CSLB BUSINESS & LAW EXAM
QUESTIONS WITH COMPLETE
SOLUTIONS
How deep must asbestos be buried within 24 hours of delivery at a disposal site?
6 inches
10 inches
12 inches
18 inches - Answer-6 inches
A contractor's California personal income tax return should be sent to which office?
Franchise Tax Board
EDD
IRS
Board of Equalization - Answer-Franchise Tax Board
In which situation is a private contract subject to prevailing wage law?
The work is not specifically considered a public works project but at least two public
entities' approvals are required before work can begin.
The private contract is partly funded by public entities.
More than 50% of assignable square footage is leased by a public entity.
Both "A" and "B", but not "C". - Answer-More than 50% of assignable square footage is
leased by a public entity.
What does it mean when a subcontractor signs a waiver and release form on a public
works project?
The subcontractor gives up the right to lien the real property.
,The subcontractor gives up the right to lien the construction funds.
The subcontractor waives the right to lien the real property or the construction funds.
The subcontractor is no longer responsible for correcting defective work. - Answer-The
subcontractor gives up the right to lien the construction funds.
Where is the "Notice of Right to Cancel" found on a home improvement contract?
at the top of the page
near the client signature
in the middle of the page
on the back - Answer-near the client signature
Who pays FICA?
employer
employee
50% employer and 50% employee
90% employer and 10% employee - Answer-50% employer and 50% employee
How long does a client have to cancel a contract for repairs that are the result of an
event for which a State of Emergency was declared?
5 business days
5 calendar days
7 business days
7 calendar days - Answer-7 business days
Your accountant advises you to set up a cost management system. What does this
system do?
It gives a cost history to analyze labor and material costs.
It shows where profits and losses are.
It shows costs of materials only.
, It compares what others are charging for subcontracted work. - Answer-It gives a cost
history to analyze labor and material costs.
To whom do you report and pay sales tax?
County Tax Collector
Internal Revenue Service
Board of Equalization
Franchise Tax Board - Answer-Board of Equalization
Except in an emergency, you must notify the regional Underground Service Alert Center
within how many days before beginning to excavate?
at least one calendar day
at least one working day
at least two working days but not more than 14 calendar days
at least five working days but no more than 28 calendar days - Answer-at least two
working days but not more than 14 calendar days
If no notice of completion or cessation is given on a job, how many days does a
contractor have to file a mechanics' lien after completion of work?
30 days
60 days
90 days
180 days - Answer-90 days
What does it mean when a subcontractor signs a waiver and release form on a public
works project?
The subcontractor gives up the right to lien the real property.
The subcontractor gives up the right to lien the construction funds.
The subcontractor waives the right to lien the real property or the construction funds.
QUESTIONS WITH COMPLETE
SOLUTIONS
How deep must asbestos be buried within 24 hours of delivery at a disposal site?
6 inches
10 inches
12 inches
18 inches - Answer-6 inches
A contractor's California personal income tax return should be sent to which office?
Franchise Tax Board
EDD
IRS
Board of Equalization - Answer-Franchise Tax Board
In which situation is a private contract subject to prevailing wage law?
The work is not specifically considered a public works project but at least two public
entities' approvals are required before work can begin.
The private contract is partly funded by public entities.
More than 50% of assignable square footage is leased by a public entity.
Both "A" and "B", but not "C". - Answer-More than 50% of assignable square footage is
leased by a public entity.
What does it mean when a subcontractor signs a waiver and release form on a public
works project?
The subcontractor gives up the right to lien the real property.
,The subcontractor gives up the right to lien the construction funds.
The subcontractor waives the right to lien the real property or the construction funds.
The subcontractor is no longer responsible for correcting defective work. - Answer-The
subcontractor gives up the right to lien the construction funds.
Where is the "Notice of Right to Cancel" found on a home improvement contract?
at the top of the page
near the client signature
in the middle of the page
on the back - Answer-near the client signature
Who pays FICA?
employer
employee
50% employer and 50% employee
90% employer and 10% employee - Answer-50% employer and 50% employee
How long does a client have to cancel a contract for repairs that are the result of an
event for which a State of Emergency was declared?
5 business days
5 calendar days
7 business days
7 calendar days - Answer-7 business days
Your accountant advises you to set up a cost management system. What does this
system do?
It gives a cost history to analyze labor and material costs.
It shows where profits and losses are.
It shows costs of materials only.
, It compares what others are charging for subcontracted work. - Answer-It gives a cost
history to analyze labor and material costs.
To whom do you report and pay sales tax?
County Tax Collector
Internal Revenue Service
Board of Equalization
Franchise Tax Board - Answer-Board of Equalization
Except in an emergency, you must notify the regional Underground Service Alert Center
within how many days before beginning to excavate?
at least one calendar day
at least one working day
at least two working days but not more than 14 calendar days
at least five working days but no more than 28 calendar days - Answer-at least two
working days but not more than 14 calendar days
If no notice of completion or cessation is given on a job, how many days does a
contractor have to file a mechanics' lien after completion of work?
30 days
60 days
90 days
180 days - Answer-90 days
What does it mean when a subcontractor signs a waiver and release form on a public
works project?
The subcontractor gives up the right to lien the real property.
The subcontractor gives up the right to lien the construction funds.
The subcontractor waives the right to lien the real property or the construction funds.
