Test 1

Question 1

When are employees allowed to view their own personnel files?

A. never

B. when they have a court order

C. whenever they request to view them

D. only during employee evaluations

Answer 1

C. whenever they request to view them

Question 2

As required by the Immigration Reform and Control Act, all employees hired on or after November 6, 1986, must complete Form _____ to verify their employment eligibility status.

A. I-9

B. W-4

C. US-99

D. N-14

Answer 2

A. I-9

Question 3

By law, a “hard laborer” may not be younger than _____ years old.

A. 14

B. 15

C. 16

D. 17

Answer 3

C. 16

Question 4

Ms. Gomez applies for a job. Of the following, the only reason an employer may lawfilly deny her employment is:

A. she is over 50 years of age.

B. she is Hispanic and everyone else is African-American or Caucasian.

C. lifting is involved and she is a woman.

D. she has no work experience or Social Security number.

Answer 4

D. she has no work experience or Social Security number.

Question 5

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?

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 5

B. It is not legal to ask prospective employees about arrests not leading to convictions.

Question 6

Who must sign a joint control addendum to a home improvement contract?

A. contractor only

B. owner and contractor

C. owner, contractor, and Notary Public

D. owner, contractor, and joint control officer

Answer 6

D. owner, contractor, and joint control officer

Question 7

A contractor entered into a home improvement contract for more than $500 with Mrs. Swenson to remodel her kitchen and bathroom. The contract calls for a down payment before work is to begin. According to the Business and Professions Code, how much may the contractor accept from Mrs. Swenson as down payment for the work?

A. The contractor may accept as much as Mrs. Swenson agrees to pay.

B. The down payment is limited to $1,000 or 10% of the total price, whichever is less.

C. The contractor may require enough of a down payment to cover the total cost of materials,
but not labor costs.

D. Nothing: The contractor must wait until the work is completed to accept any payment.

Answer 7

B. The down payment is limited to $1,000 or 10% of the total price, whichever is less.

Question 8

When should you let your attorney see a construction contract?

A. Before you let your client see the contract.

B. After the contract is prepared, but before it is signed by you and your client.

C. After the building permit is obtained.

D. After the contract is signed by you and your client.

Answer 8

B. After the contract is prepared, but before it is signed by you and your client.

Question 9

If a sales presentation is made in Spanish, the home solicitation contract:

A. must be in Spanish.

B. may be in English if the writing is plain and simple.

C. must be co-signed by an English-speaking person if the contract is in English.

D. must be translated into English and notarized.

Answer 9

A. must be in Spanish.

Question 10

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?

A. within 24 hours after cancellation

B. within 10 days after cancellation

C. within 20 days after cancellation

D. It’s too late: If the materials are delivered to the property before a notice of cancellation is received, the materials become the property of the owner.

Answer 10

C. within 20 days after cancellation

Question 11

Of the following, which is best for determining the number of hours required for different phases of a project and for making sure the job is on schedule?

A. bar graph and chart

B. cash analysis chart

C. review plans

D. critical path method

Answer 11

D. critical path method

Question 12

Who is responsible for checking the site before the building inspector arrives?

A. contractor

B. owner

C. foreperson

D. architect

Answer 12

A. contractor

Question 13

Who would be held responsible if a contractor completes a project according to plans and later discovers that there is a building code violation?

A. contractor

B. architect

C. both the contractor and the architect

D. owner

Answer 13

C. both the contractor and the architect

Question 14

After a job is completed, the owner decides to have additional work done. How should the contractor proceed?

A. Write a new contract and ask the owner to sign it.

B. Make an oral agreement with the owner.

C. Do the additional work for free.

D. Get the owner to sign a change order.

Answer 14

A. Write a new contract and ask the owner to sign it.

Question 15

You have been awarded a job. It requires two days for site preparation and one day for clean-up. The contract involves two separate tasks–one lasting seven days and the other 10 days. If the two tasks can be done simultaneously, for how many days should you schedule the job?

A. 7 days

B. 13 days

C. 15 days

D. 20 days

Answer 15

B. 13 days

Question 16

For which of the following would you not obtain a short-term loan?

