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General Contractor's License Exam Questions and Answers
with 100% Complete Solutions UPDATED!!!
Minnesota requires that all builders continue their education by
attending 7 hours of classroom study per year, with at least 1
hour dedicated to: - ANSWER Energy efficiency
It is a law that you must notify, in writing, if you change your
business name or your address where you conduct business,
within - ANSWER 15 days
Penalties for violation of laws relating to the residential building
industry include - ANSWER 1. Civil penalties up to $10,000, per
violation
2. Denial of a license at application or renewal
3. License suspension up to 2 years or license revoked at least 2
years
4. Void of lien rights
***5. All of the above
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A person can be a qualifying person for two corporations if at
least 25% of each corporation has common ownership, or the
second corporation is a subsidiary of the parent corporation
with at least 25% owned by the parent - ANSWER True
A company has __________ days from the departure of a
qualifying licensee to obtain a new qualifying person. - ANSWER
120
By law, you must display the license number on all building
permits, applications, business cards, contracts, lien claims and
display advertising. - ANSWER True
It is the responsibility of the subcontractors to comply with the
state building code. - ANSWER False
A person required to be licensed, who performs unlicensed
work, is guilty of a misdemeanor. - ANSWER True
A person required to be licensed, who violates an order from
the Commissioner, is guilty of a gross misdemeanor. - ANSWER
True
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An unlicensed person cannot exercise lien rights in the State of
Minnesota. If a lien is placed, the state will consider it: -
ANSWER Void
A person who fails to apply for renewal by March 31st is
considered licensed for 30 days, or until the new license is
issued by the Commissioner. - ANSWER False
By law, a political subdivision that issues building permits on
zoning or land use permits, shall report all unlicensed persons
required by law to be licensed, when they apply for a permit. -
ANSWER True
Who is responsible for determining who is qualified to be
licensed by the State of Minnesota? - ANSWER Department of
Labor and Industry
Under whose authority is the Department of Labor and Industry
given the responsibility to determine who is qualified to
become licensed? - ANSWER Commissioner of the Department
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Anyone in the business of building residential real estate, or
who contracts or offers to improve residential real estate, must
be licensed, unless yearly gross receipts are less than $15,000
and they have received a Certificate of Exemption from the
Department of Commerce. - ANSWER True
What is the primary reason Minnesota requires contractors to
be licensed? - ANSWER To protect public health, safety and
welfare
A contractor is required to be licensed if his gross annual
receipts exceed: - ANSWER $15,000
The maximum payment per claim paid out of the Contractor
Recovery Fund is: - ANSWER $75,000
The maximum payment per licensee out of the Contractor
Recovery Fund is: - ANSWER $150,000
Chapter 326 of the Minnesota Statutes requires who to hold a
contractor license? - ANSWER Any person who uses two or
more special skills to improve residential real estate
General Contractor's License Exam Questions and Answers
with 100% Complete Solutions UPDATED!!!
Minnesota requires that all builders continue their education by
attending 7 hours of classroom study per year, with at least 1
hour dedicated to: - ANSWER Energy efficiency
It is a law that you must notify, in writing, if you change your
business name or your address where you conduct business,
within - ANSWER 15 days
Penalties for violation of laws relating to the residential building
industry include - ANSWER 1. Civil penalties up to $10,000, per
violation
2. Denial of a license at application or renewal
3. License suspension up to 2 years or license revoked at least 2
years
4. Void of lien rights
***5. All of the above
,2|Page
A person can be a qualifying person for two corporations if at
least 25% of each corporation has common ownership, or the
second corporation is a subsidiary of the parent corporation
with at least 25% owned by the parent - ANSWER True
A company has __________ days from the departure of a
qualifying licensee to obtain a new qualifying person. - ANSWER
120
By law, you must display the license number on all building
permits, applications, business cards, contracts, lien claims and
display advertising. - ANSWER True
It is the responsibility of the subcontractors to comply with the
state building code. - ANSWER False
A person required to be licensed, who performs unlicensed
work, is guilty of a misdemeanor. - ANSWER True
A person required to be licensed, who violates an order from
the Commissioner, is guilty of a gross misdemeanor. - ANSWER
True
,3|Page
An unlicensed person cannot exercise lien rights in the State of
Minnesota. If a lien is placed, the state will consider it: -
ANSWER Void
A person who fails to apply for renewal by March 31st is
considered licensed for 30 days, or until the new license is
issued by the Commissioner. - ANSWER False
By law, a political subdivision that issues building permits on
zoning or land use permits, shall report all unlicensed persons
required by law to be licensed, when they apply for a permit. -
ANSWER True
Who is responsible for determining who is qualified to be
licensed by the State of Minnesota? - ANSWER Department of
Labor and Industry
Under whose authority is the Department of Labor and Industry
given the responsibility to determine who is qualified to
become licensed? - ANSWER Commissioner of the Department
, 4|Page
Anyone in the business of building residential real estate, or
who contracts or offers to improve residential real estate, must
be licensed, unless yearly gross receipts are less than $15,000
and they have received a Certificate of Exemption from the
Department of Commerce. - ANSWER True
What is the primary reason Minnesota requires contractors to
be licensed? - ANSWER To protect public health, safety and
welfare
A contractor is required to be licensed if his gross annual
receipts exceed: - ANSWER $15,000
The maximum payment per claim paid out of the Contractor
Recovery Fund is: - ANSWER $75,000
The maximum payment per licensee out of the Contractor
Recovery Fund is: - ANSWER $150,000
Chapter 326 of the Minnesota Statutes requires who to hold a
contractor license? - ANSWER Any person who uses two or
more special skills to improve residential real estate
