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(c51) Law and Business Practice Test > Test 4 > Flashcards

Test 4 Flashcards

1
Q

When must a contractor notify new employes of their right to receive workers’ compensation benefits if injured on the job?

A. Within 30 days of hiring.

B. At the time of hiring or by the end of the first pay period.

C. Within 24 hours after a job-related injury.

D. When the new employee requests information on workers rights and benefits.

A

B. At the time of hiring or by the end of the first pay period.

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2
Q

When may a contractor perform a home improvement contract requiring a loan as a precondition?

A. When emergency repairs or services are required.

B. When the owner has bad credit.

C. When the owner has an amount in the bank equal to the contract price.

D. When the owner seems kind and has an honest reputation.

A

A. When emergency repairs or services are required.

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3
Q

When should an employer provide information on safety procedures?

A. When a new employee is hired.

B. Within 30 days of hiring.

C. If safety procedures are not covered in Cal/OSHA publications.

D. Every 30 days at meetings conducted by supervisors.

A

A. When a new employee is hired.

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4
Q

Of the following, a stop payment notice would block funds from the:

A. owner to the prime contractor.

B. prime contractor to the subcontractor.

C. owner to the subcontractor.

D. owner to the material supplier.

A

A. owner to the prime contractor

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5
Q

Why should a contractor visit the work site frequently?

A. To know when to schedule the final payment.

B. To keep the subcontractors informed of the job’s progress and to check on what materials must be ordered for the next phase of construction.

C. To know when to schedule float time.

D. To know the approximate final cost.

A

B. To keep the subcontractors informed of the job’s progress and to check on what materials must be ordered for the next phase of construction.

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6
Q

When is a worker considered an employee rather than an independent contractor?

A. When the employer has the right to tell the worker to do certain work.

B. When the employer has direct control over the work being performed.

C. When the worker can make a profit or loss on the work.

D. When the worker doesn’t set his or her own hours.

A

B. When the employer has direct control over the work being performed.

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7
Q

How can a new employee learn about the safety record of a company?

A. Employees may request access to records of job-related injuries and illnesses.

B. View a Cal/OSHA safety video tape.

C. Call the Cal/OSHA consultant services.

D. Safety records are confidential.

A

A. Employees may request access to records of job-related injuries and illnesses.

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8
Q

What is the most common problem facing new contractors when trying to obtain a performance or bid bond?

A. They do not have an insurance broker.

B. No prior track record.

C. Poor credit.

D. Not familiar with bond requirements.

A

B. No prior track record

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9
Q

Which of the following must employees have in order to pass a job performance evaluation?

A. The results of a health examination.

B. How to safely use tools on the jobsite.

C. How to perform CPR.

D. They must have a detailed job description.

A

D. They must have a detailed job description.

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10
Q

If retention is withheld until substantial completion of the entire job, the subcontractors who worked on the early stages of the project can be put at a financial disadvantage. What is the best
way to remedy this situation?

A. Tie the release of proportional retentions to the completion of the subcontractors’ work rather than to the entire job

B. Pay the subs when they finish, no matter what.

C. Contact the owner immediately.

D. Negotiate lower progress payments with subcontractors.

A

A. Tie the release of proportional retentions to the completion of the subcontractors’ work rather than to the entire job

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11
Q

If you find that you are not getting work because your bids are too high, you should try:

A. using a standard 10% overhead figure.

B. lowering your fixed expenses.

C. hiring employees at a lower wage.

D. offering gifts as incentives for customers to sign contracts.

A

B. lowering your fixed expenses

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12
Q

How often should time cards be filled out?

A. daily

B. weekly

C. monthly

D. yearly

A

A. daily

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13
Q

Which of the following types of injuries or illnesses does not have to be reported to the Division of Labor Statistics and Research?

A. A cut that requires first aid after which the employee returns to work.

B. A broken arm requiring a cast.

C. An employee who suffers heat stroke and is sent to an Emergency Room.

D. A cut that requires fewer than 4 stitches to close.

A

A. A cut that requires first aid after which the employee returns to work.

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14
Q

What precautions must a contractor take with hazardous substances?

