CSLB Law & Business
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1. 1-2%: Bonds can be purchased from bonding companies for ___% of the original
contract price.
2. Bid Bond: This acts as an assurance that the contractor will be able to complete
the job as described in the contract.
3. Performance Bond or Contract Bond: This guarantees a contractor will com-
plete the project according to the agreed upon terms & conditions.
4. Payment Bond: This guarantees that subcontractors and suppliers will be paid
by the contractor for properly performed work.
5. $35,000: Payment Bonds are required for federal government contracts over
$__________.
6. Fidelity Bond: This covers the business owner in case of employee dishonesty
or theft.
7. $15,000: Contractors must file a contractors bond OR submit a cash deposit with
the CSLB for $_______.
8. $15,000: The value of a contractors bond must be $________
9. 90: The contractors bond must be filed with the CLSB within ___ days from the
bond effective date.
10. True: True or False: A contractor must identify their type of insurance when
referring to themselves as "bonded" or "insured" in advertisements or publications.
11. $12,500 (They can be exempt if the RMO can certify ownership of 10% or
more of the voting stock in the company.): A business must submit a separate
$________ bond for RMEs or RMOs.
12. $100,000: A Limited Liability Surety Bond for $__________ is required in addi-
tion to the contractors bond for an LLC license.
13. Disciplinary Bond: This must be filed with the Registrar after a license has been
revoked or denied.
14. False. It's an additional requirement and may not be filed in place of
another bond.: True or False: A Disciplinary Bond can be combined with any other
bond.
15. $15,000 up to 10x the amount of the contractor's bond: The Disciplinary
bond amount ranges from _______ to _______, depending on the violation.
16. 2 years: The Disciplinary Bond must be valid & on file with the Registrar for how
long?
17. Within 90 days: How soon should the Disciplinary bond be filed with the CSLB?
18. C) Stocks or fluctuating investments: All of these are approved alternatives
to surety bonds except:
A) Certificate of deposit
B) Cash
C) Stocks/fluctuating investments
, CSLB Law & Business
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D) Savings & loan investments
E) U.S. government bearer bond
19. D) All of the above: A license may be suspended if:
A) One or more of the required bonds are canceled by their surety company
B) The bond amount is reduced by a judgment or payment claim
C) There's failure to maintain either the Disciplinary bond or cash deposit for the
required time period
D) All of the above
20. Proof of worker's compensation insurance: What must a contractor submit
before a contractor's license is issued?
21. Within 30 days: How soon must an employee provide written notification of an
injury to their employer?
22. $2000
(Increases to $10,000 if a jobsite injury occurs, maxing out at $100,000.): An
employer is fined $_________ per uninsured employee if they don't provide workers
comp.
23. County Recorder: A mechanics lien must be filed with the...
24. A) Date the funds were due: The mechanics lien must include all of the
following details EXCEPT:
A) Date the funds were due
B) The name of the owner
C) Address of the property
D) Work details
E) Amount of money owed
25. 90 days: A mechanics lien can only be fixed within ___ days of the completion
of work.
26. True: True or False: A lawsuit must be filed in addition to a mechanics lien.
27. One and a quarter time's the amount of the lien: An owner may free a
mechanics lien on their property by posting a bond for how much?
Study online at https://quizlet.com/_6l774t
1. 1-2%: Bonds can be purchased from bonding companies for ___% of the original
contract price.
2. Bid Bond: This acts as an assurance that the contractor will be able to complete
the job as described in the contract.
3. Performance Bond or Contract Bond: This guarantees a contractor will com-
plete the project according to the agreed upon terms & conditions.
4. Payment Bond: This guarantees that subcontractors and suppliers will be paid
by the contractor for properly performed work.
5. $35,000: Payment Bonds are required for federal government contracts over
$__________.
6. Fidelity Bond: This covers the business owner in case of employee dishonesty
or theft.
7. $15,000: Contractors must file a contractors bond OR submit a cash deposit with
the CSLB for $_______.
8. $15,000: The value of a contractors bond must be $________
9. 90: The contractors bond must be filed with the CLSB within ___ days from the
bond effective date.
10. True: True or False: A contractor must identify their type of insurance when
referring to themselves as "bonded" or "insured" in advertisements or publications.
11. $12,500 (They can be exempt if the RMO can certify ownership of 10% or
more of the voting stock in the company.): A business must submit a separate
$________ bond for RMEs or RMOs.
12. $100,000: A Limited Liability Surety Bond for $__________ is required in addi-
tion to the contractors bond for an LLC license.
13. Disciplinary Bond: This must be filed with the Registrar after a license has been
revoked or denied.
14. False. It's an additional requirement and may not be filed in place of
another bond.: True or False: A Disciplinary Bond can be combined with any other
bond.
15. $15,000 up to 10x the amount of the contractor's bond: The Disciplinary
bond amount ranges from _______ to _______, depending on the violation.
16. 2 years: The Disciplinary Bond must be valid & on file with the Registrar for how
long?
17. Within 90 days: How soon should the Disciplinary bond be filed with the CSLB?
18. C) Stocks or fluctuating investments: All of these are approved alternatives
to surety bonds except:
A) Certificate of deposit
B) Cash
C) Stocks/fluctuating investments
, CSLB Law & Business
Study online at https://quizlet.com/_6l774t
D) Savings & loan investments
E) U.S. government bearer bond
19. D) All of the above: A license may be suspended if:
A) One or more of the required bonds are canceled by their surety company
B) The bond amount is reduced by a judgment or payment claim
C) There's failure to maintain either the Disciplinary bond or cash deposit for the
required time period
D) All of the above
20. Proof of worker's compensation insurance: What must a contractor submit
before a contractor's license is issued?
21. Within 30 days: How soon must an employee provide written notification of an
injury to their employer?
22. $2000
(Increases to $10,000 if a jobsite injury occurs, maxing out at $100,000.): An
employer is fined $_________ per uninsured employee if they don't provide workers
comp.
23. County Recorder: A mechanics lien must be filed with the...
24. A) Date the funds were due: The mechanics lien must include all of the
following details EXCEPT:
A) Date the funds were due
B) The name of the owner
C) Address of the property
D) Work details
E) Amount of money owed
25. 90 days: A mechanics lien can only be fixed within ___ days of the completion
of work.
26. True: True or False: A lawsuit must be filed in addition to a mechanics lien.
27. One and a quarter time's the amount of the lien: An owner may free a
mechanics lien on their property by posting a bond for how much?
