CSLB Practice Law B Questions and Answers Graded A

CSLB Practice Law B Questions and Answers Graded A A subcontractor or material supplier has _____ days to file a lien once a notice of completion has been recorded. 30 How must a client submit a claim for service or repair of a defect on fit and finish items after a remodel? By certified mail By overnight mail By personal delivery A contractor meets Mr. Jones at his home to discuss remodeling. The contractor and Mr. Jones sign a contract that includes a three-day cancellation form. After the contractor leaves, Mr. Jones decides not to have the work done. Instead of using the cancellation form, Mr. Jones sends the contractor a letter by first-class mail stating that he is canceling the contract. Is Mr. Jones' cancellation effective? Yes. Mr. Jones' letter does cancel the contract because it indicates his intention not to be bound by the contract. If a contractor forgets to renew his or her license on time, the expired license may be renewed any time within _____ after its expiration without reapplying for a license and fulfilling the exam or waiver requirements again. Five years You are the qualifier for an active contractor's license. How do you inactivate the license? Write to the CSLB, requesting that the license be made inactive. When a subcontractor does work on a public works contract, the public agency considers the subcontractor to be: a subcontractor of the prime contractor A contractor hires a subcontractor to demolish a concrete wall. Who is responsible for supplying safety goggles? subcontractor Sometimes contracts prove to be too vague to interpret without disagreement between owner and contractor. Which of the following steps would best prevent such problems? Review the plans and specifications with the owner. A contractor is looking for an insurance policy to cover a high degree of exposure to risk. Of the following, which policy would be best for this purpose? umbrella To whom do you report and pay sales tax? Board of Equalization The federal Employer Identification Number (EIN) is issued by the: Internal Revenue Service When purchasing insurance, what is the best way to choose among different companies? cost and coverage As required by the Immigration Reform and Control Act, all employees hired on or after November 7, 1986 must complete Form _____ to verify their employment eligibility status. I-9 If required safety devices are missing from tools, what should an employee do? Notify the contractor, who is responsible for safety. Of the following, which document is usually delivered first in a transaction involving a home improvement contract? "Notice to Owner" Who is ultimately responsible for seeing that safety equipment is actually put to use on the jobsite? contractor A mechanics' lien is a written document that must be signed and verified by the claimant. The first and third steps a contractor should take in filing a lien are listed below. Step 1: Obtain the exact legal description of the property. Step 2: Step 3: Find out if the person requesting the work of improvement is the owner. What is Step 2? Find out the name of the legal owner of the property as well as the percent of ownership. A(n) _____ represents a company's financial position on a specified date. balance sheet When you get an approved set of plans, what should you do first? Read any notes from the building department. When bidding on work, which of the following would you NOT include in the price of your bid? worker's compensation insurance premium The purpose of a "Preliminary 20-day Notice" for private work is to: notify the property owner that the subcontractor or firm who sent the notice will be making improvements on the property When should you let your attorney see a construction contract? After the contract is prepared, but before you sign it. When is an employee allowed to view their own personnel file? whenever they wish to Before beginning work, an employer or contractor must inquire whether asbestos is present in any building constructed prior to: 1978 Is it legal for a contractor to require employees to take lie detector tests? It is not legal for the contractor to require lie detector tests, but it would be legal for a federal, state, or local public agency to require lie detector tests of their employees. When is the last day a customer can cancel a contract that was signed on Friday, December 21st? the following Wednesday Which of the following provisions may not be included in a home improvement contract? Owner must pay for materials before they are delivered