QUESTIONS AND ANSWERS 100% PASS
How does a contractor change his or her contractor's license from a sole proprietorship to a corporation
? - correct answer-Apply for the corporation's own contractor's license
Which of the following is NOT considered a violation of the contractor's license law? - correct answer-
A contractor filing the claim for damages with the general liability insurance instead of paying for dam
ages
A contractor held a contractor's license in California for five years. Which of the following states is no
t
reciprocal with California? - correct answer-
Oregon. For more information, you can visit www.cslb.ca.gov and search "Reciprocity."
Which of the following circumstances means the cancellation of a license? - correct answer-
Death of the owner in an individual license
In addition to the building and zoning departments, what authority has jurisdiction for projects along th
e California Coastline? - correct answer-Coastal Commission
Which of the following is NOT a cause of disciplinary action by the board? - correct answer-
Not paying subcontractors immediately upon receipt of a progress payment
If an employee is injured when the contractor's license was suspended or revoked, then what happens t
o the contractor? - correct answer-The contractor may face a lawsuit for damages
Which of the following requires a home improvement salesperson registration? - correct answer-
Employee who negotiates a service and repair contract
What does SWIFT mean? - correct answer-Statewide Investigative Fraud Team
What is the penalty for the willful misclassification of individuals as independent contractors? -
correct answer-Between $5,000 and $25,000 per violation
, If a Responsible Managing Employee is fired from a company, how much time does the company get
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2t o replace
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the RME with another qualified individual? - correct answer-90 days
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What must a licensee do if the qualifying individual disassociates from the business? - correct answer-
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Notify the Registrar and replace the qualifier within 90 days
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The CSLB requires licensees to submit name change or address within
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X
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correct answer-90
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Can a responsible managing employee (RME) have a separate contracting business from the one for w hic
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h he is the qualifying individual for? - correct answer-
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No, an RME can only be aUqualifying individual for one contracting business. If the qualifier is an RM
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E, they must be a bona fide employee of the firm and may not be the qualifier on any other active
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CS LB license. The RME must be permanently employed by the firm and actively engaged in the op
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eratio n of the contracting business at least 32 hours per week or 80 percent of the total business operating
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h ours per week, whichever is less.
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An individual may qualify for as many as three separate licenses if they own at least
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of the X
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equity of each business for which they serve as the qualifying individual. - correct answer-20%
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A contractor receives a citation from the registrar. How many days does the contractor have to appeal t
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he citation? - correct answer-15 working days
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When is a licensed contractor subject to disciplinary action? - correct answer-
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When allowing an unaffiliated unlicensed person the use of the license
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An expired license may be renewed anytime within after its expiration date. - correct answer-5 years
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If the contractor obtains their contractor's license on April 7, 2010, when will the license need to be re ne
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wed? - correct answer- X2 X2 X2
By April 30, 2012. The license expires after two years at the end of the issuing month.
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