CSLB CONTRACTOR'S LAW & BUSINESS EXAM
Questions and Answers 100% Verified
Question:
An employer remits State disability taxes withheld from an employees wages to what
agency?
Answer:
Employment Development Department
Question:
Which act establishes the rights of workers to organize into unions and negotiate contracts?
Answer:
National Labor Relations Act of 1935
Question:
A contractor has had a problem with employees stealing tools and equipment from job sites.
When conducting job interviews, may the contractor ask prospective employees about their
arrest records? A. It is legal to ask prospective employees about arrests not leading to
convictions. B. It is not legal to ask prospective employees about arrests not leading to
convictions. C. It is legal for a private employer to ask about arrests not leading to
convictions, but it would not be legal for city or county agencies to ask about such arrests. D.
It is legal for a private employer to ask about arrests leading to convictions, but it would not
be legal for a federal, state, or local public agency to do so.
Answer:
It is not legal to ask prospective employees about arrest not leading to convictions.
,Question:
Why would a contractor have a case in Superior Court?
Answer:
If it is a dispute of more than $25,000 it can be transferred to Superior Court.
Question:
Which would not have to be reported to DOSH immediately or within 24 hours? A. Death
from a three-story fall. B. Drunken crane operator hits 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 sever back injury.
Answer:
Car accident in which an employee steps onto a public road, gets hit by a car, and suffers a
concussion.
Question:
A general contractor has obtained bids from several subcontractors for a private project. He
notices that one bid is substantially lower than the rest. Is it ethical and a good business
practice for this contractor to inform the subcontractor that the bid is substantially lower than
the bids of the other subcontractors?
Answer:
Yes. If the contractor has reason to believe that the subcontractor has made an error in
preparing his bid, the contractor should notify the subcontractor of the apparent error, but the
contractor may not disclose the amounts of the other bids.
,Question:
An employer must furnish an employee with a completed IRS Form W-2 (Wage and Tax
Statement) by:
Answer:
The 31st of January.
Question:
After a job is completed, the owner decides to have additional work done. How should the
contractor proceed?
Answer:
Write a new contract and ask the owner to sign it.
Question:
The purpose of a 20-day preliminary notice for private work is to?
Answer:
Notify the owner that the person or firm who sent the notice has improved the property.
Question:
Is it legal for a contractor to pay employees in cash?
Answer:
Yes, if the contractor provides each employee with a wage deduction statement semimonthly
or at the time of each wage payment.
, Question:
You are bidding on a job with plans drawn by the owner. You notice a code violation and
bring it to the attention of the owner. The owner declines to remedy the code violation and
tells you not to worry. What should you do?
Answer:
Decline to bid the work.
Question:
On a time-and-materials job, you should:
Answer:
Add profit and overhead to labor and materials
Question:
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 countertop. 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:
Claim the damage on your general liability insurance policy.
Questions and Answers 100% Verified
Question:
An employer remits State disability taxes withheld from an employees wages to what
agency?
Answer:
Employment Development Department
Question:
Which act establishes the rights of workers to organize into unions and negotiate contracts?
Answer:
National Labor Relations Act of 1935
Question:
A contractor has had a problem with employees stealing tools and equipment from job sites.
When conducting job interviews, may the contractor ask prospective employees about their
arrest records? A. It is legal to ask prospective employees about arrests not leading to
convictions. B. It is not legal to ask prospective employees about arrests not leading to
convictions. C. It is legal for a private employer to ask about arrests not leading to
convictions, but it would not be legal for city or county agencies to ask about such arrests. D.
It is legal for a private employer to ask about arrests leading to convictions, but it would not
be legal for a federal, state, or local public agency to do so.
Answer:
It is not legal to ask prospective employees about arrest not leading to convictions.
,Question:
Why would a contractor have a case in Superior Court?
Answer:
If it is a dispute of more than $25,000 it can be transferred to Superior Court.
Question:
Which would not have to be reported to DOSH immediately or within 24 hours? A. Death
from a three-story fall. B. Drunken crane operator hits 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 sever back injury.
Answer:
Car accident in which an employee steps onto a public road, gets hit by a car, and suffers a
concussion.
Question:
A general contractor has obtained bids from several subcontractors for a private project. He
notices that one bid is substantially lower than the rest. Is it ethical and a good business
practice for this contractor to inform the subcontractor that the bid is substantially lower than
the bids of the other subcontractors?
Answer:
Yes. If the contractor has reason to believe that the subcontractor has made an error in
preparing his bid, the contractor should notify the subcontractor of the apparent error, but the
contractor may not disclose the amounts of the other bids.
,Question:
An employer must furnish an employee with a completed IRS Form W-2 (Wage and Tax
Statement) by:
Answer:
The 31st of January.
Question:
After a job is completed, the owner decides to have additional work done. How should the
contractor proceed?
Answer:
Write a new contract and ask the owner to sign it.
Question:
The purpose of a 20-day preliminary notice for private work is to?
Answer:
Notify the owner that the person or firm who sent the notice has improved the property.
Question:
Is it legal for a contractor to pay employees in cash?
Answer:
Yes, if the contractor provides each employee with a wage deduction statement semimonthly
or at the time of each wage payment.
, Question:
You are bidding on a job with plans drawn by the owner. You notice a code violation and
bring it to the attention of the owner. The owner declines to remedy the code violation and
tells you not to worry. What should you do?
Answer:
Decline to bid the work.
Question:
On a time-and-materials job, you should:
Answer:
Add profit and overhead to labor and materials
Question:
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 countertop. 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:
Claim the damage on your general liability insurance policy.