A. Each employee must sign a sheet stating that he or she understands the safety and health risks.

B. The contractor must hang a safety poster in an area near the time clock.

C. The contractor must adopt a Code of Safe Practices that relates to work at each job site.

D. The contractor should require employees to wear a dust mask.

A

C. The contractor must adopt a Code of Safe Practices that relates to work at each job site.

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15
Q

When you take an employee with you to City Hall to get a building permit, what should you bring besides your contractor’s license pocket card and the plans?

A. photo of the job site

B. copy of your license bond

C. copy of the signed contract

D. certificate of workers’ compensation insurance

A

D. certificate of workers’ compensation insurance

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16
Q

If you are bidding on a job that is similar to a job you completed six months ago and planning to use the same materials, what should you bid for the materials?

A. The same price as the previous job.

B. Get bids from suppliers.

C. The average price for jobs during the past year plus 10%.

D. The same price as the previous job plus 5%.

A

B. Get bids from suppliers.

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17
Q

You sign a contract that includes fixing the hinges of a homeowner’s door. After finishing the work, the owner complains that you did not remove the dog scratches from the door’s finish. Which is the best way to avoid a dispute or lawsuit?

A. Be very specific about the work to be done: Review the contract and specifications line-by-line with the owner.

B. Write a change order.

C. Schedule an on-site meeting with the owner.

D. Have an attorney explain the job description to the owner.

A

A. Be very specific about the work to be done: Review the contract and specifications line-by-line with the owner.

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18
Q

Who is responsible for paying SDI?

A. The employee pays the entire amount.

B. The employer pays the entire amount.

C. The employee and employer both pay.

D. SDI is not paid by employers or employees.

A

A. The employee pays the entire amount.

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19
Q

What should vou do if an employee is exposed to a toxic substance?

A. Notify the employee.

B. Wait to see if the employee reports any symptoms.

C. Notification is not required if the employer has a workers’ compensation insurance policy.

D. Notification is optional, but the employer should record the exposure in employee’s file.

A

A. Notify the employee

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20
Q

When applying for a permit to re-install wiring that has been removed from an old Victorian house, the minimum contractor’s license needed is:

A. specialty electrical license (C-10)

B. general building contractor’s license (B)

C. general engineering contractor’s license (A)

D. no license is required

A

A. specialty electrical license (C-10)

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21
Q

Records of accidents and injuries are kept:

A. for the exclusive benefit of employees.

B. to help determine the causes of accidents and injuries.

C. to show the insurance adiuster.

D. to show the clients that you are responsible.

A

B. to help determine the causes of accidents and injuries

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22
Q

Which of the following must be included in a home improvement contract?

A. permit number

B. license bond number

C. approximate starting and completion dates

D. local building department requirements

A

C. approximate starting and completion dates

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23
Q

Fixed costs apply to which of the following categories?

A. overhead

B. direct costs

C. travel expenses

D. labor

A

A. overhead

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24
Q

The Contractors State License Board has authority to enforce the:

A. contractor’s warranty.

B. manufacturer’s warranty.

C. lender’s rates of interest.

D. consumer’s change of plans.

A

A. contractor’s warranty

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25
Q

How many days does a prime contractor have to record a Claim of Lien after a Notice of Completion has been recorded?

A. 90 days

B. 60 days

C. 30 days

D. 10 days

A

B. 60 days

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26
Q

If you notice that the plans do not specify a fireproof door where one is required, you should:

A. report it to the architect.

B. talk to the owner.

C. fix it yourself.

D. install the door and bill the client.

A

A. report it to the architect.

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27
Q

How could a cash fow problem best be prevented on a home improvement proiect?

A. Contract should specify 20% down and 80% along the way.

B. Each payment should relate to a definite stage of the project.

C. Owner should pay in full at the start of the job.

D. Owner should pay 50% of total contract at start of the job.

A

B. Each payment should relate to a definite stage of the project.

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28
Q

An employee weighing 270 pounds is working at the jobsite. Which of the following portable ladders should be used?

