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CSLB CONTRACTOR'S LAW PRACTICE TEST
PART 2 EXAM UPDATED 2025-2026 WITH ALL
NEW QUESTIONS AND EXACTLY RIGHT
ANSWERS | A+ QUALITY GUARANTEE
When should you let your attorney see a construction contract?
A. Before you let the client see the contract
B. After the contract is prepared but before you sign it
C. After the building permit is obtained
D. After the contract is signed by you and the client
ANSWER: B. After the contract is prepared but before you sign it
Which is the most correct statement as to what must be included in every home
improvement contract?
A. Notice of right to cancel
B. Contractor's license number
C. Truth-in-lending notice
D. Name of the project
ANSWER: B. Contractor's license number
Which is NOT required on a home improvement contract?
A. A notice, in at 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
B. The name and home address of all the personnel listed on the license
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C. An approximate date when work will begin and be substantially completed
D. A description of the work to be done and materials and equipment to be used
or installed
ANSWER: B. The name and home address of all the personnel listed on the
license. Know that A, C and D are required. Only the contractor's name, address
and license number are required.
When a home improvement contract is signed, the contractor must substantially
begin work within days of the date specified in the contract?
A. 5
B. 10
C. 15
D. 20
ANSWER: D. 20
Which is true concerning home improvement sales persons?
A. They must register with the Registrar's office and may work for only one
contractor at a time
B. 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
C. They must be at least 18 years of age. There are no residency or educational
requirements
D. They may begin to negotiate home improvement contracts as soon as they
have filled out the appropriate application and paid the required fees
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ANSWER: C. 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
Judy, a contractor, employs Sam as her registered home improvement salesperson.
Sam meets with Mr. And Mrs. Jones and negotiates home improvement work that
totals
$350. When Sam returns to his boss and tells her of the verbal contract, his
employer says she will not work for the contracted price. The Contractor's License
Law states:
A. The contractor is required by law to abide by the verbal agreement since
verbal home improvement contracts under $500 are binding
B. The contractor is not bound by a verbal agreement
C. The contractor may cancel a home improvement contract that she did not
negotiate
D. The contractor is not bound by the contract since all home improvement
contracts must be in writting
ANSWER: A. 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
Which type of contract can be cancelled by a consumer?
A. Sub contract
B. Home solicitation contract which involves fencing, burglar alarm, carpentry
and texture coating
C. Prime construction contract
D. Home improvement contract involving free standing bookcases, rugs and
window air conditioner
CSLB CONTRACTOR'S LAW PRACTICE TEST
PART 2 EXAM UPDATED 2025-2026 WITH ALL
NEW QUESTIONS AND EXACTLY RIGHT
ANSWERS | A+ QUALITY GUARANTEE
When should you let your attorney see a construction contract?
A. Before you let the client see the contract
B. After the contract is prepared but before you sign it
C. After the building permit is obtained
D. After the contract is signed by you and the client
ANSWER: B. After the contract is prepared but before you sign it
Which is the most correct statement as to what must be included in every home
improvement contract?
A. Notice of right to cancel
B. Contractor's license number
C. Truth-in-lending notice
D. Name of the project
ANSWER: B. Contractor's license number
Which is NOT required on a home improvement contract?
A. A notice, in at 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
B. The name and home address of all the personnel listed on the license
,2|Page
C. An approximate date when work will begin and be substantially completed
D. A description of the work to be done and materials and equipment to be used
or installed
ANSWER: B. The name and home address of all the personnel listed on the
license. Know that A, C and D are required. Only the contractor's name, address
and license number are required.
When a home improvement contract is signed, the contractor must substantially
begin work within days of the date specified in the contract?
A. 5
B. 10
C. 15
D. 20
ANSWER: D. 20
Which is true concerning home improvement sales persons?
A. They must register with the Registrar's office and may work for only one
contractor at a time
B. 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
C. They must be at least 18 years of age. There are no residency or educational
requirements
D. They may begin to negotiate home improvement contracts as soon as they
have filled out the appropriate application and paid the required fees
, 3|Page
ANSWER: C. 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
Judy, a contractor, employs Sam as her registered home improvement salesperson.
Sam meets with Mr. And Mrs. Jones and negotiates home improvement work that
totals
$350. When Sam returns to his boss and tells her of the verbal contract, his
employer says she will not work for the contracted price. The Contractor's License
Law states:
A. The contractor is required by law to abide by the verbal agreement since
verbal home improvement contracts under $500 are binding
B. The contractor is not bound by a verbal agreement
C. The contractor may cancel a home improvement contract that she did not
negotiate
D. The contractor is not bound by the contract since all home improvement
contracts must be in writting
ANSWER: A. 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
Which type of contract can be cancelled by a consumer?
A. Sub contract
B. Home solicitation contract which involves fencing, burglar alarm, carpentry
and texture coating
C. Prime construction contract
D. Home improvement contract involving free standing bookcases, rugs and
window air conditioner
