CSLB LAW AND BUSINESS REVIEW QUESTIONS
Which of the following statements about advertising is correct?
A)An unlicensed contractor may advertise for jobs submitting an application for a
contractors license
B) Unlicensed contractors may advertise for jobs under $500 if the ads state they are
unlicensed.
C) A licensed general engineering or building may not advertise as a "general
contractor."
D) All of the above - Answer -B) Unlicensed contractors may advertise for jobs under
$500 if the ads state they are unlicensed.
Which of the following requires a contractors license?
A) A person who hires employees to build structures on his or her own property.
B) A person who installs satellite antenna systems on residences.
C) A person who only installs electric fire alarm systems.
D) A person who only installs security alarm systems. - Answer -C) A person who only
installs electric fire alarm systems.
A contractor must notify the Registrar in writing of a change of business address within
____ days.
A)15
B)20
C)60
D)90 - Answer -D)90
A contractor and owner agree to a price of $35,800 for a home improvement project and
sign a contract. What is the maximum down payment that the contractor may require
before starting work?
A) up to 50 percent of the contract price
B) $1,000
C) $3,580
D) $7,160 - Answer -B) $1,000
Home improvement contracts must include all of the following, except:
A) the name, address, and license number of the contractor
B) statement that the contractor has a workers' comp policy or is exempt
C) exact dates when work will begin and be completed
D) "Mechanics' Lien Warning" - Answer -C) Exact dates when work will begin and be
completed
A joint control is primarily a third party management of the:
A) safety equipment and procedures
B) job scheduling
, C) inspections by a building official
D) construction funds - Answer -D) Construction funds
If a contractor's bilingual salesperson makes a presentation to a customer in Spanish,
the home solicitation contract:
A) may be written in English if the contract is clear and legible.
B) must be signed by an english speaking representative of the customer.
C) must be in Spanish
D) must be notarized - Answer -C) must be in Spanish
The maximum time an owner has to cancel a home solicitation contract is:
A) 24hrs from midnight of the day the contract was signed
B) until midnight of the second business day after the day the contract was signed
C) until midnight of the third business day after the day the contract was signed
D) 7 days - Answer -C) until midnight of the third business day after the day the
contract was signed.
How many days does a contractor have to refund any payments from the date that a
home solicitation contract is canceled?
A) 10
B) 15
C) 20
D) 30 - Answer -A) 10
The contract price of a service and repair contract may not exceed:
A) $750
B) $1,000
C) $1,500
D) $5,000 - Answer -A)$750
For the majority of construction defects, what is the maximum time a homeowner has to
file a lawsuit after the original close of escrow?
A)2years
B)4years
C)10years
D)15years - Answer -C)10years
On a public works project if the subcontractors percentage of the total bid exceeds
_____ the prime contractor must include the subcontractor's name and address in the
bid.
A) 0.5%
B) 2%
C) 5%
D) 10% - Answer -A) 0.5%
Which of the following statements about advertising is correct?
A)An unlicensed contractor may advertise for jobs submitting an application for a
contractors license
B) Unlicensed contractors may advertise for jobs under $500 if the ads state they are
unlicensed.
C) A licensed general engineering or building may not advertise as a "general
contractor."
D) All of the above - Answer -B) Unlicensed contractors may advertise for jobs under
$500 if the ads state they are unlicensed.
Which of the following requires a contractors license?
A) A person who hires employees to build structures on his or her own property.
B) A person who installs satellite antenna systems on residences.
C) A person who only installs electric fire alarm systems.
D) A person who only installs security alarm systems. - Answer -C) A person who only
installs electric fire alarm systems.
A contractor must notify the Registrar in writing of a change of business address within
____ days.
A)15
B)20
C)60
D)90 - Answer -D)90
A contractor and owner agree to a price of $35,800 for a home improvement project and
sign a contract. What is the maximum down payment that the contractor may require
before starting work?
A) up to 50 percent of the contract price
B) $1,000
C) $3,580
D) $7,160 - Answer -B) $1,000
Home improvement contracts must include all of the following, except:
A) the name, address, and license number of the contractor
B) statement that the contractor has a workers' comp policy or is exempt
C) exact dates when work will begin and be completed
D) "Mechanics' Lien Warning" - Answer -C) Exact dates when work will begin and be
completed
A joint control is primarily a third party management of the:
A) safety equipment and procedures
B) job scheduling
, C) inspections by a building official
D) construction funds - Answer -D) Construction funds
If a contractor's bilingual salesperson makes a presentation to a customer in Spanish,
the home solicitation contract:
A) may be written in English if the contract is clear and legible.
B) must be signed by an english speaking representative of the customer.
C) must be in Spanish
D) must be notarized - Answer -C) must be in Spanish
The maximum time an owner has to cancel a home solicitation contract is:
A) 24hrs from midnight of the day the contract was signed
B) until midnight of the second business day after the day the contract was signed
C) until midnight of the third business day after the day the contract was signed
D) 7 days - Answer -C) until midnight of the third business day after the day the
contract was signed.
How many days does a contractor have to refund any payments from the date that a
home solicitation contract is canceled?
A) 10
B) 15
C) 20
D) 30 - Answer -A) 10
The contract price of a service and repair contract may not exceed:
A) $750
B) $1,000
C) $1,500
D) $5,000 - Answer -A)$750
For the majority of construction defects, what is the maximum time a homeowner has to
file a lawsuit after the original close of escrow?
A)2years
B)4years
C)10years
D)15years - Answer -C)10years
On a public works project if the subcontractors percentage of the total bid exceeds
_____ the prime contractor must include the subcontractor's name and address in the
bid.
A) 0.5%
B) 2%
C) 5%
D) 10% - Answer -A) 0.5%
