CALIFORNIA CONTRACTORS LICENSE LAW TEST
CLASS QUESTIONS WITH 100% VERIFIED ANSWERS
Which of the following is the most important practices to follow when trying to avoid
disagreements with an owner? - ✔✔Be sure to include a detailed description of the
project and everything that is to be done in the contract.
Why should a contractor keep a record of all Change Orders? - ✔✔State law Requires It
Which of the following people file a Stop Notice? - ✔✔a subcontractor contracted to
do specialty trade and was not paid.
Who signs a "Joint Control Agreement"? - ✔✔The lender, the property owner and the Prime
Contractor.
How long will the CSLB hold a contractor responsible for observable defects? - ✔✔4 years
The CSLB offers a free voluntary arbitration program for disputes alleged damages: -
✔✔Between $15,000 and $50,000
If a contractor includes provision in a contract for use of private arbitration and a dispute
between the owner and the contractor makes an arbitration necessary, who will bare the cost of
a private arbitrator? - ✔✔The Owner and contractor will slit the cost of the arbitration.
, If a contractor provides the owner with a 10-year written warranty covering a patio cover he
has installed, and the cover begins to deteriorate after 5 years of being installed which is true? -
✔✔the state will hold the contractor liable for the entire term of the written warranty.
Who is responsible for providing the owner a copy of the "Notice of Cancellation"? -
✔✔The Prime Contractor
In which of the following circumstances must you provide your license number? -
✔✔All contracts, all Advertising, All preliminary Notices.
Who is responsible for determining when the project is complete? - ✔✔The owner/
his Agent
Stop Notices are Bonder for - ✔✔1 & 1/4 the amount of the claim
In drawing up "Home Improvement Contracts," contractors should pay attention to the
requirements of print typeface and point size of the notices and disclosures. Unless a larger
typeface is specified in the law (Business and professions Code) text in any printed form
should be: - ✔✔10-pt Typeface and the headers should be at least 10-pt Boldface
The costs of running your business including office expenses etc, is called: -
✔✔Overhead expenses
Direct Labor is compromised of: - ✔✔cost for labor and payroll taxes
Which of the following is an asset in the Balance sheet? - ✔✔Accounts Receivable
Direct Costs Consist of: - ✔✔Direct Labor, Direct labor burden, direct materials and
other direct costs.
CLASS QUESTIONS WITH 100% VERIFIED ANSWERS
Which of the following is the most important practices to follow when trying to avoid
disagreements with an owner? - ✔✔Be sure to include a detailed description of the
project and everything that is to be done in the contract.
Why should a contractor keep a record of all Change Orders? - ✔✔State law Requires It
Which of the following people file a Stop Notice? - ✔✔a subcontractor contracted to
do specialty trade and was not paid.
Who signs a "Joint Control Agreement"? - ✔✔The lender, the property owner and the Prime
Contractor.
How long will the CSLB hold a contractor responsible for observable defects? - ✔✔4 years
The CSLB offers a free voluntary arbitration program for disputes alleged damages: -
✔✔Between $15,000 and $50,000
If a contractor includes provision in a contract for use of private arbitration and a dispute
between the owner and the contractor makes an arbitration necessary, who will bare the cost of
a private arbitrator? - ✔✔The Owner and contractor will slit the cost of the arbitration.
, If a contractor provides the owner with a 10-year written warranty covering a patio cover he
has installed, and the cover begins to deteriorate after 5 years of being installed which is true? -
✔✔the state will hold the contractor liable for the entire term of the written warranty.
Who is responsible for providing the owner a copy of the "Notice of Cancellation"? -
✔✔The Prime Contractor
In which of the following circumstances must you provide your license number? -
✔✔All contracts, all Advertising, All preliminary Notices.
Who is responsible for determining when the project is complete? - ✔✔The owner/
his Agent
Stop Notices are Bonder for - ✔✔1 & 1/4 the amount of the claim
In drawing up "Home Improvement Contracts," contractors should pay attention to the
requirements of print typeface and point size of the notices and disclosures. Unless a larger
typeface is specified in the law (Business and professions Code) text in any printed form
should be: - ✔✔10-pt Typeface and the headers should be at least 10-pt Boldface
The costs of running your business including office expenses etc, is called: -
✔✔Overhead expenses
Direct Labor is compromised of: - ✔✔cost for labor and payroll taxes
Which of the following is an asset in the Balance sheet? - ✔✔Accounts Receivable
Direct Costs Consist of: - ✔✔Direct Labor, Direct labor burden, direct materials and
other direct costs.
