CSLB CONTRACTOR'S LAW &
BUSINESS EXAM QUESTIONS AND
ANSWERS
An employer remits State disability taxes withheld from an employees wages to
what agency? - ANSWER>>Employment Development Department
Which act establishes the rights of workers to organize into unions and
negotiate contracts? - ANSWER>>National Labor Relations Act of 1935
A contractor has had a problem with employees stealing tools and equipment
from job sites. When conducting job interviews, may the contractor ask
prospective employees about their arrest records?
A. It is legal to ask prospective employees about arrests not leading to
convictions.
B. It is not legal to ask prospective employees about arrests not leading to
convictions.
C. It is legal for a private employer to ask about arrests not leading to
convictions, but it would not be legal for city or county agencies to ask about
such arrests.
D. It is legal for a private employer to ask about arrests leading to convictions,
but it would not be legal for a federal, state, or local public agency to do so. -
ANSWER>>It is not legal to ask prospective employees about arrest not leading
to convictions.
,Why would a contractor have a case in Superior Court? - ANSWER>>If it is a
dispute of more than $25,000 it can be transferred to Superior Court.
Which would not have to be reported to DOSH immediately or within 24 hours?
A. Death from a three-story fall.
B. Drunken crane operator hits a high-voltage power line
C. Car accident in which an employee steps onto a public road, gets hit by a car,
and suffers a concussion.
D. Employee falls off forklift and suffers a sever back injury. - ANSWER>>Car
accident in which an employee steps onto a public road, gets hit by a car, and
suffers a concussion.
A general contractor has obtained bids from several subcontractors for a private
project. He notices that one bid is substantially lower than the rest. Is it ethical
and a good business practice for this contractor to inform the subcontractor
that the bid is substantially lower than the bids of the other subcontractors? -
ANSWER>>Yes. If the contractor has reason to believe that the subcontractor
has made an error in preparing his bid, the contractor should notify the
subcontractor of the apparent error, but the contractor may not disclose the
amounts of the other bids.
An employer must furnish an employee with a completed IRS Form W-2 (Wage
and Tax Statement) by: - ANSWER>>The 31st of January.
After a job is completed, the owner decides to have additional work done. How
should the contractor proceed? - ANSWER>>Write a new contract and ask the
owner to sign it.
The purpose of a 20-day preliminary notice for private work is to? -
ANSWER>>Notify the owner that the person or firm who sent the notice has
improved the property.
,Is it legal for a contractor to pay employees in cash? - ANSWER>>Yes, if the
contractor provides each employee with a wage deduction statement
semimonthly or at the time of each wage payment.
You are bidding on a job with plans drawn by the owner. You notice a code
violation and bring it to the attention of the owner. The owner declines to
remedy the code violation and tells you not to worry. What should you do? -
ANSWER>>Decline to bid the work.
On a time-and-materials job, you should: - ANSWER>>Add profit and overhead
to labor and materials
Your employee sets a cabinet wrong. The cabinet falls from the wall and
damages the client's counter top. What should you do?
A. Claim the damage on your general liability insurance policy.
B. Require the employee to pay for the damage to the countertop.
C. Tell the client to claim the damaged counter top on his or her homeowner's
insurance policy.
D. No action is required: The client must assume the risk of damage. -
ANSWER>>Claim the damage on your general liability insurance policy.
Of the following, which is best for determining the number of hours required for
different phases of a project and for making sure the job is on schedule?
A. Bar graph and chart
B. Cash analysis chart
C. Review plans
D. Critical path method - ANSWER>>The critical path method.
Is it legal for a contractor to require employees to take a lie detector test? -
ANSWER>>It is not legal for the contractor to require lie detector tests, but it
, would be legal for a federal, state, or local public agency to require lie detector
tests of their employees.
If a newly hired employee does not have a SSN, what should be done? -
ANSWER>>The employee must apply for a SSN.
How many times may you take the contractors license exam before your
original application is voided? - ANSWER>>As many times as necessary within
18 months.
When should a contractor renew the contractor's license bond? - ANSWER>>30
days before it expires.
The qualifying RME for a construction firm must work at least: - ANSWER>>A
qualifying RME for a construction firm must work at least 32 hours per week or
80% of the work week.
The federal Employer Identification Number (EIN) is issued by the: -
ANSWER>>The Internal Revenue Service
Every employer of ______ or more full or part time employees must keep
written health and safety records for _______ years.
A. 1-3
B. 7-4
C. 10-3
D. 11-5 - ANSWER>>Every employer of 11 or more full or part time employees
must keep written health and safety records for 5 years.
After you have read the plans and specifications, what is the next important
step in writing a bid?
