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Louisiana Business and Law Questions with Accurate Answers

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The purpose of the contractor licensing laws is to - ANSWERSProtect the public from fraudulent contractors Protect against inexperienced contractors Protect the health, safety and general welfare of the public Any construction project other than residential homes, a single residential duplex, tri-plex, or four-plex. - ANSWERSCommercial project A contractor is a person that works on a project valued at ______ or more for commercial purposes other than residential duplexes, tri-plexes or four-plexes. - ANSWERS$50,000 A ___________ is the person who contracts directly with the owner. - ANSWERSGeneral contractor A contractor that works on a preexisting owner occupied building is considered a _________ . - ANSWERSHome improvement contractor A residential contractor is one who constructs a fixed structure when the cost exceeds _________. - ANSWERS$75,000 The state licensing board is comprised of ____ members. - ANSWERS15 The board has the power to do any of the following EXCEPT: - ANSWERSSue unlicensed contractors Licenses and renewals expire on _______. - ANSWERSThe anniversary date the license was issued An applicant must furnish the board with proof of financial responsibility including proof of net worth of at least ______ . - ANSWERS$10,000 Is an applicant permitted to furnish a bond in lieu of proof of net worth? - ANSWERSyes When a qualifying party of a construction company leaves employment, the company has how many days to inform the board? - ANSWERS30 days A qualifying party can be which of the following: - ANSWERSA co-partner A stockholder An employee who has been with the company at least 120 days All of the above An owner of a property who is improving their home for their own use does not have to have a license to do construction work. - ANSWERSTrue If you fail to comply with the rules of the board, you are subject to revocation or suspension of your license. - ANSWERSTrue If you have been found guilty of violating the rules of the board more than twice in one year, you will not be permitted to bid on a public project for up to ____ years - ANSWERS3 If a license has been denied by the board, the applicant has ____ to appeal. - ANSWERS6 months A contractor who is unlicensed may be found guilty of a misdemeanor, and fined up to ________. - ANSWERS$500 per day of the violation If an unlicensed contractor causes harm or damage to another in excess of $300, they can be fined up to ______ and possibly be imprisoned up to _____ . - ANSWERS$5,000 and 5 years If a contractor has been ordered to cease and desist work, and fails to do so, that contractor shall not be permitted to apply for a license for ___________ . - ANSWERS1 year A residential contractor must provide all of the following EXCEPT: - ANSWERSProof of five years experience A contractor who opts to place his license in an inactive status must still submit proof of insurance coverage. - ANSWERSFalse Residential contractors must pay a renewal fee of _____. - ANSWERS$100.00 Residential contractors must pay a license fee of _____. - ANSWERS$100.00 A home improvement project , in excess of _______ MUST have a written contract between the contractor and the owner. - ANSWERS$7,500 A home improvement contractor is required to register with the Residential Building Contractors Subcommittee. - ANSWERSTrue A residential contractor must complete a minimum of _____ of continuing education per year. - ANSWERS6 hours

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Louisiana Business and Law
Questions with Accurate Answers
The purpose of the contractor licensing laws is to - ANSWERSProtect the public from
fraudulent contractors
Protect against inexperienced contractors
Protect the health, safety and general welfare of the public

Any construction project other than residential homes, a single residential duplex, tri-
plex, or four-plex. - ANSWERSCommercial project

A contractor is a person that works on a project valued at ______ or more for
commercial purposes other than residential duplexes, tri-plexes or four-plexes. -
ANSWERS$50,000

A ___________ is the person who contracts directly with the owner. -
ANSWERSGeneral contractor

A contractor that works on a preexisting owner occupied building is considered a
_________ . - ANSWERSHome improvement contractor

A residential contractor is one who constructs a fixed structure when the cost exceeds
_________. - ANSWERS$75,000

The state licensing board is comprised of ____ members. - ANSWERS15

The board has the power to do any of the following EXCEPT: - ANSWERSSue
unlicensed contractors

Licenses and renewals expire on _______. - ANSWERSThe anniversary date the
license was issued

An applicant must furnish the board with proof of financial responsibility including proof
of net worth of at least ______ . - ANSWERS$10,000

Is an applicant permitted to furnish a bond in lieu of proof of net worth? - ANSWERSyes

When a qualifying party of a construction company leaves employment, the company
has how many days to inform the board? - ANSWERS30 days

A qualifying party can be which of the following: - ANSWERSA co-partner
A stockholder
An employee who has been with the company at least 120 days

, All of the above

An owner of a property who is improving their home for their own use does not have to
have a license to do construction work. - ANSWERSTrue

If you fail to comply with the rules of the board, you are subject to revocation or
suspension of your license. - ANSWERSTrue

If you have been found guilty of violating the rules of the board more than twice in one
year, you will not be permitted to bid on a public project for up to ____ years -
ANSWERS3

If a license has been denied by the board, the applicant has ____ to appeal. -
ANSWERS6 months

A contractor who is unlicensed may be found guilty of a misdemeanor, and fined up to
________. - ANSWERS$500 per day of the violation

If an unlicensed contractor causes harm or damage to another in excess of $300, they
can be fined up to ______ and possibly be imprisoned up to _____ . -
ANSWERS$5,000 and 5 years

If a contractor has been ordered to cease and desist work, and fails to do so, that
contractor shall not be permitted to apply for a license for ___________ . - ANSWERS1
year

A residential contractor must provide all of the following EXCEPT: - ANSWERSProof of
five years experience

A contractor who opts to place his license in an inactive status must still submit proof of
insurance coverage. - ANSWERSFalse

Residential contractors must pay a renewal fee of _____. - ANSWERS$100.00

Residential contractors must pay a license fee of _____. - ANSWERS$100.00

A home improvement project , in excess of _______ MUST have a written contract
between the contractor and the owner. - ANSWERS$7,500

A home improvement contractor is required to register with the Residential Building
Contractors Subcommittee. - ANSWERSTrue

A residential contractor must complete a minimum of _____ of continuing education per
year. - ANSWERS6 hours

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