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CSLB BUSINESS AND LAW EXAM 2024 |
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An owner objects to the materials being used for a job and complains to a worker. Upon learning of the complaint, the contractor should: write a letter to the owner as soon as possible ignore the complaint contact the owner immediately and explain why the specific materials are being used order the crew to stop work immediately until an on-site meeting can be scheduled with the owner ------CORRECT ANSWER---------------order the crew to stop work immediately until an on-site meeting can be scheduled with the owner The most accurate method of estimating the cost of materials for a job is: stick-by-stick material take-off current price list price per square foot ------CORRECT ANSWER---------------stick-by-stick A health and safety order must be: handed out by supervisors at their quarterly meetings handed out with monthly pay checks
posted in a conspicuous place at the job site posted in an administrative office that is available to employees ------CORRECT ANSWER---------------posted in a conspicuous place at the job site A homeowner has not been paying the contractor, and all work has stopped for 60 days. What is the contractor's next step? Wait for the homeowner to record a Notice of Cessation or Notice of Completion. Send the homeowner a Notice of Mechanics Lien form with an unfiled copy of the lien claim. Continue working if the project is not complete. File a lawsuit to foreclose on the lien. ------CORRECT ANSWER---------------Send the homeowner a Notice of Mechanics Lien form with an unfiled copy of the lien claim. Of the following, which is a correct statement regarding a schedule of payments in an original bid? The schedule must include specific dates and dollar amounts. The second payment is not due until after 60% of the work is completed. The material must be paid for as it is installed. You are not required to include a schedule of payments in the original bid. ------ CORRECT ANSWER---------------You are not required to include a schedule of payments in the original bid. If you work on a ____________ works job, you may be allowed to file both a mechanics lien and stop payment notice. public commercial private
Bid bonds, Performance bonds and Payment bonds are included in the _____________ section of the contract specifications. Bid Analysis Contract Forms Insurance Forms General Conditions ------CORRECT ANSWER---------------Contract Forms How deep must asbestos be buried within 24 hours of delivery at a disposal site? 6 inches 10 inches 12 inches 18 inches ------CORRECT ANSWER---------------6 inches A contractor's California personal income tax return should be sent to which office? Franchise Tax Board EDD IRS Board of Equalization ------CORRECT ANSWER---------------Franchise Tax Board In which situation is a private contract subject to prevailing wage law? The work is not specifically considered a public works project but at least two public entities' approvals are required before work can begin. The private contract is partly funded by public entities. More than 50% of assignable square footage is leased by a public entity.
Both "A" and "B", but not "C". ------CORRECT ANSWER---------------More than 50% of assignable square footage is leased by a public entity. How long does a client have to cancel a contract for repairs that are the result of an event for which a State of Emergency was declared? 5 business days 5 calendar days 7 business days 7 calendar days ------CORRECT ANSWER---------------7 Business Days How many days does a contractor have to notify the Registrar after being issued a workers' compensation insurance policy? 5 days 10 days 30 days 90 days ------CORRECT ANSWER---------------90 days 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? It is legal to ask prospective employees about arrests not leading to convictions. It is not legal to ask prospective employees about arrests not leading to convictions. 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. 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. ------CORRECT ANSWER---------------It is not legal to ask prospective employees about arrests not leading to convictions.
Yes. It is legal to hire professional strikebreakers. No. The contractor is subject to a maximum fine of $500 and/or a maximum jail sentence of 30 days. No. The contractor is subject to a maximum fine of $1,000 and/or a maximum jail sentence of 90 days. The contractor has not committed a crime but may be subject to legal action. ------ CORRECT ANSWER---------------No. The contractor is subject to a maximum fine of $1,000 and/or a maximum jail sentence of 90 days. When a subcontractor does work on a public works contract, the public agency considers the subcontractor to be: an employee of the agency a subcontractor of the agency an employee of the prime contractor a subcontractor of the prime contractor ------CORRECT ANSWER---------------an employee of the prime contractor As part of the safety training process, contractors' supervisors are required to conduct "toolbox" or "tailgate" safety meetings. How often must these meetings be held? daily The correct answer is B. at least once every ten working days at least once a month at least once a quarter ------CORRECT ANSWER---------------at least once every ten working days Of the following, which document is usually delivered first in a transaction involving a home improvement contract?
three-day notice of right to cancel the contract "Notice to Owner" 20 - day preliminary notice ------CORRECT ANSWER---------------"Notice to Owner" Question 72: Insured employers must report every work-related illness or injury to their workers' compensation carrier within _____ of the incident. 24 hours 2 days 5 days 10 days ------CORRECT ANSWER---------------5 days Which building code should a contractor follow? the most stringent code national code state code local code ------CORRECT ANSWER---------------local code A contractor and a homeowner sign a home solicitation contract. If the owner lawfully cancels the contract, how long does the contractor have to pick up unused materials that were delivered to the owner's property? within 24 hours after cancellation within 10 days after cancellation
Environmental Protection Agency (EPA) California Department of Health Services DOSH CSLB ------CORRECT ANSWER---------------California Department of Health Services When is the last day a customer can cancel a contract that was signed on Friday, December 21st? the following Friday the following Tuesday the following Wednesday the following Thursday ------CORRECT ANSWER---------------the following Wednesday Sometimes contracts prove to be too vague to interpret without disagreement between owner and contractor. Which of the following steps would best prevent such problems? Walk the job site with the owner. Review the plans and specifications with the owner. Show the owner the critical path schedule. Include a payment schedule in the contract. ------CORRECT ANSWER--------------- Review the plans and specifications with the owner. Who pays FICA? employer employee 50% employer and 50% employee
9 0% employer and 10% employee ------CORRECT ANSWER---------------50% employer and 50% employee If a contractor forgets to renew his or her license on time, the expired license may be renewed any time within _____ after its expiration without reapplying for a license and fulfilling the exam or waiver requirements again. one year two years four years five years ------CORRECT ANSWER---------------five years Who would be held responsible if a contractor completes a project according to plans and later discovers that there is a building code violation? contractor architect both the contractor and the architect owner ------CORRECT ANSWER---------------both the contractor and the architect Which of the following statements about home- improvement laws is NOT correct? A subcontractor may give a salesperson a bonus. A general contractor may give a salesperson a bonus. A subcontractor may not give the general contractor a bonus. The homeowner may give the salesperson a bonus. ------CORRECT ANSWER------------ ---The homeowner may give the salesperson a bonus.