A. wages

B. bid bond

C. job materials

D. office rent

Answer 16

D. office rent

Question 17

As part of the safety training process, contractors’ supervisors are required to conduct “toolbox’ or “tailgate” safety metings. How often must these meetings be held?

A. daily

B. at least once every ten working days

C. at least once a month

D. at least once a quarter

Answer 17

B. at least once every ten working days

Question 18

DOSH must investigate a complaint charging a serious violation of health or safety standards
within:

A. one working day

B. two working days

C. three working days

D. five calendar days

Answer 18

C. three working days

Question 19

Every employer of ____ or more full- or part-time employees must keep written health and safety records for ____ years.

A. 1…3

B. 7…4

C. 10 …3

D. 11 …5

Answer 19

D. 11 …5

Question 20

If required safety devices are missing from tools, what should an employee do?

A. Notify the contractor, who is responsible for safety.

B. Notify the property owner, who is responsible for safety.

C. Safety devices are the employee’s responsibility.

D. Call Cal/OSHA

Answer 20

A. Notify the contractor, who is responsible for safety.

Question 21

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 severe back injury

Answer 21

C. car accident in which an employee steps onto a public road, gets hit by a car, and suffers a concussion

Question 22

When purchasing insurance, what is the best way to choose among different companies?

A. referral

B. cost and coverage

C. location of the company

D. word-of-mouth

Answer 22

B. cost and coverage

Question 23

Insured employers must report every work-related illness or injury to their workers’ compensation carrier within _________ of the incident.

A. 24 hours

B. 2 days

C. 5 days

D. 10 days

Answer 23

C. 5 days

Question 24

Your employee sets a cabinet wrong. The cabinet falls from the wall and damages the client’s countertop. What should you do?

A. Claim the damage on your general liability insurance policy.

B. Require the employee to pay for the damage to the counter top.

C. Tell the client to claim the damaged counter top on his or her homeowner’s insurance policy.

D. No action is required: The client must assume the risk of damage.

Answer 24

A. Claim the damage on your general liability insurance policy.

Question 25

A contractor is looking for an insurance policy to cover a high degree of exposure to risk. Of the following, which policy would be best for this purpose?

A. property

B. general liability

C. builder’s risk

D. umbrella

Answer 25

D. umbrella

Question 26

John Meyers a general contracfo, had a contract with Mr. and Mrs. Barnes to construct a gazebo and deck in their back yard: John was behind schedule and hired his 18-year-old son, Bart, to help on a part time day. fier working on the project for a weck, Bart slipped on a plank that John had laid -time basis ok bet did no nail securely. As a result of the fall Bart broke his leg. John is insured for workers compensation, but Bart wants to sue his father for negligence in a cit action. Which of the following statements is CORRECT?

A. John is not liable for damages in a civil action because the injured employee is his son.

B. John is liable for damages in a civil action and must prove that the injury did not result from his negligence.

C. In a civil action, John may use the defense that the injury was the result of the contributory negligence of his son.

D. A civil action is not a possibility when the dispute involves a job-related injury, unless the employer is not insured for workers’ compensation.

Answer 26

D. A civil action is not a possibility when the dispute involves a job-related injury, unless the employer is not insured for workers’ compensation.

Question 27

A prime contractor entered into a construction contract with a subcontractor. An emplovee of the subcontractor was injured, but unfortunately the subcontractor had not secured workers’ compensation coverage. Which of the following statements best describes the situation, except in cases of fraud?

A. The subcontractor is guilty, but the prime contractor is not responsible.

B. The prime contractor is guilty, but the subcontractor is not responsible.

C. Neither the prime contractor nor the subcontractor are responsible.

D. The subcontractor is guilty, but the prime contractor must take responsibility for the injuries.

Answer 27

D. The subcontractor is guilty, but the prime contractor must take responsibility for the injuries.

Question 28

Your accountant advises you to set up a cost management system. What does this system do?

A. It gives a cost history to analyze labor, material, and overhead costs.

B. It shows where profits and losses are.

C. It shows costs of materials only.

D. It compares what others are charging for subcontracted work.

Answer 28

A. It gives a cost history to analyze labor, material, and overhead costs.

Question 29

An employee works 60 hours in one week. If the hourly wage rate is $18, what are the gross wages?

