age 1 of 85
CSLB CONTRACTOR'S LAW & BUSINESS FINAL EXAM
STUDY GUIDE 2025/2026 ACCURATE QUESTIONS AND
CORRECT DETAILED ANSWERS WITH RATIONALES ||
100% GUARANTEED PASS <BRAND NEW VERSION>
An employer remits State disability taxes withheld from an
employees wages to what agency? .......Answer.........Employment
Development Department
Which act establishes the rights of workers to organize into
unions and negotiate contracts? .......Answer.........National Labor
Relations Act of 1935
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?
,age 2 of 85
A. It is legal to ask prospective employees about arrests not
leading to convictions.
B. It is not legal to ask prospective employees about arrests not
leading to convictions.
C. It is legal for a private employer to ask about arrests not
leading to convictions, but it would not be legal for city or
county agencies to ask about such arrests.
D. It is legal for a private employer to ask about arrests
leading to convictions, but it would not be legal for a federal,
state, or local public agency to do so. .......Answer.........It is not
legal to ask prospective employees about arrest not leading to
convictions.
,age 3 of 85
Why would a contractor have a case in Superior Court?
.......Answer.........If it is a dispute of more than $25,000 it can be
transferred to Superior Court.
Which would not have to be reported to DOSH immediately or
within 24 hours?
A. Death from a three-story fall.
B. Drunken crane operator hits a high-voltage power line
C. Car accident in which an employee steps onto a public road,
gets hit by a car, and suffers a concussion.
D. Employee falls off forklift and suffers a sever back injury.
.......Answer.........Car accident in which an employee steps onto a
public road, gets hit by a car, and suffers a concussion.
, age 4 of 85
A general contractor has obtained bids from several
subcontractors for a private project. He notices that one bid is
substantially lower than the rest. Is it ethical and a good business
practice for this contractor to inform the subcontractor that the
bid is substantially lower than the bids of the other
subcontractors? .......Answer.........Yes. If the contractor has reason
to believe that the subcontractor has made an error in preparing
his bid, the contractor should notify the subcontractor of the
apparent error, but the contractor may not disclose the amounts
of the other bids.
An employer must furnish an employee with a completed IRS
Form W-2 (Wage and Tax Statement) by: .......Answer.........The
31st of January.
After a job is completed, the owner decides to have additional
work done. How should the contractor proceed?
CSLB CONTRACTOR'S LAW & BUSINESS FINAL EXAM
STUDY GUIDE 2025/2026 ACCURATE QUESTIONS AND
CORRECT DETAILED ANSWERS WITH RATIONALES ||
100% GUARANTEED PASS <BRAND NEW VERSION>
An employer remits State disability taxes withheld from an
employees wages to what agency? .......Answer.........Employment
Development Department
Which act establishes the rights of workers to organize into
unions and negotiate contracts? .......Answer.........National Labor
Relations Act of 1935
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?
,age 2 of 85
A. It is legal to ask prospective employees about arrests not
leading to convictions.
B. It is not legal to ask prospective employees about arrests not
leading to convictions.
C. It is legal for a private employer to ask about arrests not
leading to convictions, but it would not be legal for city or
county agencies to ask about such arrests.
D. It is legal for a private employer to ask about arrests
leading to convictions, but it would not be legal for a federal,
state, or local public agency to do so. .......Answer.........It is not
legal to ask prospective employees about arrest not leading to
convictions.
,age 3 of 85
Why would a contractor have a case in Superior Court?
.......Answer.........If it is a dispute of more than $25,000 it can be
transferred to Superior Court.
Which would not have to be reported to DOSH immediately or
within 24 hours?
A. Death from a three-story fall.
B. Drunken crane operator hits a high-voltage power line
C. Car accident in which an employee steps onto a public road,
gets hit by a car, and suffers a concussion.
D. Employee falls off forklift and suffers a sever back injury.
.......Answer.........Car accident in which an employee steps onto a
public road, gets hit by a car, and suffers a concussion.
, age 4 of 85
A general contractor has obtained bids from several
subcontractors for a private project. He notices that one bid is
substantially lower than the rest. Is it ethical and a good business
practice for this contractor to inform the subcontractor that the
bid is substantially lower than the bids of the other
subcontractors? .......Answer.........Yes. If the contractor has reason
to believe that the subcontractor has made an error in preparing
his bid, the contractor should notify the subcontractor of the
apparent error, but the contractor may not disclose the amounts
of the other bids.
An employer must furnish an employee with a completed IRS
Form W-2 (Wage and Tax Statement) by: .......Answer.........The
31st of January.
After a job is completed, the owner decides to have additional
work done. How should the contractor proceed?
