1 CSLB CONTRACTOR'S LAW & BUSINESS
EXAM QUESTIONS WITH DETAILED VERIFIED
ANSWERS (100% CORRECT ANSWERS) A+
GRADE ASSURED
AnPemployerPremitsPStatePdisabilityPtaxesPwithheldPfromPanPemployeesPwagesPtoPwhatPagency?P-
PcorrectPanswer-EmploymentPDevelopmentPDepartment
WhichPactPestablishesPthePrightsPofPworkersPtoPorganizePintoPunionsPandPnegotiatePcontracts?P-
PcorrectPanswer-NationalPLaborPRelationsPActPofP1935
APcontractorPhasPhadPaPproblemPwithPemployeesPstealingPtoolsPandPequipmentPfromPjobPsites.PWhenPcondu
ctingPjobPinterviews,PmayPthePcontractorPaskPprospectivePemployeesPaboutPtheirParrestPrecords?P
P
A.PItPisPlegalPtoPaskPprospectivePemployeesPaboutParrestsPnotPleadingPtoPconvictions.
P
B.PItPisPnotPlegalPtoPaskPprospectivePemployeesPaboutParrestsPnotPleadingPtoPconvictions.
P
C.PItPisPlegalPforPaPprivatePemployerPtoPaskPaboutParrestsPnotPleadingPtoPconvictions,PbutPitPwouldPnotPbePleg
alPforPcityPorPcountyPagenciesPtoPaskPaboutPsuchParrests.
P
D.PItPisPlegalPforPaPprivatePemployerPtoPaskPaboutParrestsPleadingPtoPconvictions,PbutPitPwouldPnotPbePlegalPfo
rPaPfederal,Pstate,PorPlocalPpublicPagencyPtoPdoPso.P-PcorrectPanswer-
ItPisPnotPlegalPtoPaskPprospectivePemployeesPaboutParrestPnotPleadingPtoPconvictions.
WhyPwouldPaPcontractorPhavePaPcasePinPSuperiorPCourt?P-PcorrectPanswer-
IfPitPisPaPdisputePofPmorePthanP$25,000PitPcanPbePtransferredPtoPSuperiorPCourt.
WhichPwouldPnotPhavePtoPbePreportedPtoPDOSHPimmediatelyPorPwithinP24Phours?
A.PDeathPfromPaPthree-storyPfall.
B.PDrunkenPcranePoperatorPhitsPaPhigh-voltagePpowerPline
C.PCarPaccidentPinPwhichPanPemployeePstepsPontoPaPpublicProad,PgetsPhitPbyPaPcar,PandPsuffersPaPconcussion.
,D.PEmployeePfallsPoffPforkliftPandPsuffersPaPseverPbackPinjury.P-PcorrectPanswer-
CarPaccidentPinPwhichPanPemployeePstepsPontoPaPpublicProad,PgetsPhitPbyPaPcar,PandPsuffersPaPconcussion.
APgeneralPcontractorPhasPobtainedPbidsPfromPseveralPsubcontractorsPforPaPprivatePproject.PHePnoticesPthatPo
nePbidPisPsubstantiallyPlowerPthanPthePrest.PIsPitPethicalPandPaPgoodPbusinessPpracticePforPthisPcontractorPtoPin
formPthePsubcontractorPthatPthePbidPisPsubstantiallyPlowerPthanPthePbidsPofPthePotherPsubcontractors?P-
PcorrectPanswer-
Yes.PIfPthePcontractorPhasPreasonPtoPbelievePthatPthePsubcontractorPhasPmadePanPerrorPinPpreparingPhisPbid,Pt
hePcontractorPshouldPnotifyPthePsubcontractorPofPthePapparentPerror,PbutPthePcontractorPmayPnotPdisclosePthe
PamountsPofPthePotherPbids.
AnPemployerPmustPfurnishPanPemployeePwithPaPcompletedPIRSPFormPW-2P(WagePandPTaxPStatement)Pby:P-
PcorrectPanswer-TheP31stPofPJanuary.
AfterPaPjobPisPcompleted,PthePownerPdecidesPtoPhavePadditionalPworkPdone.PHowPshouldPthePcontractorPproc
eed?P-PcorrectPanswer-WritePaPnewPcontractPandPaskPthePownerPtoPsignPit.
