CSLB CONTRACTOR'S LAW & BUSINESS EXAM QUESTIONS AND CORRECT ANSWERS| LATEST UPDATE | VERIFIED

CSLB CONTRACTOR'S LAW & BUSINESS EXAM
QUESTIONS AND CORRECT ANSWERS| LATEST
UPDATE | VERIFIED 2024-2025

AnRemployerRremitsRStateRdisabilityRtaxesRwithheldRfromRanRemployeesRwagesRtoRwhatRagency?R-
RcorrectRanswer-EmploymentRDevelopmentRDepartment




WhichRactRestablishesRtheRrightsRofRworkersRtoRorganizeRintoRunionsRandRnegotiateRcontracts?R-
RcorrectRanswer-NationalRLaborRRelationsRActRofR1935




ARcontractorRhasRhadRaRproblemRwithRemployeesRstealingRtoolsRandRequipmentRfromRjobRsites.RWhenRcon
ductingRjobRinterviews,RmayRtheRcontractorRaskRprospectiveRemployeesRaboutRtheirRarrestRrecords?R
R



A.RItRisRlegalRtoRaskRprospectiveRemployeesRaboutRarrestsRnotRleadingRtoRconvictions.
R


B.RItRisRnotRlegalRtoRaskRprospectiveRemployeesRaboutRarrestsRnotRleadingRtoRconvictions.
R



C.RItRisRlegalRforRaRprivateRemployerRtoRaskRaboutRarrestsRnotRleadingRtoRconvictions,RbutRitRwouldRnotRbeRle
galRforRcityRorRcountyRagenciesRtoRaskRaboutRsuchRarrests.
R



D.RItRisRlegalRforRaRprivateRemployerRtoRaskRaboutRarrestsRleadingRtoRconvictions,RbutRitRwouldRnotRbeRlegalRf
orRaRfederal,Rstate,RorRlocalRpublicRagencyRtoRdoRso.R-RcorrectRanswer-
ItRisRnotRlegalRtoRaskRprospectiveRemployeesRaboutRarrestRnotRleadingRtoRconvictions.



WhyRwouldRaRcontractorRhaveRaRcaseRinRSuperiorRCourt?R-RcorrectRanswer-
IfRitRisRaRdisputeRofRmoreRthanR$25,000RitRcanRbeRtransferredRtoRSuperiorRCourt.



WhichRwouldRnotRhaveRtoRbeRreportedRtoRDOSHRimmediatelyRorRwithinR24Rhours?



A.RDeathRfromRaRthree-storyRfall.

B.RDrunkenRcraneRoperatorRhitsRaRhigh-voltageRpowerRline

C.RCarRaccidentRinRwhichRanRemployeeRstepsRontoRaRpublicRroad,RgetsRhitRbyRaRcar,RandRsuffersRaRconcussio
n.

,D.REmployeeRfallsRoffRforkliftRandRsuffersRaRseverRbackRinjury.R-RcorrectRanswer-
CarRaccidentRinRwhichRanRemployeeRstepsRontoRaRpublicRroad,RgetsRhitRbyRaRcar,RandRsuffersRaRconcussion.



ARgeneralRcontractorRhasRobtainedRbidsRfromRseveralRsubcontractorsRforRaRprivateRproject.RHeRnoticesRthat
RoneRbidRisRsubstantiallyRlowerRthanRtheRrest.RIsRitRethicalRandRaRgoodRbusinessRpracticeRforRthisRcontractorR

toRinformRtheRsubcontractorRthatRtheRbidRisRsubstantiallyRlowerRthanRtheRbidsRofRtheRotherRsubcontractors
?R-RcorrectRanswer-
Yes.RIfRtheRcontractorRhasRreasonRtoRbelieveRthatRtheRsubcontractorRhasRmadeRanRerrorRinRpreparingRhisRbi
d,RtheRcontractorRshouldRnotifyRtheRsubcontractorRofRtheRapparentRerror,RbutRtheRcontractorRmayRnotRdiscl
oseRtheRamountsRofRtheRotherRbids.



AnRemployerRmustRfurnishRanRemployeeRwithRaRcompletedRIRSRFormRW-2R(WageRandRTaxRStatement)Rby:R-
RcorrectRanswer-TheR31stRofRJanuary.




AfterRaRjobRisRcompleted,RtheRownerRdecidesRtoRhaveRadditionalRworkRdone.RHowRshouldRtheRcontractorRpr
oceed?R-RcorrectRanswer-WriteRaRnewRcontractRandRaskRtheRownerRtoRsignRit.



TheRpurposeRofRaR20-dayRpreliminaryRnoticeRforRprivateRworkRisRto?R-RcorrectRanswer-
NotifyRtheRownerRthatRtheRpersonRorRfirmRwhoRsentRtheRnoticeRhasRimprovedRtheRproperty.



IsRitRlegalRforRaRcontractorRtoRpayRemployeesRinRcash?R-RcorrectRanswer-
Yes,RifRtheRcontractorRprovidesReachRemployeeRwithRaRwageRdeductionRstatementRsemimonthlyRorRatRtheRt
imeRofReachRwageRpayment.



