CSLB Contractor’s Law & Business Exam Study Guide: Verified Q&A 2025

1 CSLB CONTRACTOR'S LAW & BUSINESS EXAM
B B B B B B



QUESTIONS WITH DETAILED VERIFIED ANSWE
B B B B B



RS (100% CORRECT ANSWERS) A+
B B B B



GRADE ASSURED B




AnBemployerBremitsBStateBdisabilityBtaxesBwithheldBfromBanBemployeesBwagesBtoBwhatBagency?B-
BcorrectBanswer-EmploymentBDevelopmentBDepartment




WhichBactBestablishesBtheBrightsBofBworkersBtoBorganizePintoBunionsBandBnegotiateBcontracts?B-
BcorrectBanswer-NationalBLaborBRelationsBActBofB1935




ABcontractorBhasBhadBaBproblemBwithBemployeesBstealingBtoolsBandBequipmentBfromBjobBsites.BWhenBcond
uBctingBjobBinterviews,BmayBtheBcontractorBaskBprospectiveBemployeesBaboutBtheirBarrestBrecords?


A. ItBisBlegalBtoBaskPprospectiveBemployeesBaboutBarrestsBnotBleadingPtoBconvictions.


B. ItBisBnotBlegalBtoBaskBprospectiveBemployeesBaboutBarrestsBnotBleadingBtoBconvictions.


C. ItBisBlegalBforBaBprivateBemployerBtoBaskBaboutBarrestsBnotBleadingPtoBconvictions,BbutBitBwouldBnotBbeBl
egBalBforBcityBorBcountyBagenciesBtoBaskBaboutBsuchBarrests.


D. ItBisBlegalBforBaBprivateBemployerBtoBaskBaboutBarrestsBleadingBtoBconvictions,BbutBitBwouldBnotBbeBlegal
BfoBrBaPfederal,Bstate,BorBlocalBpublicBagencyBtoBdoBso.B-BcorrectBanswer-

ItBisBnotBlegalBtoBaskBprospectiveBemployeesBaboutBarrestBnotBleadingBtoBconvictions.


WhyBwouldBaBcontractorBhaveBaBcaseBinBSuperiorBCourt?B-BcorrectBanswer-
IfBitBisBaBdisputeBofBmoreBthanB$25,000BitBcanBbeBtransferredBtoBSuperiorBCourt.


WhichPwouldBnotBhaveBtoBbeBreportedBtoBDOSHBimmediatelyBorBwithinB24Bhours?


A. DeathBfromBaBthree-storyBfall.
B. DrunkenBcraneBoperatorBhitsBaBhigh-voltageBpowerBline
C. CarBaccidentBinBwhichBanBemployeeBstepsBontoBaBpublicBroad,BgetsBhitBbyBaBcar,BandBsuffersBaBconcussion.

,D. EmployeeBfallsBoffBforkliftBandBsuffersBaBseverBbackBinjury.B-BcorrectBanswer-
CarBaccidentBinBwhichBanBemployeeBstepsBontoBaBpublicBroad,BgetsBhitBbyBaBcar,BandBsuffersBaBconcussion.


ABgeneralBcontractorBhasBobtainedBbidsBfromBseveralBsubcontractorsBforBaBprivateBproject.BHeBnoticesBthatB
oBneBbidPisBsubstantiallyBlowerBthanBtheBrest.BIsBitBethicalBandPaBgoodBbusinessBpracticePforBthisBcontractorBt
oBinBformBtheBsubcontractorBthatBtheBbidBisBsubstantiallyBlowerBthanBtheBbidsBofBtheBotherBsubcontractors?B
-BcorrectBanswer-
Yes.BIfBtheBcontractorBhasBreasonBtoBbelieveBthatBtheBsubcontractorBhasBmadeBanBerrorBinBpreparingBhisBbid
,BtBheBcontractorBshouldBnotifyBtheBsubcontractorBofBtheBapparentBerror,BbutBtheBcontractorBmayBnotBdisclos
eBtheBamountsBofBtheBotherBbids.


AnBemployerBmustBfurnishBanBemployeeBwithBaBcompletedBIRSBFormBW-
2B(WageBandBTaxBStatement)Bby:B-BcorrectBanswer-TheB31stBofBJanuary.


