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CSLB PRACTICE LAW B EXAM|230 QUESTIONS
AND ANSWERS|UPDATED 2025- 2026 |GRADED
A+
A subcontractor or material supplier has days to file a lien once a notice ofcompletion has been recorded. >>>ANS:->>>- 30 How must a client submit a claim for service or repair of a defect on fit and finish items after a remodel?
ANS:->>> - By certified mail By overnight mail By personal delivery A contractor meets Mr. Jones at his home to discuss remodeling. The contractor and Mr. Jones sign a contract that includes a three-day cancellation form. After the contractor leaves, Mr. Jones decides not to have the work done. Instead of using the cancellation form, Mr. Jones sends the contractor a letter by first-class mail stating that he is canceling the contract. Is Mr. Jones' cancellation effective? >>>ANS:->>>-Yes. Mr. Jones' letter does cancel the contract because it indicates his intention not to be bound by the contract.
If a contractor forgets to renew his or her license on time, the expired license may be renewed any time within after its expiration without reapplying for a license and fulfilling the exam or waiver requirements again
. >>>ANS:->>> - Five years You are the qualifier for an active contractor's license. How do you inactivate the license? >>>ANS:->>>-Write to the CSLB, requesting that the license be made inactive. When a subcontractor does work on a public works contract, the public agency considers the subcontractor to be: >>>ANS:->>>-a subcontractor of the prime contractor A contractor hires a subcontractor to demolish a concrete wall. Who is responsible for supplying safety goggles? >>>ANS:->>>-subcontractor Sometimes contracts prove to be too vague to interpret without disagreement between owner and contractor. Which of the following steps would best prevent
eligibility status
. >>>ANS:->>>-I- 9 If required safety devices are missing from tools, what should an employee do? >>>ANS:->>> - Notify the contractor, who is responsible for safety. Of the following, which document is usually delivered first in a transaction involving ahome improvement contract? >>>ANS:->>>-"Notice to Owner" Who is ultimately responsible for seeing that safety equipment is actually put to use on the jobsite? >>>ANS:->>>-contractor A mechanics' lien is a written document that must be signed and verified by the claimant. The first and third steps a contractor should take in filing a lien are listed below. Step 1: Obtain the exact legal description of the property. Step 2: Step 3: Find out if the person requesting the work of improvement is the owner. What is Step 2? >>>ANS:->>>-Find out the name of the legal owner of the property as well as the percent of ownership.
A(n) represents a company's financial position on a specified date
. >>>ANS:->>> - balance sheet When you get an approved set of plans, what should you do first?
ANS:->>> - Read any notes from the building department. When bidding on work, which of the following would you NOT include in the price ofyour bid? ANS:->>> - worker's compensation insurance premium The purpose of a "Preliminary 20-day Notice" for private work is to: >>>ANS:->>>- notify the property owner that the subcontractor or firm who sent the notice will be making improvements on the property When should you let your attorney see a construction contract? >>>ANS:->>>-After the contract is prepared, but before you sign it. When is an employee allowed to view their own personnel file >>>ANS:->>>- whenever they wish to Before beginning work, an employer or contractor must inquire whether asbestos
>>>ANS:->>> - 11 ... 5
The qualifying RME for a construction firm must work at least: >>>ANS:-
-32 hr per week or 80% of the work week Where is the "Notice of Right to Cancel" found on a home improvement contract? >>>ANS:->>> - near the client signature An employer remits State disability taxes withheld from an employee's wages to what agency? ANS:->>> - Employment Development Department An applicant for a contractor's license receives a notice from the Contractors' State License Board, dated October 1, that the applicant passed the written exams. To receive an active license, the applicant must file a license bond and fee no later than: >>>ANS:->>> - 30 - Dec A contract can be canceled when there is consent through fraud or duress by: ANS:->>> - the other party. What possible reason would an owner have for requiring an unconditional lien
release from a subcontractor?
ANS:->>> - The owner's property covered by the release may not be liened. Equity is: - Correct answer-Total Assets less Total Liabilities. Insured employers must report every work-related illness or injury to their workers' compensation carrier within of the incident. >>>ANS:->>>-5 days If, during excavation, you unearth human remains or burial artifacts at a construction site, what should you do? ANS:->>> - Stop work immediately at that site and any other nearby area that may have remains. A contractor has had a problem with employees stealing tools and equipment from job sites. When conducting job interviews, may the contractor ask prospective employees about their arrest records? ANS:->>> **- It is not legal to ask prospective employees about arrests
- Employment Development Department An applicant for a contractor's license receives a notice from the Contractors' State License Board, dated October 1, that the applicant passed the written exams. To receive an active license, the applicant must file a license bond and fee no later than: >>>ANS:->>> - 30 - Dec A contract can be canceled when there is consent through fraud or duress by: >>>ANS:->>> - the other party. What possible reason would an owner have for requiring an unconditional lien release from a subcontractor? >>>ANS:->>> - The owner's property covered by the release may not be liened. Equity is: - Correct answer-Total Assets less Total Liabilities. Insured employers must report every work-related illness or injury to their workers' compensation carrier within of the incident. >>>ANS:->>>-5 days If, during excavation, you unearth human remains or burial artifacts at a construction site, what should you do? >>>ANS:->>> - Stop work immediately at that site and any other nearby area that may have remains. A contractor has had a problem with employees stealing tools and equipment from job sites. When conducting job interviews, may the contractor ask prospective employees about their arrest records? >>>ANS:->>> - It is not legal to ask prospective employees about arrests not leading to convictions.
