Louisiana Business and Law
Practice Exam Questions and
Correct Answers| Latest Update
The purpose of the contractor licensing laws is to
Protect the public from fraudulent contractors
Protect against inexperienced contractors
Protect the health, safety and general welfare of the public
Any construction project other than residential homes, a single residential
duplex, tri-plex, or four-plex.
Commercial project
A contractor is a person that works on a project valued at ______ or more for
commercial purposes other than residential duplexes, triplexes or fourplexes.
$50,000
A ___________ is the person who contracts directly with the owner.
General contractor
,A contractor that works on a preexisting owner occupied building is considered
a _________ .
Home improvement contractor
A residential contractor is one who constructs a fixed structure when the cost
exceeds _________.
$75,000
The state licensing board is comprised of ____ members.
15
The board has the power to do any of the following EXCEPT:
Sue unlicensed contractors
Licenses and renewals expire on _______.
The anniversary date the license was issued
An applicant must furnish the board with proof of financial responsibility
including proof of net worth of at least ______ .
$10,000
Is an applicant permitted to furnish a bond in lieu of proof of net worth?
yes
,When a qualifying party of a construction company leaves employment, the
company has how many days to inform the board?
30 days
A qualifying party can be which of the following:
A co-partner
A stockholder
An employee who has been with the company at least 120 days
All of the above
An owner of a property who is improving their home for their own use does not
have to have a license to do construction work.
True
If you fail to comply with the rules of the board, you are subject to revocation or
suspension of your license.
True
If you have been found guilty of violating the rules of the board more than twice
in one year, you will not be permitted to bid on a public project for up to ____
years
3
, If a license has been denied by the board, the applicant has ____ to appeal.
6 months
A contractor who is unlicensed may be found guilty of a misdemeanor, and fined
up to ________.
$500 per day of the violation
If an unlicensed contractor causes harm or damage to another in excess of $300,
they can be fined up to ______ and possibly be imprisoned up to _____ .
$5,000 and 5 years
If a contractor has been ordered to cease and desist work, and fails to do so,
that contractor shall not be permitted to apply for a license for ___________ .
1 year
A residential contractor must provide all of the following EXCEPT:
Proof of five years experience
A contractor who opts to place his license in an inactive status must still submit
proof of insurance coverage.
False
Residential contractors must pay a renewal fee of _____.
$100.00
Practice Exam Questions and
Correct Answers| Latest Update
The purpose of the contractor licensing laws is to
Protect the public from fraudulent contractors
Protect against inexperienced contractors
Protect the health, safety and general welfare of the public
Any construction project other than residential homes, a single residential
duplex, tri-plex, or four-plex.
Commercial project
A contractor is a person that works on a project valued at ______ or more for
commercial purposes other than residential duplexes, triplexes or fourplexes.
$50,000
A ___________ is the person who contracts directly with the owner.
General contractor
,A contractor that works on a preexisting owner occupied building is considered
a _________ .
Home improvement contractor
A residential contractor is one who constructs a fixed structure when the cost
exceeds _________.
$75,000
The state licensing board is comprised of ____ members.
15
The board has the power to do any of the following EXCEPT:
Sue unlicensed contractors
Licenses and renewals expire on _______.
The anniversary date the license was issued
An applicant must furnish the board with proof of financial responsibility
including proof of net worth of at least ______ .
$10,000
Is an applicant permitted to furnish a bond in lieu of proof of net worth?
yes
,When a qualifying party of a construction company leaves employment, the
company has how many days to inform the board?
30 days
A qualifying party can be which of the following:
A co-partner
A stockholder
An employee who has been with the company at least 120 days
All of the above
An owner of a property who is improving their home for their own use does not
have to have a license to do construction work.
True
If you fail to comply with the rules of the board, you are subject to revocation or
suspension of your license.
True
If you have been found guilty of violating the rules of the board more than twice
in one year, you will not be permitted to bid on a public project for up to ____
years
3
, If a license has been denied by the board, the applicant has ____ to appeal.
6 months
A contractor who is unlicensed may be found guilty of a misdemeanor, and fined
up to ________.
$500 per day of the violation
If an unlicensed contractor causes harm or damage to another in excess of $300,
they can be fined up to ______ and possibly be imprisoned up to _____ .
$5,000 and 5 years
If a contractor has been ordered to cease and desist work, and fails to do so,
that contractor shall not be permitted to apply for a license for ___________ .
1 year
A residential contractor must provide all of the following EXCEPT:
Proof of five years experience
A contractor who opts to place his license in an inactive status must still submit
proof of insurance coverage.
False
Residential contractors must pay a renewal fee of _____.
$100.00
