Download General Building Contractor (B) License Exam Questions and Answers and more Exams Business Economics in PDF only on Docsity!
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To whom should a stop notice be delivered? - Correct Answers ✅The construction lender or awarding authority. What are the 3 ways that a stop notice can be delivered? - Correct Answers ✅(1) In person (2) Registered mail (3) Certified mail Notice of Completion - Correct Answers ✅A notice that shortens the lien period to 30 days for a subcontractor and 60 days for a contractor. The clock starts on the filing date of the Notice. notice of no responsibility - Correct Answers ✅A notice provided by law designed to relieve the property owner from responsibility for the cost of unauthorized work done on the property or materials furnished thereof. notice of cessation - Correct Answers ✅Notice that can be filed by a property owner after work on a construction project has been stopped for 30 continuous days
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What are the requirements of a stop notice receipt? - Correct Answers ✅Signed and dated Can a stop notice be filed on a private property? - Correct Answers ✅Yes How long must employers keep employment and tax records? - Correct Answers ✅4 years Can an employee file a lawsuit against his employer for additional damages if he has received workers' compensation benefits? - Correct Answers ✅Generally not A prime contractor is legally responsible for ensuring that its subcontractors have workers' compensation insurance for their employees. True or False? - Correct Answers ✅True. What may happen to a prime contractor if his subcontractor didn't offer worker's comp? - Correct Answers ✅The prime contractor may be held liable in a lawsuit filed by a subcontractor's injured employee.
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- $10,000 per employee if injuries have occurred, up to a maximum of $100, Describe the degree of access the Division of Labor Standards Enforcement has to places of employment in CA. - Correct Answers ✅The Division has the right to free access to all places of employment in CA. It is illegal for an employer to refuse entry to an agent of this division. What is the difference between a strike and a lockout? - Correct Answers ✅In a strike, employees refuse to work until an agreement is reached. In a lockout, employers prevent employees from working until an agreement is reached. Professional strikebreaker - Correct Answers ✅A person who has within the past five years become a replacement employee for two or more businesses in the time of strike or lockout. What is the penalty for being or knowingly hiring a professional strikebreaker? - Correct Answers ✅A minimum $1000 fine and a possibly a sentence of up to 90 days in the county jail.
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When must an employee be paid double overtime? - Correct Answers ✅(1) The employee has worked more than 12 hours in a day. (2) The employee has worked more than 8 hours on a 7th consecutive day. If an employee provides a 72-hour notice to his employer that he's quitting, when are his wages due? - Correct Answers ✅At his last shift When are an employee's wages due if he does not provide a 72-hour notice when he quits? - Correct Answers ✅72 hours after his last shift What can an employee do if he does not receive his wages? - Correct Answers ✅He can file a complaint with the Labor Commissioner. Which one must be filed with the County Recorder--a stop notice or a mechanics' lien? - Correct Answers ✅Mechanics' lien Qualifying Individual - Correct Answers ✅AKA Qualifier
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Purpose of a labor and material bond - Correct Answers ✅Guarantees the owner that all labor and materials supplied by subcontractors and material suppliers will be fully paid for. If a subcontractor or material supplier files a mechanics' lien, then the lien will attach to the bond instead of the property. Construction Loan - Correct Answers ✅A short-term loan for financing the cost of construction. The lender makes payments to the builder at periodic intervals as the work progresses. How does a construction loan differ from a home or car loan? - Correct Answers ✅(1) The full amount of the loan is not loaned at the time outset. Instead, the loan is lent in installments over time. (2) The outstanding balance of the loan shall not exceed the property value at any time. This second provision allows the lender to recover the loan amount by foreclosing on the property. When is a contract considered legally terminated? - Correct Answers ✅ 60 days after the last date that the contractor performed any work
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What should an owner do if the contractor signs a contract with a tenant and he wishes not to be held liable for payment? - Correct Answers ✅The owner should file a Notice of Nonresponsibility with the county recorder and post it on his property within 10 days of being notified that work will be done on his property. If a contact was not completed, how long does a contractor have to file a mechanic's lien? - Correct Answers ✅150 days--60 days after the last day of work performed plus an additional 90 days. How can the owner shorten the lien period for an incomplete contract? - Correct Answers ✅By filing a Notice of Cessation, which legally terminates the contract, and shortens the lien period to 30 days for a subcontractor and 60 days for a contractor. The clock starts on the filing date of the Notice. How soon can a Notice of Cessation be filed after work stoppage? - Correct Answers ✅30 days Preliminary Notice - Correct Answers ✅Provides notice to all moneyed parties that a particular contractor is working on the project and has the right to file a mechanics' lien if he is not paid properly.
