CSLBCONTRACTOR'SLAW&BUSINESSEXAM v v v v v
v QUESTIONSANDCORRECTANSWERS|LATEST v v v v
UPDATE | VERIFIED 2024-2025 v v v v
An employer remits State disability taxes withheld from an employees wages to what agency? -
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correct answer-Employment DevelopmentRDepartment
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Which act establishes the rights of workers to organize into unions and negotiate contracts? -
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correct answer-National Labor Relations Act of 1935
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A contractor has had a problem with employees stealing tools and equipment from job sites. When con
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ducting job interviews, may the contractor ask prospective employees aboutRtheir arrest records?
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A. It is legal to ask prospective employees about arrests not leading to convictions.
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B. It is not legal to askRprospective employees about arrests notRleading to convictions.
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C. It is legal for a private employer to ask about arrests not leading to convictions, but it would not be le gal
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for city or county agencies to ask about such arrests.
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D. It is legal for a private employer to ask about arrests leading to convictions, but it would not be legal f or a
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federal, state, or local public agency to do so. - correct answer-
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It is not legal to ask prospective employees about arrest not leading to convictions.
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Why would a contractor have a case in Superior Court? - correct answer-
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If it is a dispute of more than $25,000 it can be transferred to Superior Court.
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Which would not have to be reported to DOSH immediately or within 24 hours?
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A. Death from a three-story fall. v v v v
B. Drunken crane operator hits a high-voltage power line v v v v v v v
C. Car accident in which an employee steps onto a public road, gets hit by a car, and suffers a concussio n.
v v v v v v v v v v v v v v v v v v v v
,D. Employee falls off forklift and suffers a sever back injury. - correct answer- v v v v v v v v v v v v
Car accident in which an employee steps onto a public road, gets hit by a car, and suffers a concussion.
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A general contractor has obtained bids from several subcontractors for a private project. He notices that one
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bid is substantially lower than the rest. Is it ethical and a good business practice for this contractor to inform
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the subcontractor that the bid is substantially lower than the bids of the other subcontractors
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? - correct answer-
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Yes. If the contractor has reason to believe that the subcontractor has made an error in preparing his bi d, the
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contractor should notify the subcontractor of the apparent error, but the contractor may not discl ose the
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amounts of the other bids.
v v v v v
An employer must furnish an employee with a completed IRS Form W-2 (Wage and Tax Statement) by: - correct
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answer-The 31st of January.
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After a job is completed, the owner decides to have additional work done. How should the contractor pr oceed? -
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Rcorrect answer-Write a new contract and ask the owner to sign it. v v v v v v v v v v v
The purpose of a 20-day preliminary notice for private work is to? - correct answer- Notify
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the owner that the person or firm who sentRthe notice has improved the property.
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Is it legal for a contractor to pay employees in cash? - correct answer-
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Yes, if the contractor provides each employee with a wage deduction statement semimonthly or at the t ime
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of each wage payment.
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You are bidding on a job with plans drawn by the owner. You notice a code violation and bring it to the a
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ttention of the owner. The owner declines to remedy the code violation and tellsRyou not to worry. Wha t
v v v v v v v v v v v v v v v v v v v
should you do? - correct answer-Decline to bid the work.
v v v v v v v v v v
On a time-and-materials job, you should: - correct answer- Add
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profit and overhead to labor and materials
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Your employee sets a cabinet wrong. The cabinet falls from the wall and damages the client's counter to
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p. What should you do?
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,A. Claim the damage on your general liability insurance policy.
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B. Require the employee to pay for the damage to the countertop. v v v v v v v v v v
C. Tell the client to claim the damaged counter top on his or her homeowner's insurance policy.
v v v v v v v v v v v v v v v
D. No action is required: The client must assume the risk of damage. - correct answer-
v v v v v v v v v v v v v v
Claim the damage on your general liability insurance policy.
v v v v v v v v v
Of the following, which is best for determining the number of hours required for different phases of a pr oject and
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for making sure the job is on schedule?
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A. Bar graph and chart v v v
B. Cash analysis chart v v
C. Review plans v
D. Critical path method - correct answer-The critical path method.
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Is it legal for a contractor to require employees to take a lie detector test? - correct answer-
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It is not legal for the contractor to require lie detector tests, but it would be legal for a federal, state, or l ocal
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public agency to require lie detector tests of their employees.
v v v v v v v v v v
If a newly hired employee does not have a SSN, what should be done? - correct answer- The
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employee must apply for a SSN.
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How many times may you take the contractors license exam before your original application is voided? - correct
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answer-As many times as necessary within 18 months.
