CSLB Law & Business questions with verified answers
A "hard" laborer cannot be younger than: Ans✓✓✓ 16 years old
A balance sheet shows: Ans✓✓✓ assets and liabilities at a certain point in time
A bookkeeper for a construction company sends out invoices once a month. How
should the company file its copy of each invoice? Ans✓✓✓ accounts receivable
A Cal/OSHA permit is required for trenches that are _____ or more in depth
Ans✓✓✓ 5 feet
A consumer may cancel a home solicitation contract at any time prior to midnight
of the _____ after the date of the transaction. Ans✓✓✓ 3rd business day
A contractor bids on a home improvement project and earns the bid. Later, he
decides not to take the job. Which bond would protect the home owner?
Ans✓✓✓ Bid Bond
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? Ans✓✓✓ It is not legal to ask
prospective employees about arrests not leading to convictions.
A contractor is looking for an insurance policy to cover a high degree of exposure
to risk. Of the following, which policy would be best for this purpose? Ans✓✓✓
Umbrella
,A contractor is required to report a construction-related civil court judgement to
CSLB within ____________. Ans✓✓✓ 90 days
A contractor may collect what percent as a down- payment for a Service and
Repair contract? Ans✓✓✓ Zero Percent
A contractor must provide an express limited warranty for at least ______ ______
covering fit and finish items. Ans✓✓✓ One Year
A contractor on a public works project that, the entire project is over $30,000, the
contractor must employ one (1) hour of apprentice work for every ______ hour(s)
performed by a journeyman for each separate craft at the end of a project.
Ans✓✓✓ 5 hours
A contractor, on his own initiative, changed the design of a building and carried
out the change. The owner rejected the change and stated that the building has
lost market value. If the owner takes the contractor to court and obtains a
favorable judgment, the owner is: Ans✓✓✓ due the cost of repairs or the loss of
market value
A general contractor who is doing asbestos-related work that involves 100 square
feet or more must register with: Ans✓✓✓ DOSH.
A hard-soil anchor is installed about ____ inches into the ground. Ans✓✓✓ 30in
A home improvement salesperson's registration must be renewed: Ans✓✓✓
every two years.
, A homeowner may file suit for an improper application of paint up to ______
______ after escrow closes. Ans✓✓✓ 5 years
A licensed contractor wants to do construction projects with an unlicensed
individual. Of the following, which is a legal alternative? Ans✓✓✓ They may form
a corporation and obtain a corporate license.
A mechanics' lien is a written document that must be signed and verified by the
claimant. The first and third steps a contractor should take in filing a lien are listed
below. Step 1: Obtain the exact legal description of the property. Step 2: Step 3:
Find out if the person requesting the work of improvement is the owner. What is
Step 2? Ans✓✓✓ Find out the name of the legal owner of the property as well as
the percent of ownership.
A notice canceling a home solicitation contract becomes effective: Ans✓✓✓
when the written notice is deposited in the mail
A payment bond would be posted by the: Ans✓✓✓ prime contractor or property
owner.
A prime contractor entered into a construction contract with a subcontractor. An
employee of the subcontractor was injured, but unfortunately the subcontractor
had not secured workers' compensation coverage. Which of the following
statements best describes the situation, except in cases of fraud? Ans✓✓✓ The
subcontractor is guilty, but the prime contractor must take responsibility for the
injuries.
A subcontractor must file a mechanics' lien with the: Ans✓✓✓ County Recorder
A "hard" laborer cannot be younger than: Ans✓✓✓ 16 years old
A balance sheet shows: Ans✓✓✓ assets and liabilities at a certain point in time
A bookkeeper for a construction company sends out invoices once a month. How
should the company file its copy of each invoice? Ans✓✓✓ accounts receivable
A Cal/OSHA permit is required for trenches that are _____ or more in depth
Ans✓✓✓ 5 feet
A consumer may cancel a home solicitation contract at any time prior to midnight
of the _____ after the date of the transaction. Ans✓✓✓ 3rd business day
A contractor bids on a home improvement project and earns the bid. Later, he
decides not to take the job. Which bond would protect the home owner?
Ans✓✓✓ Bid Bond
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? Ans✓✓✓ It is not legal to ask
prospective employees about arrests not leading to convictions.
A contractor is looking for an insurance policy to cover a high degree of exposure
to risk. Of the following, which policy would be best for this purpose? Ans✓✓✓
Umbrella
,A contractor is required to report a construction-related civil court judgement to
CSLB within ____________. Ans✓✓✓ 90 days
A contractor may collect what percent as a down- payment for a Service and
Repair contract? Ans✓✓✓ Zero Percent
A contractor must provide an express limited warranty for at least ______ ______
covering fit and finish items. Ans✓✓✓ One Year
A contractor on a public works project that, the entire project is over $30,000, the
contractor must employ one (1) hour of apprentice work for every ______ hour(s)
performed by a journeyman for each separate craft at the end of a project.
Ans✓✓✓ 5 hours
A contractor, on his own initiative, changed the design of a building and carried
out the change. The owner rejected the change and stated that the building has
lost market value. If the owner takes the contractor to court and obtains a
favorable judgment, the owner is: Ans✓✓✓ due the cost of repairs or the loss of
market value
A general contractor who is doing asbestos-related work that involves 100 square
feet or more must register with: Ans✓✓✓ DOSH.
A hard-soil anchor is installed about ____ inches into the ground. Ans✓✓✓ 30in
A home improvement salesperson's registration must be renewed: Ans✓✓✓
every two years.
, A homeowner may file suit for an improper application of paint up to ______
______ after escrow closes. Ans✓✓✓ 5 years
A licensed contractor wants to do construction projects with an unlicensed
individual. Of the following, which is a legal alternative? Ans✓✓✓ They may form
a corporation and obtain a corporate license.
A mechanics' lien is a written document that must be signed and verified by the
claimant. The first and third steps a contractor should take in filing a lien are listed
below. Step 1: Obtain the exact legal description of the property. Step 2: Step 3:
Find out if the person requesting the work of improvement is the owner. What is
Step 2? Ans✓✓✓ Find out the name of the legal owner of the property as well as
the percent of ownership.
A notice canceling a home solicitation contract becomes effective: Ans✓✓✓
when the written notice is deposited in the mail
A payment bond would be posted by the: Ans✓✓✓ prime contractor or property
owner.
A prime contractor entered into a construction contract with a subcontractor. An
employee of the subcontractor was injured, but unfortunately the subcontractor
had not secured workers' compensation coverage. Which of the following
statements best describes the situation, except in cases of fraud? Ans✓✓✓ The
subcontractor is guilty, but the prime contractor must take responsibility for the
injuries.
A subcontractor must file a mechanics' lien with the: Ans✓✓✓ County Recorder
