CSLB CONTRACTOR'S LAW & BUSINESS EXAM /
COMPREHENSIVE STUDY GUIDE – EXPERT
STRATEGIES, REVIEW OF KEY QUIZZES, AND
PRACTICE QUESTIONS FOR GUARANTEED
SUCCESS / NEWEST 2025/2026.
Terms in this set (196)
An employer remits State Employment Development Department
disability taxes withheld from
an employees wages to what
agency?
National Labor Relations Act of 1935
Which act establishes the
rights of workers to organize
into unions and negotiate
contracts?
,A contractor has had a It is not legal to ask prospective employees about arrest not
problem with employees leading to convictions.
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
privateemployer 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
privateemployer to ask about
arrests leading to convictions,
but it would not be legal for a
federal, state, or local public
agency to do so.
,Why would a contractor If it is a dispute of more than $25,000 it can be transferred to
have a case in Superior Superior Court.
Court?
Which would not have to Car accident in which an employee steps onto a public road,
be reported to DOSH gets hit by a car, and suffers a concussion.
immediately or within 24
hours?
A. Death from a three-
story fall.
B. Drunken crane
operatorhits a high-voltage
power line
C. Car accident in
whichan employee steps
onto a public road, gets hit
by a car, and suffers a
concussion.
D. Employee falls
offforklift and suffers a sever
back injury.
Yes. If the contractor has reason to believe that the
subcontractor has made an error in preparing his bid, the
A general contractor has contractor should notify the subcontractor of the apparent
obtained bids from several error, but the contractor may not disclose the amounts of
subcontractors for a private the other bids.
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?
, An employer must furnish an The 31st of January.
employee with a completed
IRS Form W-2 (Wage and Tax
Statement) by:
After a job is completed, the Write a new contract and ask the owner to sign it.
owner decides to have
additional work done. How
should the contractor
proceed?
The purpose of a 20-day Notify the owner that the person or firm who sent the notice has
preliminary notice for improved the property.
private work is to?
Is it legal for a contractor to Yes, if the contractor provides each employee with a wage
pay employees in cash? deduction statement semimonthly or at the time of each
wage payment.
You are bidding on a job with Decline to bid the work.
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?
On a time-and-materials job, Add profit and overhead to labor and materials
you should:
COMPREHENSIVE STUDY GUIDE – EXPERT
STRATEGIES, REVIEW OF KEY QUIZZES, AND
PRACTICE QUESTIONS FOR GUARANTEED
SUCCESS / NEWEST 2025/2026.
Terms in this set (196)
An employer remits State Employment Development Department
disability taxes withheld from
an employees wages to what
agency?
National Labor Relations Act of 1935
Which act establishes the
rights of workers to organize
into unions and negotiate
contracts?
,A contractor has had a It is not legal to ask prospective employees about arrest not
problem with employees leading to convictions.
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
privateemployer 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
privateemployer to ask about
arrests leading to convictions,
but it would not be legal for a
federal, state, or local public
agency to do so.
,Why would a contractor If it is a dispute of more than $25,000 it can be transferred to
have a case in Superior Superior Court.
Court?
Which would not have to Car accident in which an employee steps onto a public road,
be reported to DOSH gets hit by a car, and suffers a concussion.
immediately or within 24
hours?
A. Death from a three-
story fall.
B. Drunken crane
operatorhits a high-voltage
power line
C. Car accident in
whichan employee steps
onto a public road, gets hit
by a car, and suffers a
concussion.
D. Employee falls
offforklift and suffers a sever
back injury.
Yes. If the contractor has reason to believe that the
subcontractor has made an error in preparing his bid, the
A general contractor has contractor should notify the subcontractor of the apparent
obtained bids from several error, but the contractor may not disclose the amounts of
subcontractors for a private the other bids.
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?
, An employer must furnish an The 31st of January.
employee with a completed
IRS Form W-2 (Wage and Tax
Statement) by:
After a job is completed, the Write a new contract and ask the owner to sign it.
owner decides to have
additional work done. How
should the contractor
proceed?
The purpose of a 20-day Notify the owner that the person or firm who sent the notice has
preliminary notice for improved the property.
private work is to?
Is it legal for a contractor to Yes, if the contractor provides each employee with a wage
pay employees in cash? deduction statement semimonthly or at the time of each
wage payment.
You are bidding on a job with Decline to bid the work.
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?
On a time-and-materials job, Add profit and overhead to labor and materials
you should:
