CSLB CONTRACTORS LAW AND BUSINESS

CSLB CONTRACTOR'S LAW AND BUSINESS

EXAM 2024 LATEST VERSION WITH 250

ACTUAL EXAM QUESTIONS AND

CORRECT ANSWERS (100% VERIFIED

CORRECT ANSWERS) BRAND NEW!!

If a contractor commits a serious violation of the contractor's laws, the Registrar

can:

• Require the contractor to make restitution to the owner
• Require the contractor to correct the project
• Fine the contractor up to $2000
• All of the above - ANSWER-D. All of the above

Which act establishes the rights of workers to organize into unions and negotiate contracts? - ANSWER-National Labor Relations Act of 1935

Judy, a contractor, employs Sam as her registered home improvement salesperson.Sam meets with Mr. And Mrs. Jones and negotiates home improvement work that totals $350. When Sam returns to his boss and tells her of the verbal contract, his employer says she will not work for the contracted price. The Contractor's License

Law states:

• The contractor is required by law to abide by the verbal agreement since verbal

home improvement contracts under $500 are binding

• The contractor is not bound by a verbal agreement
• The contractor may cancel a home improvement contract that she did not

negotiate

• The contractor is not bound by the contract since all home improvement

contracts must be in writting - ANSWER-A. When registered salespersons enter 1 / 4

into an agreement, verbal or written, they are bound by it. They are acting as the agent of the contractor. Verbal improvement contracts are legal and binding

Mr. Garcia learns that a lien has been placed on his property. He believes that the lien is invalid and unfairly clouding the title of his home. How can he release the property from the lien?

• A waiver-release bond can be issued if Mr. Garcia pays the premium
• He can purchase a bond in the amount of one and a half times the amount of the

lien

• There is nothing he can do
• His only recourse is to go to court - ANSWER-B. He can purchase a bond in

the amount of one and a half times the amount of the lien - The owner is substituting the bond as security to replace the lien

Which of the following is NOT true concerning a joint-control addendum to a contract?

• It prevents the contractor from being paid more than the value of the work

completed

• It safeguards the consumer's property from liens by requiring contractor's to

supply lien releases

• It analyzes the contract, plans, breakdown of costs and prepares an account

from which funds will be disbursed

• It is controlled by the Contractor's State License Board - ANSWER-D. It is

controlled by the Contractor's State License Board

When should you let your attorney see a construction contract?

• Before you let the client see the contract
• After the contract is prepared but before you sign it
• After the building permit is obtained 2 / 4

• After the contract is signed by you and the client - ANSWER-B. After the

contract is prepared but before you sign it

Which is the most correct statement as to what must be included in every home improvement contract?

• Notice of right to cancel
• Contractor's license number
• Truth-in-lending notice
• Name of the project - ANSWER-B. Contractor's license number

Which is NOT required on a home improvement contract?

• A notice, in at least 10 point print, in close proximity to the signature, and a

statement that the owner has a right to require a performance and payment bond

• The name and home address of all the personnel listed on the license
• An approximate date when work will begin and be substantially completed
• A description of the work to be done and materials and equipment to be used or

installed - ANSWER-B. The name and home address of all the personnel listed on the license. Know that A, C and D are required. Only the contractor's name, address and license number are required.

When a home improvement contract is signed, the contractor must substantially begin work within ____ days of the date specified in the contract?

• 5
• 10
• 15

D. 20 - ANSWER-D. 20

Which is true concerning home improvement sales persons? 3 / 4

• They must register with the Registrar's office and may work for only one

contractor at a time

• Anyone who sells home improvement contracts for a licensed contractor

outside the contractor's normal place of business is required to be registered with the Attorney General's office

• They must be at least 18 years of age. There are no residency or educational

requirements

• They may begin to negotiate home improvement contracts as soon as they have

filled out the appropriate application and paid the required fees - ANSWER-C.They must be at least 18 years of age. There are no residency or educational requirements - must register for "each" contractor with the Registrar and receive a registration number first

An employer remits State disability taxes withheld from an employees wages to what agency? - ANSWER-Employment Development Department

Which type of contract can be cancelled by a consumer?

• Sub contract
• Home solicitation contract which involves fencing, burglar alarm, carpentry

and texture coating

• Prime construction contract
• Home improvement contract involving free standing bookcases, rugs and

window air conditioner - ANSWER-B. Home solicitation contract which involves fencing, burglar alarm, carpentry and texture coating - only home solicited contracts can be cancelled which contain "permanent fixtures"

A consumer may cancel a home solicitation contract at any time prior to midnight of the ___ business day after the date of the transaction.

• 1st
• 2nd
• / 4