A. $1,080

B. $1,260

C. $1,320

D. $1,425

Answer 29

B. $1,260

Question 30

A(n) _______________ represents a company’s financial position on a specified date.

A. balance sheet

B. income statement

C. cash flow statement

D. profit plan

Answer 30

A. balance sheet

Question 31

A(n) _______________ summarizes revenues, cost of sales, and operating expenses over a period of time.

A. profit plan

B. balance sheet

C. cash fow statement

D. income statement

Answer 31

D. income statement

Question 32

An employer must furnish an employee with a completed IRS Form W-2 (Wage and Tax Statement) by:

A. January 1

B. January 31

C. April 15

D. the final day of employment

Answer 32

B. January 31

Question 33

Which of the following financial ratios is the strictest measure of liquidity?

A. quick ratio

B. current ratio

C. profitability ratio

D. leverage ratio

Answer 33

A. quick ratio

Question 34

The federal Employer Identification Number (EIN) is issued by the:

A. Franchise Tax Board

B. Board of Equalization

C. Internal Revenue Service

D. Employment Development Department

Answer 34

C. Internal Revenue Service

Question 35

35. An employer remits State income tax and State disability taxes withheld from an employees wages to the:

A. Internal Revenue Service

B. Employment Development Department

C. Franchise Tax Board

D. Board of Equalization

Answer 35

B. Employment Development Department

Question 36

Who pays FICA?

A. employer

B. employee

C. 50% employer and 50% employee

D. 90% employer and 10% employee

Answer 36

C. 50% employer and 50% employee

Question 37

How often are FICA taxes reported and paid?

A. weekly

B. monthly

C. quarterly

D. yearly

Answer 37

C. quarterly

Question 38

Who pays FUTA?

A. employer

B. employee

C. 50% employer and 50% employee

D. 90% employer and 10% employee

Answer 38

A. employer

Question 39

What happens after an employee’s taxable wages exceed $7,000?

A. After $7,000, the FUTA rate increases.

B. After $7,000, the FUTA rate decreases by 50%.

C. After $7,000, the employer stops paying FUTA.

D. Nothing: FUTA is not subject to a wage limit.

Answer 39

C. After $7,000, the employer stops paying FUTA.

Question 40

Which of the following may not be deducted from an employee’s paycheck?

A. SDI

B. FICA

C. Medicare tax

D. workers’ compensation insurance premiums

Answer 40

D. workers’ compensation insurance premiums

Question 41

To whom do you report and pay sales tax?

A. County Tax Collector

B. Internal Revenue Service

C. Board of Equalization

D. Franchise Tax Board

Answer 41

C. Board of Equalization

Question 42

How often are you required to pay sales tax?

A. monthly

B. quarterly

C. annually

D. It depends on the expected amount of taxable sales.

Answer 42

D. It depends on the expected amount of taxable sales.

Question 43

When balancing the accounts receivable, which of the following would have no effect?

A. Posting to the wrong accounts-receivable account.

B. Crediting instead of debiting the accounts-receivable account.

C. Debiting instead of crediting the accounts-receivable account.

D. Posting a receivable to an accounts-payable account.

Answer 43

A. Posting to the wrong accounts-receivable account.

Question 44

What kind of discount do lumber yards and other suppliers offer to contractors who pay their bills promptly?

A. 1/2% - 1%

B. 1% - 2%

C. 4% - 8%

D. 10% - 12%

Answer 44

B. 1% - 2%

Question 45

If a newly hired employee does not have an SSN, what should be done?

A. The employee must apply for an SSN.

B. The employer must apply on behalf of the employee for an SSN.

C. If a W-2 is provided, an SSN is not needed

D. Call the police.

Answer 45

A. The employee must apply for an SSN.

Question 46

Once a budget is finalized, the:

A. contractor should stick to the budget no matter what happens

B. contractor should do the best possible job of staying within the budget

C. budget should be revised each month

D. budget should be referred to onlv if the business has cash flow problems

Answer 46

B. contractor should do the best possible job of staying within the budget

Question 47

Which of the following procedures BEST ensures error-free bids?