gets hit by a car, and suffers a concussion An employer must furnish an employee with a completed IRS Form W-2 (Wage and Tax Statement) by:
ANS:->>> - 31 - Jan What if a School District hires me for ongoing maintenance, and the individual purchase orders are each under the $1000 threshold? ANS:->>> **- All individual purchase orders will likely be grouped ANS:->>> - the other party. What possible reason would an owner have for requiring an unconditional lien release from a subcontractor? >>>ANS:->>> - The owner's property covered by the release may not be liened. Equity is: - Correct answer-Total Assets less Total Liabilities. Insured employers must report every work-related illness or injury to their workers' compensation carrier within of the incident. >>>ANS:->>>-5 days If, during excavation, you unearth human remains or burial artifacts at a construction site, what should you do? >>>ANS:->>> - Stop work immediately at that site and any other nearby area that may have remains. A contractor has had a problem with employees stealing tools and equipment from job sites. When conducting job interviews, may the contractor ask prospective employees about their arrest records? >>>ANS:->>> - It is not legal to ask prospective employees about arrests not leading to convictions. gets hit by a car, and suffers a concussion An employer must furnish an employee with a completed IRS Form W-2 (Wage and Tax Statement) by: >>>ANS:->>> - 31 - Jan What if a School District hires me for ongoing maintenance, and the individual purchase orders are each under the $1000 threshold? >>>ANS:->>> - All individual purchase orders will likely be grouped together by the state and you will be subject to the prevailing wage law. An owner should request waiver of lien rights for work on residential property after paying the full contract amount: >>>ANS:->>>-so the prime contractor, subcontractors, and other claimants will not file liens. When an owner signs a receipt for a stop notice, it usually means the owner: ANS:->>>-recognizes that a lien could be placed on funds
How many times may you take the contractor's license exam before your original application is voided? >>>ANS:->>>-as many times as necessary within 18 months Which of the following is considered a direct cost? >>>ANS:->>>-payroll tax What is the maximum allowed travel distance from any point of a work area to a fire extinguisher? >>>ANS:->>>- 75 feet After a job is completed, the owner decides to have additional work done. How should the contractor proceed? >>>ANS:->>>-Write a new contract and ask the owner to sign it. A prime contractor entered into a construction contract with a subcontractor. An employee of the subcontractor was injured, but unfortunately the subcontractor had not secured workers' compensation coverage. Which of the following statements best describes the situation, except in cases of fraud? >>>ANS:->>>- The subcontractor is guilty, but the prime contractor must take responsibility for the injuries. The supplier of a potentially hazardous product must be able to provide a(n) wit
As part of the safety training process, contractors' supervisors are required to conduct "toolbox" or "tailgate" safety meetings. How often must these meetings be held? >>>ANS:->>>-at least once every ten working days
What kind of discount do lumber yards and other suppliers offer to contractors who pay their bills promptly? >>>ANS:->>>-1%- 2% What will happen if a contractor who is awarded the bid on a public works project pays less than the prevailing wage? >>>ANS:->>>-The contractor will be required to pay back-wages to the employees. You are bidding as a prime contractor on a public works project. The work will not involve construction, improvement, or repair of streets, highways, or bridges. You will use subcontractors for part of the work. If you do not name a subcontractor for any part of the work: >>>ANS:->>>-you will do that part of the work yourself A contractor, on his own initiative, changed the design of a building and carried out the change. The owner rejected the change and stated that the building has lost market value. If the owner takes the contractor to court and obtains a favorable judgment, the owner is: >>>ANS:->>>-due the cost of repairs or the loss of market value Of the following, who is required to be registered as a home improvement salesperson?
ANS:->>>-Salesperson who is soliciting business by calling potential
publicworks project? >>>ANS:->>>-The subcontractor gives up the right to lien the construction funds. A contractor entered into a home improvement contract for more than $500 with Mrs. Swenson to remodel her kitchen and bathroom. The contract calls for a down payment
before work is to begin. According to the Business and Professions Code, how much may the contractor accept from Mrs. Swenson as down payment for the work? >>>ANS:->>>-The down payment is limited to $1000 or 10% of the total price, whichever is less. If it is discovered that the construction materials in an area contain more than 0.1% asbestos: >>>ANS:->>>-the contractor should contact DOSH immediately. Who pays FICA? >>>ANS:->>>-50% employer and 50% employee How many days does a contractor have to notify the Registrar after being issued a workers' compensation insurance policy? >>>ANS:->>>- 90 days Of the following, which is best for determining the number of hours required for different phases of a project and for making sure the job is on schedule?
ANS:->>>-criticalpath method On a time-and-materials job, you should: >>>ANS:->>>-add profit and overhead to labor and materials John Meyers, a general contractor, had a contract with Mr. and Ms. Barnes to construct a gazebo and deck in their back yard. John was behind schedule and
How often are you required to pay sales tax? >>>ANS:->>>-It depends on the expected amount of taxable sales.
A notice of completion must be recorded within: >>>ANS:->>>-10 days after work is completed CSLB offers two free arbitration programs - a voluntary program for disputes involving $50, How often are FICA taxes reported and paid? >>>ANS:->>>-quarterly Is it legal for a contractor to pay employees in cash? >>>ANS:->>>-Yes, if the contractor provides each employee with a wage deduction statement semimonthly or at the time of each wage payment. Who would be held responsible if a contractor completes a project according to plans and later discovers that there is a building code violation? >>>ANS:->>>- both the contractor and the architect Once a budget is finalized, the: >>>ANS:->>>-contractor should do the best possible job of staying within the budget Which of the following are the most effective when used together on a private alleged damages of between and. - Correct answer-$15,000 and
