5 CSLB CONTRACTOR'S LAW & BUSINESS
EXAM QUESTIONS AND ANSWERS 100% PASS
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 con
ducting 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
legal 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 leg
al for 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 concuss
ion.
,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 tha
t one bid is substantially lower than the rest. Is it ethical and a good business practice for this contract
or to inform the subcontractor that the bid is substantially lower than the bids of the other subcontracto
rs? - correct answer-
Yes. If the contractor has reason to believe that the subcontractor has made an error in preparing his bi
d, the contractor should notify the subcontractor of the apparent error, but the contractor may not discl
ose the amounts of the other bids.
An employer must furnish an employee with a completed IRS Form W-
2 (Wage and Tax Statement) by: - correct answer-The 31st of January.
After a job is completed, the owner decides to have additional work done. How should the contractor p
roceed? - correct answer-Write a new contract and ask the owner to sign it.
The purpose of a 20-day preliminary notice for private work is to? - correct answer-
Notify the owner that the person or firm who sent the notice has improved the property.
Is it legal forz az contractorz toz payz employeesz inz cash?z -z correctz answer-
Yes,z ifz thez contractorz providesz eachz employeez withz az wagez deductionz statementz semimonthlyz orz atz thez
t
imez ofz eachz wagez payment.
Youz arez biddingz onz az jobz withz plansz drawnz byz thez owner.z Youz noticez az codez violationz andz bringz itz toz
th
ez attentionz ofz thez owner.z Thez ownerz declinesz toz remedyz thez codez violationz andz tellsz youz notz toz worry.
Whatz shouldz youz do?z -z correctz answer-Declinez toz bidz thez work.
Onz az time-and-materialsz job,z youz should:z -z correctz answer-
Addz profitz andz overheadz toz laborz andz materials
Yourz employeez setsz az cabinetz wrong.z Thez cabinetz fallsz fromz thez wallz andz damagesz thez client'sz counterz
t
op.z Whatz shouldz youz do?
A.z Claimz thez damagez onz yourz generalz liabilityz insurancez policy.
,z
B.z Requirez thez employeez toz payz forz thez damagez toz thez countertop.
C.z Tellz thez clientz toz claimz thez damagedz counterz topz onz hisz orz herz homeowner'sz insurancez policy
.
D.z Noz actionz isz required:z Thez clientz mustz assumez thez riskz ofz damage.z -z correctz answer-
Claimz thez damagez onz yourz generalz liabilityz insurancez policy.
Ofz thez following,z whichz isz bestz forz determiningz thez numberz ofz hoursz requiredz forz differentz phasesz ofz
a
projectz andz forz makingz surez thez jobz isz onz schedule?
A.z Barz graphz andz chart
B.z Cashz analysisz chart
C.z Reviewz plans
D.z Criticalz pathz methodz -z correctz answer-Thez criticalz pathz method.
Isz itz legalz forz az contractorz toz requirez employeesz toz takez az liez detectorz test?z -z correctz answer-
Itz isz notz legalz forz thez contractorz toz requirez liez detectorz tests,z butz itz wouldz bez legalz forz az federal,z state,z
or
localz publicz agencyz toz requirez liez detectorz testsz ofz theirz employees.
Ifz az newlyz hiredz employeez doesz notz havez az SSN,z whatz shouldz bez done?z -
z correctz answer-
Thez employeez mustz applyz forz az SSN.
Howz manyz timesz mayz youz takez thez contractorsz licensez examz beforez yourz originalz applicationz isz voided
?- correctz answer-Asz manyz timesz asz necessaryz withinz 18z months.
Whenz shouldz az contractorz renewz thez contractor'sz licensez bond?z -z correctz answer-
30z daysz beforez itz expires.
Thez qualifyingz RMEz forz az constructionz firmz mustz workz atz least:z -z correctz answer-
Az qualifyingz RMEz forz az constructionz firmz mustz workz atz leastz 32z hoursz perz weekz orz 80%z ofz thez workz
w
eek.
Thez federalz Employerz Identificationz Numberz (EIN)z isz issuedz byz the:z -z correctz answer-
Thez Internalz Revenuez Service
,z
Everyz employerz ofz ______z orz morez fullz orz partz timez employeesz mustz keepz writtenz healthz andz safetyz re
c
ordsz forz _______z years.
A.z 1-3
B.z 7-4
C.z 10-3
D.z 11-5z -z correctz answer-
Everyz employerz ofz 11z orz morez fullz orz partz timez employeesz mustz keepz writtenz healthz andz safetyz record
s
forz 5z years.
Afterz youz havez readz thez plansz andz specifications,z whatz isz thez nextz importantz stepz inz writingz az bid
?
A.z Talkz toz andz selectz subs.
B.z Walkz thez job.
C.z Callz aboutz materials,z price,z andz availability.
D.z Talkz toz thez crewz leaderz aboutz labor.z -z correctz answer-Walkz thez job.
Oncez az budgetz isz finalized,z the:
A.z Contractorz shouldz stickz toz thez budgetz noz matterz whatz happens.
B.z Contractorz shouldz doz thez bestz possiblez jobz ofz stayingz withinz thez budget.
C.z Budgetz shouldz bez revisedz eachz month.
D.z Budgetz shouldz bez referredz toz onlyz ifz thez businessz hasz cashflowz problems.z -
z correctz answer-
Thez contractorz shouldz doz thez bestz possiblez jobz ofz stayingz withinz budget.z `
Whoz mustz signz az jointz controlz addendumz toz az homez improvementz contract?z -z correctz answer-
Owner,z contractor,z andz jointz controlz officer.
