CSLB CONTRACTOR'S LAW &
BUSINESS EXAM 2026 EXAM
QUESTIONS AND ANSWERS |
100% PASS
An employer remits State disability taxes withheld from an employees
wages to what agency? - ANSWER ✔✔Employment Development
Department
Which act establishes the rights of workers to organize into unions and
negotiate contracts? - ANSWER ✔✔National Labor Relations Act of
1935
,A contractor has had a problem with employees stealing tools and
equipment from job sites. When conducting job interviews, may the
contractor ask prospective employees about their arrest records?
A. It is legal to ask prospective employees about arrests not leading to
convictions.
B. It is not legal to ask prospective employees about arrests not leading
to convictions.
C. It is legal for a private employer to ask about arrests not leading to
convictions, but it would not be legal for city or county agencies to ask
about such arrests.
D. It is legal for a private employer to ask about arrests leading to
convictions, but it would not be legal for a federal, state, or local public
agency to do so. - ANSWER ✔✔It is not legal to ask prospective
employees about arrest not leading to convictions.
,Why would a contractor have a case in Superior Court? - ANSWER
✔✔If it is a dispute of more than $25,000 it can be transferred to
Superior Court.
Which would not have to be reported to DOSH immediately or within 24
hours?
A. Death from a three-story fall.
B. Drunken crane operator hits a high-voltage power line
C. Car accident in which an employee steps onto a public road, gets hit
by a car, and suffers a concussion.
D. Employee falls off forklift and suffers a sever back injury. -
ANSWER ✔✔Car accident in which an employee steps onto a public
road, gets hit by a car, and suffers a concussion.
A general contractor has obtained bids from several subcontractors for a
private project. He notices that one bid is substantially lower than the
rest. Is it ethical and a good business practice for this contractor to
inform the subcontractor that the bid is substantially lower than the bids
of the other subcontractors? - ANSWER ✔✔Yes. If the contractor has
reason to believe that the subcontractor has made an error in preparing
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, his bid, the contractor should notify the subcontractor of the apparent
error, but the contractor may not disclose the amounts of the other bids.
An employer must furnish an employee with a completed IRS Form W-2
(Wage and Tax Statement) by: - ANSWER ✔✔The 31st of January.
After a job is completed, the owner decides to have additional work
done. How should the contractor proceed? - ANSWER ✔✔Write a
new contract and ask the owner to sign it.
The purpose of a 20-day preliminary notice for private work is to? -
ANSWER ✔✔Notify the owner that the person or firm who sent the
notice has improved the property.
Is it legal for a contractor to pay employees in cash? - ANSWER
✔✔Yes, if the contractor provides each employee with a wage deduction
statement semimonthly or at the time of each wage payment.
You are bidding on a job with plans drawn by the owner. You notice a
code violation and bring it to the attention of the owner. The owner
declines to remedy the code violation and tells you not to worry. What
should you do? - ANSWER ✔✔Decline to bid the work.
On a time-and-materials job, you should: - ANSWER ✔✔Add profit
and overhead to labor and materials
BUSINESS EXAM 2026 EXAM
QUESTIONS AND ANSWERS |
100% PASS
An employer remits State disability taxes withheld from an employees
wages to what agency? - ANSWER ✔✔Employment Development
Department
Which act establishes the rights of workers to organize into unions and
negotiate contracts? - ANSWER ✔✔National Labor Relations Act of
1935
,A contractor has had a problem with employees stealing tools and
equipment from job sites. When conducting job interviews, may the
contractor ask prospective employees about their arrest records?
A. It is legal to ask prospective employees about arrests not leading to
convictions.
B. It is not legal to ask prospective employees about arrests not leading
to convictions.
C. It is legal for a private employer to ask about arrests not leading to
convictions, but it would not be legal for city or county agencies to ask
about such arrests.
D. It is legal for a private employer to ask about arrests leading to
convictions, but it would not be legal for a federal, state, or local public
agency to do so. - ANSWER ✔✔It is not legal to ask prospective
employees about arrest not leading to convictions.
,Why would a contractor have a case in Superior Court? - ANSWER
✔✔If it is a dispute of more than $25,000 it can be transferred to
Superior Court.
Which would not have to be reported to DOSH immediately or within 24
hours?
A. Death from a three-story fall.
B. Drunken crane operator hits a high-voltage power line
C. Car accident in which an employee steps onto a public road, gets hit
by a car, and suffers a concussion.
D. Employee falls off forklift and suffers a sever back injury. -
ANSWER ✔✔Car accident in which an employee steps onto a public
road, gets hit by a car, and suffers a concussion.
A general contractor has obtained bids from several subcontractors for a
private project. He notices that one bid is substantially lower than the
rest. Is it ethical and a good business practice for this contractor to
inform the subcontractor that the bid is substantially lower than the bids
of the other subcontractors? - ANSWER ✔✔Yes. If the contractor has
reason to believe that the subcontractor has made an error in preparing
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, his bid, the contractor should notify the subcontractor of the apparent
error, but the contractor may not disclose the amounts of the other bids.
An employer must furnish an employee with a completed IRS Form W-2
(Wage and Tax Statement) by: - ANSWER ✔✔The 31st of January.
After a job is completed, the owner decides to have additional work
done. How should the contractor proceed? - ANSWER ✔✔Write a
new contract and ask the owner to sign it.
The purpose of a 20-day preliminary notice for private work is to? -
ANSWER ✔✔Notify the owner that the person or firm who sent the
notice has improved the property.
Is it legal for a contractor to pay employees in cash? - ANSWER
✔✔Yes, if the contractor provides each employee with a wage deduction
statement semimonthly or at the time of each wage payment.
You are bidding on a job with plans drawn by the owner. You notice a
code violation and bring it to the attention of the owner. The owner
declines to remedy the code violation and tells you not to worry. What
should you do? - ANSWER ✔✔Decline to bid the work.
On a time-and-materials job, you should: - ANSWER ✔✔Add profit
and overhead to labor and materials
