CSLB Law & Business Exam Questions With Accurate
Answers.
1-2% - accurate answers-Bonds can be purchased from bonding companies
for ___% of the original contract price.
Bid Bond - accurate answers-This acts as an assurance that the contractor will
be able to complete the job as described in the contract.
Performance Bond or Contract Bond - accurate answers-This guarantees a
contractor will complete the project according to the agreed upon terms &
conditions.
Payment Bond - accurate answers-This guarantees that subcontractors and
suppliers will be paid by the contractor for properly performed work.
$35,000 - accurate answers-Payment Bonds are required for federal
government contracts over $__________.
Fidelity Bond - accurate answers-This covers the business owner in case of
employee dishonesty or theft.
$15,000 - accurate answers-Contractors must file a contractors bond OR
submit a cash deposit with the CSLB for $_______.
$15,000 - accurate answers-The value of a contractors bond must be $________
90 - accurate answers-The contractors bond must be filed with the CLSB
within ___ days from the bond effective date.
True - accurate answers-True or False: A contractor must identify their type of
insurance when referring to themselves as "bonded" or "insured" in
advertisements or publications.
$12,500 (They can be exempt if the RMO can certify ownership of 10% or
more of the voting stock in the company.) - accurate answers-A business must
submit a separate $________ bond for RMEs or RMOs.
, $100,000 - accurate answers-A Limited Liability Surety Bond for $__________ is
required in addition to the contractors bond for an LLC license.
Disciplinary Bond - accurate answers-This must be filed with the Registrar
after a license has been revoked or denied.
False. It's an additional requirement and may not be filed in place of another
bond. - accurate answers-True or False: A Disciplinary Bond can be combined
with any other bond.
$15,000 up to 10x the amount of the contractor's bond - accurate answers-
The Disciplinary bond amount ranges from _______ to _______, depending on the
violation.
2 years - accurate answers-The Disciplinary Bond must be valid & on file with
the Registrar for how long?
Within 90 days - accurate answers-How soon should the Disciplinary bond be
filed with the CSLB?
C) Stocks or fluctuating investments - accurate answers-All of these are
approved alternatives to surety bonds except:
A) Certificate of deposit
B) Cash
C) Stocks/fluctuating investments
D) Savings & loan investments
E) U.S. government bearer bond
D) All of the above - accurate answers-A license may be suspended if:
A) One or more of the required bonds are canceled by their surety company
B) The bond amount is reduced by a judgment or payment claim
C) There's failure to maintain either the Disciplinary bond or cash deposit for
the required time period
D) All of the above
Answers.
1-2% - accurate answers-Bonds can be purchased from bonding companies
for ___% of the original contract price.
Bid Bond - accurate answers-This acts as an assurance that the contractor will
be able to complete the job as described in the contract.
Performance Bond or Contract Bond - accurate answers-This guarantees a
contractor will complete the project according to the agreed upon terms &
conditions.
Payment Bond - accurate answers-This guarantees that subcontractors and
suppliers will be paid by the contractor for properly performed work.
$35,000 - accurate answers-Payment Bonds are required for federal
government contracts over $__________.
Fidelity Bond - accurate answers-This covers the business owner in case of
employee dishonesty or theft.
$15,000 - accurate answers-Contractors must file a contractors bond OR
submit a cash deposit with the CSLB for $_______.
$15,000 - accurate answers-The value of a contractors bond must be $________
90 - accurate answers-The contractors bond must be filed with the CLSB
within ___ days from the bond effective date.
True - accurate answers-True or False: A contractor must identify their type of
insurance when referring to themselves as "bonded" or "insured" in
advertisements or publications.
$12,500 (They can be exempt if the RMO can certify ownership of 10% or
more of the voting stock in the company.) - accurate answers-A business must
submit a separate $________ bond for RMEs or RMOs.
, $100,000 - accurate answers-A Limited Liability Surety Bond for $__________ is
required in addition to the contractors bond for an LLC license.
Disciplinary Bond - accurate answers-This must be filed with the Registrar
after a license has been revoked or denied.
False. It's an additional requirement and may not be filed in place of another
bond. - accurate answers-True or False: A Disciplinary Bond can be combined
with any other bond.
$15,000 up to 10x the amount of the contractor's bond - accurate answers-
The Disciplinary bond amount ranges from _______ to _______, depending on the
violation.
2 years - accurate answers-The Disciplinary Bond must be valid & on file with
the Registrar for how long?
Within 90 days - accurate answers-How soon should the Disciplinary bond be
filed with the CSLB?
C) Stocks or fluctuating investments - accurate answers-All of these are
approved alternatives to surety bonds except:
A) Certificate of deposit
B) Cash
C) Stocks/fluctuating investments
D) Savings & loan investments
E) U.S. government bearer bond
D) All of the above - accurate answers-A license may be suspended if:
A) One or more of the required bonds are canceled by their surety company
B) The bond amount is reduced by a judgment or payment claim
C) There's failure to maintain either the Disciplinary bond or cash deposit for
the required time period
D) All of the above