A. working with an attorney

B. having another person draft the bid

C. discussing details of the bid with the supplier

D. rechecking the bid before submitting it to the client

Answer 47

D. rechecking the bid before submitting it to the client

Question 48

Direct costs are $37,000, overhead is 12%, and profit is 5%. What is the selling price?

A. $39,272.47

B. $41,373.45

C. $43,383.37

D. $44,578.32

Answer 48

D. $44,578.32

Question 49

What is the most likely reason to lose a bid?

A. 10% added to profit

B. vague specifications

C. prices from subs were not exact

D. costs of materials were not obtained

Answer 49

B. vague specifications

Question 50

You are bidding on a job with plans drawn by the owner. You notice a code violation and bring it to the attention of the owner. The owner declines to remedy the code violation and tells you not to worry. What should vou do?

A. Bid on the job as though it were to code.

B. Bid on the job as though it were to code, but ask the owner to sign a release of your responsibility.

C. Bid on the job with the corrections in mind, and perform the corrections yourself to bring the work up to code.

D. Decline to bid on the work.

Answer 50

D. Decline to bid on the work.

Question 51

After you have read the plans and specifications, what is the next important step in writing a bid?

A. Talk to and select subs.

B. Walk the job.

C. Call about materials, price, and availability.

D. Talk to the crew leader about labor.

Answer 51

B. Walk the job.

Question 52

On a time-and-materials job, you should:

A. not charge for profit and overhead

B. add profit and overhead to labor only

C. add profit and overhead to materials only

D. add profit and overhead to labor and materials

Answer 52

D. add profit and overhead to labor and materials

Question 53

All of the following are causes for disciplinary action except:

A. allowing your license to be used by an unlicensed contractor

B. entering into a contract with another contractor who is not licensed

C. during bankruptcy settling obligations incurred as a contractor for less than the full amount owed

D. willful or deliberate failure to pay money when due for materials or services

Answer 53

C. during bankruptcy settling obligations incurred as a contractor for less than the full amount owed

Question 54

The qualifying RME for a construction firm must work at least:

A. 32 hr per week or 80% of the work week

B. 30 hr per week or 70% of the work week

C. 24 hr per week or 65% of the work week

D. 12 hr per week or 51% of the work week

Answer 54

A. 32 hr per week or 80% of the work week

Question 55

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

A. one year

B. two years

C. four years

D. five years

Answer 55

D. five years

Question 56

Business records must be kept and made available for inspection by the Registrar of Contractors for a period of __________ after completion of a construction project or operation.

A. one year

B. two years

C. three years

D. five years

Answer 56

D. five years

Question 57

Construction or alteration of any building, highway, excavation, or other structure in the State of California requires a contractor’s license if the total cost of one or more contracts on the project is:

A. $150 or more in labor only

B. $200 or more in materials only

C. $500 or more in labor and materials

D. $500 or more in labor only

Answer 57

C. $500 or more in labor and materials

Question 58

When should a contractor renew the contractor’s license bond?

A. the day it expires

B. 10 days before it expires

C. 30 days before it expires

D. within 30 days after it expires

Answer 58

C. 30 days before it expires

Question 59

A contractor wants to change a sole ownership license to a corporate license. The contractor must:

A. apply for a new license with an exam waiver after incorporating

B. let the CSLB know within 90 days of incorporating

C. apply for incorporation with the CSLB

D. let the local building department know within 60 days

Answer 59

A. apply for a new license with an exam waiver after incorporating

Question 60

A subcontractor who does not serve a preliminary notice:

A. may not serve a stop notice but may file a mechanic’s lien

B. may not file a mechanic’s lien but may serve a stop notice

C. loses both stop notice and mechanic’s lien rights

D. loses nothing because subcontractors are not required to serve preliminary notices

Answer 60

C. loses both stop notice and mechanic’s lien rights

Question 61

Which agency should sole owners contact to obtain a fictitious business name (DBA) if they do not want to use their legal name for the construction business?

A. CSLB

B. Department of Consumer and Business Affairs

C. Secretary of State

D. city or county government

Answer 61

D. city or county government

Question 62

What possible reason would an owner have for requiring an Unconditional Lien Release from a subcontractor?

