CSLB - LAW AND BUSINESS
EXAM QUESTIONS AND
COMPLETE SOLUTIONS GRADED
A+
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Derrickmaina932gmail.com
, 2 types of qualifying individuals for each type of license - Answer: Individual - Responsible Managing
Employee (RME) or Owner
Partnership - Qualifying Partner or RME
Corporation - Responsible managing officer (RMO) or RME
LLC - RME, RMO, Responsible Managing member/manager
What must be filed w/CSLB if RME/RMO leaves? Within how long? If not, what happens? - Answer:
"Notice of disassociation" and "application for replacing qualifying individual".
Within 20 days
Or license automatically suspended
Responsible Managing Employee (RME) - Answer: Full time employee works at least 32 hours or 80% of
operating time of biz, whichever is less.
May be used to qualify for individual, partnership, or corp license.
Never more than 3 licensees at one time.
Can only act as qualifier for 1 license at a time unless either: 1) other licensee is subsidiary 2) he/she
owns at least 20% of licensee 3) majority of officers/partners of other one also are those of 1st
Responsible Managing Officer (RMO) - Answer: Officer of Corp
Journeyman - Answer: A person who has completed an apprecnticeship program or is an experienced
worker, not a trainee, and is fully qualified to perform the trade without supervision.
Foreman/Supervisor - Answer: A person who has the knowledge/skill of a journeyman and directly
supervises physical construction
What are penalties for contracting w/out a license - Answer: - Misdemeanor offense
- 1st offense may receive citation from registrar, potential sentence of up to 6 months in jail and/or $500
fine, which is accompanied by civil penalty of no less than $200 and no more than $15,000. May lessen
or waive if contractor obtains license within prescribed period of time.
- Felony charges for contracting w/out a license in emergency projects.
EXAM QUESTIONS AND
COMPLETE SOLUTIONS GRADED
A+
Your Exam Plug
Derrickmaina932gmail.com
, 2 types of qualifying individuals for each type of license - Answer: Individual - Responsible Managing
Employee (RME) or Owner
Partnership - Qualifying Partner or RME
Corporation - Responsible managing officer (RMO) or RME
LLC - RME, RMO, Responsible Managing member/manager
What must be filed w/CSLB if RME/RMO leaves? Within how long? If not, what happens? - Answer:
"Notice of disassociation" and "application for replacing qualifying individual".
Within 20 days
Or license automatically suspended
Responsible Managing Employee (RME) - Answer: Full time employee works at least 32 hours or 80% of
operating time of biz, whichever is less.
May be used to qualify for individual, partnership, or corp license.
Never more than 3 licensees at one time.
Can only act as qualifier for 1 license at a time unless either: 1) other licensee is subsidiary 2) he/she
owns at least 20% of licensee 3) majority of officers/partners of other one also are those of 1st
Responsible Managing Officer (RMO) - Answer: Officer of Corp
Journeyman - Answer: A person who has completed an apprecnticeship program or is an experienced
worker, not a trainee, and is fully qualified to perform the trade without supervision.
Foreman/Supervisor - Answer: A person who has the knowledge/skill of a journeyman and directly
supervises physical construction
What are penalties for contracting w/out a license - Answer: - Misdemeanor offense
- 1st offense may receive citation from registrar, potential sentence of up to 6 months in jail and/or $500
fine, which is accompanied by civil penalty of no less than $200 and no more than $15,000. May lessen
or waive if contractor obtains license within prescribed period of time.
- Felony charges for contracting w/out a license in emergency projects.
