CSLB CA LAW AND BUSINESS EXAM LESSON 5 EXAM
QUESTIONS WITH DETAILED VERIFIED ANSWERS
(100% CORRECT ANSWERS) A+ GRADE ASSURED
HavePaPheatingPstarting:P-PcorrectPanswer-NotePAboutPExtraPWorkPandPChangePOrders
FromPthePCSLBP"ExtraPWorkPandPChangePOrdersPbecomePpartPofPthePcontractPoncePthePorderPisP______PinP
_____PandPsignedPbyP______PpriorPtoPthePcommencementPofPanyPworkPcoveredPbyPthePnewPchangePorder.P-
PcorrectPanswer--PreparedPinPwriting
-thePParties
ThePorderPmustPdescribePthePscopePofPthePextraPworkPorPchangePthePcostPtoPbeP_______PorP______PfromPthe
Pcontract,PandPthePeffectPthePorderPwillPhavePonPthePschedulePorPprogressPpayments.P-PcorrectPanswer--
AddedPorPSubtracted
WhenPaPcustomerPasksPforPsomethingPnotPincludedPonPthePcontract...P-PcorrectPanswer-
DoPnotPdoPanythingPuntilPgettingPsomethingPsignedPbecausePifPyouPdo,PtheyPdoPnotPhavePtoPpay.PYouPcanPals
oPgetPinPtroublePforPdoingPsomethingPnotPonPthePcontract
IfPanotherPtradePdamagesPyourPwork,PchargePagainPeitherP-PcorrectPanswer--
thePclientPorPotherPtradePcontractor,PbutPtalkPtoPclientPfirst.
CommercialPGeneralPLiabilityPINSP(CGL)PshouldPbePinPaPheaderPstatingPwhetherP-PcorrectPanswer-
thePContractorPhasPorPdoesPnotPhavePgeneralPliabilityPinsurance.
IfPhe/shePdoesPhavePCGL,PtheyPmustPputPthePinfoPonP-PcorrectPanswer-WhoPcoversPthem,PandPcontactPINFO
IfPthePcompanyPisPselfPcoveredP-PcorrectPanswer-ItPmustPbePstated
IfPthePcompanyPisPnotPcovered,PtheyPmustPincludeP-PcorrectPanswer-
ThatPtheyParePnotPcovered,PmustPdisclose
WorkersPCompensationPINSPmustPbeP-PcorrectPanswer-WrittenPasPaPheader
, IfPthePcontractorPhasPnoPemployeesPthenPitPmustPbeP-PcorrectPanswer-
statedPthatPtheyParePexemptPfromPworkersPcompP(ROOFINGPMUSTPBEPCOVERED)
IfPtheyPcompanyPdoesPhavePemployees,PitPmustPbePinPthisPareaPthatP-PcorrectPanswer-
thePContractorPdoesPcarryPworkersPcompPandPallPofPhisPemployeesParePcoveredPandPinsured
ALlPlegitPbusinessesPwillPaskPforPproofP-PcorrectPanswer-BeforePstartingPwork
PerformancePofPExtraPorPChange-OrderPWorkPNoticePisPaPnoticePexplainsPtoPthePclientPthatP-
PcorrectPanswer-
NoPextraPworkPorPchangePinPworkPcanPbePdonePunlessPsignedPbyPbothPpartiesP(ChangePOrderPNotice)
IfPclientPchoosesPtoPchangePsomething,PCSLBPrequiresPthisPINFOPtoPbePputPinPthePnewPChangePOrderPNotic
ePincludingP____.P-PcorrectPanswer--ThePscopePofPworkPencompassedPbyPthePorder
-ThePamountPtoPbePaddedPorPsubtractedPfromPthePcontract
-ThePeffectPthePorderPwillPmakePinPthePprogressPpaymentsPorPthePcompletionPdate
IfPcontractorsPdoPnotPgetPthePcustomersPsignaturePonPchangePorderPthen,P-PcorrectPanswer-
ThePclientsPdoesPnotPhavePtoPpayPthePcontractorP(EverythingPgetsPSIGNED)
MechanicsPLienPWarningPMustPhavePitsPownPpagePwithP-PcorrectPanswer-
HeadingPstatingP"MECHANICSPLIENPWARNING"
AnyonePwhoPhelpsPimprovePyourPproperty,PbutPwhoPisPnotPpaid,PmayPrecordPaPmechanicsPlienPonPyourPprop
erty.PAPmechanicsPliensPisPaP-PcorrectPanswer-
Claim,PlikePaPmortgagePorPaPhomePequityPloan,PmadePagainstPyourPpropertyPandPrecordedPwithPthePcountyPr
ecorder.
EvenPifPyouPpayPyourPcontractorPinPfull,PunpaidPsubcontractors,Psuppliers,PandPlaborersPwhoPhelpedPtoPimpr
ovePyourPpropertyPmayPrecordPmechanicsPliensPandPsuePyouPinPcourtPtoPforclosePthePlien.PIfPaPcourtPfindsPth
ePlienPisPvalid,P-PcorrectPanswer-
YouPcouldPbePforcedPtoPpayPtwicePorPhavePaPcourtPofficerPsellPyourPhomePtoPpayPthePlien.PLiensPcanPalsoPaff
ectPyourPcredit.
QUESTIONS WITH DETAILED VERIFIED ANSWERS
(100% CORRECT ANSWERS) A+ GRADE ASSURED
HavePaPheatingPstarting:P-PcorrectPanswer-NotePAboutPExtraPWorkPandPChangePOrders
FromPthePCSLBP"ExtraPWorkPandPChangePOrdersPbecomePpartPofPthePcontractPoncePthePorderPisP______PinP
_____PandPsignedPbyP______PpriorPtoPthePcommencementPofPanyPworkPcoveredPbyPthePnewPchangePorder.P-
PcorrectPanswer--PreparedPinPwriting
-thePParties
ThePorderPmustPdescribePthePscopePofPthePextraPworkPorPchangePthePcostPtoPbeP_______PorP______PfromPthe
Pcontract,PandPthePeffectPthePorderPwillPhavePonPthePschedulePorPprogressPpayments.P-PcorrectPanswer--
AddedPorPSubtracted
WhenPaPcustomerPasksPforPsomethingPnotPincludedPonPthePcontract...P-PcorrectPanswer-
DoPnotPdoPanythingPuntilPgettingPsomethingPsignedPbecausePifPyouPdo,PtheyPdoPnotPhavePtoPpay.PYouPcanPals
oPgetPinPtroublePforPdoingPsomethingPnotPonPthePcontract
IfPanotherPtradePdamagesPyourPwork,PchargePagainPeitherP-PcorrectPanswer--
thePclientPorPotherPtradePcontractor,PbutPtalkPtoPclientPfirst.
CommercialPGeneralPLiabilityPINSP(CGL)PshouldPbePinPaPheaderPstatingPwhetherP-PcorrectPanswer-
thePContractorPhasPorPdoesPnotPhavePgeneralPliabilityPinsurance.
IfPhe/shePdoesPhavePCGL,PtheyPmustPputPthePinfoPonP-PcorrectPanswer-WhoPcoversPthem,PandPcontactPINFO
IfPthePcompanyPisPselfPcoveredP-PcorrectPanswer-ItPmustPbePstated
IfPthePcompanyPisPnotPcovered,PtheyPmustPincludeP-PcorrectPanswer-
ThatPtheyParePnotPcovered,PmustPdisclose
WorkersPCompensationPINSPmustPbeP-PcorrectPanswer-WrittenPasPaPheader
, IfPthePcontractorPhasPnoPemployeesPthenPitPmustPbeP-PcorrectPanswer-
statedPthatPtheyParePexemptPfromPworkersPcompP(ROOFINGPMUSTPBEPCOVERED)
IfPtheyPcompanyPdoesPhavePemployees,PitPmustPbePinPthisPareaPthatP-PcorrectPanswer-
thePContractorPdoesPcarryPworkersPcompPandPallPofPhisPemployeesParePcoveredPandPinsured
ALlPlegitPbusinessesPwillPaskPforPproofP-PcorrectPanswer-BeforePstartingPwork
PerformancePofPExtraPorPChange-OrderPWorkPNoticePisPaPnoticePexplainsPtoPthePclientPthatP-
PcorrectPanswer-
NoPextraPworkPorPchangePinPworkPcanPbePdonePunlessPsignedPbyPbothPpartiesP(ChangePOrderPNotice)
IfPclientPchoosesPtoPchangePsomething,PCSLBPrequiresPthisPINFOPtoPbePputPinPthePnewPChangePOrderPNotic
ePincludingP____.P-PcorrectPanswer--ThePscopePofPworkPencompassedPbyPthePorder
-ThePamountPtoPbePaddedPorPsubtractedPfromPthePcontract
-ThePeffectPthePorderPwillPmakePinPthePprogressPpaymentsPorPthePcompletionPdate
IfPcontractorsPdoPnotPgetPthePcustomersPsignaturePonPchangePorderPthen,P-PcorrectPanswer-
ThePclientsPdoesPnotPhavePtoPpayPthePcontractorP(EverythingPgetsPSIGNED)
MechanicsPLienPWarningPMustPhavePitsPownPpagePwithP-PcorrectPanswer-
HeadingPstatingP"MECHANICSPLIENPWARNING"
AnyonePwhoPhelpsPimprovePyourPproperty,PbutPwhoPisPnotPpaid,PmayPrecordPaPmechanicsPlienPonPyourPprop
erty.PAPmechanicsPliensPisPaP-PcorrectPanswer-
Claim,PlikePaPmortgagePorPaPhomePequityPloan,PmadePagainstPyourPpropertyPandPrecordedPwithPthePcountyPr
ecorder.
EvenPifPyouPpayPyourPcontractorPinPfull,PunpaidPsubcontractors,Psuppliers,PandPlaborersPwhoPhelpedPtoPimpr
ovePyourPpropertyPmayPrecordPmechanicsPliensPandPsuePyouPinPcourtPtoPforclosePthePlien.PIfPaPcourtPfindsPth
ePlienPisPvalid,P-PcorrectPanswer-
YouPcouldPbePforcedPtoPpayPtwicePorPhavePaPcourtPofficerPsellPyourPhomePtoPpayPthePlien.PLiensPcanPalsoPaff
ectPyourPcredit.