CSLB LAW AND BUSINESS LATEST EXAMS SCRIPT
ALL QUESTIONS AND ANSWERS SURE A+
✔✔Who is responsible for ensuring all required permits are obtained for a construction
project? - ✔✔The contractor
✔✔What must be included in a contractor's license application? - ✔✔A valid social
security number or federal tax ID
✔✔Which financial statement shows a company's revenue and expenses over a
specific period? - ✔✔Income Statement
✔✔What is the main purpose of a payment schedule in a home improvement contract?
- ✔✔To ensure payments are tied to project progress
✔✔What is a stop notice in the context of a construction project? - ✔✔A lien filed to
prevent payment to the contractor until claims are resolved
✔✔What should a contractor do if they encounter unanticipated delays in a project? -
✔✔Notify the client and provide a written explanation of permissible delays as outline in
the contract
, ✔✔What is the purpose of the Statewide Investigative Fraud Team (SWIFT) ? - ✔✔To
investigate unlicensed contractor activity and enforce compliance
✔✔What type of accounting method reports income and expenses when they are
earned or incurred, regardless of payment? - ✔✔Accruel Basis
✔✔Im California, which agency must contractors contact to verify construction
standards and permits? - ✔✔The local building department
✔✔Which document provides the legal description and scope of work for a construction
project? - ✔✔Contract agreement
✔✔What is required before a contractor can place a lien on a property? - ✔✔A
preliminary lien notice
✔✔How does a contractor qualify for an LLC license in California? - ✔✔By submitting a
$100,000 surety bond and meeting insurance requirements
✔✔What must a home improvement contract include about the project timeline? -
✔✔Start and completion dates
✔✔What does CSLB's arbitration program aim to resolve? - ✔✔Complaints between
contractors and consumers
✔✔What is the penalty for a contractor failing to notify CSLB of a workers'
compensation lapse? - ✔✔Revocation of license and fines
✔✔What is required to renew a contractors license in California? - ✔✔Submission of
renewal forms and payment of fees
✔✔What happens if a contractor provides false information in a license application? -
✔✔Denial, Suspension, or Revocation of the license
✔✔Who enforces penalties for contractors who fail to pay workers? - ✔✔California
Labor Comission
✔✔What must a contractor do when employing a home improvement salesperson (HIS)
? - ✔✔Notify CSLB of their employment
✔✔What is the minimum age to register as a home improvement salesperson in
California? - ✔✔18 years old
ALL QUESTIONS AND ANSWERS SURE A+
✔✔Who is responsible for ensuring all required permits are obtained for a construction
project? - ✔✔The contractor
✔✔What must be included in a contractor's license application? - ✔✔A valid social
security number or federal tax ID
✔✔Which financial statement shows a company's revenue and expenses over a
specific period? - ✔✔Income Statement
✔✔What is the main purpose of a payment schedule in a home improvement contract?
- ✔✔To ensure payments are tied to project progress
✔✔What is a stop notice in the context of a construction project? - ✔✔A lien filed to
prevent payment to the contractor until claims are resolved
✔✔What should a contractor do if they encounter unanticipated delays in a project? -
✔✔Notify the client and provide a written explanation of permissible delays as outline in
the contract
, ✔✔What is the purpose of the Statewide Investigative Fraud Team (SWIFT) ? - ✔✔To
investigate unlicensed contractor activity and enforce compliance
✔✔What type of accounting method reports income and expenses when they are
earned or incurred, regardless of payment? - ✔✔Accruel Basis
✔✔Im California, which agency must contractors contact to verify construction
standards and permits? - ✔✔The local building department
✔✔Which document provides the legal description and scope of work for a construction
project? - ✔✔Contract agreement
✔✔What is required before a contractor can place a lien on a property? - ✔✔A
preliminary lien notice
✔✔How does a contractor qualify for an LLC license in California? - ✔✔By submitting a
$100,000 surety bond and meeting insurance requirements
✔✔What must a home improvement contract include about the project timeline? -
✔✔Start and completion dates
✔✔What does CSLB's arbitration program aim to resolve? - ✔✔Complaints between
contractors and consumers
✔✔What is the penalty for a contractor failing to notify CSLB of a workers'
compensation lapse? - ✔✔Revocation of license and fines
✔✔What is required to renew a contractors license in California? - ✔✔Submission of
renewal forms and payment of fees
✔✔What happens if a contractor provides false information in a license application? -
✔✔Denial, Suspension, or Revocation of the license
✔✔Who enforces penalties for contractors who fail to pay workers? - ✔✔California
Labor Comission
✔✔What must a contractor do when employing a home improvement salesperson (HIS)
? - ✔✔Notify CSLB of their employment
✔✔What is the minimum age to register as a home improvement salesperson in
California? - ✔✔18 years old