ThePpurposePofPaP20-dayPpreliminaryPnoticePforPprivatePworkPisPto?P-PcorrectPanswer-
NotifyPthePownerPthatPthePpersonPorPfirmPwhoPsentPthePnoticePhasPimprovedPthePproperty.
IsPitPlegalPforPaPcontractorPtoPpayPemployeesPinPcash?P-PcorrectPanswer-
Yes,PifPthePcontractorPprovidesPeachPemployeePwithPaPwagePdeductionPstatementPsemimonthlyPorPatPthePtim
ePofPeachPwagePpayment.
YouParePbiddingPonPaPjobPwithPplansPdrawnPbyPthePowner.PYouPnoticePaPcodePviolationPandPbringPitPtoPthePat
tentionPofPthePowner.PThePownerPdeclinesPtoPremedyPthePcodePviolationPandPtellsPyouPnotPtoPworry.PWhatPsh
ouldPyouPdo?P-PcorrectPanswer-DeclinePtoPbidPthePwork.
OnPaPtime-and-materialsPjob,PyouPshould:P-PcorrectPanswer-AddPprofitPandPoverheadPtoPlaborPandPmaterials
YourPemployeePsetsPaPcabinetPwrong.PThePcabinetPfallsPfromPthePwallPandPdamagesPthePclient'sPcounterPtop.
PWhatPshouldPyouPdo?
A.PClaimPthePdamagePonPyourPgeneralPliabilityPinsurancePpolicy.
B.PRequirePthePemployeePtoPpayPforPthePdamagePtoPthePcountertop.
, C.PTellPthePclientPtoPclaimPthePdamagedPcounterPtopPonPhisPorPherPhomeowner'sPinsurancePpolicy.
D.PNoPactionPisPrequired:PThePclientPmustPassumePthePriskPofPdamage.P-PcorrectPanswer-
ClaimPthePdamagePonPyourPgeneralPliabilityPinsurancePpolicy.
OfPthePfollowing,PwhichPisPbestPforPdeterminingPthePnumberPofPhoursPrequiredPforPdifferentPphasesPofPaPproj
ectPandPforPmakingPsurePthePjobPisPonPschedule?
A.PBarPgraphPandPchart
B.PCashPanalysisPchart
C.PReviewPplans
D.PCriticalPpathPmethodP-PcorrectPanswer-ThePcriticalPpathPmethod.
IsPitPlegalPforPaPcontractorPtoPrequirePemployeesPtoPtakePaPliePdetectorPtest?P-PcorrectPanswer-
ItPisPnotPlegalPforPthePcontractorPtoPrequirePliePdetectorPtests,PbutPitPwouldPbePlegalPforPaPfederal,Pstate,PorPloc
alPpublicPagencyPtoPrequirePliePdetectorPtestsPofPtheirPemployees.
IfPaPnewlyPhiredPemployeePdoesPnotPhavePaPSSN,PwhatPshouldPbePdone?P-PcorrectPanswer-
ThePemployeePmustPapplyPforPaPSSN.
HowPmanyPtimesPmayPyouPtakePthePcontractorsPlicensePexamPbeforePyourPoriginalPapplicationPisPvoided?P-
PcorrectPanswer-AsPmanyPtimesPasPnecessaryPwithinP18Pmonths.
WhenPshouldPaPcontractorPrenewPthePcontractor'sPlicensePbond?P-PcorrectPanswer-30PdaysPbeforePitPexpires.
ThePqualifyingPRMEPforPaPconstructionPfirmPmustPworkPatPleast:P-PcorrectPanswer-
APqualifyingPRMEPforPaPconstructionPfirmPmustPworkPatPleastP32PhoursPperPweekPorP80%PofPthePworkPweek
.
ThePfederalPEmployerPIdentificationPNumberP(EIN)PisPissuedPbyPthe:P-PcorrectPanswer-
ThePInternalPRevenuePService
EveryPemployerPofP______PorPmorePfullPorPpartPtimePemployeesPmustPkeepPwrittenPhealthPandPsafetyPrecord
sPforP_______Pyears.
