CSLB Law & Business Set 1 m m m m m
Question 1: m
How must a client submit a claim for service or repair of a defect on fit and fini
m m m m m m m m m m m m m m m m m
sh items after a remodel?
m m m m
A.) by certified mail
m m
B.) by overnight mail
m m
C.) by personal deliverym m
D.) any of the above m m m
(Ans- D. A client may use the normal customer-
m m m m m m m m
service procedures agreed to between the client and the contractor, but th
m m m m m m m m m m m
e client must notify the contractor of the defect in writing by certified mail,
m m m m m m m m m m m m m m
overnight mail, or personal delivery before the client may file an action in c
m m m m m m m m m m m m m
ourt.
Question 2: m
What is the maximum allowed travel distance from any point of a work are
m m m m m m m m m m m m m
a to a fire extinguisher?
m m m m
a.) 25mfeet
b.) 50mfeet
c.) 75mfeet
d.) 150mfeet
m (Ans- 75 feet m m
When should you renew contractors bond? (Ans-
m m m m m m
30 days before bond expires
m m m m m
Question 4: m
,If, during excavation, you unearth human remains or burial artifacts at a constr
m m m m m m m m m m m m
uction site, what should you do?
m m m m m
Click here to select answer B. Not
m m m m m m
ify the owner of the property.
m m m m m
mClick here to select answer B.
m m m m m
Stop work and place a warning ribbon three feet from the remains around t
m m m m m m m m m m m m m
he perimeter of the site.
m m m m
mClick here to select answer C. St
m m m m m m
op work immediately at that site.
m m m m m
mClick here to select answer D.
m m m m m
Stop work immediately at that site and any other nearby area that may
m m m m m m m m m m m m m
have remains. m
(Ans-
mStop work immediately at that site and any other nearby area that may ha
m m m m m m m m m m m m m
ve remains.
m
Question 5: m
Direct costs are $37,000, overhead is 12%, and profit is 5%. What is the s
m m m m m m m m m m m m m m
elling price? m
mClick here to select answer A.
m m m m m
$39,272.47
mClick here to select answer B.
m m m m m
$41,373.45
mClick here to select answer C.
m m m m m
$43,383.37
mClick here to select answer D.
m m m m m
$44,578.31
(Ans-
mD. The following solution is based on one of the references listed in the C
m m m m m m m m m m m m m m
SLB Study Guide. The solution may seem unorthodox, but you must
m m m m m m m m m m
,follow each step to arrive at the State's answer. Sum of overhead and profi
m m m m m m m m m m m m m
t percentages = 12% + 5% = 17% Percent of selling price that is direct cos
m m m m m m m m m m m m m m m
ts
= 100% - 17% = 83% = .83 Selling price = $37,000 ÷ .83 = $44,578.31 To
m m m m m m m m m m m m m m m m
check these calculations, add the subtotals: Direct costs = $44,578.31 ×
m m m m m m m m m m
.83 = $37,000.00 Overhead = $44,578.31 × .12 = $5,349.40 Profit =
m m m m m m m m m m m
$44,578.31 × .05 = $2,228.92 $37,000.00 + $5,349.40 + $2,228.92 =
m m m m m m m m m m
$44,578.32
Who pays FUTA? m m
a. employer
b. employee
c. 50% employer and 50% employee
m m m m
d. 90% employer and 10% employeem m m m
m(Ans- A.) Employer m m
When you get an approved set of plans, what should you do first?
m m m m m m m m m m m m
(Ans- Read any notes from the building department.
m m m m m m m m
Of the following, which is best for determining the number of hours require
m m m m m m m m m m m m
d for different phases of a project and for making sure the job is on schedul
m m m m m m m m m m m m m m m
e? (Ans- critical path method
m m m m
Which of the following provisions may not be included in a home improvem
m m m m m m m m m m m m
ent contract?
m
Click here to select answer A.
m m m m m m
Owner must pay for materials after they are delivered.
m m m m m m m m
Click here to select answer B.
m m m m m m
Owner must pay for materials before they are delivered.
m m m m m m m m
mClick here to select answer C.
m m m m m
The contractor may require a downpayment.
m m m m m
, mClick here to select answer D. Owne
m m m m m m
r may make progress payments.
m m m m
(Ans- Owner must pay for materials before they are delivered.
m m m m m m m m m
B. The CONTRACTORS LICENSE LAW states: It is against the law for
m m m m m m m m m m m m
a contractor to collect payment for work not yet completed, or for materi
m m m m m m m m m m m m
als not yet delivered. However, a contractor may require a downpaymen
m m m m m m m m m m
t.
