TN BUSINESS AND LAW EXAMINATION TEST 2025/2026
QUESTIONS WITH SOLUTIONS RATED A+
✔✔Of the following, which document is usually delivered first in a transaction involving a
home improvement contract?
three-day notice of right to cancel
the contract
"Notice to Owner"
20-day preliminary notice - ✔✔"Notice to Owner"
✔✔Question 72:
Insured employers must report every work-related illness or injury to their workers'
compensation carrier within _____ of the incident.
24 hours
2 days
5 days
10 days - ✔✔5 days
✔✔Which building code should a contractor follow?
the most stringent code
national code
state code
local code - ✔✔local code
✔✔A contractor and a homeowner sign a home solicitation contract. If the owner
lawfully cancels the contract, how long does the contractor have to pick up unused
materials that were delivered to the owner's property?
within 24 hours after cancellation
,within 10 days after cancellation
within 20 days after cancellation
It's too late: If the materials are delivered to the property before a notice of cancellation
is received, the materials become the property of the owner. - ✔✔within 20 days after
cancellation
✔✔A mechanics' lien is a written document that must be signed and verified by the
claimant. The first and third steps a contractor should take in filing a lien are listed
below. Step 1: Obtain the exact legal description of the property. Step 2: Step 3: Find
out if the person requesting the work of improvement is the owner. What is Step 2?
Determine the amount of the lien claim.
Find out the name of the legal owner of the property as well as the percent of
ownership.
List the attorney representing the contractor.
List the attorney representing the owner. - ✔✔Find out the name of the legal owner of
the property as well as the percent of ownership.
✔✔Which of the following are the most effective when used together on a private works
project?
stop payment notice and mechanics lien
notice of cessation and mechanics lien
preliminary notice and stop payment notice
notice of non-responsibility and mechanics lien - ✔✔stop payment notice and
mechanics lien
✔✔The employer is required to provide employee information, training, and certification
as per T8 CCR. As required by T8 CCR, the employer shall ensure that all employees
and supervisors that perform any lead-related construction work are trained by an
accredited training provider and are then certified by the______________________.
Environmental Protection Agency (EPA)
California Department of Health Services
DOSH
, CSLB - ✔✔California Department of Health Services
✔✔When is the last day a customer can cancel a contract that was signed on Friday,
December 21st?
the following Friday
the following Tuesday
the following Wednesday
the following Thursday - ✔✔the following Wednesday
✔✔Sometimes contracts prove to be too vague to interpret without disagreement
between owner and contractor. Which of the following steps would best prevent such
problems?
Walk the job site with the owner.
Review the plans and specifications with the owner.
Show the owner the critical path schedule.
Include a payment schedule in the contract. - ✔✔Review the plans and specifications
with the owner.
✔✔Who pays FICA?
employer
employee
50% employer and 50% employee
90% employer and 10% employee - ✔✔50% employer and 50% employee
✔✔If a contractor forgets to renew his or her license on time, the expired license may
be renewed any time within _____ after its expiration without reapplying for a license
and fulfilling the exam or waiver requirements again.
one year
two years
QUESTIONS WITH SOLUTIONS RATED A+
✔✔Of the following, which document is usually delivered first in a transaction involving a
home improvement contract?
three-day notice of right to cancel
the contract
"Notice to Owner"
20-day preliminary notice - ✔✔"Notice to Owner"
✔✔Question 72:
Insured employers must report every work-related illness or injury to their workers'
compensation carrier within _____ of the incident.
24 hours
2 days
5 days
10 days - ✔✔5 days
✔✔Which building code should a contractor follow?
the most stringent code
national code
state code
local code - ✔✔local code
✔✔A contractor and a homeowner sign a home solicitation contract. If the owner
lawfully cancels the contract, how long does the contractor have to pick up unused
materials that were delivered to the owner's property?
within 24 hours after cancellation
,within 10 days after cancellation
within 20 days after cancellation
It's too late: If the materials are delivered to the property before a notice of cancellation
is received, the materials become the property of the owner. - ✔✔within 20 days after
cancellation
✔✔A mechanics' lien is a written document that must be signed and verified by the
claimant. The first and third steps a contractor should take in filing a lien are listed
below. Step 1: Obtain the exact legal description of the property. Step 2: Step 3: Find
out if the person requesting the work of improvement is the owner. What is Step 2?
Determine the amount of the lien claim.
Find out the name of the legal owner of the property as well as the percent of
ownership.
List the attorney representing the contractor.
List the attorney representing the owner. - ✔✔Find out the name of the legal owner of
the property as well as the percent of ownership.
✔✔Which of the following are the most effective when used together on a private works
project?
stop payment notice and mechanics lien
notice of cessation and mechanics lien
preliminary notice and stop payment notice
notice of non-responsibility and mechanics lien - ✔✔stop payment notice and
mechanics lien
✔✔The employer is required to provide employee information, training, and certification
as per T8 CCR. As required by T8 CCR, the employer shall ensure that all employees
and supervisors that perform any lead-related construction work are trained by an
accredited training provider and are then certified by the______________________.
Environmental Protection Agency (EPA)
California Department of Health Services
DOSH
, CSLB - ✔✔California Department of Health Services
✔✔When is the last day a customer can cancel a contract that was signed on Friday,
December 21st?
the following Friday
the following Tuesday
the following Wednesday
the following Thursday - ✔✔the following Wednesday
✔✔Sometimes contracts prove to be too vague to interpret without disagreement
between owner and contractor. Which of the following steps would best prevent such
problems?
Walk the job site with the owner.
Review the plans and specifications with the owner.
Show the owner the critical path schedule.
Include a payment schedule in the contract. - ✔✔Review the plans and specifications
with the owner.
✔✔Who pays FICA?
employer
employee
50% employer and 50% employee
90% employer and 10% employee - ✔✔50% employer and 50% employee
✔✔If a contractor forgets to renew his or her license on time, the expired license may
be renewed any time within _____ after its expiration without reapplying for a license
and fulfilling the exam or waiver requirements again.
one year
two years