EXAM QUESTIONS WITH DETAILED VERIFIED
ANSWERS (100% CORRECT ANSWERS) A+
GRADE ASSURED
AnPemployerPremitsPStatePdisabilityPtaxesPwithheldPfromPanPemployeesPwagesPtoPwhatPagency?P-
PcorrectPanswer-EmploymentPDevelopmentPDepartment
WhichPactPestablishesPthePrightsPofPworkersPtoPorganizePintoPunionsPandPnegotiatePcontracts?P-
PcorrectPanswer-NationalPLaborPRelationsPActPofP1935
APcontractorPhasPhadPaPproblemPwithPemployeesPstealingPtoolsPandPequipmentPfromPjobPsites.PWhenPcondu
ctingPjobPinterviews,PmayPthePcontractorPaskPprospectivePemployeesPaboutPtheirParrestPrecords?P
P
A.PItPisPlegalPtoPaskPprospectivePemployeesPaboutParrestsPnotPleadingPtoPconvictions.
P
B.PItPisPnotPlegalPtoPaskPprospectivePemployeesPaboutParrestsPnotPleadingPtoPconvictions.
P
C.PItPisPlegalPforPaPprivatePemployerPtoPaskPaboutParrestsPnotPleadingPtoPconvictions,PbutPitPwouldPnotPbePleg
alPforPcityPorPcountyPagenciesPtoPaskPaboutPsuchParrests.
P
D.PItPisPlegalPforPaPprivatePemployerPtoPaskPaboutParrestsPleadingPtoPconvictions,PbutPitPwouldPnotPbePlegalPfo
rPaPfederal,Pstate,PorPlocalPpublicPagencyPtoPdoPso.P-PcorrectPanswer-
ItPisPnotPlegalPtoPaskPprospectivePemployeesPaboutParrestPnotPleadingPtoPconvictions.
WhyPwouldPaPcontractorPhavePaPcasePinPSuperiorPCourt?P-PcorrectPanswer-
IfPitPisPaPdisputePofPmorePthanP$25,000PitPcanPbePtransferredPtoPSuperiorPCourt.
WhichPwouldPnotPhavePtoPbePreportedPtoPDOSHPimmediatelyPorPwithinP24Phours?
A.PDeathPfromPaPthree-storyPfall.
B.PDrunkenPcranePoperatorPhitsPaPhigh-voltagePpowerPline
C.PCarPaccidentPinPwhichPanPemployeePstepsPontoPaPpublicProad,PgetsPhitPbyPaPcar,PandPsuffersPaPconcussion.
,D.PEmployeePfallsPoffPforkliftPandPsuffersPaPseverPbackPinjury.P-PcorrectPanswer-
CarPaccidentPinPwhichPanPemployeePstepsPontoPaPpublicProad,PgetsPhitPbyPaPcar,PandPsuffersPaPconcussion.
APgeneralPcontractorPhasPobtainedPbidsPfromPseveralPsubcontractorsPforPaPprivatePproject.PHePnoticesPthatPo
nePbidPisPsubstantiallyPlowerPthanPthePrest.PIsPitPethicalPandPaPgoodPbusinessPpracticePforPthisPcontractorPtoPin
formPthePsubcontractorPthatPthePbidPisPsubstantiallyPlowerPthanPthePbidsPofPthePotherPsubcontractors?P-
PcorrectPanswer-
Yes.PIfPthePcontractorPhasPreasonPtoPbelievePthatPthePsubcontractorPhasPmadePanPerrorPinPpreparingPhisPbid,Pt
hePcontractorPshouldPnotifyPthePsubcontractorPofPthePapparentPerror,PbutPthePcontractorPmayPnotPdisclosePthe
PamountsPofPthePotherPbids.
AnPemployerPmustPfurnishPanPemployeePwithPaPcompletedPIRSPFormPW-2P(WagePandPTaxPStatement)Pby:P-
PcorrectPanswer-TheP31stPofPJanuary.
AfterPaPjobPisPcompleted,PthePownerPdecidesPtoPhavePadditionalPworkPdone.PHowPshouldPthePcontractorPproc
eed?P-PcorrectPanswer-WritePaPnewPcontractPandPaskPthePownerPtoPsignPit.
