1 CSLB CONTRACTOR'S LAW & BUSINESS
EXAM QUESTIONS WITH DETAILED VERIFIED
ANSWERS (100% CORRECT ANSWERS) A+
GRADE ASSURED
An employer remits State disability taxes withheld from an employees wages to what agency? -
correct answer-Employment Development Department
Which act establishes the rights of workers to organize into unions and negotiate contracts? -
correct answer-National Labor Relations Act of 1935
A contractor has had a problem with employees stealing tools and equipment from job sites. When condu
cting job interviews, may the contractor ask prospective employees about their arrest records?
A. It is legal to ask prospective employees about arrests not leading to convictions.
B. It is not legal to ask prospective employees about arrests not leading to convictions.
C. It is legal for a private employer to ask about arrests not leading to convictions, but it would not be leg
al for city or county agencies to ask about such arrests.
D. It is legal for a private employer to ask about arrests leading to convictions, but it would not be legal fo
r a federal, state, or local public agency to do so. - correct answer-
It is not legal to ask prospective employees about arrest not leading to convictions.
Why would a contractor have a case in Superior Court? - correct answer-
If it is a dispute of more than $25,000 it can be transferred to Superior Court.
Which would not have to be reported to DOSH immediately or within 24 hours?
A. Death from a three-story fall.
B. Drunken crane operator hits a high-voltage power line
C. Car accident in which an employee steps onto a public road, gets hit by a car, and suffers a concussion.
,D. Employee falls off forklift and suffers a sever back injury. - correct answer-
Car accident in which an employee steps onto a public road, gets hit by a car, and suffers a concussion.
A general contractor has obtained bids from several subcontractors for a private project. He notices that o
ne bid is substantially lower than the rest. Is it ethical and a good business practice for this contractor to in
form the subcontractor that the bid is substantially lower than the bids of the other subcontractors? -
correct answer-
Yes. If the contractor has reason to believe that the subcontractor has made an error in preparing his bid, t
he contractor should notify the subcontractor of the apparent error, but the contractor may not disclose the
amounts of the other bids.
AnzemployerzmustzfurnishzanzemployeezwithzazcompletedzIRSzFormzW-
2z(WagezandzTaxz Statement)zby:z-
correctzanswer-Thez31stzofzJanuary.
Afterzazjobziszcompleted,zthezownerzdecidesztozhavezadditionalzworkzdone.zHowzshouldzthezcontractorzpro
c
eed?z-zcorrectzanswer-Writezaznewzcontractzandzaskzthezownerztozsignzit.
Thezpurposezofzaz20-dayzpreliminaryznoticezforzprivatezworkziszto?z-zcorrectzanswer-
Notifyzthezownerzthatzthezpersonzorzfirmzwhozsentztheznoticezhaszimprovedzthezproperty
.
Iszitzlegalzforzazcontractorztozpayzemployeeszinzcash?z-zcorrectzanswer-
Yes,zifzthezcontractorzprovideszeachzemployeezwithzazwagezdeductionzstatementzsemimonthlyzorzatzthezti
m
ezofzeachzwagezpayment.
Youzarezbiddingzonzazjobzwithzplanszdrawnzbyzthezowner.zYouznoticezazcodezviolationzandzbringzitztozthez
at
tentionzofzthezowner.zThezownerzdeclinesztozremedyzthezcodezviolationzandztellszyouznotztozworry.zWhatzs
h
ouldzyouzdo?z-zcorrectzanswer-Declineztozbidzthezwork.
Onzaztime-and-materialszjob,zyouzshould:z-zcorrectzanswer-Addzprofitzandzoverheadztozlaborzandzmaterials
Yourzemployeezsetszazcabinetzwrong.zThezcabinetzfallszfromzthezwallzandzdamageszthezclient'szcounterztop
.
Whatzshouldzyouzdo?
A.zClaimzthezdamagezonzyourzgeneralzliabilityzinsurancezpolicy.
B.zRequirezthezemployeeztozpayzforzthezdamageztozthezcountertop.
,z
C.zTellzthezclientztozclaimzthezdamagedzcounterztopzonzhiszorzherzhomeowner'szinsurancezpolicy
.
