CSLB Law & Business Exam Questions with 100% Correct Answers
Latest Graded A+
Question:
1-2%
Answer:
Bonds can be purchased from bonding companies for % of the original contract price.
Question:
Bid Bond
Answer:
This acts as an assurance that the contractor will be able to complete the job as described in the
contract.
Question:
Performance Bond or Contract Bond
Answer:
This guarantees a contractor will complete the project according to the agreed upon terms &
conditions.
Question:
Payment Bond
Answer:
This guarantees that subcontractors and suppliers will be paid by the contractor for properly
performed work.
Question:
$35,000
Answer:
Payment Bonds are required for federal government contracts over $ .
Question:
,Fidelity Bond
Answer:
This covers the business owner in case of employee dishonesty or theft.
Question:
$15,000
Answer:
Contractors must file a contractors bond OR submit a cash deposit with the CSLB for $ .
Question:
$15,000
Answer:
The value of a contractors bond must be $
Question:
90
Answer:
The contractors bond must be filed with the CLSB within days from the bond effective date.
Question:
True
Answer:
True or False: A contractor must identify their type of insurance when referring to themselves as
"bonded" or "insured" in advertisements or publications.
Question:
$12,500 (They can be exempt if the RMO can certify ownership of 10% or more of the voting stock
in the company.)
Answer:
A business must submit a separate $ bond for RMEs or RMOs.
Question:
$100,000
, Answer:
A Limited Liability Surety Bond for $ is required in addition to the contractors bond for an LLC
license.
Question:
Disciplinary Bond
Answer:
This must be filed with the Registrar after a license has been revoked or denied.
Question:
False. It's an additional requirement and may not be filed in place of another bond.
Answer:
True or False: A Disciplinary Bond can be combined with any other bond.
Question:
$15,000 up to 10x the amount of the contractor's bond
Answer:
The Disciplinary bond amount ranges from to , depending on the violation.
Question:
2 years
Answer:
The Disciplinary Bond must be valid & on file with the Registrar for how long?
Question:
Within 90 days
Answer:
How soon should the Disciplinary bond be filed with the CSLB?
Question:
C) Stocks or fluctuating investments
Answer:
All of these are approved alternatives to surety bonds except:
Latest Graded A+
Question:
1-2%
Answer:
Bonds can be purchased from bonding companies for % of the original contract price.
Question:
Bid Bond
Answer:
This acts as an assurance that the contractor will be able to complete the job as described in the
contract.
Question:
Performance Bond or Contract Bond
Answer:
This guarantees a contractor will complete the project according to the agreed upon terms &
conditions.
Question:
Payment Bond
Answer:
This guarantees that subcontractors and suppliers will be paid by the contractor for properly
performed work.
Question:
$35,000
Answer:
Payment Bonds are required for federal government contracts over $ .
Question:
,Fidelity Bond
Answer:
This covers the business owner in case of employee dishonesty or theft.
Question:
$15,000
Answer:
Contractors must file a contractors bond OR submit a cash deposit with the CSLB for $ .
Question:
$15,000
Answer:
The value of a contractors bond must be $
Question:
90
Answer:
The contractors bond must be filed with the CLSB within days from the bond effective date.
Question:
True
Answer:
True or False: A contractor must identify their type of insurance when referring to themselves as
"bonded" or "insured" in advertisements or publications.
Question:
$12,500 (They can be exempt if the RMO can certify ownership of 10% or more of the voting stock
in the company.)
Answer:
A business must submit a separate $ bond for RMEs or RMOs.
Question:
$100,000
, Answer:
A Limited Liability Surety Bond for $ is required in addition to the contractors bond for an LLC
license.
Question:
Disciplinary Bond
Answer:
This must be filed with the Registrar after a license has been revoked or denied.
Question:
False. It's an additional requirement and may not be filed in place of another bond.
Answer:
True or False: A Disciplinary Bond can be combined with any other bond.
Question:
$15,000 up to 10x the amount of the contractor's bond
Answer:
The Disciplinary bond amount ranges from to , depending on the violation.
Question:
2 years
Answer:
The Disciplinary Bond must be valid & on file with the Registrar for how long?
Question:
Within 90 days
Answer:
How soon should the Disciplinary bond be filed with the CSLB?
Question:
C) Stocks or fluctuating investments
Answer:
All of these are approved alternatives to surety bonds except:
