CSLB CONTRACTOR'S LAW &
BUSINESS EXAM Q&A 100% PASS
An employer remits State disability taxes withheld from an employees
wages to what agency? - ✔✔Employment Development Department
Which act establishes the rights of workers to organize into unions and
negotiate contracts? - ✔✔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.
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©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
,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. - ✔✔It is not legal to ask prospective employees about
arrest not leading to convictions.
Why would a contractor have a case in Superior Court? - ✔✔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.
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©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
,D. Employee falls off forklift and suffers a sever back injury. - ✔✔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? - ✔✔Yes. If the contractor has reason to believe that the
subcontractor has made an error in preparing 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: - ✔✔The 31st of January.
After a job is completed, the owner decides to have additional work done.
How should the contractor proceed? - ✔✔Write a new contract and ask the
owner to sign it.
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©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
, The purpose of a 20-day preliminary notice for private work is to? -
✔✔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? - ✔✔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? -
✔✔Decline to bid the work.
On a time-and-materials job, you should: - ✔✔Add profit and overhead to
labor and materials
Your employee sets a cabinet wrong. The cabinet falls from the wall and
damages the client's counter top. What should you do?
A. Claim the damage on your general liability insurance policy.
B. Require the employee to pay for the damage to the countertop.
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©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
BUSINESS EXAM Q&A 100% PASS
An employer remits State disability taxes withheld from an employees
wages to what agency? - ✔✔Employment Development Department
Which act establishes the rights of workers to organize into unions and
negotiate contracts? - ✔✔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.
1
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
,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. - ✔✔It is not legal to ask prospective employees about
arrest not leading to convictions.
Why would a contractor have a case in Superior Court? - ✔✔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.
2
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
,D. Employee falls off forklift and suffers a sever back injury. - ✔✔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? - ✔✔Yes. If the contractor has reason to believe that the
subcontractor has made an error in preparing 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: - ✔✔The 31st of January.
After a job is completed, the owner decides to have additional work done.
How should the contractor proceed? - ✔✔Write a new contract and ask the
owner to sign it.
3
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
, The purpose of a 20-day preliminary notice for private work is to? -
✔✔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? - ✔✔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? -
✔✔Decline to bid the work.
On a time-and-materials job, you should: - ✔✔Add profit and overhead to
labor and materials
Your employee sets a cabinet wrong. The cabinet falls from the wall and
damages the client's counter top. What should you do?
A. Claim the damage on your general liability insurance policy.
B. Require the employee to pay for the damage to the countertop.
4
©NINJANERD 2025/2026. YEAR PUBLISHED 2025.
