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CSLB - LAW AND BUSINESS EXAM
NEWEST ACTUAL EXAM WITH
COMPLETE QUESTIONS AND
VERIFIED ANSWERS/GRADED A+//
LATEST UPDATED
Stop Notice - correct answer-- Similar to mechanic's lien in that
it ensures contractor can collect funds due.
- Different in that it's placed on funds as opposed to on
property.
- Given to lender or awarding authority in case of public works
obligating them to withhold money on the loan to pay notice
amount.
- Doesn't have to be filed, just delivered to lender or awarding
authority.
- Hand delivered w/receipt or registered mail
- Deadline to file same a mechanic's lien - 90 days from
termination of contract unless notice of cessation or notice of
completion is filed.
Stop Notice Must Contain Following: - correct answer-- Name,
address, signature of filing contractor.
- Name of individual for whom the labor/services were provided.
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- Description of work to be done or supplies to be furnished.
- Value (close as possible) of work that has been done or
materials provided along with total amount of contract.
What must be done to "perfect" a stop notice and when can it
be done? - correct answer-File a lawsuit between 10-90 days
following stop notice.
In order to have a valid stop notice, what must be present? -
correct answer-Bond of 1.25 times the amount of the stop claim
notice.
An inactive license must be renewed every __ years? - correct
answer-4
2 types of qualifying individuals for each type of license -
correct answer-Individual - Responsible Managing Employee
(RME) or Owner
Partnership - Qualifying Partner or RME
Corporation - Responsible managing officer (RMO) or RME
LLC - RME, RMO, Responsible Managing member/manager
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What must be filed w/CSLB if RME/RMO leaves? Within how
long? If not, what happens? - correct answer-"Notice of
disassociation" and "application for replacing qualifying
individual".
Within 20 days
Or license automatically suspended
Responsible Managing Employee (RME) - correct answer-Full
time employee works at least 32 hours or 80% of operating
time of biz, whichever is less.
May be used to qualify for individual, partnership, or corp
license.
Never more than 3 licensees at one time.
Can only act as qualifier for 1 license at a time unless either: 1)
other licensee is subsidiary 2) he/she owns at least 20% of
licensee 3) majority of officers/partners of other one also are
those of 1st
Responsible Managing Officer (RMO) - correct answer-Officer
of Corp
Journeyman - correct answer-A person who has completed an
apprecnticeship program or is an experienced worker, not a
CSLB - LAW AND BUSINESS EXAM
NEWEST ACTUAL EXAM WITH
COMPLETE QUESTIONS AND
VERIFIED ANSWERS/GRADED A+//
LATEST UPDATED
Stop Notice - correct answer-- Similar to mechanic's lien in that
it ensures contractor can collect funds due.
- Different in that it's placed on funds as opposed to on
property.
- Given to lender or awarding authority in case of public works
obligating them to withhold money on the loan to pay notice
amount.
- Doesn't have to be filed, just delivered to lender or awarding
authority.
- Hand delivered w/receipt or registered mail
- Deadline to file same a mechanic's lien - 90 days from
termination of contract unless notice of cessation or notice of
completion is filed.
Stop Notice Must Contain Following: - correct answer-- Name,
address, signature of filing contractor.
- Name of individual for whom the labor/services were provided.
, Page | 2
- Description of work to be done or supplies to be furnished.
- Value (close as possible) of work that has been done or
materials provided along with total amount of contract.
What must be done to "perfect" a stop notice and when can it
be done? - correct answer-File a lawsuit between 10-90 days
following stop notice.
In order to have a valid stop notice, what must be present? -
correct answer-Bond of 1.25 times the amount of the stop claim
notice.
An inactive license must be renewed every __ years? - correct
answer-4
2 types of qualifying individuals for each type of license -
correct answer-Individual - Responsible Managing Employee
(RME) or Owner
Partnership - Qualifying Partner or RME
Corporation - Responsible managing officer (RMO) or RME
LLC - RME, RMO, Responsible Managing member/manager
, Page | 3
What must be filed w/CSLB if RME/RMO leaves? Within how
long? If not, what happens? - correct answer-"Notice of
disassociation" and "application for replacing qualifying
individual".
Within 20 days
Or license automatically suspended
Responsible Managing Employee (RME) - correct answer-Full
time employee works at least 32 hours or 80% of operating
time of biz, whichever is less.
May be used to qualify for individual, partnership, or corp
license.
Never more than 3 licensees at one time.
Can only act as qualifier for 1 license at a time unless either: 1)
other licensee is subsidiary 2) he/she owns at least 20% of
licensee 3) majority of officers/partners of other one also are
those of 1st
Responsible Managing Officer (RMO) - correct answer-Officer
of Corp
Journeyman - correct answer-A person who has completed an
apprecnticeship program or is an experienced worker, not a
