CSLB Law & Business Exam practice questions
240 free questions with answers and explanations.
- 51.During excavation of a 9-foot trench, Cal/OSHA requires daily inspections for hazardous conditions. Who is authorized to perform these inspections?Safety
- 52.A public works employee works 10 hours in one day on a project subject to prevailing wage requirements, with no alternate workweek agreement in place. How must the employee be compensated for the last 2 hours worked that day?Public Works
- 53.A contractor completes a $200,000 job under a contract that withholds 10% retention until final completion, to be paid 60 days after substantial completion. How much cash does the contractor have tied up in retention during that 60-day period?Business Finances
- 54.An investigator discovers that a contractor routinely collects down payments exceeding the legal limit on home improvement contracts. What is the most likely consequence under the Contractors State License Law?Contract Requirements and Execution
- 55.When calculating payroll for an hourly employee, which of the following taxes is withheld directly from the employee's wages rather than paid solely by the employer?Employment Requirements
- 56.A trench is being excavated in soil classified as Type C (the least stable classification) without a shoring or shielding system. What is the maximum allowable slope for the trench walls under Cal/OSHA excavation standards?Safety
- 57.A contractor willfully fails to pay a terminated employee's final wages. The employee earned $25 per hour and worked 8-hour days. The employer finally pays the wages 10 days after termination. Under Labor Code Section 203, what waiting time penalty does the employer owe?Employment Requirements
- 58.A licensed contracting corporation wants its Responsible Managing Employee (RME) to satisfy the CSLB's active involvement requirement. Which condition must the RME meet regarding hours worked?Business Organization and Licensing
- 59.A sole owner contractor wants to operate under the name "Precision Home Builders" instead of her own legal name. Before CSLB can issue the license in that name, what must she first do?Business Organization and Licensing
- 60.According to guidance commonly followed for federal tax purposes, a contractor should retain business financial and tax records for at least how many years?Business Finances
- 61.Before a contractor receives final payment on a home improvement project, California law is designed to protect the homeowner from mechanics liens filed by unpaid subcontractors or suppliers. What document accomplishes this protection at final payment?Contract Requirements and Execution
- 62.A sole proprietor contractor withdraws $4,000 per month from the business bank account for personal living expenses, recorded as an owner's draw. How should this draw be treated for federal self-employment tax purposes?Business Finances
- 63.California law requires that home improvement contracts contain a specific written statement warning homeowners about which of the following?Contract Requirements and Execution
- 64.Which financial statement shows a contractor's revenues, expenses, and net profit or loss over a specific period, such as a month or a quarter?Business Finances
- 65.A supplier on a private multifamily project wants to legally compel the construction lender to withhold sufficient undisbursed loan funds to cover an unpaid claim, even over the lender's objection. What must the supplier include with the stop payment notice to make this withholding mandatory?Insurance and Liens
- 66.A sole qualifying RMO resigns from a corporation without CSLB notification of a replacement. What is the maximum number of days the corporation has to obtain a new qualifying individual before the license is automatically suspended?Business Organization and Licensing
- 67.A contractor's license was revoked for a serious violation. Two years later, CSLB grants reinstatement subject to probation. In addition to the standard $25,000 contractor's bond, what additional bond is typically required for a reinstated license under disciplinary probation?Business Organization and Licensing
- 68.An employee earning $22 per hour works a 14-hour shift on a regular workday, with no other overtime triggers earlier in the week. Under California law, what is the employee's total pay for that day?Employment Requirements
- 69.A contractor's accounts receivable aging report shows: Current $5,000; 31-60 days $3,000; 61-90 days $2,000; Over 90 days $4,000. What percentage of total accounts receivable is more than 60 days past due?Business Finances
- 70.A contractor conducts all sales negotiations for a home improvement project with a homeowner entirely in Vietnamese, but the written contract is prepared only in English. Under California law, is this contract compliant?Contract Requirements and Execution
- 71.Which of the following must be included on the face of every home improvement contract in California?Contract Requirements and Execution
- 72.An hourly employee earning $20 per hour is scheduled for an 8-hour shift and reports to work on time. After 2 hours, the employer sends her home because materials did not arrive. Under California reporting time pay rules, what is the minimum total amount the employer must pay her for that day?Employment Requirements
- 73.A contractor plans to begin excavation for a new sewer line connection on a residential property. Before starting the dig, what is the contractor required to do regarding underground utilities?Safety
- 74.A homeowner hires a licensed contractor directly for a kitchen remodel. Does the direct contractor need to serve a preliminary 20-day notice on the homeowner to preserve lien rights?Insurance and Liens
- 75.A licensed corporation holds both a Class B General Building classification and a C-10 Electrical classification on one license. Its RMO has verified experience only in general building work. What must the corporation do to properly maintain the C-10 classification?Business Organization and Licensing
