CSLB Law & Business Exam Questions With
Accurate Answers 2025\2026 A+ Grade.
You are the qualifier for an active contractor's license. How do you inactivate
the license?
- accurate answers-Complete app to Inactivate License
The federal Employer Identification Number (EIN) is issued by the:
- accurate answers-IRS
If there is a problem with a code violation after the project is complete, who is
responsible?
- accurate answers-Architect and Contractor
Business records must be kept and made available for inspection by the
Registrar of Contractors for a period of _____ after completion of a construction
project or operation.
- accurate answers-5 years
What does it mean when a subcontractor signs a waiver and release form on a
public works project?
- accurate answers-The subcontractor gives up the right to lien the
construction funds.
Some counties have an additional sales tax added to the base rate. Which of
the following is a correct statement regarding this additional tax?
- accurate answers-You must pay the additional tax in the county where the
materials were purchased.
What possible reason would an owner have for requiring an unconditional
lien release from a subcontractor?
- accurate answers-The owner's property covered by the release may not be
liened.
How much money can a contractor take as a down payment for work?
- accurate answers-10% or $1000, whichever is less
,If a contract is canceled and materials have already been delievered to the
project, how many days do you have to pick up the unused materials?
- accurate answers-20 days
As required by the Immigration Reform and Control Act, all employees hired
on or after November 7, 1986 must complete Form _____ to verify their
employment eligibility status.
- accurate answers-I-9
What building code must a contractor follow?
- accurate answers-Local Code
The employer is required to provide employee information, training, and
certification as per T8 CCR. As required by T8 CCR, the employer shall ensure
that all employees and supervisors that perform any lead-related construction
work are trained by an accredited training provider and are then certified by
the______________________.
- accurate answers-California Department of Health Services
If a sales presentation is made in Spanish, the home solicitation contract:
- accurate answers-Must be made in spanish
A "hard" laborer cannot be younger than:
- accurate answers-16 years old
Of the following, who is required to be registered as a home improvement
salesperson?
- accurate answers-Salesperson who is soliciting business by calling potential
customers on the telephone.
Who must sign a joint control addendum to a home improvement contract?
- accurate answers-owner, contractor, and joint control officer
Who pays FICA?
- accurate answers-50% employer and 50% employee
Which of the following are the most effective when used together on a private
works project?
- accurate answers-notice of non-responsibility and mechanics lien
, A subcontractor or material supplier has _____ days to file a lien once a notice
of completion has been recorded.
- accurate answers-30 days
Where is the "Notice of Right to Cancel" found on a home improvement
contract?
- accurate answers-Near the client signature
What sort of notes are you looking for when you get a set of as-built plans?
- accurate answers-Changes
Insured employers must report every work-related illness or injury to their
workers' compensation carrier within _____ of the incident.
- accurate answers-5 days
Every employer of _____ or more full- or part-time employees must keep
written health and safety records for _____ years.
- accurate answers-11 & 5
Which of the following financial ratios is the strictest measure of liquidity?
- accurate answers-Quick ratio
DOSH must investigate a complaint charging a serious violation of health or
safety standards within:
- accurate answers-Three working days
How often are you required to pay sales tax?
- accurate answers-It depends on the expected amount of taxable sales.
Why would a contractor have a case in the Unlimited Jurisdiction Superior
Court?
- accurate answers-if it is a dispute of more than $25,000
What kind of discount do lumber yards and other suppliers offer to
contractors who pay their bills promptly?
- accurate answers-1-2%
Accurate Answers 2025\2026 A+ Grade.
You are the qualifier for an active contractor's license. How do you inactivate
the license?
- accurate answers-Complete app to Inactivate License
The federal Employer Identification Number (EIN) is issued by the:
- accurate answers-IRS
If there is a problem with a code violation after the project is complete, who is
responsible?
- accurate answers-Architect and Contractor
Business records must be kept and made available for inspection by the
Registrar of Contractors for a period of _____ after completion of a construction
project or operation.
- accurate answers-5 years
What does it mean when a subcontractor signs a waiver and release form on a
public works project?
- accurate answers-The subcontractor gives up the right to lien the
construction funds.
Some counties have an additional sales tax added to the base rate. Which of
the following is a correct statement regarding this additional tax?
- accurate answers-You must pay the additional tax in the county where the
materials were purchased.
What possible reason would an owner have for requiring an unconditional
lien release from a subcontractor?
- accurate answers-The owner's property covered by the release may not be
liened.
How much money can a contractor take as a down payment for work?
- accurate answers-10% or $1000, whichever is less
,If a contract is canceled and materials have already been delievered to the
project, how many days do you have to pick up the unused materials?
- accurate answers-20 days
As required by the Immigration Reform and Control Act, all employees hired
on or after November 7, 1986 must complete Form _____ to verify their
employment eligibility status.
- accurate answers-I-9
What building code must a contractor follow?
- accurate answers-Local Code
The employer is required to provide employee information, training, and
certification as per T8 CCR. As required by T8 CCR, the employer shall ensure
that all employees and supervisors that perform any lead-related construction
work are trained by an accredited training provider and are then certified by
the______________________.
- accurate answers-California Department of Health Services
If a sales presentation is made in Spanish, the home solicitation contract:
- accurate answers-Must be made in spanish
A "hard" laborer cannot be younger than:
- accurate answers-16 years old
Of the following, who is required to be registered as a home improvement
salesperson?
- accurate answers-Salesperson who is soliciting business by calling potential
customers on the telephone.
Who must sign a joint control addendum to a home improvement contract?
- accurate answers-owner, contractor, and joint control officer
Who pays FICA?
- accurate answers-50% employer and 50% employee
Which of the following are the most effective when used together on a private
works project?
- accurate answers-notice of non-responsibility and mechanics lien
, A subcontractor or material supplier has _____ days to file a lien once a notice
of completion has been recorded.
- accurate answers-30 days
Where is the "Notice of Right to Cancel" found on a home improvement
contract?
- accurate answers-Near the client signature
What sort of notes are you looking for when you get a set of as-built plans?
- accurate answers-Changes
Insured employers must report every work-related illness or injury to their
workers' compensation carrier within _____ of the incident.
- accurate answers-5 days
Every employer of _____ or more full- or part-time employees must keep
written health and safety records for _____ years.
- accurate answers-11 & 5
Which of the following financial ratios is the strictest measure of liquidity?
- accurate answers-Quick ratio
DOSH must investigate a complaint charging a serious violation of health or
safety standards within:
- accurate answers-Three working days
How often are you required to pay sales tax?
- accurate answers-It depends on the expected amount of taxable sales.
Why would a contractor have a case in the Unlimited Jurisdiction Superior
Court?
- accurate answers-if it is a dispute of more than $25,000
What kind of discount do lumber yards and other suppliers offer to
contractors who pay their bills promptly?
- accurate answers-1-2%