A. Talk to and select subs.
BUSINESS EXAM QUESTIONS AND
ANSWERS
An employer remits State disability taxes withheld from an employees wages to
what agency? - ANSWER>>Employment Development Department
Which act establishes the rights of workers to organize into unions and
negotiate contracts? - ANSWER>>National Labor Relations Act of 1935
A contractor has had a problem with employees stealing tools and equipment
from job sites. When conducting job interviews, may the contractor ask
prospective employees about their arrest records?
A. It is legal to ask prospective employees about arrests not leading to
convictions.
B. It is not legal to ask prospective employees about arrests not leading to
convictions.
C. It is legal for a private employer to ask about arrests not leading to
convictions, but it would not be legal for city or county agencies to ask about
such arrests.
D. It is legal for a private employer to ask about arrests leading to convictions,
but it would not be legal for a federal, state, or local public agency to do so. -
ANSWER>>It is not legal to ask prospective employees about arrest not leading
to convictions.
,Why would a contractor have a case in Superior Court? - ANSWER>>If it is a
dispute of more than $25,000 it can be transferred to Superior Court.
Which would not have to be reported to DOSH immediately or within 24 hours?
A. Death from a three-story fall.
B. Drunken crane operator hits a high-voltage power line
C. Car accident in which an employee steps onto a public road, gets hit by a car,
and suffers a concussion.
D. Employee falls off forklift and suffers a sever back injury. - ANSWER>>Car
accident in which an employee steps onto a public road, gets hit by a car, and
suffers a concussion.
A general contractor has obtained bids from several subcontractors for a private
project. He notices that one bid is substantially lower than the rest. Is it ethical
and a good business practice for this contractor to inform the subcontractor
that the bid is substantially lower than the bids of the other subcontractors? -
ANSWER>>Yes. If the contractor has reason to believe that the subcontractor
has made an error in preparing his bid, the contractor should notify the
subcontractor of the apparent error, but the contractor may not disclose the
amounts of the other bids.
An employer must furnish an employee with a completed IRS Form W-2 (Wage
and Tax Statement) by: - ANSWER>>The 31st of January.
After a job is completed, the owner decides to have additional work done. How
should the contractor proceed? - ANSWER>>Write a new contract and ask the
owner to sign it.
The purpose of a 20-day preliminary notice for private work is to? -
ANSWER>>Notify the owner that the person or firm who sent the notice has
improved the property.
,Is it legal for a contractor to pay employees in cash? - ANSWER>>Yes, if the
contractor provides each employee with a wage deduction statement
semimonthly or at the time of each wage payment.
You are bidding on a job with plans drawn by the owner. You notice a code
violation and bring it to the attention of the owner. The owner declines to
remedy the code violation and tells you not to worry. What should you do? -
ANSWER>>Decline to bid the work.
On a time-and-materials job, you should: - ANSWER>>Add profit and overhead
to labor and materials
Your employee sets a cabinet wrong. The cabinet falls from the wall and
damages the client's counter top. What should you do?
A. Claim the damage on your general liability insurance policy.
B. Require the employee to pay for the damage to the countertop.
C. Tell the client to claim the damaged counter top on his or her homeowner's
insurance policy.
D. No action is required: The client must assume the risk of damage. -
ANSWER>>Claim the damage on your general liability insurance policy.
Of the following, which is best for determining the number of hours required for
different phases of a project and for making sure the job is on schedule?
A. Bar graph and chart
B. Cash analysis chart
C. Review plans
D. Critical path method - ANSWER>>The critical path method.
Is it legal for a contractor to require employees to take a lie detector test? -
ANSWER>>It is not legal for the contractor to require lie detector tests, but it
, would be legal for a federal, state, or local public agency to require lie detector
tests of their employees.
If a newly hired employee does not have a SSN, what should be done? -
ANSWER>>The employee must apply for a SSN.
How many times may you take the contractors license exam before your
original application is voided? - ANSWER>>As many times as necessary within
18 months.
When should a contractor renew the contractor's license bond? - ANSWER>>30
days before it expires.
The qualifying RME for a construction firm must work at least: - ANSWER>>A
qualifying RME for a construction firm must work at least 32 hours per week or
80% of the work week.
The federal Employer Identification Number (EIN) is issued by the: -
ANSWER>>The Internal Revenue Service
Every employer of ______ or more full or part time employees must keep
written health and safety records for _______ years.
A. 1-3
B. 7-4
C. 10-3
D. 11-5 - ANSWER>>Every employer of 11 or more full or part time employees
must keep written health and safety records for 5 years.
After you have read the plans and specifications, what is the next important
step in writing a bid?
A. Talk to and select subs.