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When should a contractor renew the contractor's license bond? - correct answer- 30
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days before it expires.
v v v v
The qualifying RME for a construction firm must work at least: - correct answer-
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ARqualifying RME for a construction firm must work at least 32 hours per weekRor 80% of the work week
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.
, The federal Employer Identification Number (EIN) is issued by the: - correct answer- The
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Internal Revenue Service
v v v
Every employer of v v v or more full or part time employees must keep written health and safety reco rds
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for
v v years.
A. 1-3
B. 7-4
C. 10-3
D. 11-5 - correct answer- v v v
Every employer of 11 or more full or part time employees must keep written health and safety records f or 5
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years.
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After you have read the plans and specifications, what is the next important step in writing a bid?
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A. Talk to and select subs. v v v v
B. Walk the job. v v
C. Call about materials, price, and availability.
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D. TalkRto the crew leader about labor. - correct answer-Walk the job.
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Once a budget is finalized, the:
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A. Contractor should stick to the budget no matter what happens. v v v v v v v v v
B. Contractor should do the best possible job of staying within the budget. v v v v v v v v v v v
C. Budget should be revised each month. v v v v v
D. Budget should be referred to only if the business has cashflow problems. - correct answer- The
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contractor should do the best possible job of staying within budget. `
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Who must sign a joint control addendum to a home improvement contract? - correct answer-
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Owner, contractor, and joint control officer.
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v QUESTIONSANDCORRECTANSWERS|LATEST v v v v
UPDATE | VERIFIED 2024-2025 v v v v
An employer remits State disability taxes withheld from an employees wages to what agency? -
v v v v v v v v v v v v v v
correct answer-Employment DevelopmentRDepartment
v v v
Which act establishes the rights of workers to organize into unions and negotiate contracts? -
v v v v v v v v v v v v v v
correct answer-National Labor Relations Act of 1935
v v v v v v v
A contractor has had a problem with employees stealing tools and equipment from job sites. When con
v v v v v v v v v v v v v v v v
ducting job interviews, may the contractor ask prospective employees aboutRtheir arrest records?
v v v v v v v v v v v v
A. It is legal to ask prospective employees about arrests not leading to convictions.
v v v v v v v v v v v v
B. It is not legal to askRprospective employees about arrests notRleading to convictions.
v v v v v v v v v v v
C. It is legal for a private employer to ask about arrests not leading to convictions, but it would not be le gal
v v v v v v v v v v v v v v v v v v v v v
for city or county agencies to ask about such arrests.
v v v v v v v v v v
D. It is legal for a private employer to ask about arrests leading to convictions, but it would not be legal f or a
v v v v v v v v v v v v v v v v v v v v v v
federal, state, or local public agency to do so. - correct answer-
v v v v v v v v v v v v
It is not legal to ask prospective employees about arrest not leading to convictions.
v v v v v v v v v v v v v
Why would a contractor have a case in Superior Court? - correct answer-
v v v v v v v v v v v v
If it is a dispute of more than $25,000 it can be transferred to Superior Court.
v v v v v v v v v v v v v v v
Which would not have to be reported to DOSH immediately or within 24 hours?
v v v v v v v v v v v v v
A. Death from a three-story fall. v v v v
B. Drunken crane operator hits a high-voltage power line v v v v v v v
C. Car accident in which an employee steps onto a public road, gets hit by a car, and suffers a concussio n.
v v v v v v v v v v v v v v v v v v v v
,D. Employee falls off forklift and suffers a sever back injury. - correct answer- v v v v v v v v v v v v
Car accident in which an employee steps onto a public road, gets hit by a car, and suffers a concussion.
v v v v v v v v v v v v v v v v v v v
A general contractor has obtained bids from several subcontractors for a private project. He notices that one
v v v v v v v v v v v v v v v v
bid is substantially lower than the rest. Is it ethical and a good business practice for this contractor to inform
v v v v v v v v v v v v v v v v v v v v
the subcontractor that the bid is substantially lower than the bids of the other subcontractors
v v v v v v v v v v v v v v v
? - correct answer-
v v v
Yes. If the contractor has reason to believe that the subcontractor has made an error in preparing his bi d, the
v v v v v v v v v v v v v v v v v v v v
contractor should notify the subcontractor of the apparent error, but the contractor may not discl ose the
v v v v v v v v v v v v v v v v v
amounts of the other bids.
v v v v v
An employer must furnish an employee with a completed IRS Form W-2 (Wage and Tax Statement) by: - correct
v v v v v v v v v v v v v v v v v v
answer-The 31st of January.
