CSLB CONTRACTOR'S LAW
PRACTICE TEST PART 2 QUESTIONS
& VERIFIED CORRECT ANSWERS ALL
PASSED
When should you let your attorney see a construction contract?
A. Before you let the client see the contract
B. After the contract is prepared but before you sign it
C. After the building permit is obtained
D. After the contract is signed by you and the client - Correct Answer ✔✔ B. After the
contract is prepared but before you sign it
Which is the most correct statement as to what must be included in every home
improvement contract?
A. Notice of right to cancel
B. Contractor's license number
C. Truth-in-lending notice
D. Name of the project - Correct Answer ✔✔ B. Contractor's license number
Which is NOT required on a home improvement contract?
A. A notice, in at least 10 point print, in close proximity to the signature, and a
statement that the owner has a right to require a performance and payment bond
B. The name and home address of all the personnel listed on the license
C. An approximate date when work will begin and be substantially completed
D. A description of the work to be done and materials and equipment to be used or
installed - Correct Answer ✔✔ B. The name and home address of all the personnel
listed on the license. Know that A, C and D are required. Only the contractor's name,
address and license number are required.
When a home improvement contract is signed, the contractor must substantially begin
work within ____ days of the date specified in the contract?
A. 5
B. 10
C. 15
D. 20 - Correct Answer ✔✔ D. 20
Which is true concerning home improvement sales persons?
A. They must register with the Registrar's office and may work for only one contractor
at a time
, B. Anyone who sells home improvement contracts for a licensed contractor outside the
contractor's normal place of business is required to be registered with the Attorney
General's office
C. They must be at least 18 years of age. There are no residency or educational
requirements
D. They may begin to negotiate home improvement contracts as soon as they have
filled out the appropriate application and paid the required fees - Correct Answer ✔✔ C.
They must be at least 18 years of age. There are no residency or educational
requirements - must register for "each" contractor with the Registrar and receive a
registration number first
Judy, a contractor, employs Sam as her registered home improvement salesperson.
Sam meets with Mr. And Mrs. Jones and negotiates home improvement work that totals
$350. When Sam returns to his boss and tells her of the verbal contract, his employer
says she will not work for the contracted price. The Contractor's License Law states:
A. The contractor is required by law to abide by the verbal agreement since verbal
home improvement contracts under $500 are binding
B. The contractor is not bound by a verbal agreement
C. The contractor may cancel a home improvement contract that she did not negotiate
D. The contractor is not bound by the contract since all home improvement contracts
must be in writting - Correct Answer ✔✔ A. When registered salespersons enter into an
agreement, verbal or written, they are bound by it. They are acting as the agent of the
contractor. Verbal improvement contracts are legal and binding
Which type of contract can be cancelled by a consumer?
A. Sub contract
B. Home solicitation contract which involves fencing, burglar alarm, carpentry and
texture coating
C. Prime construction contract
D. Home improvement contract involving free standing bookcases, rugs and window air
conditioner - Correct Answer ✔✔ B. Home solicitation contract which involves fencing,
burglar alarm, carpentry and texture coating - only home solicited contracts can be
cancelled which contain "permanent fixtures"
A consumer may cancel a home solicitation contract at any time prior to midnight of the
___ business day after the date of the transaction.
A. 1st
B. 2nd
C. 3rd
D. 5th - Correct Answer ✔✔ C. 3rd
If an owner cancels a home solicitation contract on March 20, by what date must the
contractor return the down payment?
A. April 23
B. March 30
C. April 1
PRACTICE TEST PART 2 QUESTIONS
& VERIFIED CORRECT ANSWERS ALL
PASSED
When should you let your attorney see a construction contract?
A. Before you let the client see the contract
B. After the contract is prepared but before you sign it
C. After the building permit is obtained
D. After the contract is signed by you and the client - Correct Answer ✔✔ B. After the
contract is prepared but before you sign it
Which is the most correct statement as to what must be included in every home
improvement contract?
A. Notice of right to cancel
B. Contractor's license number
C. Truth-in-lending notice
D. Name of the project - Correct Answer ✔✔ B. Contractor's license number
Which is NOT required on a home improvement contract?
A. A notice, in at least 10 point print, in close proximity to the signature, and a
statement that the owner has a right to require a performance and payment bond
B. The name and home address of all the personnel listed on the license
C. An approximate date when work will begin and be substantially completed
D. A description of the work to be done and materials and equipment to be used or
installed - Correct Answer ✔✔ B. The name and home address of all the personnel
listed on the license. Know that A, C and D are required. Only the contractor's name,
address and license number are required.
When a home improvement contract is signed, the contractor must substantially begin
work within ____ days of the date specified in the contract?
A. 5
B. 10
C. 15
D. 20 - Correct Answer ✔✔ D. 20
Which is true concerning home improvement sales persons?
A. They must register with the Registrar's office and may work for only one contractor
at a time
, B. Anyone who sells home improvement contracts for a licensed contractor outside the
contractor's normal place of business is required to be registered with the Attorney
General's office
C. They must be at least 18 years of age. There are no residency or educational
requirements
D. They may begin to negotiate home improvement contracts as soon as they have
filled out the appropriate application and paid the required fees - Correct Answer ✔✔ C.
They must be at least 18 years of age. There are no residency or educational
requirements - must register for "each" contractor with the Registrar and receive a
registration number first
Judy, a contractor, employs Sam as her registered home improvement salesperson.
Sam meets with Mr. And Mrs. Jones and negotiates home improvement work that totals
$350. When Sam returns to his boss and tells her of the verbal contract, his employer
says she will not work for the contracted price. The Contractor's License Law states:
A. The contractor is required by law to abide by the verbal agreement since verbal
home improvement contracts under $500 are binding
B. The contractor is not bound by a verbal agreement
C. The contractor may cancel a home improvement contract that she did not negotiate
D. The contractor is not bound by the contract since all home improvement contracts
must be in writting - Correct Answer ✔✔ A. When registered salespersons enter into an
agreement, verbal or written, they are bound by it. They are acting as the agent of the
contractor. Verbal improvement contracts are legal and binding
Which type of contract can be cancelled by a consumer?
A. Sub contract
B. Home solicitation contract which involves fencing, burglar alarm, carpentry and
texture coating
C. Prime construction contract
D. Home improvement contract involving free standing bookcases, rugs and window air
conditioner - Correct Answer ✔✔ B. Home solicitation contract which involves fencing,
burglar alarm, carpentry and texture coating - only home solicited contracts can be
cancelled which contain "permanent fixtures"
A consumer may cancel a home solicitation contract at any time prior to midnight of the
___ business day after the date of the transaction.
A. 1st
B. 2nd
C. 3rd
D. 5th - Correct Answer ✔✔ C. 3rd
If an owner cancels a home solicitation contract on March 20, by what date must the
contractor return the down payment?
A. April 23
B. March 30
C. April 1
