California State Contractors License Law and Business
Test Study Guide | High Yield Questions and Correct
Answers | ( Updated Questions and Answers ) 100%
Guarantee Pass | Newest Exam and Graded A+ , Highly
Elaborated |Brand new Version!!!
Who does not need a contractors License?
Correct Answer:
someone who does certain construction on commercial agricultural property
The contractor surety Bond necessary for most contractors to obtain their
license is in the amount of
Correct Answer:
$15,000
When licensed as a Sole Proprietor the license belongs to
Correct Answer:
the Company
Which is true of an inactive license?
Correct Answer:
Must be renewed every 4 Years
How many classifications can an RME apply for?
Correct Answer:
As many classifications as he or she can qualify for.
A prime contractor shall pay his or her subcontractors
,Correct Answer:
within 7 days of receipt of each progress payment
A contractor wants to use a fictitious name as a business name style. When does
the fictitious name statement needed to be filed?
Correct Answer:
Before conducting Business
During a declared state of emergency how much may a contractor increase his
prices?
Correct Answer:
10%above the price just prior to the declared state of emergency.
If John Burroughs the sole proprietor of a pluming company is applying for a
license as am individual, which of the following name styles is not permitted?
Correct Answer:
permitted: John Burroughs
Burroughs Plumbing Co.
J.B. Co.
Not-Permitted: John Burroughs Inc.
Active licenses must be registered every------ and inactive licenses should be
registered every-----
Correct Answer:
2 years, 4 years
After you pass the state license test what should you do in order to receive an
active license number?
Correct Answer:
Pay your registration fees. Submit a complete asbestos open book examination.
Show proof of workers comp insurance or submit a waiver of workers comp and
submit your "pass" letter.
Which of the following may qualify for more than one contractors license?
Correct Answer:
,Sole proprietor.
How many classifications may a qualifier add to a license?
Correct Answer:
As many qualifications as he qualifies for.
which of the following may be protected by a Contract Bond?
Correct Answer:
-A client damaged by the contractors violation of the contract.
-Any person damaged by contractor fraud
-Any contractor damaged by contractors failure to pay wages.
What is the best way for the homeowner to protect his property from having a
lien placed on his property, when signing a Home improvement contract.
Correct Answer:
Require the Prime Contractor to Supply a performance and Payment Bond.
CSLB established the State Wide Investigative Fraud Team (SWIFT). CSLB'S
SWIFT has the
authority to:
Correct Answer:
Cite those not properly licensed
Which is not part of the Home Improvement Contract?
Correct Answer:
Preliminary Notice
What us the purpose of the Preliminary Notice?
Correct Answer:
Assert Mechanic Liens and Stop notice Rights
Preliminary Notices are filed?
Correct Answer:
within 20 days from first furnishing labor or materials.
, Which of the following is the most important practices to follow when trying to
avoid disagreements with an owner?
Correct Answer:
Be sure to include a detailed description of the project and everything that is to
be done in the contract.
Why should a contractor keep a record of all Change Orders?
Correct Answer:
State law Requires It
Which of the following people file a Stop Notice?
Correct Answer:
a subcontractor contracted to do specialty trade and was not paid.
Who signs a "Joint Control Agreement"?
Correct Answer:
The lender, the property owner and the Prime Contractor.
How long will the CSLB hold a contractor responsible for observable defects?
Correct Answer:
4 years
The CSLB offers a free voluntary arbitration program for disputes alleged
damages:
Correct Answer:
Between $15,000 and $50,000
If a contractor includes provision in a contract for use of private arbitration and
a dispute between the owner and the contractor makes an arbitration
necessary, who will bare the cost of a private arbitrator?
Correct Answer:
The Owner and contractor will slit the cost of the arbitration.
If a contractor provides the owner with a 10-year written warranty covering a
patio cover he has installed, and the cover begins to deteriorate after 5 years of
being installed which is true?
Test Study Guide | High Yield Questions and Correct
Answers | ( Updated Questions and Answers ) 100%
Guarantee Pass | Newest Exam and Graded A+ , Highly
Elaborated |Brand new Version!!!
Who does not need a contractors License?
Correct Answer:
someone who does certain construction on commercial agricultural property
The contractor surety Bond necessary for most contractors to obtain their
license is in the amount of
Correct Answer:
$15,000
When licensed as a Sole Proprietor the license belongs to
Correct Answer:
the Company
Which is true of an inactive license?
Correct Answer:
Must be renewed every 4 Years
How many classifications can an RME apply for?
Correct Answer:
As many classifications as he or she can qualify for.
A prime contractor shall pay his or her subcontractors
,Correct Answer:
within 7 days of receipt of each progress payment
A contractor wants to use a fictitious name as a business name style. When does
the fictitious name statement needed to be filed?
Correct Answer:
Before conducting Business
During a declared state of emergency how much may a contractor increase his
prices?
Correct Answer:
10%above the price just prior to the declared state of emergency.
If John Burroughs the sole proprietor of a pluming company is applying for a
license as am individual, which of the following name styles is not permitted?
Correct Answer:
permitted: John Burroughs
Burroughs Plumbing Co.
J.B. Co.
Not-Permitted: John Burroughs Inc.
Active licenses must be registered every------ and inactive licenses should be
registered every-----
Correct Answer:
2 years, 4 years
After you pass the state license test what should you do in order to receive an
active license number?
Correct Answer:
Pay your registration fees. Submit a complete asbestos open book examination.
Show proof of workers comp insurance or submit a waiver of workers comp and
submit your "pass" letter.
Which of the following may qualify for more than one contractors license?
Correct Answer:
,Sole proprietor.
How many classifications may a qualifier add to a license?
Correct Answer:
As many qualifications as he qualifies for.
which of the following may be protected by a Contract Bond?
Correct Answer:
-A client damaged by the contractors violation of the contract.
-Any person damaged by contractor fraud
-Any contractor damaged by contractors failure to pay wages.
What is the best way for the homeowner to protect his property from having a
lien placed on his property, when signing a Home improvement contract.
Correct Answer:
Require the Prime Contractor to Supply a performance and Payment Bond.
CSLB established the State Wide Investigative Fraud Team (SWIFT). CSLB'S
SWIFT has the
authority to:
Correct Answer:
Cite those not properly licensed
Which is not part of the Home Improvement Contract?
Correct Answer:
Preliminary Notice
What us the purpose of the Preliminary Notice?
Correct Answer:
Assert Mechanic Liens and Stop notice Rights
Preliminary Notices are filed?
Correct Answer:
within 20 days from first furnishing labor or materials.
, Which of the following is the most important practices to follow when trying to
avoid disagreements with an owner?
Correct Answer:
Be sure to include a detailed description of the project and everything that is to
be done in the contract.
Why should a contractor keep a record of all Change Orders?
Correct Answer:
State law Requires It
Which of the following people file a Stop Notice?
Correct Answer:
a subcontractor contracted to do specialty trade and was not paid.
Who signs a "Joint Control Agreement"?
Correct Answer:
The lender, the property owner and the Prime Contractor.
How long will the CSLB hold a contractor responsible for observable defects?
Correct Answer:
4 years
The CSLB offers a free voluntary arbitration program for disputes alleged
damages:
Correct Answer:
Between $15,000 and $50,000
If a contractor includes provision in a contract for use of private arbitration and
a dispute between the owner and the contractor makes an arbitration
necessary, who will bare the cost of a private arbitrator?
Correct Answer:
The Owner and contractor will slit the cost of the arbitration.
If a contractor provides the owner with a 10-year written warranty covering a
patio cover he has installed, and the cover begins to deteriorate after 5 years of
being installed which is true?