v v v v
After a job is completed, the owner decides to have additional work done. How should the contractor pr oceed? -
v v v v v v v v v v v v v v v v v v v
Rcorrect answer-Write a new contract and ask the owner to sign it. v v v v v v v v v v v
The purpose of a 20-day preliminary notice for private work is to? - correct answer- Notify
v v v v v v v v v v v v v v v
the owner that the person or firm who sentRthe notice has improved the property.
v v v v v v v v v v v v v v
Is it legal for a contractor to pay employees in cash? - correct answer-
v v v v v v v v v v v v v
Yes, if the contractor provides each employee with a wage deduction statement semimonthly or at the t ime
v v v v v v v v v v v v v v v v v
of each wage payment.
v v v v
You are bidding on a job with plans drawn by the owner. You notice a code violation and bring it to the a
v v v v v v v v v v v v v v v v v v v v v v
ttention of the owner. The owner declines to remedy the code violation and tellsRyou not to worry. Wha t
v v v v v v v v v v v v v v v v v v v
should you do? - correct answer-Decline to bid the work.
v v v v v v v v v v
On a time-and-materials job, you should: - correct answer- Add
v v v v v v v v v
profit and overhead to labor and materials
v v v v v v v
Your employee sets a cabinet wrong. The cabinet falls from the wall and damages the client's counter to
v v v v v v v v v v v v v v v v v
p. What should you do?
v v v v
,A. Claim the damage on your general liability insurance policy.
v v v v v v v v
B. Require the employee to pay for the damage to the countertop. v v v v v v v v v v
C. Tell the client to claim the damaged counter top on his or her homeowner's insurance policy.
v v v v v v v v v v v v v v v
D. No action is required: The client must assume the risk of damage. - correct answer-
v v v v v v v v v v v v v v
Claim the damage on your general liability insurance policy.
v v v v v v v v v
Of the following, which is best for determining the number of hours required for different phases of a pr oject and
v v v v v v v v v v v v v v v v v v v v
for making sure the job is on schedule?
v v v v v v v v
A. Bar graph and chart v v v
B. Cash analysis chart v v
C. Review plans v
D. Critical path method - correct answer-The critical path method.
v v v v v v v v
Is it legal for a contractor to require employees to take a lie detector test? - correct answer-
v v v v v v v v v v v v v v v v v
It is not legal for the contractor to require lie detector tests, but it would be legal for a federal, state, or l ocal
v v v v v v v v v v v v v v v v v v v v v v v
public agency to require lie detector tests of their employees.
v v v v v v v v v v
If a newly hired employee does not have a SSN, what should be done? - correct answer- The
v v v v v v v v v v v v v v v v v
employee must apply for a SSN.
v v v v v v
How many times may you take the contractors license exam before your original application is voided? - correct
v v v v v v v v v v v v v v v v v
answer-As many times as necessary within 18 months.
v v v v v v v v
When should a contractor renew the contractor's license bond? - correct answer- 30
v v v v v v v v v v v v
days before it expires.
v v v v
The qualifying RME for a construction firm must work at least: - correct answer-
v v v v v v v v v v v v v
ARqualifying RME for a construction firm must work at least 32 hours per weekRor 80% of the work week
v v v v v v v v v v v v v v v v v v
.
, The federal Employer Identification Number (EIN) is issued by the: - correct answer- The
v v v v v v v v v v v v v
Internal Revenue Service
v v v
Every employer of v v v or more full or part time employees must keep written health and safety reco rds
v v v v v v v v v v v v v v
for
v v years.
A. 1-3
B. 7-4
C. 10-3
D. 11-5 - correct answer- v v v
Every employer of 11 or more full or part time employees must keep written health and safety records f or 5
v v v v v v v v v v v v v v v v v v v v
years.
v
After you have read the plans and specifications, what is the next important step in writing a bid?
v v v v v v v v v v v v v v v v v
A. Talk to and select subs. v v v v
B. Walk the job. v v
C. Call about materials, price, and availability.
v v v v v
D. TalkRto the crew leader about labor. - correct answer-Walk the job.
v v v v v v v v v v
Once a budget is finalized, the:
v v v v v
A. Contractor should stick to the budget no matter what happens. v v v v v v v v v
B. Contractor should do the best possible job of staying within the budget. v v v v v v v v v v v
C. Budget should be revised each month. v v v v v
D. Budget should be referred to only if the business has cashflow problems. - correct answer- The
v v v v v v v v v v v v v v v
contractor should do the best possible job of staying within budget. `
v v v v v v v v v v v v
Who must sign a joint control addendum to a home improvement contract? - correct answer-
v v v v v v v v v v v v v v
Owner, contractor, and joint control officer.
v v v v v v
