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CSLB PRACTICE LAW B QUESTIONS & CORRECT ANSWERS 2024
( A+ GRADED 100% VERIFIED)
1. A subcontractor or material supplier has _____ days to file a lien once a notice
of completion has been recorded.: 30
2. How must a client submit a claim for service or repair of a defect on fit and
finish items after a remodel?: By certified mail
By overnight mail
By personal delivery
3. A contractor meets Mr. Jones at his home to discuss remodeling. The
contractor and Mr. Jones sign a contract that includes a three-day cancellation
form. After the contractor leaves, Mr. Jones decides not to have the work done.
Instead of using the cancellation form, Mr. Jones sends the contractor a letter by
first-class mail stating that he is canceling the contract. Is Mr. Jones' cancellation
effective?: Yes. Mr. Jones' letter does cancel the contract because it indicates his
intention not to be bound by the contract.
4. If a contractor forgets to renew his or her license on time, the expired license
may be renewed any time within _____ after its expiration without reapplying for a
license and fulfilling the exam or waiver requirements again.: Five years 5. You are
the qualifier for an active contractor's license. How do you inactivate the license?:
Write to the CSLB, requesting that the license be made inactive.
6. When a subcontractor does work on a public works contract, the public
agency considers the subcontractor to be:: a subcontractor of the prime contractor
7. A contractor hires a subcontractor to demolish a concrete wall. Who is
responsible for supplying safety goggles?: subcontractor
8. Sometimes contracts prove to be too vague to interpret without disagreement
between owner and contractor. Which of the following steps would best prevent
such problems?: Review the plans and specifications with the owner. 9. A contractor is
looking for an insurance policy to cover a high degree of exposure to risk. Of the
following, which policy would be best for this purpose?: umbrella
10. To whom do you report and pay sales tax?: Board of Equalization
11. The federal Employer Identification Number (EIN) is issued by the:: Internal
Revenue Service
12. When purchasing insurance, what is the best way to choose among different
companies?: cost and coverage
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13. As required by the Immigration Reform and Control Act, all employees hired
on or after November 7, 1986 must complete Form _____ to verify their
employment eligibility status.: I-9
14 If required safety devices are missing from tools, what should an employee do?:
Notify the contractor, who is responsible for safety.
15. Of the following, which document is usually delivered first in a transaction
involving a home improvement contract?: "Notice to Owner"
16. Who is ultimately responsible for seeing that safety equipment is actually put to
use on the jobsite?: contractor
17. A mechanics' lien is a written document that must be signed and verified by the
claimant. The first and third steps a contractor should take in filing a lien are
listed below. Step 1: Obtain the exact legal description of the property. Step 2:
Step 3: Find out if the person requesting the work of improvement is the owner.
What is Step 2?: Find out the name of the legal owner of the property as well as the
percent of ownership.
18. A(n) _____ represents a company's financial position on a specified date.:
balance sheet
19. When you get an approved set of plans, what should you do first?: Read any
notes from the building department.
20. When bidding on work, which of the following would you NOT include in the
price of your bid?: worker's compensation insurance premium
21. The purpose of a "Preliminary 20-day Notice" for private work is to:: notify the
property owner that the subcontractor or firm who sent the notice will be making
improvements on the property
22. When should you let your attorney see a construction contract?: After the
contract is prepared, but before you sign it.
23. When is an employee allowed to view their own personnel file?: whenever they
wish to
24. Before beginning work, an employer or contractor must inquire whether
asbestos is present in any building constructed prior to:: 1978
25. Is it legal for a contractor to require employees to take lie detector tests?: It is
not legal for the contractor to require lie detector tests, but it would be legal for a
federal, state, or local public agency to require lie detector tests of their employees.
26. When is the last day a customer can cancel a contract that was signed on
Friday, December 21st?: the following Wednesday
27. Which of the following provisions may not be included in a home improvement
contract?: Owner must pay for materials before they are delivered.
28. When can a material supplier perfect a mechanics lien?: After the goods have
been installed in the structure.
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29. Every employer of _____ or more full- or part-time employees must keep
written health and safety records for _____ years.: 11 ... 5
30 The qualifying RME for a construction firm must work at least:: 32 hr per week
or 80% of the work week
31. Where is the "Notice of Right to Cancel" found on a home improvement
contract?: near the client signature
32. An employer remits State disability taxes withheld from an employee's wages to
what agency?: Employment Development Department
33. An applicant for a contractor's license receives a notice from the Contractors'
State License Board, dated October 1, that the applicant passed the written
exams. To receive an active license, the applicant must file a license bond and
fee no later than:: 30-Dec
34. A contract can be canceled when there is consent through fraud or duress by::
the other party.
35. What possible reason would an owner have for requiring an unconditional lien
release from a subcontractor?: The owner's property covered by the release may
not be liened.
36. Equity is:: Total Assets less Total Liabilities.
37. Insured employers must report every work-related illness or injury to their
workers' compensation carrier within _____ of the incident.: 5 days
38. If, during excavation, you unearth human remains or burial artifacts at a
construction site, what should you do?: Stop work immediately at that site and any
other nearby area that may have remains.
39. A contractor has had a problem with employees stealing tools and equipment
from job sites. When conducting job interviews, may the contractor ask
prospective employees about their arrest records?: It is not legal to ask
prospective employees about arrests not leading to convictions.
40. Which act establishes the rights of workers to organize into unions and
negotiate contracts?: National Labor Relations Act of 1935
41. A(n) _____ summarizes revenues, cost of sales, and operating expenses over a
period of time.: income statement
42. For which of the following would you not obtain a short-term loan?: office rent
43. An employee works 60 hours in one week. If the hourly wage rate is $18.00 per
hour, what are the gross wages?: $1,260
44. When balancing the accounts receivable, which of the following would have no
effect?: Posting to the wrong accounts-receivable account.
45. Which would not have to be reported to DOSH immediately or within 24
hours?: car accident in which an employee steps onto a public road, gets hit by a
car, and suffers a concussion