after the materials are installed. ------CORRECT ANSWER---------------before delivery. What does it mean when a subcontractor signs a waiver and release form on a public works project? The subcontractor gives up the right to lien the real property. The subcontractor gives up the right to lien the construction funds. The subcontractor waives the right to lien the real property or the construction funds. The subcontractor is no longer responsible for correcting defective work. ------ CORRECT ANSWER---------------The subcontractor gives up the right to lien the construction funds. Where is the "Notice of Right to Cancel" found on a home improvement contract? at the top of the page near the client signature in the middle of the page on the back ------CORRECT ANSWER---------------near the client signature Who pays FICA? employer employee 50% employer and 50% employee 90% employer and 10% employee ------CORRECT ANSWER---------------50% employer and 50% employee
How long does a client have to cancel a contract for repairs that are the result of an event for which a State of Emergency was declared? 5 business days 5 calendar days 7 business days 7 calendar days ------CORRECT ANSWER---------------7 business days Your accountant advises you to set up a cost management system. What does this system do? It gives a cost history to analyze labor and material costs. It shows where profits and losses are. It shows costs of materials only. It compares what others are charging for subcontracted work. ------CORRECT ANSWER---------------It gives a cost history to analyze labor and material costs. To whom do you report and pay sales tax? County Tax Collector Internal Revenue Service Board of Equalization Franchise Tax Board ------CORRECT ANSWER---------------Board of Equalization Except in an emergency, you must notify the regional Underground Service Alert Center within how many days before beginning to excavate? at least one calendar day at least one working day
None of the above. ------CORRECT ANSWER---------------A & B Who is the overall responsible party for work contracted? Direct Contractor Original Contractor Prime Contractor All of the above. ------CORRECT ANSWER---------------All of the above. A _____________ is made ready to be issued, for certain items not ready for inclusion in the contract. cash alternative provision cash allowance None of the above. ------CORRECT ANSWER---------------cash allowance Unless the project costs are under _______ dollars total. Prevaling wage must be paid for public works. 500 1, 1,500 ------CORRECT ANSWER---------------1, When is a worker considered an employee rather than an independent contractor? When the employer has the right to tell the worker to do certain work. When the employer has direct control over the work being performed.
When the worker can make a profit or loss on the work. When the worker doesn't set his own hours. ------CORRECT ANSWER---------------When the employer has direct control over the work being performed. If an employee is 20 minutes late for work, the employer may: deduct a half hour's wage deduct an hour's wage deduct for 20 minutes only not deduct from wages ------CORRECT ANSWER---------------deduct a half hour's wage Is the Form 1099-MISC required for a corporation that provided $600 in services as an independent contractor during the calendar year? Yes. Form 1099-MISC is required because the corporation is an independent contractor that was paid $500 or more. No. Form 1099-MISC is not required unless an independent contractor is paid over $1,000 in a calendar year. No. Form 1099-MISC is not required for corporations with certain exceptions. Yes. Form 1099-MISC is required for all individuals, partnerships, and corporations that provided services as an independent contractor during the calendar year. ------ CORRECT ANSWER---------------No. Form 1099-MISC is not required for corporations with certain exceptions. The Mechanics Lien Warning is for the protection of: the owner. the contractor. the contractor's employees. all of the above. ------CORRECT ANSWER---------------the owner.
When the owner has bad credit. When the owner has an amount in the bank equal to the contract cost. When the owner seems kind and has an honest reputation. ------CORRECT ANSWER-- -------------When there is an emergency situation and the owner has a high income and good credit. What is the maximum number of hours a minor can work on the day before a school day? 6 7 8 9 ------CORRECT ANSWER--------------- 8 If an employee is fired as a result of a garnishment, he must notify _____ within _____ days, if he intends to file a claim disputing lost wages following the firing. employer ... 30 employer ... 60 Labor Commissioner ... 30 Labor Commissioner ... 60 ------CORRECT ANSWER---------------employer ... 30 What is the biggest problem facing new contractors when trying to obtain a performance or bid bond? they don't have a broker no prior track record poor credit
none of the above ------CORRECT ANSWER---------------no prior track record On a small job, what is the best way to make an efficient schedule? bar chart critical path method (CPM) talk to suppliers to arrange around their schedules talk to subs to arrange around their schedules ------CORRECT ANSWER---------------bar chart The best two methods of keeping track of job expenses are: general ledger and payroll journal payroll journal and expense journal expense journal and general ledger general journal and general ledger ------CORRECT ANSWER---------------payroll journal and expense journal When a dispute over an alleged violation is referred to arbitration, the CSLB Registrar looks for: licensee has 2 or less violations in past 10 years. license in good standing at time of alleged violation. all parties have agreed to private arbitration. amount of damage is over $50,000. ------CORRECT ANSWER---------------license in good standing at time of alleged violation.
