CSLB Law & Business Exam Questions and
Answers 100% Verified
Question:
Bonds can be purchased from bonding companies for ___% of the original contract price.
Answer:
1-2%
Question:
Bid Bond
Answer:
This acts as an assurance that the contractor will be able to complete the job as described in
the contract.
Question:
Performance Bond or Contract Bond
Answer:
This guarantees a contractor will complete the project according to the agreed upon terms &
conditions.
,Question:
Payment Bond
Answer:
This guarantees that subcontractors and suppliers will be paid by the contractor for properly
performed work.
Question:
Payment Bonds are required for federal government contracts over $__________.
Answer:
$35,000
Question:
Fidelity Bond
Answer:
This covers the business owner in case of employee dishonesty or theft.
Question:
Contractors must file a contractors bond OR submit a cash deposit with the CSLB for
$_______.
Answer:
$15,000
,Question:
The value of a contractors bond must be $________
Answer:
$15,000
Question:
The contractors bond must be filed with the CLSB within ___ days from the bond effective
date.
Answer:
90
Question:
True or False: A contractor must identify their type of insurance when referring to themselves
as "bonded" or "insured" in advertisements or publications.
Answer:
True
Question:
A business must submit a separate $________ bond for RMEs or RMOs.
Answer:
$12,500 (They can be exempt if the RMO can certify ownership of 10% or more of the voting
stock in the company.)
, Question:
A Limited Liability Surety Bond for $__________ is required in addition to the contractors
bond for an LLC license.
Answer:
$100,000
Question:
Disciplinary Bond
Answer:
This must be filed with the Registrar after a license has been revoked or denied.
Question:
True or False: A Disciplinary Bond can be combined with any other bond.
Answer:
False. It's an additional requirement and may not be filed in place of another bond.
Question:
The Disciplinary bond amount ranges from _______ to _______, depending on the violation.
Answer:
$15,000 up to 10x the amount of the contractor's bond
Answers 100% Verified
Question:
Bonds can be purchased from bonding companies for ___% of the original contract price.
Answer:
1-2%
Question:
Bid Bond
Answer:
This acts as an assurance that the contractor will be able to complete the job as described in
the contract.
Question:
Performance Bond or Contract Bond
Answer:
This guarantees a contractor will complete the project according to the agreed upon terms &
conditions.
,Question:
Payment Bond
Answer:
This guarantees that subcontractors and suppliers will be paid by the contractor for properly
performed work.
Question:
Payment Bonds are required for federal government contracts over $__________.
Answer:
$35,000
Question:
Fidelity Bond
Answer:
This covers the business owner in case of employee dishonesty or theft.
Question:
Contractors must file a contractors bond OR submit a cash deposit with the CSLB for
$_______.
Answer:
$15,000
,Question:
The value of a contractors bond must be $________
Answer:
$15,000
Question:
The contractors bond must be filed with the CLSB within ___ days from the bond effective
date.
Answer:
90
Question:
True or False: A contractor must identify their type of insurance when referring to themselves
as "bonded" or "insured" in advertisements or publications.
Answer:
True
Question:
A business must submit a separate $________ bond for RMEs or RMOs.
Answer:
$12,500 (They can be exempt if the RMO can certify ownership of 10% or more of the voting
stock in the company.)
, Question:
A Limited Liability Surety Bond for $__________ is required in addition to the contractors
bond for an LLC license.
Answer:
$100,000
Question:
Disciplinary Bond
Answer:
This must be filed with the Registrar after a license has been revoked or denied.
Question:
True or False: A Disciplinary Bond can be combined with any other bond.
Answer:
False. It's an additional requirement and may not be filed in place of another bond.
Question:
The Disciplinary bond amount ranges from _______ to _______, depending on the violation.
Answer:
$15,000 up to 10x the amount of the contractor's bond
