CSLB - LAWAND BUSINESS EXAM 2024-2025 v v v v v v
QUESTIONSWITH100%CORRECTANSWERS
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2 types of qualifying individuals for each type of license - correct answer-Individual - Responsible
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Managing Employee (RME) or Owner
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Partnership - Qualifying Partner or RME v v v v v
Corporation - Responsible managing officer (RMO) or RME LLC - v v v v v v v v v
RME, RMO, Responsible Managing member/manager
v v v v v
What must be filed w/CSLB if RME/RMO leaves? Within how long? If not, what happens? - correct
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answer-"Notice of disassociation" and "application for replacing qualifying individual".
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Within 20 days v v
Or license automatically suspended
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Responsible Managing Employee (RME) - correct answer- v v v v v v
Full time employee works at least 32 hours or 80% of operating time of biz, whichever is less. May
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v be used to qualify for individual, partnership, or corp license.
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Never more than 3 licensees at one time.v v v v v v v
Can only act as qualifier for 1 license at a time unless either: 1) other licensee is subsidiary 2) he/she ow ns at
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least 20% of licensee 3) majority of officers/partners of other one also are those of 1st
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Responsible Managing Officer (RMO) - correct answer-Officer of Corp v v v v v v v v
Journeyman - correct answer- v v v
A person who has completed an apprecnticeship program or is an experienced worker, not a trainee, an d is
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fully qualified to perform the trade withoutRsupervision.
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Foreman/Supervisor - correct answer- v v v
A person who has the knowledge/skill of a journeyman and directly supervises physical construction
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What are penalties for contracting w/out a license - correct answer-- Misdemeanor offense
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, -
1st offense may receive citation from registrar, potential sentence of up to 6 months in jail and/or $500 fine,
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which is accompanied by civil penalty of no less than $200 and no more than $15,000. May lessen or waive if
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contractor obtains license within prescribed period of time.
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- Felony charges for contracting w/out a license in emergency projects.
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-
2nd offense found guilty of criminal offense which is punishable by civil penalty of 20% contract price o r
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$4,500, whichever isRgreater, and county jail min 90 days.
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Penalty for advertising for work outside of your license - correct answer-fine of $700-$1000
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Penalty for hiring unlicensed sub or allowing use of license - correct answer-
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Citation from registrar and civil penalty up to $15,000
v v v v v v v v v
Penalty for deliberate fraudulent use of contractor's license - correct answer- Up to
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$10,000 and/or one year jail
v v v v v
Bond must be filed with _ within _ days of effective date of bond. - correct answer-CSLB ; 90
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Contractor's Bond amount - correct answer-$15,000 v v v v v
Performance Bond - correct answer- v v v v
guarantees job will be completed according to building plans and specs. If work is unacceptable or proje ct is
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abandoned, bondingRcompany can hire another contractor to complete the work or settle for dama ges.
v v v v v v v v v v v v v v v
Payment Bond - correct answer- v v v v
Guarantee to the owner that no liens for materials or labor will be filed against the property.
v v v v v v v v v v v v v v v v
Contract Bond - correct answer-Guarantees both job completion and payment of all labor and materials.
v v v v v v v v v v v v v v
Bid Shopping - correct answer-
v v v v
When prime contractor discloses sub's bid to other subs to get them to lower their price.
v v v v v v v v v v v v v v v
QUESTIONSWITH100%CORRECTANSWERS
v v v v v
2 types of qualifying individuals for each type of license - correct answer-Individual - Responsible
v v v v v v v v v v v v v v
Managing Employee (RME) or Owner
v v v v v
Partnership - Qualifying Partner or RME v v v v v
Corporation - Responsible managing officer (RMO) or RME LLC - v v v v v v v v v
RME, RMO, Responsible Managing member/manager
v v v v v
What must be filed w/CSLB if RME/RMO leaves? Within how long? If not, what happens? - correct
v v v v v v v v v v v v v v v v
answer-"Notice of disassociation" and "application for replacing qualifying individual".
v v v v v v v v v
Within 20 days v v
Or license automatically suspended
v v v
Responsible Managing Employee (RME) - correct answer- v v v v v v
Full time employee works at least 32 hours or 80% of operating time of biz, whichever is less. May
v v v v v v v v v v v v v v v v v v
v be used to qualify for individual, partnership, or corp license.
v v v v v v v v v
Never more than 3 licensees at one time.v v v v v v v
Can only act as qualifier for 1 license at a time unless either: 1) other licensee is subsidiary 2) he/she ow ns at
v v v v v v v v v v v v v v v v v v v v v v
least 20% of licensee 3) majority of officers/partners of other one also are those of 1st
v v v v v v v v v v v v v v v v
Responsible Managing Officer (RMO) - correct answer-Officer of Corp v v v v v v v v
Journeyman - correct answer- v v v
A person who has completed an apprecnticeship program or is an experienced worker, not a trainee, an d is
v v v v v v v v v v v v v v v v v v
fully qualified to perform the trade withoutRsupervision.
v v v v v v v
Foreman/Supervisor - correct answer- v v v
A person who has the knowledge/skill of a journeyman and directly supervises physical construction
v v v v v v v v v v v v v
What are penalties for contracting w/out a license - correct answer-- Misdemeanor offense
v v v v v v v v v v v v
, -
1st offense may receive citation from registrar, potential sentence of up to 6 months in jail and/or $500 fine,
v v v v v v v v v v v v v v v v v v
which is accompanied by civil penalty of no less than $200 and no more than $15,000. May lessen or waive if
v v v v v v v v v v v v v v v v v v v v v
contractor obtains license within prescribed period of time.
v v v v v v v v
- Felony charges for contracting w/out a license in emergency projects.
v v v v v v v v v v
-
2nd offense found guilty of criminal offense which is punishable by civil penalty of 20% contract price o r
v v v v v v v v v v v v v v v v v v
$4,500, whichever isRgreater, and county jail min 90 days.
v v v v v v v v v
Penalty for advertising for work outside of your license - correct answer-fine of $700-$1000
v v v v v v v v v v v v v
Penalty for hiring unlicensed sub or allowing use of license - correct answer-
v v v v v v v v v v v v
Citation from registrar and civil penalty up to $15,000
v v v v v v v v v
Penalty for deliberate fraudulent use of contractor's license - correct answer- Up to
v v v v v v v v v v v v
$10,000 and/or one year jail
v v v v v
Bond must be filed with _ within _ days of effective date of bond. - correct answer-CSLB ; 90
v v v v v v v v v v v v v v v v v v
Contractor's Bond amount - correct answer-$15,000 v v v v v
Performance Bond - correct answer- v v v v
guarantees job will be completed according to building plans and specs. If work is unacceptable or proje ct is
v v v v v v v v v v v v v v v v v v
abandoned, bondingRcompany can hire another contractor to complete the work or settle for dama ges.
v v v v v v v v v v v v v v v
Payment Bond - correct answer- v v v v
Guarantee to the owner that no liens for materials or labor will be filed against the property.
v v v v v v v v v v v v v v v v
Contract Bond - correct answer-Guarantees both job completion and payment of all labor and materials.
v v v v v v v v v v v v v v
Bid Shopping - correct answer-
v v v v
When prime contractor discloses sub's bid to other subs to get them to lower their price.
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