CSLB CONTRACTOR'S LAW PRACTICE TEST PART 2 QUESTIONS WITH COMPLETE SOLUTIONS

When should you let your attorney see a construction contract? A. Before you let the client see the contract B. After the contract is prepared but before you sign it C. After the building permit is obtained D. After the contract is signed by you and the client CORRECT ANSWER B. After the contract is prepared but before you sign it Which is the most correct statement as to what must be included in every home improvement contract? A. Notice of right to cancel B. Contractor's license number C. Truth-in-lending notice D. Name of the project CORRECT ANSWER B. Contractor's license number Which is NOT required on a home improvement contract? A. A notice, in at least 10-point print, in close proximity to the signature, and a statement that the owner has a right to require a performance and payment bond B. The name and home address of all the personnel listed on the license C. An approximate date when work will begin and be substantially completed D. A description of the work to be done and materials and equipment to be used or installed CORRECT ANSWER B. The name and home address of all the personnel listed on the license. Know that A, C and D are required. Only the contractor's name, address and license number are required. When a home improvement contract is signed, the contractor must substantially begin work within ____ days of the date specified in the contract? A. 5 B. 10 C. 15 D. 20 CORRECT ANSWER D. 20 Which is true concerning home improvement sales persons? A. They must register with the Registrar's office and may work for only one contractor at a time B. Anyone who sells home improvement contracts for a licensed contractor outside the contractor's normal place of business is required to be registered with the Attorney General's office C. They must be at least 18 years of age. There are no residency or educational requirements D. They may begin to negotiate home improvement contracts as soon as they have filled out the appropriate application and paid the required fees CORRECT ANSWER C. They must be at least 18 years of age. There are no residency or educational requirements - must register for "each" contractor with the Registrar and receive a registration number first