1
CSLB BUSINESS AND LAW EXAM 2025 |
ACTUAL QUESTIONS AND CORRECT
VERIFIED ANSWERS | LATEST VERSION
| ALREADY GRADED A+
Multiple-Choice Questions
1. What is the minimum contract amount requiring a written home improvement
contract under California law?
A. $250
B. $500
C. $750
D. $1,000
Correct Answer: B
Rationale: Per California Business and Professions Code Section 7159, home
improvement contracts exceeding $500 must be in writing to ensure consumer protection
and clarity of terms.
2. Which agency collects state disability insurance taxes withheld from employee
wages?
A. Department of Industrial Relations (DIR)
B. Employment Development Department (EDD)
C. Franchise Tax Board (FTB)
D. Contractors State License Board (CSLB)
Correct Answer: B
Rationale: The EDD administers state disability insurance, collecting taxes withheld
from wages as part of California’s employment tax obligations.
3. What is the maximum allowable slope for an excavation in Type-B soil up to 20 feet
deep?
A. 0.5:1 (63°)
B. 1:1 (45°)
C. 1.5:1 (34°)
D. 2:1 (27°)
Correct Answer: B
Rationale: Cal/OSHA standards specify a 1:1 (45°) slope for Type-B soil excavations up
to 20 feet to ensure worker safety.
4. How many days does a contractor have to begin work on a home improvement
contract after the specified start date?
A. 10
B. 15
C. 20
D. 30
Correct Answer: C
, 2
Rationale: Business and Professions Code Section 7159 requires contractors to start
work within 20 days of the agreed date unless otherwise specified.
5. Which notice must be included in a home improvement contract to inform owners
of their bond rights?
A. Notice of Cancellation
B. Mechanics Lien Warning
C. Notice to Owner
D. Service and Repair Notice
Correct Answer: C
Rationale: The Notice to Owner, required by Section 7018.5, informs homeowners of
their right to require performance and payment bonds.
6. What is the minimum font size for the cancellation notice in a home improvement
contract?
A. 8-point
B. 10-point
C. 12-point
D. 14-point
Correct Answer: B
Rationale: California law mandates a minimum 10-point font for the cancellation notice
to ensure readability, per Section 7159.
7. How frequently must contractors hold tailgate safety meetings?
A. Weekly
B. Biweekly
C. Every 10 working days
D. Monthly
Correct Answer: C
Rationale: Cal/OSHA requires safety meetings every 10 working days to maintain
ongoing safety awareness, as noted in the CSLB study guide.
8. Which item is NOT required in a home improvement contract?
A. Contractor’s license number
B. Project start and completion dates
C. List of all employees
D. Description of work
Correct Answer: C
Rationale: Section 7159 requires the license number, dates, and work description but not
a list of employees.
9. What is the 2025 CSLB exam fee for a single examination?
A. $51.43
B. $75.00
C. $100.00
D. $102.86
Correct Answer: A
Rationale: Starting January 2025, the fee for a single exam is $51.43, paid directly to PSI
Exams.
10. Which act protects workers’ rights to unionize and bargain collectively?
A. Occupational Safety and Health Act
CSLB BUSINESS AND LAW EXAM 2025 |
ACTUAL QUESTIONS AND CORRECT
VERIFIED ANSWERS | LATEST VERSION
| ALREADY GRADED A+
Multiple-Choice Questions
1. What is the minimum contract amount requiring a written home improvement
contract under California law?
A. $250
B. $500
C. $750
D. $1,000
Correct Answer: B
Rationale: Per California Business and Professions Code Section 7159, home
improvement contracts exceeding $500 must be in writing to ensure consumer protection
and clarity of terms.
2. Which agency collects state disability insurance taxes withheld from employee
wages?
A. Department of Industrial Relations (DIR)
B. Employment Development Department (EDD)
C. Franchise Tax Board (FTB)
D. Contractors State License Board (CSLB)
Correct Answer: B
Rationale: The EDD administers state disability insurance, collecting taxes withheld
from wages as part of California’s employment tax obligations.
3. What is the maximum allowable slope for an excavation in Type-B soil up to 20 feet
deep?
A. 0.5:1 (63°)
B. 1:1 (45°)
C. 1.5:1 (34°)
D. 2:1 (27°)
Correct Answer: B
Rationale: Cal/OSHA standards specify a 1:1 (45°) slope for Type-B soil excavations up
to 20 feet to ensure worker safety.
4. How many days does a contractor have to begin work on a home improvement
contract after the specified start date?
A. 10
B. 15
C. 20
D. 30
Correct Answer: C
, 2
Rationale: Business and Professions Code Section 7159 requires contractors to start
work within 20 days of the agreed date unless otherwise specified.
5. Which notice must be included in a home improvement contract to inform owners
of their bond rights?
A. Notice of Cancellation
B. Mechanics Lien Warning
C. Notice to Owner
D. Service and Repair Notice
Correct Answer: C
Rationale: The Notice to Owner, required by Section 7018.5, informs homeowners of
their right to require performance and payment bonds.
6. What is the minimum font size for the cancellation notice in a home improvement
contract?
A. 8-point
B. 10-point
C. 12-point
D. 14-point
Correct Answer: B
Rationale: California law mandates a minimum 10-point font for the cancellation notice
to ensure readability, per Section 7159.
7. How frequently must contractors hold tailgate safety meetings?
A. Weekly
B. Biweekly
C. Every 10 working days
D. Monthly
Correct Answer: C
Rationale: Cal/OSHA requires safety meetings every 10 working days to maintain
ongoing safety awareness, as noted in the CSLB study guide.
8. Which item is NOT required in a home improvement contract?
A. Contractor’s license number
B. Project start and completion dates
C. List of all employees
D. Description of work
Correct Answer: C
Rationale: Section 7159 requires the license number, dates, and work description but not
a list of employees.
9. What is the 2025 CSLB exam fee for a single examination?
A. $51.43
B. $75.00
C. $100.00
D. $102.86
Correct Answer: A
Rationale: Starting January 2025, the fee for a single exam is $51.43, paid directly to PSI
Exams.
10. Which act protects workers’ rights to unionize and bargain collectively?
A. Occupational Safety and Health Act