ThePpurposePofPaP20-dayPpreliminaryPnoticePforPprivatePworkPisPto?P-PcorrectPanswer-
NotifyPthePownerPthatPthePpersonPorPfirmPwhoPsentPthePnoticePhasPimprovedPthePproperty.
IsPitPlegalPforPaPcontractorPtoPpayPemployeesPinPcash?P-PcorrectPanswer-
Yes,PifPthePcontractorPprovidesPeachPemployeePwithPaPwagePdeductionPstatementPsemimonthlyPorPatPthePtim
ePofPeachPwagePpayment.
YouParePbiddingPonPaPjobPwithPplansPdrawnPbyPthePowner.PYouPnoticePaPcodePviolationPandPbringPitPtoPthePat
tentionPofPthePowner.PThePownerPdeclinesPtoPremedyPthePcodePviolationPandPtellsPyouPnotPtoPworry.PWhatPsh
ouldPyouPdo?P-PcorrectPanswer-DeclinePtoPbidPthePwork.
OnPaPtime-and-materialsPjob,PyouPshould:P-PcorrectPanswer-AddPprofitPandPoverheadPtoPlaborPandPmaterials
YourPemployeePsetsPaPcabinetPwrong.PThePcabinetPfallsPfromPthePwallPandPdamagesPthePclient'sPcounterPtop.
PWhatPshouldPyouPdo?
A.PClaimPthePdamagePonPyourPgeneralPliabilityPinsurancePpolicy.
B.PRequirePthePemployeePtoPpayPforPthePdamagePtoPthePcountertop.
, C.PTellPthePclientPtoPclaimPthePdamagedPcounterPtopPonPhisPorPherPhomeowner'sPinsurancePpolicy.
D.PNoPactionPisPrequired:PThePclientPmustPassumePthePriskPofPdamage.P-PcorrectPanswer-
ClaimPthePdamagePonPyourPgeneralPliabilityPinsurancePpolicy.
OfPthePfollowing,PwhichPisPbestPforPdeterminingPthePnumberPofPhoursPrequiredPforPdifferentPphasesPofPaPproj
ectPandPforPmakingPsurePthePjobPisPonPschedule?
A.PBarPgraphPandPchart
B.PCashPanalysisPchart
C.PReviewPplans
D.PCriticalPpathPmethodP-PcorrectPanswer-ThePcriticalPpathPmethod.
IsPitPlegalPforPaPcontractorPtoPrequirePemployeesPtoPtakePaPliePdetectorPtest?P-PcorrectPanswer-
ItPisPnotPlegalPforPthePcontractorPtoPrequirePliePdetectorPtests,PbutPitPwouldPbePlegalPforPaPfederal,Pstate,PorPloc
alPpublicPagencyPtoPrequirePliePdetectorPtestsPofPtheirPemployees.
IfPaPnewlyPhiredPemployeePdoesPnotPhavePaPSSN,PwhatPshouldPbePdone?P-PcorrectPanswer-
ThePemployeePmustPapplyPforPaPSSN.
HowPmanyPtimesPmayPyouPtakePthePcontractorsPlicensePexamPbeforePyourPoriginalPapplicationPisPvoided?P-
PcorrectPanswer-AsPmanyPtimesPasPnecessaryPwithinP18Pmonths.
WhenPshouldPaPcontractorPrenewPthePcontractor'sPlicensePbond?P-PcorrectPanswer-30PdaysPbeforePitPexpires.
ThePqualifyingPRMEPforPaPconstructionPfirmPmustPworkPatPleast:P-PcorrectPanswer-
APqualifyingPRMEPforPaPconstructionPfirmPmustPworkPatPleastP32PhoursPperPweekPorP80%PofPthePworkPweek
.
ThePfederalPEmployerPIdentificationPNumberP(EIN)PisPissuedPbyPthe:P-PcorrectPanswer-
ThePInternalPRevenuePService
EveryPemployerPofP______PorPmorePfullPorPpartPtimePemployeesPmustPkeepPwrittenPhealthPandPsafetyPrecord
sPforP_______Pyears.