CSLB Contractor's Law practice test
Part 2
Which of the following is NOT true concerning a joint-control addendum to a contract?
A. It prevents the contractor from being paid more than the value of the work completed
B. It safeguards the consumer's property from liens by requiring contractor's to supply
lien releases
C. It analyzes the contract, plans, breakdown of costs and prepares an account from
which funds will be disbursed
D. It is controlled by the Contractor's State License Board - ✔️✔️D. It is controlled by
the Contractor's State License Board
Who must sign a joint-control addendum to a home improvement contract?
A. Contractor's only
B. Owner and contractor
C. Owner, contractor and Notary Public
D. Owner,contractor and joint control officer - ✔️✔️D. Owner,contractor and joint
control officer
When a joint-control addendum is issued, which of the following does NOT have to be
included in a home improvement contract?
A. Owner's signature
B. Schedule of payments
C. Notice to owner
D. License number of the contractor - ✔️✔️B. Schedule of payments
Which is true concerning home improvement sales persons?
A. They must register with the Registrar's office and may work for only one contractor
at a time
B. Anyone who sells home improvement contracts for a licensed contractor outside the
contractor's normal place of business is required to be registered with the Attorney
General's office
C. They must be at least 18 years of age. There are no residency or educational
requirements
D. They may begin to negotiate home improvement contracts as soon as they have
filled out the appropriate application and paid the required fees - ✔️✔️C. They must be
at least 18 years of age. There are no residency or educational requirements - must
register for "each" contractor with the Registrar and receive a registration number first
Judy, a contractor, employs Sam as her registered home improvement salesperson.
Sam meets with Mr. And Mrs. Jones and negotiates home improvement work that totals
$350. When Sam returns to his boss and tells her of the verbal contract, his employer
says she will not work for the contracted price. The Contractor's License Law states:
, A. The contractor is required by law to abide by the verbal agreement since verbal
home improvement contracts under $500 are binding
B. The contractor is not bound by a verbal agreement
C. The contractor may cancel a home improvement contract that she did not negotiate
D. The contractor is not bound by the contract since all home improvement contracts
must be in writting - ✔️✔️A. When registered salespersons enter into an agreement,
verbal or written, they are bound by it. They are acting as the agent of the contractor.
Verbal improvement contracts are legal and binding
Which type of contract can be cancelled by a consumer?
A. Sub contract
B. Home solicitation contract which involves fencing, burglar alarm, carpentry and
texture coating
C. Prime construction contract
D. Home improvement contract involving free standing bookcases, rugs and window air
conditioner - ✔️✔️B. Home solicitation contract which involves fencing, burglar alarm,
carpentry and texture coating - only home solicited contracts can be cancelled which
contain "permanent fixtures"
A consumer may cancel a home solicitation contract at any time prior to midnight of the
___ business day after the date of the transaction.
A. 1st
B. 2nd
C. 3rd
D. 5th - ✔️✔️C. 3rd
If an owner cancels a home solicitation contract on March 20, by what date must the
contractor return the down payment?
A. April 23
B. March 30
C. April 1
D. April 20 - ✔️✔️B. March 30 -10 Days
When should you let your attorney see a construction contract?
A. Before you let the client see the contract
B. After the contract is prepared but before you sign it
C. After the building permit is obtained
D. After the contract is signed by you and the client - ✔️✔️B. After the contract is
prepared but before you sign it
Which is the most correct statement as to what must be included in every home
improvement contract?
A. Notice of right to cancel
B. Contractor's license number
C. Truth-in-lending notice
Part 2
Which of the following is NOT true concerning a joint-control addendum to a contract?
A. It prevents the contractor from being paid more than the value of the work completed
B. It safeguards the consumer's property from liens by requiring contractor's to supply
lien releases
C. It analyzes the contract, plans, breakdown of costs and prepares an account from
which funds will be disbursed
D. It is controlled by the Contractor's State License Board - ✔️✔️D. It is controlled by
the Contractor's State License Board
Who must sign a joint-control addendum to a home improvement contract?
A. Contractor's only
B. Owner and contractor
C. Owner, contractor and Notary Public
D. Owner,contractor and joint control officer - ✔️✔️D. Owner,contractor and joint
control officer
When a joint-control addendum is issued, which of the following does NOT have to be
included in a home improvement contract?
A. Owner's signature
B. Schedule of payments
C. Notice to owner
D. License number of the contractor - ✔️✔️B. Schedule of payments
Which is true concerning home improvement sales persons?
A. They must register with the Registrar's office and may work for only one contractor
at a time
B. Anyone who sells home improvement contracts for a licensed contractor outside the
contractor's normal place of business is required to be registered with the Attorney
General's office
C. They must be at least 18 years of age. There are no residency or educational
requirements
D. They may begin to negotiate home improvement contracts as soon as they have
filled out the appropriate application and paid the required fees - ✔️✔️C. They must be
at least 18 years of age. There are no residency or educational requirements - must
register for "each" contractor with the Registrar and receive a registration number first
Judy, a contractor, employs Sam as her registered home improvement salesperson.
Sam meets with Mr. And Mrs. Jones and negotiates home improvement work that totals
$350. When Sam returns to his boss and tells her of the verbal contract, his employer
says she will not work for the contracted price. The Contractor's License Law states:
, A. The contractor is required by law to abide by the verbal agreement since verbal
home improvement contracts under $500 are binding
B. The contractor is not bound by a verbal agreement
C. The contractor may cancel a home improvement contract that she did not negotiate
D. The contractor is not bound by the contract since all home improvement contracts
must be in writting - ✔️✔️A. When registered salespersons enter into an agreement,
verbal or written, they are bound by it. They are acting as the agent of the contractor.
Verbal improvement contracts are legal and binding
Which type of contract can be cancelled by a consumer?
A. Sub contract
B. Home solicitation contract which involves fencing, burglar alarm, carpentry and
texture coating
C. Prime construction contract
D. Home improvement contract involving free standing bookcases, rugs and window air
conditioner - ✔️✔️B. Home solicitation contract which involves fencing, burglar alarm,
carpentry and texture coating - only home solicited contracts can be cancelled which
contain "permanent fixtures"
A consumer may cancel a home solicitation contract at any time prior to midnight of the
___ business day after the date of the transaction.
A. 1st
B. 2nd
C. 3rd
D. 5th - ✔️✔️C. 3rd
If an owner cancels a home solicitation contract on March 20, by what date must the
contractor return the down payment?
A. April 23
B. March 30
C. April 1
D. April 20 - ✔️✔️B. March 30 -10 Days
When should you let your attorney see a construction contract?
A. Before you let the client see the contract
B. After the contract is prepared but before you sign it
C. After the building permit is obtained
D. After the contract is signed by you and the client - ✔️✔️B. After the contract is
prepared but before you sign it
Which is the most correct statement as to what must be included in every home
improvement contract?
A. Notice of right to cancel
B. Contractor's license number
C. Truth-in-lending notice