How many times may you take the contractor's license exam before your origi
m m m m m m m m m m m m
nal application is voided?
m m m
(Ans- as many times as necessary within 18 months
m m m m m m m m
If it is discovered that the construction materials in an area contain more th
m m m m m m m m m m m m m
an 0.1% asbestos:
m m
Click here to select answer A
m m m m m
the crew should try not to disturb the area but keep working.
m m m m m m m m m m m
mClick here to select answer B
m m m m m
the contractor should contact DOSH immediately.
m m m m m
Click here to select answer C
m m m m m
the workers should stop and remove the materials wearing masks and glov
m m m m m m m m m m m
es.
Click here to select answer D
m m m m m
the crew should wet down the area with water and continue working
m m m m m m m m m m m
. (Ans- the contractor should contact DOSH immediately.
m m m m m m m
B. Any manufactured material containing more than one-
m m m m m m m
tenth of one percent (0.1%) asbestos by weight meets the definition of "as
m m m m m m m m m m m m
bestos-
mcontaining material"." Even if the surface area of these materials is less th
m m m m m m m m m m m m
an 100 square feet, the contractor must file a report with the Occupational
m m m m m m m m m m m m m
Carcinogen Control Unit of DOSH. m m m m
Which of the following are the most effective when used together on a priv
m m m m m m m m m m m m m
ate works project?
m m
Click here to select answer A
m m m m m
stop payment notice and mechanics lien
m m m m m
Question 1: m
How must a client submit a claim for service or repair of a defect on fit and fini
m m m m m m m m m m m m m m m m m
sh items after a remodel?
m m m m
A.) by certified mail
m m
B.) by overnight mail
m m
C.) by personal deliverym m
D.) any of the above m m m
(Ans- D. A client may use the normal customer-
m m m m m m m m
service procedures agreed to between the client and the contractor, but th
m m m m m m m m m m m
e client must notify the contractor of the defect in writing by certified mail,
m m m m m m m m m m m m m m
overnight mail, or personal delivery before the client may file an action in c
m m m m m m m m m m m m m
ourt.
Question 2: m
What is the maximum allowed travel distance from any point of a work are
m m m m m m m m m m m m m
a to a fire extinguisher?
m m m m
a.) 25mfeet
b.) 50mfeet
c.) 75mfeet
d.) 150mfeet
m (Ans- 75 feet m m
When should you renew contractors bond? (Ans-
m m m m m m
30 days before bond expires
m m m m m
Question 4: m
,If, during excavation, you unearth human remains or burial artifacts at a constr
m m m m m m m m m m m m
uction site, what should you do?
m m m m m
Click here to select answer B. Not
m m m m m m
ify the owner of the property.
m m m m m
mClick here to select answer B.
m m m m m
Stop work and place a warning ribbon three feet from the remains around t
m m m m m m m m m m m m m
he perimeter of the site.
m m m m
mClick here to select answer C. St
m m m m m m
op work immediately at that site.
m m m m m
mClick here to select answer D.
m m m m m
Stop work immediately at that site and any other nearby area that may
m m m m m m m m m m m m m
have remains. m
(Ans-
mStop work immediately at that site and any other nearby area that may ha
m m m m m m m m m m m m m
ve remains.
m
Question 5: m
Direct costs are $37,000, overhead is 12%, and profit is 5%. What is the s
m m m m m m m m m m m m m m
elling price? m
mClick here to select answer A.