AfterBaBjobBisBcompleted,BtheBownerBdecidesBtoBhaveBadditionalBworkBdone.BHowBshouldBtheBcontractorBpr
ocBeed?B-BcorrectBanswer-WriteBaBnewBcontractBandBaskBtheBownerBtoBsignBit.


TheBpurposeBofBaB20-dayBpreliminaryBnoticeBforBprivatePworkBisBto?B-BcorrectBanswer-
BNotifyBtheBownerBthatBtheBpersonBorBfirmBwhoBsentBtheBnoticeBhasBimprovedBtheBpropert

y.


IsBitBlegalBforBaBcontractorBtoBpayBemployeesBinBcash?B-BcorrectBanswer-
Yes,BifBtheBcontractorBprovidesBeachBemployeeBwithBaBwageBdeductionBstatementBsemimonthlyBorBatBtheBti
mBeBofBeachBwageBpayment.


YouBareBbiddingBonBaBjobBwithBplansBdrawnBbyBtheBowner.BYouBnoticeBaBcodeBviolationBandBbringBitBtoBthe
BatBtentionBofBtheBowner.BTheBownerBdeclinesBtoBremedyBtheBcodeBviolationBandBtellsByouBnotBtoBworry.BW

hatBshBouldByouBdo?B-BcorrectBanswer-DeclineBtoBbidBtheBwork.


OnBaBtime-and-materialsBjob,ByouBshould:B-BcorrectBanswer-AddBprofitBandBoverheadBtoBlaborBandBmaterials


YourBemployeeBsetsBaBcabinetBwrong.BTheBcabinetBfallsBfromBtheBwallBandBdamagesBtheBclient'sBcounterBto
p.BWhatBshouldByouBdo?


A. ClaimBtheBdamageBonByourBgeneralBliabilityBinsuranceBpolicy.
B. RequireBtheBemployeeBtoBpayBforBtheBdamageBtoBtheBcountertop.

, C. TellBtheBclientBtoBclaimBtheBdamagedBcounterBtopBonBhisBorBherBhomeowner'sBinsuranceBpolicy.
D. NoBactionBisBrequired:BTheBclientPmustBassumeBtheBriskBofBdamage.B-
BcorrectBanswer-BClaimBtheBdamageBonByourBgeneralBliabilityBinsuranceBpolicy.




OfBtheBfollowing,BwhichBisBbestBforBdeterminingBtheBnumberBofBhoursBrequiredBforBdifferentBphasesBofBaBpr
ojBectBandBforBmakingBsureBtheBjobBisBonBschedule?


A. BarBgraphBandBchart
B. CashBanalysisBchart
C. ReviewBplans
D. CriticalBpathBmethodB-BcorrectBanswer-ThePcriticalBpathBmethod.


IsBitBlegalBforBaBcontractorBtoBrequireBemployeesBtoBtakeBaBlieBdetectorBtest?B-BcorrectBanswer-
ItBisBnotBlegalBforBtheBcontractorBtoBrequireBlieBdetectorBtests,BbutPitBwouldBbeBlegalBforBaBfederal,Bstate,BorBl
ocBalBpublicBagencyBtoBrequireBlieBdetectorBtestsBofBtheirBemployees.


IfBaBnewlyBhiredBemployeeBdoesBnotBhaveBaBSSN,BwhatBshouldBbeBdone?B-
BcorrectBanswer-BTheBemployeeBmustBapplyBforBaBSSN.




HowBmanyBtimesBmayByouPtakeBtheBcontractorsBlicenseBexamBbeforeByourBoriginalBapplicationBisBvoided?B
-BcorrectBanswer-AsBmanyBtimesBasBnecessaryBwithinB18Bmonths.


WhenPshouldBaBcontractorBrenewBtheBcontractor'sBlicenseBbond?B-BcorrectBanswer-30BdaysBbeforeBitBexpires.


TheBqualifyingBRMEBforBaBconstructionBfirmBmustBworkBatPleast:B-BcorrectBanswer-
ABqualifyingBRMEBforBaBconstructionBfirmBmustBworkBatBleastB32BhoursBperBweekBorB80%BofBtheBworkBweek
.


TheBfederalBEmployerBIdentificationBNumberB(EIN)BisBissuedBbyBthe:B-BcorrectBanswer-
BTheBInternalBRevenueBService




EveryBemployerBofB
orBmoreBfullBorBpartBtimeBemployeesBmustBkeepBwrittenBhealthBandBsafetyBrecordBsBforB
years.