Business and Law Practice Exam
Questions And Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. Which agency regulates plumbing contractors in Arizona?
A. Arizona Department of Labor
B. Arizona Registrar of Contractors
C. Arizona Corporation Commission
D. Arizona Department of Revenue
B. Arizona Registrar of Contractors
The Arizona Registrar of Contractors (ROC) licenses and regulates all
contractors, including plumbing contractors.
2. A plumbing contractor license in Arizona is required when the total
contract value exceeds:
A. $500
, B. $750
C. $1,000
D. Any amount
B. $750
Arizona law requires a contractor license for work with a total value
over $750 including labor and materials.
3. What classification is typically required for a plumbing contractor in
Arizona?
A. CR-1
B. CR-4
C. CR-37
D. CR-61
C. CR-37
CR-37 is the standard Arizona license classification for plumbing
contractors.
4. How long is an Arizona contractor license valid before renewal?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
B. 2 years
Arizona contractor licenses must be renewed every two years.
,5. Which bond is required for Arizona plumbing contractors?
A. Performance bond only
B. License bond based on volume
C. Bid bond
D. Fidelity bond
B. License bond based on volume
Arizona requires a contractor license bond, with amounts based on
the volume of work performed.
6. What is the primary purpose of a contractor license bond?
A. To insure tools
B. To guarantee job completion
C. To protect the public from violations
D. To pay employee wages
C. To protect the public from violations
The license bond protects consumers from damages caused by
contractor violations of law.
7. What insurance is mandatory for plumbing contractors with
employees?
A. General liability only
B. Property insurance
C. Workers’ compensation
D. Auto liability
C. Workers’ compensation
, Arizona law requires workers’ compensation insurance for
contractors with employees.
8. Which document must be provided to a residential customer before
work begins?
A. Change order
B. Written contract
C. Lien waiver
D. Advertising disclosure
B. Written contract
Residential construction requires a written contract outlining scope,
price, and terms.
9. A contract price of $1,200 must be:
A. Oral only
B. Approved by ROC
C. In writing
D. Paid in advance
C. In writing
Arizona law requires written contracts for jobs exceeding $750.
10. Which item must be included in a plumbing contract?
A. Contractor’s home address
B. License number
C. Social Security number
D. Banking information