A. The lien release protects the prime contractor.

B. Alien release informs the owner of progress on the job.

C. Alien release provides for rights of cancellation.

D. The owner’s property covered by the release may not be liened.

Answer 62

D. The owner’s property covered by the release may not be liened.

Question 63

A job requires a building permit from the city. The contractor goes to the building department and signs the application for a permit. Is this allowed?

A. No. Permit applications are only signed by the building department.

B. Yes. The contractor may sign the permit application if he or she is licensed.

C. No. Only the property owner may sign an application for a building permit.

D. No. Both the contractor and the property owner must sign the permit application.

Answer 63

B. Yes. The contractor may sign the permit application if he or she is licensed

Question 64

A contractor usually will not be held liable for a supplier going on strike, but if your supplier did go on strike what should you do?

A. Contact the owner immediately.

B. Contact the architect immediately.

C. Contact the CSLB immediately.

D. Continue work as usual.

Answer 64

A. Contact the owner immediately.

Question 65

If a contractor unearths human remains or burial artifacts at a construction site during excavation, what must be done?

A. Notify the owner of the property.

B. Stop work and place a warning ribbon three fect from the remains around the perimeter of the excavation.

C. Stop work at that site for 24 hours.

D. Stop work immediately at that site and any other nearby area that may have remains.

Answer 65

D. Stop work immediately at that site and any other nearby area that may have remains.

Question 66

If you are planning to dig, drill, or bore at a job site, you should notify before starting work

A. DOSH

B. the Environmental Protection Agency

C. the County Engineer

D. the regional Underground Service Alert Notification Center

Answer 66

D. the regional Underground Service Alert Notification Center

Question 67

Before beginning work, an employer or contractor must inquire whether asbestos is present in any building constructed prior to:

A. 1975

B. 1978

C. 1985

D. 1990

Answer 67

B. 1978

Question 68

If an employee has a child support order, what is the maximum amount that may be withheld from the employee’s paycheck?

A. 50%

B. 25%

C. 15%

D. 10%

Answer 68

A. 50%

Question 69

Is it legal for a contractor to require employees to take lie detector tests?

A. It is not legal for the contractor to require lie detector tests, but it would be legal for a federal, state, or local public agency to require lie detector tests of their employees.

B. It is not legal for any employer to require lie detector tests.

C. It is only legal for the contractor to require lie detector tests of employees who have criminal records.

D. It is legal for the contractor to require lie detector tests, but it would not be legal for a federal, state, or local public agency to do so.

Answer 69

A. It is not legal for the contractor to require lie detector tests, but it would be legal for a federal, state, or local public agency to require lie detector tests of their employees.

Question 70

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?

A. Walk the job site with the owner.

B. Review the plans and specifications with the owner.

C. Show the owner the critical path schedule.

D. Include a payment schedule in the contract.

Answer 70

B. Review the plans and specifications with the owner.

Question 71

Funds withheld to guarantee completion of a project and correction of defects are called a(n):

A. remainder

B. umbrage

C. retention

D. stipulation

Answer 71

C. retention

Question 72

Which of the following statements about home improvement laws is not correct?

A. A subcontractor may give a salesperson a bonus.

B. A general contractor may give a
salesperson a bonus.

C. A subcontractor may not give the general contractor a bonus.

D. The homeowner may give the salesperson a bonus.

Answer 72

D. The homeowner may give the salesperson a bonus.

Question 73

When you receive an approved set of plans, what should you do first?

A. Calculate the square footage.

B. Call a material supplier

C. Schedule the job.

D. Read any notes from the building department.

Answer 73

D. Read any notes from the building department.

Question 74

You are bidding as a prime contractor on a public works project. The work will not involve construction, improvement, or repair of streets, highways, or bridges. You will use subcontractors for part of the work. If you do not name a subcontractor for any part of the work:

A. the contract is canceled.

B. you will do that part of the work yourself.

C. you may simply submit a name later.

D. the awarding authority will choose a subcontractor for you.

Answer 74

B. you will do that part of the work yourself.

Question 75

A contractor meets Mr. Tones at his home to discuss remodeling. The contractor and Mr. Jones Sign a contract that includes a three-day cancellation form. After the contractor leaves, Mr. Jones decides not to have the work done. Instead of using the cancellation form, Mr. Jones sends the contractor a letter by first-class mail stating that he is canceling the contract. Is Mr. Jones’ cancellation effective?

A. No. Mr. Jones did not return the contract with the letter.

B. No. Mr. Jones did not sign and return the cancellation form.

C. Yes. Mr. Jones’ letter does cancel the contract because it indicates his intention not to be bound by the contract.

D. No. However, the letter would have canceled the contract had it been sent by certified or registered mail.

Answer 75

C. Yes. Mr. Jones’ letter does cancel the contract because it indicates his intention not to be bound by the contract.

Question 76

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?

A. No. It would be unethical for the contractor to inform any subcontractor that their bid is substantially lower than the other bids, even if the contractor believes that the subcontractor has made an error.

B. Yes. If the contractor believes that the subcontractor has made an error in compiling his bid, the contractor should disclose the amounts of the other subcontractors’ bids to the subcontractor, so the subcontractor can determine the extent of his error.

C. 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.

D. None of the above.

Answer 76

C. 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.

Question 77

A contractor, on his own initiative, changed the design of a building and carried out the change. The owner rejected the change and stated that the building has lost market value. If the owner takes the contractor to court and obtains a favorable judgment, the owner is:

A. due the cost of repairs or the loss of market value.

B. due any loss of profits.

C. entitled to a new building.

D. due only the loss of market value

Answer 77

A. due the cost of repairs or the loss of market value.

Question 78

What is operating capital?

A. total assets plus total liabilities plus profit

B. all assets and liabilities

C. total current assets minus total current liabilities

D. total long-term liabilities and net worth

Answer 78

C. total current assets minus total current liabilities

Question 79

An applicant for an original contractor’s license who has passed the qualifying exams is notified on October 1 that she must file the initial license fee and license bond. The fee and bond must be filed no later than:

A. October 31

B. October 29

C. December 30

D. January 1

Answer 79

C. December 30

Question 80

How many days does a contractor have to notify the Registrar after being issued a workers’ compensation insurance policy?

A. 5 days

B. 10 days

C. 30 days

D. 90 days

Answer 80

D. 90 days

Question 81

How many times may you take the contractor’s license exam before your original application is voided?

A. as many times as necessary within 18 months

B. three times if you conform to scheduling

C. five times

D. an unlimited number of times

Answer 81

A. as many times as necessary within 18 months

Question 82

You are the qualifier for an active contractor’s license. How do you inactivate the license?

A. Write to the CSLB, requesting that the license be made inactive.

B. Wait to receive the license renewal application and then do not pay the renewal fee.

C. Cancel the contractor’s license bond.

D. Nothing: The license will automatically become inactive when the license term expires.

Answer 82

A. Write to the CSLB, requesting that the license be made inactive.

Question 83

The purpose of a Preliminary Notice for private work is to:

A. notify the owner that a lien has been placed on the property.

B. notify the owner that the person or firm who sent the notice has improved the property.

C. make the owner aware of the provisions of the mechanics lien laws.

D. waive the contractor’s or subcontractor’s lien rights.

Answer 83

B. notify the owner that the person or firm who sent the notice has improved the property.

Question 84

A Notice of Cessation is only effective if labor has ceased for at least how many days prior to recording?

A. 30 days

B. 20 days

C. 15 days

D. 10 days

Answer 84

A. 30 days

Question 85

A mechanics lien is a written document that must be signed and verified by the claimant. The first and third steps a contractor should take in filing a lien are listed below.
Step 1: Obtain the exact legal description of the property.
Step 2:
Step 3: Find out if the person requesting the work of improvement is the owner.
What is Step 2?

A. Determine the amount of the lien claim.

B. Find out the name of the legal owner of the property as well as the percent of ownership.

C. List the attorney representing the contractor.

D. List the attorney representing the owner.

Answer 85

B. Find out the name of the legal owner of the property as well as the percent of ownership.

Question 86

When a Notice of Completion has been filed, the original contractor has ______ days to record a lien.

A. 20

B. 30

C. 60

D. 90

Answer 86

C. 60

Question 87

A subcontractor or material supplier has has been recorded.