D.zNozactionziszrequired:zThezclientzmustzassumezthezriskzofzdamage.z-
zcorrectzanswer-
Claimzthezdamagezonzyourzgeneralzliabilityzinsurancezpolicy.
Ofzthezfollowing,zwhichziszbestzforzdeterminingztheznumberzofzhourszrequiredzforzdifferentzphaseszofzazpro
j
ectzandzforzmakingzsurezthezjobziszonzschedule?
A.zBarzgraphzandzchart
B.zCashzanalysiszchart
C.zReviewzplans
D.zCriticalzpathzmethodz-zcorrectzanswer-Thezcriticalzpathzmethod.
Iszitzlegalzforzazcontractorztozrequirezemployeesztoztakezazliezdetectorztest?z-zcorrectzanswer-
Itzisznotzlegalzforzthezcontractorztozrequirezliezdetectorztests,zbutzitzwouldzbezlegalzforzazfederal,zstate,zorzl
oc
alzpubliczagencyztozrequirezliezdetectorztestszofztheirzemployees.
IfzaznewlyzhiredzemployeezdoesznotzhavezazSSN,zwhatzshouldzbezdone?z-
zcorrectzanswer-
ThezemployeezmustzapplyzforzazSSN.
Howzmanyztimeszmayzyouztakezthezcontractorszlicensezexamzbeforezyourzoriginalzapplicationziszvoided?z
-
correctzanswer-Aszmanyztimeszasznecessaryzwithinz18zmonths.
Whenzshouldzazcontractorzrenewzthezcontractor'szlicensezbond?z-zcorrectzanswer-30zdayszbeforezitzexpires.
ThezqualifyingzRMEzforzazconstructionzfirmzmustzworkzatzleast:z-zcorrectzanswer-
AzqualifyingzRMEzforzazconstructionzfirmzmustzworkzatzleastz32zhourszperzweekzorz80%zofzthezworkzwee
k
.
ThezfederalzEmployerzIdentificationzNumberz(EIN)ziszissuedzbyzthe:z-zcorrectzanswer-
ThezInternalzRevenuezService
Everyzemployerzofz______zorzmorezfullzorzpartztimezemployeeszmustzkeepzwrittenzhealthzandzsafetyzrecor
d
szforz_______zyears.
EXAM QUESTIONS WITH DETAILED VERIFIED
ANSWERS (100% CORRECT ANSWERS) A+
GRADE ASSURED
An employer remits State disability taxes withheld from an employees wages to what agency? -
correct answer-Employment Development Department
Which act establishes the rights of workers to organize into unions and negotiate contracts? -
correct answer-National Labor Relations Act of 1935
A contractor has had a problem with employees stealing tools and equipment from job sites. When condu
cting job interviews, may the contractor ask prospective employees about their arrest records?
A. It is legal to ask prospective employees about arrests not leading to convictions.
B. It is not legal to ask prospective employees about arrests not leading to convictions.
C. It is legal for a private employer to ask about arrests not leading to convictions, but it would not be leg
al for city or county agencies to ask about such arrests.
D. It is legal for a private employer to ask about arrests leading to convictions, but it would not be legal fo
r a federal, state, or local public agency to do so. - correct answer-
It is not legal to ask prospective employees about arrest not leading to convictions.
Why would a contractor have a case in Superior Court? - correct answer-
If it is a dispute of more than $25,000 it can be transferred to Superior Court.
Which would not have to be reported to DOSH immediately or within 24 hours?
A. Death from a three-story fall.
B. Drunken crane operator hits a high-voltage power line
C. Car accident in which an employee steps onto a public road, gets hit by a car, and suffers a concussion.
,D. Employee falls off forklift and suffers a sever back injury. - correct answer-
Car accident in which an employee steps onto a public road, gets hit by a car, and suffers a concussion.
A general contractor has obtained bids from several subcontractors for a private project. He notices that o
ne bid is substantially lower than the rest. Is it ethical and a good business practice for this contractor to in
form the subcontractor that the bid is substantially lower than the bids of the other subcontractors? -
correct answer-
Yes. If the contractor has reason to believe that the subcontractor has made an error in preparing his bid, t
he contractor should notify the subcontractor of the apparent error, but the contractor may not disclose the
amounts of the other bids.
