CSLB Contractor's Law Practice Test Part 2
1. Under what circumstances should a contractor involve their attorney regarding a construction
contract?
- A. Before allowing the client access to the contract.
- B. After the contract is drafted but prior to signing.
- C. Once the building permit is acquired.
- D. After the contract has been signed by both parties.
- Answer: B. After the contract is drafted but prior to signing.
2. What is essential to include in every home improvement contract?
- A. Cancellation notice rights.
- B. Contractor's license number.
- C. Truth-in-lending notice.
- D. Project name.
- Answer: B. Contractor's license number.
3. Which item is not required in a home improvement contract?
- A. A statement in at least 10-point font near the signature indicating the owner's right to demand a
performance and payment bond.
- B. The names and home addresses of all individuals listed on the license.
- C. A projected start date and completion date for the work.
- D. A detailed description of the work and materials to be used.
- Answer: B. The names and home addresses of all individuals listed on the license. (Note: A, C, and D
are required).
4. Once a home improvement contract is signed, how quickly must the contractor commence work
based on the timeline specified in the contract?
- A. 5 days.
- B. 10 days.
- C. 15 days.
, - D. 20 days.
- Answer: D. 20 days.
5. Regarding home improvement salespersons, which statement is correct?
- A. They must register with the Registrar's office and may only work for one contractor.
- B. Anyone selling home improvement contracts for a licensed contractor outside of the contractor’s
usual business location must register with the Attorney General's office.
- C. They must be at least 18 years old, with no residency or educational prerequisites.
- D. They can start negotiating home improvement contracts immediately after submitting an
application and paying the necessary fees.
- Answer: C. They must be at least 18 years old, and there are no residency or educational
requirements—registration with each contractor is needed along with a registration number.
6. In a scenario where Judy, a contractor, hires Sam as a registered home improvement salesperson,
what happens if Sam negotiates a home improvement contract for $350 but Judy refuses to accept the
price?
- A. The contractor must adhere to the verbal agreement since such contracts under $500 are legally
binding.
- B. The contractor is not obligated to honor a verbal agreement.
- C. The contractor can cancel any home improvement contract they didn’t negotiate.
- D. A home improvement contract is not binding unless it is in writing.
- Answer: A. The contractor must adhere to the verbal agreement as registered salespersons act on
behalf of the contractor, and verbal home improvement contracts are valid.
7. Which kind of contract allows a consumer to cancel?
- A. Subcontract.
- B. Home solicitation contracts related to permanent installations such as fencing or alarm systems.
- C. Prime construction contracts.
- D. Home improvement contracts for moveable items such as bookshelves or rugs.
- Answer: B. Home solicitation contracts which involve permanent fixtures can be canceled.
1. Under what circumstances should a contractor involve their attorney regarding a construction
contract?
- A. Before allowing the client access to the contract.
- B. After the contract is drafted but prior to signing.
- C. Once the building permit is acquired.
- D. After the contract has been signed by both parties.
- Answer: B. After the contract is drafted but prior to signing.
2. What is essential to include in every home improvement contract?
- A. Cancellation notice rights.
- B. Contractor's license number.
- C. Truth-in-lending notice.
- D. Project name.
- Answer: B. Contractor's license number.
3. Which item is not required in a home improvement contract?
- A. A statement in at least 10-point font near the signature indicating the owner's right to demand a
performance and payment bond.
- B. The names and home addresses of all individuals listed on the license.
- C. A projected start date and completion date for the work.
- D. A detailed description of the work and materials to be used.
- Answer: B. The names and home addresses of all individuals listed on the license. (Note: A, C, and D
are required).
4. Once a home improvement contract is signed, how quickly must the contractor commence work
based on the timeline specified in the contract?
- A. 5 days.
- B. 10 days.
- C. 15 days.
, - D. 20 days.
- Answer: D. 20 days.
5. Regarding home improvement salespersons, which statement is correct?
- A. They must register with the Registrar's office and may only work for one contractor.
- B. Anyone selling home improvement contracts for a licensed contractor outside of the contractor’s
usual business location must register with the Attorney General's office.
- C. They must be at least 18 years old, with no residency or educational prerequisites.
- D. They can start negotiating home improvement contracts immediately after submitting an
application and paying the necessary fees.
- Answer: C. They must be at least 18 years old, and there are no residency or educational
requirements—registration with each contractor is needed along with a registration number.
6. In a scenario where Judy, a contractor, hires Sam as a registered home improvement salesperson,
what happens if Sam negotiates a home improvement contract for $350 but Judy refuses to accept the
price?
- A. The contractor must adhere to the verbal agreement since such contracts under $500 are legally
binding.
- B. The contractor is not obligated to honor a verbal agreement.
- C. The contractor can cancel any home improvement contract they didn’t negotiate.
- D. A home improvement contract is not binding unless it is in writing.
- Answer: A. The contractor must adhere to the verbal agreement as registered salespersons act on
behalf of the contractor, and verbal home improvement contracts are valid.
7. Which kind of contract allows a consumer to cancel?
- A. Subcontract.
- B. Home solicitation contracts related to permanent installations such as fencing or alarm systems.
- C. Prime construction contracts.
- D. Home improvement contracts for moveable items such as bookshelves or rugs.
- Answer: B. Home solicitation contracts which involve permanent fixtures can be canceled.
