CSLB Law & Business
Question
1:
How must a client submit a claim for service or repair of a defect on fit and
finishaitems
after
remodel?
A.) by certified
mail
B.) by overnight
mail
C.) by personal
delivery
D.) any of the above correct answers D. A client may use the normal
customer-service
procedures agreed to between the client and the contractor, but the client
must notify
the contractor of the defect in writing by certified mail, overnight mail,
or personal
delivery before the client may file an action
in court.
Question
2:
What is the maximum allowed travel distance from any point of a work
area to a fire
extinguishe
r?
a.)25
feet
b.)50
feet
c.)75
feet
d.)150 feet correct answers 75
feet
When should you renew contractors bond? correct answers 30 days
before bond
expire
s
Question
4:
If, during excavation, you unearth human remains or burial artifacts at a
site, what should you
construction
do?
Click here to select
answerthe
Notify B. owner of the
property.
Click here to select
answer
Stop workB. and place a warning ribbon three feet from the remains around
thethe
of perimeter
site.
Click here to select
answer C.
,Stop work immediately at that
site.
Click here to select
answer
Stop workD. immediately at that site and any other nearby area that may
have remains.
correct answers Stop work immediately at that site and any other nearby
area that may
have
remains.
Question
5:
Direct costs are $37,000, overhead is 12%, and profit is 5%. What is the
selling price?
Click here to select
answer A.
$39,272.4
7
Click here to select
answer B.
$41,373.4
5
Click here to select
answer C.
$43,383.3
7
Click here to select
answer D. correct answers D. The following solution is based on one of the
$44,578.31
listed in the CSLB Study Guide. The solution may seem unorthodox, but
references
you must
follow each step to arrive at the State's answer. Sum of overhead
and profit
percentages = 12% + 5% = 17% Percent of selling price that is direct
costs==83%
17% 100% = -.83 Selling price = $37,000 ÷ .83 = $44,578.31 To
check these add the subtotals: Direct costs = $44,578.31 × .83 =
calculations,
$37,000.00
= $44,578.31 Overhead
× .12 = $5,349.40 Profit = $44,578.31 × .05 = $2,228.92
$37,000.00++$2,228.92 =
$5,349.40
$44,578.32
Who pays
FUTA?
a.
b.
employer
employee
c. 50% employer and 50%
employee
d. 90% employer and 10% employee correct answers A.)
Employer
When you get an approved set of plans, what should you do first?
correct
Read answers
any notes from the building
department.
Of the following, which is best for determining the number of hours required
for different
phases of a project and for making sure the job is on schedule? correct
answers critical
path
method
Which of the following provisions may not be included in a home
improvement contract?
Click here to select
answermust
Owner A. pay for materials after they are
delivered.
, Click here to select
answermust
Owner B. pay for materials before they are
delivered.
Click here to select
answer
The C.
contractor may require a
downpayment.
Click here to select
answermay
Owner D. make progress payments. correct answers Owner must pay for
materials
before they are
delivered.
B. The CONTRACTORS LICENSE LAW states: It is against the law for a
contractor
collect to
payment for work not yet completed, or for materials not yet
delivered.
a contractor However,
may require a
downpayment.
How many times may you take the contractor's license exam before
your originalis voided? correct answers as many times as necessary within
application
18 months
If it is discovered that the construction materials in an area contain more
than 0.1%
asbesto
s:
Click here to select
answer
the crewA should try not to disturb the area but keep
working.
Click here to select
the contractor
answer B should contact DOSH
immediately.
Click here to select
answer
the C
workers should stop and remove the materials wearing masks
and gloves.
Click here to select
answer
the crewDshould wet down the area with water and continue working.
correct
the answersshould contact DOSH
contractor
immediately.
B. Any manufactured material containing more than one-tenth of one
percent (0.1%)
asbestos by weight meets the definition of "asbestos-containing material"."
Even if the
surface area of these materials is less than 100 square feet, the contractor
must file
report a the Occupational Carcinogen Control Unit of
with
DOSH.
Which of the following are the most effective when used together on a
private works
project
?
Click here to select
answer
stop A
payment notice and
mechanics
Click here tolien
select
answerofB cessation and
notice
mechanics
Click here tolien
select
answer C notice and stop payment
preliminary
notice
Click here to select
answerofDnon-responsibility and mechanics lien correct answers A.
notice
Mechanics
stop paymentliens and may be used on private works. The mechanics lien is a
notices
lien on the
, property, and the stop payment notice is a lien on funds. A mechanics lien
alone
not bemay
sufficient. A lender's deed of trust recorded prior to
commencement
would of work
have priority over a mechanics lien or the owner's equity in the
property
less than may be
the amount stated in the lien. Note that the Prime Contractor may
serve a stop
payment notice only on the construction lender, not the
property owner.
After a job is completed, the owner decides to have additional work done.
Howcontractor
the should proceed? correct answers Write a new contract and ask
the owner to
sign
it.
When should you let your attorney see a construction
contract?
Click here to select
answeryou
Before A. let your client see the
contract.
Click here to select
answer
After theB.contract is prepared, but before you
sign it.
Click here to select
answer
After theC.building permit is
obtained.
Click here to select
answer
After theD.contract is signed by you and your client. correct answers After the
contract isbut before you
prepared,
sign it.
Business records must be kept and made available for inspection by the
Registrar of for a period of
Contractors after completion of a construction project or
operation.
Click here to select
answer A.
one
year
Click here to select
answer B.
two
years
Click here to select
answer C.
three
years
Click here to select
answer
five yearsD. correct answers FIVE
YEARS
For which of the following would you not obtain a short-
term loan?
Click here to select
answer A.
wage
s
Click here to select
answer B.
