Law & Business (CSLB) Legal
After the contract is prepared but before you sign it - ANS-When should you let your attorney
see a construction contract?
1. Before you let the client see the contract
2. After the contract is prepared but before you sign it
3. After the building permit is obtained
4. After the contract is signed by you and the client
Contractor's License Number - ANS-Which is the most correct statement as to what must be
included in every home improvement contract?
1. Notice of right to cancel
2. Contractor's License Number
3. Truth-in-lending notice
4. Name of the project
The name and home addresses of all the personnel listed on the license
(Know that 1, 3, and 4 are required. Only the contractor's name and address and license
number are required) - ANS-Which is NOT a requirement on a home improvement contract?
1. A notice, in a least 10 point print, in close proximity to the signature, and a statement that the
owner has a right to require a performance and payment bond
2. The name and home address of all the personnel listed on the license
3. An approximate date when work will begin and be substantially completed
4. A description of the work to be done and materials and equipment to be used or installed.
20 - ANS-When a home improvement contract is signed, the contractor must substantially
begin work within _____ days of the date specified in the contract?
1. 5
2. 10
3. 15
4. 20
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) -
ANS-Which is true concerning home improvement salespersons?
1. They must register with the Registrar's office and may work for only one contractor at a time
2. 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
3. They must be at least 18 years of age. There are no residency or educational requirements.
, 4. They may begin to negotiate home improvement contracts as soon as they have filled out the
appropriate application and paid the required fees.
The contractor is required by law to abide by the verbal agreement since verbal home
improvement contracts under $500 are binding
(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.) - ANS-Judy, a contractor, employs Same as her registered home improvement
salesperson. Sam meets with Mr. and Mrs. Jones and negotiate home improvement work that
totals $350. When Sam returns to his boss and tells him of the verbal contract, his employer
says she will not work for the contracted price. The Contractor's License Law states:
1. The contractor is required by law to abide by the verbal agreement since verbal home
improvement contracts under $500 are binding.
2. The contractor is not bound by a verbal agreement
3. The contractor may cancel a home improvement contract that she did not negotiate
4. The contractor is not bound by the contract since all home improvement contracts must be in
writing.
Home solicitation contract which involves fencing, burglar alarm, carpentry, and texture coating -
ANS-Which type of contract can be canceled by a consumer?
1. Sub Contract
2. Home solicitation contract which involves fencing, burglar alarm, carpentry, and texture
coating
3. Prime construction contract
4. Home improvement contract involving free-standing bookcases, rugs, and window air
conditioner.
3rd - ANS-A consumer may cancel a home solicitation contract at any time prior to midnight of
the ____ business day after the date of the transaction.
1. 1st
2. 2nd
3. 3rd.
4. 4th
March 30
(10 Days) - ANS-If an owner cancels a home solicitation contract on March 20., by what date
must the contractor return the down payment?
1. April 23
2. March 30
3. April 1
4. April 20
When the written notice is deposited in the mail - ANS-A notice canceling a home solicitation
contract becomes effective:
After the contract is prepared but before you sign it - ANS-When should you let your attorney
see a construction contract?
1. Before you let the client see the contract
2. After the contract is prepared but before you sign it
3. After the building permit is obtained
4. After the contract is signed by you and the client
Contractor's License Number - ANS-Which is the most correct statement as to what must be
included in every home improvement contract?
1. Notice of right to cancel
2. Contractor's License Number
3. Truth-in-lending notice
4. Name of the project
The name and home addresses of all the personnel listed on the license
(Know that 1, 3, and 4 are required. Only the contractor's name and address and license
number are required) - ANS-Which is NOT a requirement on a home improvement contract?
1. A notice, in a least 10 point print, in close proximity to the signature, and a statement that the
owner has a right to require a performance and payment bond
2. The name and home address of all the personnel listed on the license
3. An approximate date when work will begin and be substantially completed
4. A description of the work to be done and materials and equipment to be used or installed.
20 - ANS-When a home improvement contract is signed, the contractor must substantially
begin work within _____ days of the date specified in the contract?
1. 5
2. 10
3. 15
4. 20
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) -
ANS-Which is true concerning home improvement salespersons?
1. They must register with the Registrar's office and may work for only one contractor at a time
2. 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
3. They must be at least 18 years of age. There are no residency or educational requirements.
, 4. They may begin to negotiate home improvement contracts as soon as they have filled out the
appropriate application and paid the required fees.
The contractor is required by law to abide by the verbal agreement since verbal home
improvement contracts under $500 are binding
(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.) - ANS-Judy, a contractor, employs Same as her registered home improvement
salesperson. Sam meets with Mr. and Mrs. Jones and negotiate home improvement work that
totals $350. When Sam returns to his boss and tells him of the verbal contract, his employer
says she will not work for the contracted price. The Contractor's License Law states:
1. The contractor is required by law to abide by the verbal agreement since verbal home
improvement contracts under $500 are binding.
2. The contractor is not bound by a verbal agreement
3. The contractor may cancel a home improvement contract that she did not negotiate
4. The contractor is not bound by the contract since all home improvement contracts must be in
writing.
Home solicitation contract which involves fencing, burglar alarm, carpentry, and texture coating -
ANS-Which type of contract can be canceled by a consumer?
1. Sub Contract
2. Home solicitation contract which involves fencing, burglar alarm, carpentry, and texture
coating
3. Prime construction contract
4. Home improvement contract involving free-standing bookcases, rugs, and window air
conditioner.
3rd - ANS-A consumer may cancel a home solicitation contract at any time prior to midnight of
the ____ business day after the date of the transaction.
1. 1st
2. 2nd
3. 3rd.
4. 4th
March 30
(10 Days) - ANS-If an owner cancels a home solicitation contract on March 20., by what date
must the contractor return the down payment?
1. April 23
2. March 30
3. April 1
4. April 20
When the written notice is deposited in the mail - ANS-A notice canceling a home solicitation
contract becomes effective:
