The contractor may cancel a home improvement contract that she did not negotiate
D. The contractor is not bound by the contract since all home improvement contracts must be in
writting - A. When registered salespersons enter into an agreement, verbal or written, they
are bound by it. They are acting as the agent of the contractor. Verbal improvement contracts are
legal and binding
Which type of contract can be cancelled by a consumer?
A. Sub contract
B. Home solicitation contract which involves fencing, burglar alarm, carpentry and texture
coating
C. Prime construction contract
D. Home improvement contract involving free standing bookcases, rugs and window air
conditioner - B. Home solicitation contract which involves fencing, burglar alarm,
carpentry and texture coating - only home solicited contracts can be cancelled which contain
"permanent fixtures"
A consumer may cancel a home solicitation contract at any time prior to midnight of the ___
business day after the date of the transaction.
A. 1st
B. 2nd
C. 3rd
D. 5th - C. 3rd
If an owner cancels a home solicitation contract on March 20, by what date must the contractor
return the down payment?
When should you let your attorney see a construction contract?
A. Before you let the client see the contract
B. After the contract is prepared but before you sign it
C. After the building permit is obtained
D. After the contract is signed by you and the client - B. After the contract is prepared but
before you sign it
Which is the most correct statement as to what must be included in every home improvement
contract?
A. Notice of right to cancel
B. Contractor's license number
C. Truth-in-lending notice
D. Name of the project - B. Contractor's license number
Which is NOT required on a home improvement contract?
A. A notice, in at least 10 point print, in close proximity to the signature, and a statement that the
owner has a right to require a performance and payment bond
B. The name and home address of all the personnel listed on the license
C. An approximate date when work will begin and be substantially completed
D. A description of the work to be done and materials and equipment to be used or installed -
B. The name and home address of all the personnel listed on the license. Know that A, C
and D are required. Only the contractor's name, address and license number are required.
,When a home improvement contract is signed, the contractor must substantially begin work
within ____ days of the date specified in the contract?
A. 5
B. 10
C. 15
D. 20 - D. 20
Which is true concerning home improvement sales persons?
A. They must register with the Registrar's office and may work for only one contractor at a time
B. Anyone who sells home improvement contracts for a licensed contractor outside the
contractor's normal place of business is required to be registered with the Attorney General's
office
C. They must be at least 18 years of age. There are no residency or educational requirements
D. They may begin to negotiate home improvement contracts as soon as they have filled out the
appropriate application and paid the required fees - C. They must be at least 18 years of
age. There are no residency or educational requirements - must register for "each" contractor
with the Registrar and receive a registration number first
Judy, a contractor, employs Sam as her registered home improvement salesperson. Sam meets
with Mr. And Mrs. Jones and negotiates home improvement work that totals $350. When Sam
returns to his boss and tells her of the verbal contract, his employer says she will not work for the
contracted price. The Contractor's License Law states:
A. The contractor is required by law to abide by the verbal agreement since verbal home
improvement contracts under $500 are binding
B. The contractor is not bound by a verbal agreement
, C. The contractor may cancel a home improvement contract that she did not negotiate
D. The contractor is not bound by the contract since all home improvement contracts must be in
writting - A. When registered salespersons enter into an agreement, verbal or written, they
are bound by it. They are acting as the agent of the contractor. Verbal improvement contracts are
legal and binding
Which type of contract can be cancelled by a consumer?
A. Sub contract
B. Home solicitation contract which involves fencing, burglar alarm, carpentry and texture
coating
C. Prime construction contract
D. Home improvement contract involving free standing bookcases, rugs and window air
conditioner - B. Home solicitation contract which involves fencing, burglar alarm,
carpentry and texture coating - only home solicited contracts can be cancelled which contain
"permanent fixtures"
A consumer may cancel a home solicitation contract at any time prior to midnight of the ___
business day after the date of the transaction.
A. 1st
B. 2nd
C. 3rd
D. 5th - C. 3rd
If an owner cancels a home solicitation contract on March 20, by what date must the contractor
return the down payment?