m m m m m
$39,272.47
mClick here to select answer B.
m m m m m
$41,373.45
mClick here to select answer C.
m m m m m
$43,383.37
mClick here to select answer D.
m m m m m
$44,578.31
(Ans-
mD. The following solution is based on one of the references listed in the C
m m m m m m m m m m m m m m
SLB Study Guide. The solution may seem unorthodox, but you must
m m m m m m m m m m
,follow each step to arrive at the State's answer. Sum of overhead and profi
m m m m m m m m m m m m m
t percentages = 12% + 5% = 17% Percent of selling price that is direct cos
m m m m m m m m m m m m m m m
ts
= 100% - 17% = 83% = .83 Selling price = $37,000 ÷ .83 = $44,578.31 To
m m m m m m m m m m m m m m m m
check these calculations, add the subtotals: Direct costs = $44,578.31 ×
m m m m m m m m m m
.83 = $37,000.00 Overhead = $44,578.31 × .12 = $5,349.40 Profit =
m m m m m m m m m m m
$44,578.31 × .05 = $2,228.92 $37,000.00 + $5,349.40 + $2,228.92 =
m m m m m m m m m m
$44,578.32
Who pays FUTA? m m
a. employer
b. employee
c. 50% employer and 50% employee
m m m m
d. 90% employer and 10% employeem m m m
m(Ans- A.) Employer m m
When you get an approved set of plans, what should you do first?
m m m m m m m m m m m m
(Ans- Read any notes from the building department.
m m m m m m m m
Of the following, which is best for determining the number of hours require
m m m m m m m m m m m m
d for different phases of a project and for making sure the job is on schedul
m m m m m m m m m m m m m m m
e? (Ans- critical path method
m m m m
Which of the following provisions may not be included in a home improvem
m m m m m m m m m m m m
ent contract?
m
Click here to select answer A.
m m m m m m
Owner must pay for materials after they are delivered.
m m m m m m m m
Click here to select answer B.
m m m m m m
Owner must pay for materials before they are delivered.
m m m m m m m m
mClick here to select answer C.
m m m m m
The contractor may require a downpayment.
m m m m m
, mClick here to select answer D. Owne
m m m m m m
r may make progress payments.
m m m m
(Ans- Owner must pay for materials before they are delivered.
m m m m m m m m m
B. The CONTRACTORS LICENSE LAW states: It is against the law for
m m m m m m m m m m m m
a contractor to collect payment for work not yet completed, or for materi
m m m m m m m m m m m m
als not yet delivered. However, a contractor may require a downpaymen
m m m m m m m m m m
t.
How many times may you take the contractor's license exam before your origi
m m m m m m m m m m m m
nal application is voided?
m m m
(Ans- as many times as necessary within 18 months
m m m m m m m m
If it is discovered that the construction materials in an area contain more th
m m m m m m m m m m m m m
an 0.1% asbestos:
m m
Click here to select answer A
m m m m m
the crew should try not to disturb the area but keep working.
m m m m m m m m m m m
mClick here to select answer B
m m m m m
the contractor should contact DOSH immediately.
m m m m m
Click here to select answer C
m m m m m
the workers should stop and remove the materials wearing masks and glov
m m m m m m m m m m m
es.
Click here to select answer D
m m m m m
the crew should wet down the area with water and continue working
m m m m m m m m m m m
. (Ans- the contractor should contact DOSH immediately.
m m m m m m m
B. Any manufactured material containing more than one-
m m m m m m m
tenth of one percent (0.1%) asbestos by weight meets the definition of "as
m m m m m m m m m m m m
bestos-
mcontaining material"." Even if the surface area of these materials is less th
m m m m m m m m m m m m
an 100 square feet, the contractor must file a report with the Occupational
m m m m m m m m m m m m m
Carcinogen Control Unit of DOSH. m m m m
Which of the following are the most effective when used together on a priv
m m m m m m m m m m m m m
ate works project?
m m
Click here to select answer A
m m m m m
stop payment notice and mechanics lien
m m m m m
