CSLB Contractor's Law practice Actual
Exam 2 Questions with 100% Correct
Solutions | Verified | Updated 2025/2026 –
Just Released.
1. 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.
2. If a newly hired employee does not have a SSN, what
should be done? - ANSWER ✓ The employee must
apply for a SSN.
3. 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.
,4. When should a contractor renew the contractor's license
bond? - ANSWER ✓ 30 days before it expires.
5. 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.
6. The federal Employer Identification Number (EIN) is
issued by the: - ANSWER ✓ The Internal Revenue
Service
7. 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.
8. After you have read the plans and specifications, what
is the next important step in writing a bid?
A. Talk to and select subs.
B. Walk the job.
C. Call about materials, price, and availability.
D. Talk to the crew leader about labor. - ANSWER
✓ Walk the job.
9. Once a budget is finalized, the:
A. Contractor should stick to the budget no matter
what happens.
B. Contractor should do the best possible job of
staying within the budget.
C. Budget should be revised each month.
, D. Budget should be referred to only if the business
has cashflow problems. - ANSWER ✓ The
contractor should do the best possible job of
staying within budget. `
10. Who must sign a joint control addendum to a home
improvement contract? - ANSWER ✓ Owner,
contractor, and joint control officer.
11. When purchasing insurance, what is the best way to
chose among different companies? - ANSWER ✓ Cost
and Coverage
12. Sometimes contracts can prove to be too vague to
interpret without disagreement between owner and
contractor. Which of the following steps would best
prevent such problems?
A. Walk the job site with the owner.
B. Review the plans and specifications with the
owner.
Exam 2 Questions with 100% Correct
Solutions | Verified | Updated 2025/2026 –
Just Released.
1. 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.
2. If a newly hired employee does not have a SSN, what
should be done? - ANSWER ✓ The employee must
apply for a SSN.
3. 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.
,4. When should a contractor renew the contractor's license
bond? - ANSWER ✓ 30 days before it expires.
5. 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.
6. The federal Employer Identification Number (EIN) is
issued by the: - ANSWER ✓ The Internal Revenue
Service
7. 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.
8. After you have read the plans and specifications, what
is the next important step in writing a bid?
A. Talk to and select subs.
B. Walk the job.
C. Call about materials, price, and availability.
D. Talk to the crew leader about labor. - ANSWER
✓ Walk the job.
9. Once a budget is finalized, the:
A. Contractor should stick to the budget no matter
what happens.
B. Contractor should do the best possible job of
staying within the budget.
C. Budget should be revised each month.
, D. Budget should be referred to only if the business
has cashflow problems. - ANSWER ✓ The
contractor should do the best possible job of
staying within budget. `
10. Who must sign a joint control addendum to a home
improvement contract? - ANSWER ✓ Owner,
contractor, and joint control officer.
11. When purchasing insurance, what is the best way to
chose among different companies? - ANSWER ✓ Cost
and Coverage
12. Sometimes contracts can prove to be too vague to
interpret without disagreement between owner and
contractor. Which of the following steps would best
prevent such problems?
A. Walk the job site with the owner.
B. Review the plans and specifications with the
owner.