Whenz purchasingz insurance,z whatz isz thez bestz wayz toz chosez amongz differentz companies?z -
correctz answer-Costz andz Coverage
EXAM QUESTIONS AND ANSWERS 100% PASS
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 con
ducting 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
legal 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 leg
al for 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 concuss
ion.
,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 tha
t one bid is substantially lower than the rest. Is it ethical and a good business practice for this contract
or to inform the subcontractor that the bid is substantially lower than the bids of the other subcontracto
rs? - correct answer-
Yes. If the contractor has reason to believe that the subcontractor has made an error in preparing his bi
d, the contractor should notify the subcontractor of the apparent error, but the contractor may not discl
ose the amounts of the other bids.
An employer must furnish an employee with a completed IRS Form W-
2 (Wage and Tax Statement) by: - correct answer-The 31st of January.
After a job is completed, the owner decides to have additional work done. How should the contractor p
roceed? - correct answer-Write a new contract and ask the owner to sign it.
The purpose of a 20-day preliminary notice for private work is to? - correct answer-
Notify the owner that the person or firm who sent the notice has improved the property.
Is it legal forz az contractorz toz payz employeesz inz cash?z -z correctz answer-
Yes,z ifz thez contractorz providesz eachz employeez withz az wagez deductionz statementz semimonthlyz orz atz thez
t
imez ofz eachz wagez payment.
Youz arez biddingz onz az jobz withz plansz drawnz byz thez owner.z Youz noticez az codez violationz andz bringz itz toz
th
ez attentionz ofz thez owner.z Thez ownerz declinesz toz remedyz thez codez violationz andz tellsz youz notz toz worry.
Whatz shouldz youz do?z -z correctz answer-Declinez toz bidz thez work.
Onz az time-and-materialsz job,z youz should:z -z correctz answer-
Addz profitz andz overheadz toz laborz andz materials
Yourz employeez setsz az cabinetz wrong.z Thez cabinetz fallsz fromz thez wallz andz damagesz thez client'sz counterz
t
op.z Whatz shouldz youz do?
A.z Claimz thez damagez onz yourz generalz liabilityz insurancez policy.
,z
B.z Requirez thez employeez toz payz forz thez damagez toz thez countertop.
C.z Tellz thez clientz toz claimz thez damagedz counterz topz onz hisz orz herz homeowner'sz insurancez policy
.
D.z Noz actionz isz required:z Thez clientz mustz assumez thez riskz ofz damage.z -z correctz answer-
Claimz thez damagez onz yourz generalz liabilityz insurancez policy.
Ofz thez following,z whichz isz bestz forz determiningz thez numberz ofz hoursz requiredz forz differentz phasesz ofz
a
projectz andz forz makingz surez thez jobz isz onz schedule?
A.z Barz graphz andz chart
B.z Cashz analysisz chart
C.z Reviewz plans
D.z Criticalz pathz methodz -z correctz answer-Thez criticalz pathz method.
Isz itz legalz forz az contractorz toz requirez employeesz toz takez az liez detectorz test?z -z correctz answer-
Itz isz notz legalz forz thez contractorz toz requirez liez detectorz tests,z butz itz wouldz bez legalz forz az federal,z state,z
or
localz publicz agencyz toz requirez liez detectorz testsz ofz theirz employees.
Ifz az newlyz hiredz employeez doesz notz havez az SSN,z whatz shouldz bez done?z -
z correctz answer-
Thez employeez mustz applyz forz az SSN.
Howz manyz timesz mayz youz takez thez contractorsz licensez examz beforez yourz originalz applicationz isz voided
?- correctz answer-Asz manyz timesz asz necessaryz withinz 18z months.
Whenz shouldz az contractorz renewz thez contractor'sz licensez bond?z -z correctz answer-
30z daysz beforez itz expires.
Thez qualifyingz RMEz forz az constructionz firmz mustz workz atz least:z -z correctz answer-
Az qualifyingz RMEz forz az constructionz firmz mustz workz atz leastz 32z hoursz perz weekz orz 80%z ofz thez workz
w
eek.
Thez federalz Employerz Identificationz Numberz (EIN)z isz issuedz byz the:z -z correctz answer-
Thez Internalz Revenuez Service
,z
Everyz employerz ofz ______z orz morez fullz orz partz timez employeesz mustz keepz writtenz healthz andz safetyz re
c
ordsz forz _______z years.
A.z 1-3
B.z 7-4
C.z 10-3
D.z 11-5z -z correctz answer-
Everyz employerz ofz 11z orz morez fullz orz partz timez employeesz mustz keepz writtenz healthz andz safetyz record
s
forz 5z years.
Afterz youz havez readz thez plansz andz specifications,z whatz isz thez nextz importantz stepz inz writingz az bid
?
A.z Talkz toz andz selectz subs.
B.z Walkz thez job.
C.z Callz aboutz materials,z price,z andz availability.
D.z Talkz toz thez crewz leaderz aboutz labor.z -z correctz answer-Walkz thez job.
Oncez az budgetz isz finalized,z the:
A.z Contractorz shouldz stickz toz thez budgetz noz matterz whatz happens.
B.z Contractorz shouldz doz thez bestz possiblez jobz ofz stayingz withinz thez budget.
C.z Budgetz shouldz bez revisedz eachz month.
D.z Budgetz shouldz bez referredz toz onlyz ifz thez businessz hasz cashflowz problems.z -
z correctz answer-
Thez contractorz shouldz doz thez bestz possiblez jobz ofz stayingz withinz budget.z `
Whoz mustz signz az jointz controlz addendumz toz az homez improvementz contract?z -z correctz answer-
Owner,z contractor,z andz jointz controlz officer.
Whenz purchasingz insurance,z whatz isz thez bestz wayz toz chosez amongz differentz companies?z -
correctz answer-Costz andz Coverage