Question
1:
How must a client submit a claim for service or repair of a defect on fit and
finishaitems
after
remodel?
A.) by certified
B.) by overnight
C.) by personal
delivery
D.) any of the above correct answers D. A client may use the normal
customer-service
procedures agreed to between the client and the contractor, but the client
must notify
the contractor of the defect in writing by certified mail, overnight mail,
or personal
delivery before the client may file an action
in court.
Question
2:
What is the maximum allowed travel distance from any point of a work
area to a fire
extinguishe
r?
a.)25
feet
b.)50
feet
c.)75
feet
d.)150 feet correct answers 75
feet
When should you renew contractors bond? correct answers 30 days
before bond
expire
s
Question
4:
If, during excavation, you unearth human remains or burial artifacts at a
site, what should you
construction
do?
Click here to select
answerthe
Notify B. owner of the
property.
Click here to select
answer
Stop workB. and place a warning ribbon three feet from the remains around
thethe
of perimeter
site.
Click here to select
answer C.
,Stop work immediately at that
site.
Click here to select
answer
Stop workD. immediately at that site and any other nearby area that may
have remains.
correct answers Stop work immediately at that site and any other nearby
area that may
have
remains.
Question
5:
Direct costs are $37,000, overhead is 12%, and profit is 5%. What is the
selling price?
Click here to select
answer A.
$39,272.4
7
Click here to select
answer B.
$41,373.4
5
Click here to select
answer C.
$43,383.3
7
Click here to select
answer D. correct answers D. The following solution is based on one of the
$44,578.31
listed in the CSLB Study Guide. The solution may seem unorthodox, but
references
you must
follow each step to arrive at the State's answer. Sum of overhead
and profit
percentages = 12% + 5% = 17% Percent of selling price that is direct
costs==83%
17% 100% = -.83 Selling price = $37,000 ÷ .83 = $44,578.31 To
check these add the subtotals: Direct costs = $44,578.31 × .83 =
calculations,
$37,000.00
= $44,578.31 Overhead
× .12 = $5,349.40 Profit = $44,578.31 × .05 = $2,228.92
$37,000.00++$2,228.92 =
$5,349.40
$44,578.32
Who pays
FUTA?
a.
b.
employer
employee
c. 50% employer and 50%
employee
d. 90% employer and 10% employee correct answers A.)
Employer
When you get an approved set of plans, what should you do first?
correct
Read answers
any notes from the building
department.
Of the following, which is best for determining the number of hours required
for different
phases of a project and for making sure the job is on schedule? correct
answers critical
path
method
Which of the following provisions may not be included in a home
improvement contract?
Click here to select
answermust
Owner A. pay for materials after they are
delivered.
, Click here to select
answermust
Owner B. pay for materials before they are
delivered.
Click here to select
answer
The C.
contractor may require a
downpayment.
Click here to select
answermay
Owner D. make progress payments. correct answers Owner must pay for
materials
before they are
delivered.
B. The CONTRACTORS LICENSE LAW states: It is against the law for a
contractor
collect to
payment for work not yet completed, or for materials not yet
delivered.
a contractor However,
may require a
downpayment.
How many times may you take the contractor's license exam before
your originalis voided? correct answers as many times as necessary within
application
18 months
If it is discovered that the construction materials in an area contain more
than 0.1%
asbesto
s:
Click here to select
answer
the crewA should try not to disturb the area but keep
working.
Click here to select
the contractor
answer B should contact DOSH
immediately.
Click here to select
answer
the C
workers should stop and remove the materials wearing masks
and gloves.
Click here to select
answer
the crewDshould wet down the area with water and continue working.
correct
the answersshould contact DOSH
contractor
immediately.
B. Any manufactured material containing more than one-tenth of one
percent (0.1%)
asbestos by weight meets the definition of "asbestos-containing material"."
Even if the
surface area of these materials is less than 100 square feet, the contractor
must file
report a the Occupational Carcinogen Control Unit of
with
DOSH.
Which of the following are the most effective when used together on a
private works
project
?
Click here to select
answer
stop A
payment notice and
mechanics
Click here tolien
select
answerofB cessation and
notice
mechanics
Click here tolien
select
answer C notice and stop payment
preliminary
notice
Click here to select
answerofDnon-responsibility and mechanics lien correct answers A.
notice
Mechanics
stop paymentliens and may be used on private works. The mechanics lien is a
notices
lien on the
, property, and the stop payment notice is a lien on funds. A mechanics lien
alone
not bemay
sufficient. A lender's deed of trust recorded prior to
commencement
would of work
have priority over a mechanics lien or the owner's equity in the
property
less than may be
the amount stated in the lien. Note that the Prime Contractor may
serve a stop
payment notice only on the construction lender, not the
property owner.
After a job is completed, the owner decides to have additional work done.
Howcontractor
the should proceed? correct answers Write a new contract and ask
the owner to
sign
it.
When should you let your attorney see a construction
contract?
Click here to select
answeryou
Before A. let your client see the
contract.
Click here to select
answer
After theB.contract is prepared, but before you
sign it.
Click here to select
answer
After theC.building permit is
obtained.
Click here to select
answer
After theD.contract is signed by you and your client. correct answers After the
contract isbut before you
prepared,
sign it.
Business records must be kept and made available for inspection by the
Registrar of for a period of
Contractors after completion of a construction project or
operation.
Click here to select
answer A.
one
year
Click here to select
answer B.
two
years
Click here to select
answer C.
three
years
Click here to select
answer
five yearsD. correct answers FIVE
YEARS
For which of the following would you not obtain a short-
term loan?
Click here to select
answer A.
wage
s
Click here to select
answer B.
