CSLB CONTRACTORS LAW AND BUSINESS EXAM//
CONTROLLING & PLANNING EDITION 2024-2025-( up to
next generation)
When should a contractor renew the contractor's license bond? - CORRECT
ANSWERS-30 days before it expires.
When should you let your attorney see a construction contract? - CORRECT
ANSWERS-After the contract is prepared but before it is signed.
When you get an approved set of plans, what should you do first? - CORRECT
ANSWERS-Read any notes from the building department.
Where is the Notice of Right to Cancel found on a home improvement contract? -
CORRECT ANSWERS-Near the client signature.
Where must a contractor include the "Notice to Owner"? - CORRECT ANSWERS-In all
home improvement contracts over $500
Which act establishes the rights of workers to organize into unions and negotiate
contracts? - CORRECT ANSWERS-National Labor Relations Act of 1935
Which building code should a contractor follow? - CORRECT ANSWERS-A contractor
should follow all local building codes.
Which financial ratio measures liquidity? - CORRECT ANSWERS-Both the current ratio
and acid-test ratio (quick ratio) can be used to measure liquidity.
When is an employee allowed to view their own personnel file? - CORRECT
ANSWERS-When ever they wish to.
When is the last day a customer can cancel a contract that was signed on Friday,
December 21st? - CORRECT ANSWERS-The following Wednesday.
The customer has the right to cancel 3 business days after the day the contract has
been signed and delivered to the. In this case: Saturday Midnight day one. Monday
midnight day two Wednesday Midnight day three. NOTE: Sunday and Tuesday were
not business days since Tuesday was a holiday. Correct answer is Wednesday
midnight.
When preparing a bid you should:
A. Evaluate the effect of unexpected delays on costs
B. Put as little in writing as possible
C. Schedule the job to slightly overload your capacity
,D. None of the above - CORRECT ANSWERS-Evaluate the effect of unexpected delays
on costs.
When purchasing insurance, what is the best way to chose among different companies?
- CORRECT ANSWERS-Cost and Coverage
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? -
CORRECT ANSWERS-Find out the name of the legal owner of the property as well as
the percent of ownership.
A mechanics' lien.
Step 1: Obtain the exact legal description of the property. Step 2: Find out the name of
the legal owner of the property as well as the percent of ownership.
Step 3: Find out if the person requesting the work of improvement is the owner.
A notice canceling a home solicitation contract becomes effective when? - CORRECT
ANSWERS-When the written notice is deposited in the mail.
A notice of completion must be recorded within: - CORRECT ANSWERS-A notice of
completion must be recorded within 10 days after work is completed.
A prime contractor decides to sub out the electrical work. How would the prime
determine what price to add for the electrical work? - CORRECT ANSWERS-The prime
gets a firm bid from the subcontractor.
A prime contractor entered into a construction contract with a subcontractor. An
employee of the subcontractor was injured, but unfortunately the subcontractor had not
secured workers' compensation coverage. Which of the following statements best
describes the situation, except in cases of fraud?
A. The subcontractor is guilty, but the prime contractor is not responsible.
B. The prime contractor is guilty, but the subcontractor is not responsible.
C. Neither the prime contractor nor the subcontractor are responsible.
D. The subcontractor is guilty, but the prime contractor must take responsibility for the
injuries. - CORRECT ANSWERS-The subcontractor is guilty, but the prime contractor
must take responsibility for the injuries.
, A RME may act as the qualifier for no more than ________ firms in any one-year
period.
A. One
B. Two
C. Three
D. Four - CORRECT ANSWERS-A RME may only act as the qualifier for one firm in any
one year period.
_____, although usually the largest single item in a bid, can be fairly accurately
determined. - CORRECT ANSWERS-Materials
"Contractors are required by law to be licensed and regulated by the Contractors' State
License Board. Any questions concerning a contractor may be referred to the Registrar,
Contractors' State License Board, P.O. Box 26000, Sacramento, California, 95826."
This statement must be on: - CORRECT ANSWERS-All prime contracts.
A balance sheet shows: - CORRECT ANSWERS-A balance sheet shows assets and
liabilities at a certain point in time.
A client wants the house painted and carpet installed. What license classification(s)
is/are required for this work? - CORRECT ANSWERS-Painting and decorating C-33
and floor covering C-15.
A construction company was hiring a new crew and asked each prospective employee
for their name, address, and Social Security number. Several prospective employees
remembered their Social Security numbers but did not have a card or other
documentation. The practice of relying on memorized Social Security numbers is: -
CORRECT ANSWERS-Unacceptable: The actual Social Security card should have
been inspected.
A consumer may cancel a home solicitation contract at any time prior to midnight of the
_____ after the date of the transaction.
A. 2nd business day
B. 3rd business day
C. 5th business day
D. 7th calendar day - CORRECT ANSWERS-A consumer may cancel a home
solicitation contract at anytime prior to midnight of the 3rd business day after the date of
the transaction.
A contractor bids on a home improvement project and earns the bid. Later, he decides
not to take the job. Which bond would protect the home owner? - CORRECT
ANSWERS-A bid bond would protect the client from a contractor who declines to take a
job that has already bid.
CONTROLLING & PLANNING EDITION 2024-2025-( up to
next generation)
When should a contractor renew the contractor's license bond? - CORRECT
ANSWERS-30 days before it expires.
When should you let your attorney see a construction contract? - CORRECT
ANSWERS-After the contract is prepared but before it is signed.
When you get an approved set of plans, what should you do first? - CORRECT
ANSWERS-Read any notes from the building department.
Where is the Notice of Right to Cancel found on a home improvement contract? -
CORRECT ANSWERS-Near the client signature.
Where must a contractor include the "Notice to Owner"? - CORRECT ANSWERS-In all
home improvement contracts over $500
Which act establishes the rights of workers to organize into unions and negotiate
contracts? - CORRECT ANSWERS-National Labor Relations Act of 1935
Which building code should a contractor follow? - CORRECT ANSWERS-A contractor
should follow all local building codes.
Which financial ratio measures liquidity? - CORRECT ANSWERS-Both the current ratio
and acid-test ratio (quick ratio) can be used to measure liquidity.
When is an employee allowed to view their own personnel file? - CORRECT
ANSWERS-When ever they wish to.
When is the last day a customer can cancel a contract that was signed on Friday,
December 21st? - CORRECT ANSWERS-The following Wednesday.
The customer has the right to cancel 3 business days after the day the contract has
been signed and delivered to the. In this case: Saturday Midnight day one. Monday
midnight day two Wednesday Midnight day three. NOTE: Sunday and Tuesday were
not business days since Tuesday was a holiday. Correct answer is Wednesday
midnight.
When preparing a bid you should:
A. Evaluate the effect of unexpected delays on costs
B. Put as little in writing as possible
C. Schedule the job to slightly overload your capacity
,D. None of the above - CORRECT ANSWERS-Evaluate the effect of unexpected delays
on costs.
When purchasing insurance, what is the best way to chose among different companies?
- CORRECT ANSWERS-Cost and Coverage
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? -
CORRECT ANSWERS-Find out the name of the legal owner of the property as well as
the percent of ownership.
A mechanics' lien.
Step 1: Obtain the exact legal description of the property. Step 2: Find out the name of
the legal owner of the property as well as the percent of ownership.
Step 3: Find out if the person requesting the work of improvement is the owner.
A notice canceling a home solicitation contract becomes effective when? - CORRECT
ANSWERS-When the written notice is deposited in the mail.
A notice of completion must be recorded within: - CORRECT ANSWERS-A notice of
completion must be recorded within 10 days after work is completed.
A prime contractor decides to sub out the electrical work. How would the prime
determine what price to add for the electrical work? - CORRECT ANSWERS-The prime
gets a firm bid from the subcontractor.
A prime contractor entered into a construction contract with a subcontractor. An
employee of the subcontractor was injured, but unfortunately the subcontractor had not
secured workers' compensation coverage. Which of the following statements best
describes the situation, except in cases of fraud?
A. The subcontractor is guilty, but the prime contractor is not responsible.
B. The prime contractor is guilty, but the subcontractor is not responsible.
C. Neither the prime contractor nor the subcontractor are responsible.
D. The subcontractor is guilty, but the prime contractor must take responsibility for the
injuries. - CORRECT ANSWERS-The subcontractor is guilty, but the prime contractor
must take responsibility for the injuries.
, A RME may act as the qualifier for no more than ________ firms in any one-year
period.
A. One
B. Two
C. Three
D. Four - CORRECT ANSWERS-A RME may only act as the qualifier for one firm in any
one year period.
_____, although usually the largest single item in a bid, can be fairly accurately
determined. - CORRECT ANSWERS-Materials
"Contractors are required by law to be licensed and regulated by the Contractors' State
License Board. Any questions concerning a contractor may be referred to the Registrar,
Contractors' State License Board, P.O. Box 26000, Sacramento, California, 95826."
This statement must be on: - CORRECT ANSWERS-All prime contracts.
A balance sheet shows: - CORRECT ANSWERS-A balance sheet shows assets and
liabilities at a certain point in time.
A client wants the house painted and carpet installed. What license classification(s)
is/are required for this work? - CORRECT ANSWERS-Painting and decorating C-33
and floor covering C-15.
A construction company was hiring a new crew and asked each prospective employee
for their name, address, and Social Security number. Several prospective employees
remembered their Social Security numbers but did not have a card or other
documentation. The practice of relying on memorized Social Security numbers is: -
CORRECT ANSWERS-Unacceptable: The actual Social Security card should have
been inspected.
A consumer may cancel a home solicitation contract at any time prior to midnight of the
_____ after the date of the transaction.
A. 2nd business day
B. 3rd business day
C. 5th business day
D. 7th calendar day - CORRECT ANSWERS-A consumer may cancel a home
solicitation contract at anytime prior to midnight of the 3rd business day after the date of
the transaction.
A contractor bids on a home improvement project and earns the bid. Later, he decides
not to take the job. Which bond would protect the home owner? - CORRECT
ANSWERS-A bid bond would protect the client from a contractor who declines to take a
job that has already bid.
