CSLB Law and Business Exam Questions and Verified Answers Graded A+ 2026/27
-What is the minimum bond amount required for a contractor license in California? -
$25.000
What is the penalty for acting as a contractor without a license in California? - it is a
MISDEMEANOR
What does the CSLB issue to a contractor for a minor violation as a warning? - Advisory
Notice
How long are citations against licensed contractors disclosed to the public? - 5 years
What is the maximum allowable down payment for a home improvement contract in California?
- $1,000 or 10% of the contract price, Whichever is less
Home improvements contracts must include which of the following? - •description of
materials
•start and completion dates
•permissible delays
Which business structures provides liability protection similar to a corporation but has different
tax treatment? - Limited Liability Company (LLC)
, What type of bond guarantees both job completion and payment of all labor and materials? -
Contract Bond
What is the minimum liability insurance required for a limited liability company (LLC) with 5 or
fewer personnel? - $1 million
What is the purpose of a disciplinary bond for a contractor? - To ensure compliance with
licensing rules following disciplinary action
What agency is responsible for licensing and regulating contractors in California? -
Contractors State Licensing Board (CSLB)
What is the main purpose of the contractors state license board? (CSLB) - To protect
consumers by regulating the construction industry
Which of the following violations could be lead to a contractors license suspension? -
•advertising without a license number
•failing to pay subcontractor
•poor workmanship
Which license classification requires workers' compensation insurance, even if the contractor has
no employees? - C-39 Roofing
-What is the minimum bond amount required for a contractor license in California? -
$25.000
What is the penalty for acting as a contractor without a license in California? - it is a
MISDEMEANOR
What does the CSLB issue to a contractor for a minor violation as a warning? - Advisory
Notice
How long are citations against licensed contractors disclosed to the public? - 5 years
What is the maximum allowable down payment for a home improvement contract in California?
- $1,000 or 10% of the contract price, Whichever is less
Home improvements contracts must include which of the following? - •description of
materials
•start and completion dates
•permissible delays
Which business structures provides liability protection similar to a corporation but has different
tax treatment? - Limited Liability Company (LLC)
, What type of bond guarantees both job completion and payment of all labor and materials? -
Contract Bond
What is the minimum liability insurance required for a limited liability company (LLC) with 5 or
fewer personnel? - $1 million
What is the purpose of a disciplinary bond for a contractor? - To ensure compliance with
licensing rules following disciplinary action
What agency is responsible for licensing and regulating contractors in California? -
Contractors State Licensing Board (CSLB)
What is the main purpose of the contractors state license board? (CSLB) - To protect
consumers by regulating the construction industry
Which of the following violations could be lead to a contractors license suspension? -
•advertising without a license number
•failing to pay subcontractor
•poor workmanship
Which license classification requires workers' compensation insurance, even if the contractor has
no employees? - C-39 Roofing