AnzemployerzmustzfurnishzanzemployeezwithzazcompletedzIRSzFormzW-
2z(WagezandzTaxz Statement)zby:z-
correctzanswer-Thez31stzofzJanuary.
Afterzazjobziszcompleted,zthezownerzdecidesztozhavezadditionalzworkzdone.zHowzshouldzthezcontractorzpro
c
eed?z-zcorrectzanswer-Writezaznewzcontractzandzaskzthezownerztozsignzit.
Thezpurposezofzaz20-dayzpreliminaryznoticezforzprivatezworkziszto?z-zcorrectzanswer-
Notifyzthezownerzthatzthezpersonzorzfirmzwhozsentztheznoticezhaszimprovedzthezproperty
.
Iszitzlegalzforzazcontractorztozpayzemployeeszinzcash?z-zcorrectzanswer-
Yes,zifzthezcontractorzprovideszeachzemployeezwithzazwagezdeductionzstatementzsemimonthlyzorzatzthezti
m
ezofzeachzwagezpayment.
Youzarezbiddingzonzazjobzwithzplanszdrawnzbyzthezowner.zYouznoticezazcodezviolationzandzbringzitztozthez
at
tentionzofzthezowner.zThezownerzdeclinesztozremedyzthezcodezviolationzandztellszyouznotztozworry.zWhatzs
h
ouldzyouzdo?z-zcorrectzanswer-Declineztozbidzthezwork.
Onzaztime-and-materialszjob,zyouzshould:z-zcorrectzanswer-Addzprofitzandzoverheadztozlaborzandzmaterials
Yourzemployeezsetszazcabinetzwrong.zThezcabinetzfallszfromzthezwallzandzdamageszthezclient'szcounterztop
.
Whatzshouldzyouzdo?
A.zClaimzthezdamagezonzyourzgeneralzliabilityzinsurancezpolicy.
B.zRequirezthezemployeeztozpayzforzthezdamageztozthezcountertop.
,z
C.zTellzthezclientztozclaimzthezdamagedzcounterztopzonzhiszorzherzhomeowner'szinsurancezpolicy
.
D.zNozactionziszrequired:zThezclientzmustzassumezthezriskzofzdamage.z-
zcorrectzanswer-
Claimzthezdamagezonzyourzgeneralzliabilityzinsurancezpolicy.
Ofzthezfollowing,zwhichziszbestzforzdeterminingztheznumberzofzhourszrequiredzforzdifferentzphaseszofzazpro
j
ectzandzforzmakingzsurezthezjobziszonzschedule?
A.zBarzgraphzandzchart
B.zCashzanalysiszchart
C.zReviewzplans
D.zCriticalzpathzmethodz-zcorrectzanswer-Thezcriticalzpathzmethod.
Iszitzlegalzforzazcontractorztozrequirezemployeesztoztakezazliezdetectorztest?z-zcorrectzanswer-
Itzisznotzlegalzforzthezcontractorztozrequirezliezdetectorztests,zbutzitzwouldzbezlegalzforzazfederal,zstate,zorzl
oc
alzpubliczagencyztozrequirezliezdetectorztestszofztheirzemployees.
IfzaznewlyzhiredzemployeezdoesznotzhavezazSSN,zwhatzshouldzbezdone?z-
zcorrectzanswer-
ThezemployeezmustzapplyzforzazSSN.
Howzmanyztimeszmayzyouztakezthezcontractorszlicensezexamzbeforezyourzoriginalzapplicationziszvoided?z
-
correctzanswer-Aszmanyztimeszasznecessaryzwithinz18zmonths.
Whenzshouldzazcontractorzrenewzthezcontractor'szlicensezbond?z-zcorrectzanswer-30zdayszbeforezitzexpires.
ThezqualifyingzRMEzforzazconstructionzfirmzmustzworkzatzleast:z-zcorrectzanswer-
AzqualifyingzRMEzforzazconstructionzfirmzmustzworkzatzleastz32zhourszperzweekzorz80%zofzthezworkzwee
k
.
ThezfederalzEmployerzIdentificationzNumberz(EIN)ziszissuedzbyzthe:z-zcorrectzanswer-
ThezInternalzRevenuezService
Everyzemployerzofz______zorzmorezfullzorzpartztimezemployeeszmustzkeepzwrittenzhealthzandzsafetyzrecor
d
szforz_______zyears.