A. 10

B. 30

C. 60

D. 90

Answer 87

B. 30

Question 88

What does it mean when a subcontractor signs a Waiver and Release form on a public works project?

A. The subcontractor gives up the right to lien the real property.

B. The subcontractor gives up the right to lien the construction funds.

C. The subcontractor waives the right to lien the real property or the construction funds.

D. The subcontractor is no longer responsible for correcting defective work.

Answer 88

B. The subcontractor gives up the right to lien the construction funds.

Question 89

Is it legal for a contractor to hire professional strikebreakers to replace striking employees?

A. Yes. It is legal to hire professional strikebreakers.

B. No. The contractor is subject to a maximum fine of $500 and/or a maximum jail sentence of 30 days.

C. No. The contractor is subject to a maximum fine of $1,000 and/or a maximum jail sentence of 90 days.

D. The contractor has not committed a crime but may be subject to legal action.

Answer 89

C. No. The contractor is subject to a maximum fine of $1,000 and/or a maximum jail sentence of 90 days.

Question 90

Is it legal for a contractor to pay employees in cash?

A. Yes, if the contractor provides each employee with a wage deduction statement semimonthly or at the time of each wage payment.

B. Yes, if the contractor provides each employee with Form W-2 at the end of the year.

C. No, because an employee’s wages must be paid by a check with a wage deduction statement attached.

D. No, unless the contractor obtains a receipt from each employee showing the amount of gross wages received.

Answer 90

A. Yes, if the contractor provides each employee with a wage deduction statement semimonthly or at the time of each wage payment.

Question 91

A contractor hires a subcontractor to demolish a concrete wall. Who is responsible for supplying safety goggles?

A. Cal/OSHA

B. subcontractor

C. property owner

D. contractor

Answer 91

B. subcontractor

Question 92

Some counties have an additional sales tax added to the base rate. Which of the following is a correct statement regarding this additional tax?

A. This additional tax does not apply to contractors.

B. You do not have to pay this additional tax if your home office is in another county.

C. You may pay the additional tax charged in your county if the rate is lower than the county where the materials were purchased.

D. You must pay the additional tax in the county where the materials were purchased.

Answer 92

D. You must pay the additional tax in the county where the materials were purchased.

Question 93

You are required to have workers’ compensation insurance policy when you have:

A. more than one employee.

B. a C-39 Roofing license.

C. a C-33 Painting and Decorating license.

D. more than one workplace accident.

Answer 93

B. a C-39 Roofing license

Question 94

How long does a client have to cancel a contract for repairs that resulted from an event for which a State of Emergency was declared?

A. 5 business days

B. 5 calendar days

C. 7 business days

D. 7 calendar days

Answer 94

C. 7 business days

Question 95

Which of the following is considered a direct cost?

A. office personnel

B. monthly rent for construction office

C. insurance policies

D. field superintendent

Answer 95

D. field superintendent

Question 96

An applicant who obtains and provides to another person any part of the qualifying exams administered by the CSLB is subject to:

A. $500 fine.

B. misdemeanor conviction.

C. automatic exam failure and the applicant may not reapply for one year.

D. all of the above.

Answer 96

D. all of the above.

Question 97

When is the last day a customer may cancel a contract that was signed on Friday, December 21st?

A. the following Friday

B. the following Tuesday

C. the following Wednesday

D. the following Thursday

Answer 97

C. the following Wednesday

Question 98

What is the maximum allowed travel distance from any point of a work area to a fire extinguisher?

A. 25 feet

B. 50 feet

C. 75 feet

D. 150 feet

Answer 98

C. 75 feet

Question 99

When may a client cancel a service and repair contract?

A. when the repair or service is under $750

B. within three days of signing the contract

C. before the contractor starts work

D. at any time if the contract was initiated by the client

Answer 99

C. before the contractor starts work

Question 100

When a subcontractor does work on a public works contract, the public agency considers the subcontractor to be:

A. an employee of the agency.

B. a subcontractor of the agency.

C. an employee of the prime contractor.

D. a subcontractor of the prime contractor.

Answer 100

C. an employee of the prime contractor.