YouRareRbiddingRonRaRjobRwithRplansRdrawnRbyRtheRowner.RYouRnoticeRaRcodeRviolationRandRbringRitRtoRtheRa
ttentionRofRtheRowner.RTheRownerRdeclinesRtoRremedyRtheRcodeRviolationRandRtellsRyouRnotRtoRworry.RWha
tRshouldRyouRdo?R-RcorrectRanswer-DeclineRtoRbidRtheRwork.



OnRaRtime-and-materialsRjob,RyouRshould:R-RcorrectRanswer-
AddRprofitRandRoverheadRtoRlaborRandRmaterials



YourRemployeeRsetsRaRcabinetRwrong.RTheRcabinetRfallsRfromRtheRwallRandRdamagesRtheRclient'sRcounterRto
p.RWhatRshouldRyouRdo?

,A.RClaimRtheRdamageRonRyourRgeneralRliabilityRinsuranceRpolicy.

B.RRequireRtheRemployeeRtoRpayRforRtheRdamageRtoRtheRcountertop.

C.RTellRtheRclientRtoRclaimRtheRdamagedRcounterRtopRonRhisRorRherRhomeowner'sRinsuranceRpolicy.

D.RNoRactionRisRrequired:RTheRclientRmustRassumeRtheRriskRofRdamage.R-RcorrectRanswer-
ClaimRtheRdamageRonRyourRgeneralRliabilityRinsuranceRpolicy.



OfRtheRfollowing,RwhichRisRbestRforRdeterminingRtheRnumberRofRhoursRrequiredRforRdifferentRphasesRofRaRpr
ojectRandRforRmakingRsureRtheRjobRisRonRschedule?



A.RBarRgraphRandRchart

B.RCashRanalysisRchart

C.RReviewRplans

D.RCriticalRpathRmethodR-RcorrectRanswer-TheRcriticalRpathRmethod.



IsRitRlegalRforRaRcontractorRtoRrequireRemployeesRtoRtakeRaRlieRdetectorRtest?R-RcorrectRanswer-
ItRisRnotRlegalRforRtheRcontractorRtoRrequireRlieRdetectorRtests,RbutRitRwouldRbeRlegalRforRaRfederal,Rstate,RorRl
ocalRpublicRagencyRtoRrequireRlieRdetectorRtestsRofRtheirRemployees.



IfRaRnewlyRhiredRemployeeRdoesRnotRhaveRaRSSN,RwhatRshouldRbeRdone?R-RcorrectRanswer-
TheRemployeeRmustRapplyRforRaRSSN.



HowRmanyRtimesRmayRyouRtakeRtheRcontractorsRlicenseRexamRbeforeRyourRoriginalRapplicationRisRvoided?R-
RcorrectRanswer-AsRmanyRtimesRasRnecessaryRwithinR18Rmonths.




WhenRshouldRaRcontractorRrenewRtheRcontractor'sRlicenseRbond?R-RcorrectRanswer-
30RdaysRbeforeRitRexpires.



TheRqualifyingRRMERforRaRconstructionRfirmRmustRworkRatRleast:R-RcorrectRanswer-
ARqualifyingRRMERforRaRconstructionRfirmRmustRworkRatRleastR32RhoursRperRweekRorR80%RofRtheRworkRweek
.

, TheRfederalREmployerRIdentificationRNumberR(EIN)RisRissuedRbyRthe:R-RcorrectRanswer-
TheRInternalRRevenueRService



EveryRemployerRofR______RorRmoreRfullRorRpartRtimeRemployeesRmustRkeepRwrittenRhealthRandRsafetyRreco
rdsRforR_______Ryears.



A.R1-3

B.R7-4

C.R10-3

D.R11-5R-RcorrectRanswer-
EveryRemployerRofR11RorRmoreRfullRorRpartRtimeRemployeesRmustRkeepRwrittenRhealthRandRsafetyRrecordsRf
orR5Ryears.



AfterRyouRhaveRreadRtheRplansRandRspecifications,RwhatRisRtheRnextRimportantRstepRinRwritingRaRbid?



A.RTalkRtoRandRselectRsubs.

B.RWalkRtheRjob.

C.RCallRaboutRmaterials,Rprice,RandRavailability.

D.RTalkRtoRtheRcrewRleaderRaboutRlabor.R-RcorrectRanswer-WalkRtheRjob.



OnceRaRbudgetRisRfinalized,Rthe:



A.RContractorRshouldRstickRtoRtheRbudgetRnoRmatterRwhatRhappens.

B.RContractorRshouldRdoRtheRbestRpossibleRjobRofRstayingRwithinRtheRbudget.

C.RBudgetRshouldRbeRrevisedReachRmonth.

D.RBudgetRshouldRbeRreferredRtoRonlyRifRtheRbusinessRhasRcashflowRproblems.R-RcorrectRanswer-
TheRcontractorRshouldRdoRtheRbestRpossibleRjobRofRstayingRwithinRbudget.R`



WhoRmustRsignRaRjointRcontrolRaddendumRtoRaRhomeRimprovementRcontract?R-RcorrectRanswer-
Owner,Rcontractor,RandRjointRcontrolRofficer.