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Describe the differences between small claims court and arbitration - Correct Answers ✅(1) A small claims court ruling can be appealed while an arbitrator's ruling cannot be appealed unless he committed fraud. (2) Attorneys aren't allowed in small claims court. (3) Small claims courts have a $7500 limit. (4) Arbitration is more expensive. When may an unlicensed contractor be charged with a felony? - Correct Answers ✅If he contracts for a project covered by a state of emergency or disaster proclaimed by a governor or POTUS. What's the dollar limit for small claims courts? - Correct Answers ✅$7, List two types of contracts that require the Mechanics Lien Warning - Correct Answers ✅(1) Home Improvement Contracts (2) Swimming Pool Contracts
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Home solicitation contract - Correct Answers ✅A contract negotiated at any place other than the contractor's normal business location. Which type of contract must be accompanied by the General Liability disclosure - Correct Answers ✅Contracts for single-family homes. Are attorneys allowed in small claims courts? - Correct Answers ✅No Must home improvement contracts be in writing? - Correct Answers ✅Yes How late can a buyer in a home solicitation contract cancel the contract - Correct Answers ✅Anytime prior to midnight of the 3rd business day. Business days exclude Sundays and legal holidays. If the contract is for the repair or restoration of a residence damaged by a disaster, the cancellation period increases to 7 days. What's the key to writing an effective change order? - Correct Answers ✅A change order should describe the proposed work, the price of the change,
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Title of the qualifying individual in a sole ownership entity if he is NOT the owner. Title of the qualifying individual in a partnership if he is NOT a partner. Title of the qualifying individual in an LLC if he is NOT a managing member or managing manager. - Correct Answers ✅Responsible Managing Employee To what degree must the RME be involved in the business? - Correct Answers ✅*The RME must be permanently employed by the applicant. The RME must work at least 32 hours or 80% of the total hours that the business is in operation, whichever is less. What type of business contact information must be submitted on the General Building Contractor application? - Correct Answers ✅Physical Address--PO Boxes are unacceptable. *Phone number *Fax Number
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*Email Address *Business Name Does the business entity need to be designated on the application? - Correct Answers ✅Yes and 1 of the following: (1) Sole ownership (2) Partnership (3) LLC (4) Corporation Do I need to be fingerprinted again if I have been previously fingerprinted for other employers or boards? - Correct Answers ✅YES because the CSLB requires fingerprinting for its own purposes. When must fingerprints be submitted? - Correct Answers ✅After the application has been approved by the CSLB. What examinations must you pass to get your contractor's license? - Correct Answers ✅(1) Law and Business Examination
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Does SWIFT need cause or complaint to visit a job site? - Correct Answers ✅No. SWIFT can visit job site without cause or complaint and require contractors to produce proof of licensure in good standing. Minimum operating capital for a contracting business - Correct Answers ✅$ What's the maximum legal price for a job performed by an unlicensed contractor? - Correct Answers ✅$ 3 types of contractor's licenses - Correct Answers ✅1) General Engineering
- General Building
- Specialty Contractor How many members are on the CSLB - Correct Answers ✅ 15 What department is the CSLB a part of? - Correct Answers ✅Department of Consumer Affairs
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In Contractors License Law, to whom does the word contractor refer? - Correct Answers ✅AKA builders. Anyone who owns and operates a construction business. How many copies of his license will a licensee receive? - Correct Answers ✅ 2 copies: (1) Plastic pocket license (2) Wall certificate When should the licensee carry the plastic pocket license - Correct Answers ✅When he is acting as a contractor Where must a contractor include his license number? - Correct Answers ✅In all construction contracts, bids, and all forms of advertising, as well as on all commercial vehicles that indicate he is a contractor. What must a licensee do if he wishes to change the style of his business (e.g. sole proprietorship to partnership)? - Correct Answers ✅He must apply for an entirely new license.
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How long must contractors keep records? - Correct Answers ✅5 years Home improvement work - Correct Answers ✅Any work done to repair, remodel, modernize, or otherwise improve existing residential property. Includes working on driveways, pools, terraces, patios, landscaping, fencing, porches, garages, and basements. What's the fine for a licensed contractor who allows an unlicensed person to use his license? - Correct Answers ✅$15, What do contractors need to keep records of? - Correct Answers ✅1) Contracts
- Construction projects, documents, records, receipts, and disbursements What does Contractors License Law require Home Improvement Salespersons to do? - Correct Answers ✅Home Improvement Salespersons (HIS) must register with the CSLB before they may legally act in this capacity. List the types of businesses and individuals who don't need contractor's licenses: - Correct Answers ✅1) Government agencies
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- Officers of a court acting within the scope of their office.
- Public utilities performing work related to their own businesses.
- Owners or tenants engaged in oil or gas operations.
- Mobile home manufacturers who build homes offsite.
- Sellers or installers of finished products or materials that don't become a fixed part of the structure.
- Material suppliers or manufacturers who furnish products or materials but don't install them.
- Licensed architects, registered engineers, or licensed structural pest control operators acting within the scope of their license.
- Employees working for wages as their sole compensation.
- Individuals who install or service security alarm systems.
- People who install satellite antenna systems.
- Work less than $500 (labor, materials, etc.)
- Property owners improving their own property
- Sellers of installed carpets Can a licensed contractor have his license revoked for failing to provide workers' comp? - Correct Answers ✅Yes