- 76.An employee works 9 hours in a single workday with no other overtime triggers that day. Under California wage and hour law, how must the 9th hour be compensated?Employment Requirements
- 77.A sole owner is applying for a new CSLB contractor's license in 2024. What is the current standard contractor's license bond amount required before a license can be issued?Business Organization and Licensing
- 78.A licensed contractor hires her first employee this week. Before the employee begins work, what must the contractor obtain and maintain to comply with California law?Employment Requirements
- 79.A contractor's license expired two years ago after she failed to renew on time. She now wants to reinstate the same license number. Under CSLB rules, what is required?Business Organization and Licensing
- 80.A homeowner signs a home improvement contract on Monday and decides to cancel within the statutory period. She mails a written cancellation notice on Thursday, which the contractor receives the following Monday. On what date is the cancellation legally effective?Contract Requirements and Execution
- 81.A contractor enters into a written agreement with an independent contractor on May 1 to perform work for a total fee of $2,000. Under California EDD reporting rules, by when must the contractor file the Report of Independent Contractor(s) (Form DE 542)?Employment Requirements
- 82.A general partnership consisting of four partners applies for a CSLB contractor's license. How many qualifying individuals (RMO/RME) must the partnership designate to satisfy the licensing requirement?Business Organization and Licensing
- 83.An applicant wants to qualify as the RME for a new C-33 painting contractor license. CSLB requires that the applicant demonstrate what minimum experience to sit for the qualifying exams?Business Organization and Licensing
- 84.Under California law, the Notice of Cancellation attached to a home improvement contract must be printed in at least what size and style of type?Contract Requirements and Execution
- 85.A homeowner contracts with a pool contractor to build an $8,000 spa. Under California's special down payment rule for swimming pool/spa contracts, what is the maximum down payment the contractor may collect?Contract Requirements and Execution
- 86.A general contractor's employee suffers a serious injury on a residential job site. To which agency must the contractor report the incident?Safety
- 87.An employee's finger is amputated in a table saw accident on a job site. The employee is treated at a clinic and released the same day, without any overnight hospitalization. How must this injury be classified under Cal/OSHA's serious injury reporting requirements?Safety
- 88.A newly formed LLC applying for a CSLB contractor's license lists a single RME as its qualifying individual. In addition to the standard LLC employee/worker bond, what insurance must the LLC carry?Business Organization and Licensing
- 89.A homeowner properly exercises the 3-day right to cancel a home improvement contract. Before cancellation, the contractor had already delivered building materials to the home. Under California law, what is the homeowner's obligation regarding those materials?Contract Requirements and Execution
- 90.A homeowner visits a contractor's retail showroom and signs a home improvement contract for a bathroom remodel at the contractor's place of business. Does the homeowner still have the three-day right to cancel?Contract Requirements and Execution
- 91.Which statement correctly describes California's Employment Training Tax (ETT)?Employment Requirements
- 92.A sole proprietor contractor has $80,000 in net self-employment earnings for the year. Self-employment tax is calculated at 15.3% of 92.35% of net earnings. Approximately how much self-employment tax is owed?Business Finances
- 93.A worker suffers a serious injury requiring hospitalization on a jobsite. Under Cal/OSHA regulations, within how many hours must the employer report the incident to Cal/OSHA?Employment Requirements
- 94.A contractor employs five full-time construction workers. Under Cal/OSHA regulations, which of the following written programs is the employer required to establish and maintain to address workplace safety hazards?Employment Requirements
- 95.A contractor is working on a long-term project with a total contract price of $300,000 and an estimated total cost of $150,000. To date, $90,000 in costs have been incurred. Using the percentage-of-completion method, how much revenue should be recognized so far?Business Finances
- 96.During construction, a contractor and homeowner orally agree to an emergency change in scope of work to address a hazardous condition discovered on site. Under California law, what must the contractor do regarding this change order?Contract Requirements and Execution
- 97.A contractor's crew uses a chemical solvent on a job site. Under the Hazard Communication Standard, what must the contractor ensure is readily accessible to employees who work with this chemical?Safety
- 98.A subcontractor wants to preserve mechanics lien rights on a private residential project. Within how many days after first furnishing labor or materials must the subcontractor generally serve a preliminary 20-day notice?Insurance and Liens
- 99.A contractor discovers unforeseen conditions that require additional work beyond the original scope of a home improvement contract. What must occur before the contractor may perform and charge for this additional work?Contract Requirements and Execution
- 100.A contractor places a straight ladder in a 10-foot trench to serve as the means of egress. The top rung of the ladder is level with the surface of the trench opening. Does this installation satisfy Cal/OSHA requirements?Safety