A. Light Duty

B. Medium Duty

C. Heavy Duty

D. Extra Heavy Duty

A

D. Extra Heavy Duty

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29
Q

When remodeling an older home, it is best for the contractor to ask the homeowner if asbestos materials are present:

A. after the contract is signed.

B. as the job progresses.

C. at their first meeting.

D. at the completion of the job.

A

C. at their first meeting

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30
Q

Which of the following are the best examples of fixed costs?

A. rent, truck payment, insurance

B. advertising, office supplies, equipment maintenance

C. mortgage, fuel, utilities

D. rent, utilities, equipment maintenance

A

A. rent, truck payment, insurance

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31
Q

The minimum fine for unlawful asbestos removal is:

A. $1,000.

B. $3,000.

C. $5,000.

D. $7,000.

A

A. $1,000

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32
Q

A basic insurance package for a new contractor would usually not include:

A. property insurance.

B. general liability insurance.

C. umbrella policy.

D. workers’ compensation policy.

A

C. umbrella policy.

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33
Q

When an employee who is not hired for a specified period quits without notice, the employee must be paid:

A. within 5 days of quitting.

B. within 72 hours of quitting.

C. half at the time of quitting with the balance due within 30 days.

D. immediately.

A

B. within 72 hours of quitting

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34
Q

The “Mechanics Lien Warning” is given to inform the property owner:

A. when work will begin and end.

B. that the property can be liened if the contractor and other claimants are not paid.

C. that the contractor is going to make improvements to the property.

D. that a mechanics lien has been filed against the property.

A

B. that the property can be liened if the contractor and other claimants are not paid

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35
Q

Which agency would you contact when changing the location of a driveway on private property?

A. state

B. local building department

C. county

D. national

A

B. local building department

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36
Q

When demolishing a three-story structure, which agency would you contact first?
Law and Business Test 4

A. state

B. local building department

C. county

D. national

A

B. local building department

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37
Q

Who controls water runoff in a coastal area?

A. fire department

B. Water Resources Control Board

C. DOSH

D. CSLB

A

B. Water Resources Control Board

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38
Q

What is the best method of adjusting inventory in the general ledger?

A. adding new purchases

B. averaging last year’s inventory

C. counting the existing inventory

D. subtracting what you have used

A

C. counting the existing inventory

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39
Q

Where must the supplier’s Safety Data Sheets (SDS) be kept?

A. at the job site

B. at the office

C. they should be discarded

D. in a file cabinet

A

A. at the job site

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40
Q

Which of the following statements is true?

A. A 17-year-old can legally drive a forklift.

B. A 17-year-old can legally work on a roof.

C. A 15-year-old can legally work in a tunnel or mine.

D. An 18-year-old can legally drive a vehicle as part of his or her normal job duties.

A

D. An 18-year-old can legally drive a vehicle as part of his or her normal job duties.

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41
Q

Which of the following is least important in preparing a bid for a home construction project?

A. cost of permits

B. cost of materials

C. cost of labor

D. overhead and profit

A

A. cost of permits

42
Q

A job calls for the demolition of an old residence in order for a new residence to be built. Which of the following should be done?

A. Call an asbestos abatement contractor to check for asbestos.

B. Call a demolition subcontractor to remove any suspected asbestos before the inspector arrives.

C. Demolish the building regardless of asbestos.

D. Remove any asbestos yourself, then demolish the building.

A

A. Call an asbestos abatement contractor to check for asbestos.

43
Q

What does an employee handbook typically include?

A. every employee’s SSN

B. working hours and other company policies

C. vendor names and phone numbers

D. phone number and email address of each employee

A

B. working hours and other company policies

44
Q

Federal regulations on overtime apply to:

A. piece work.

B. hourly emplovees.

C. salaried employees.

D. all of the above.

A

D. all of the above

45
Q

On a job site, a Cal/OSHA inspector discovers that a piece of equipment does not comply with a new safety standard. A temporary variance may be granted if the equipment:

A. is new and requires extra time to be brought into compliance.

B. is old but had a good safety record in the past.

C. will be replaced within one year.

D. can be recycled.

A

A. is new and requires extra time to be brought into compliance

46
Q

The prime contractor must pay the subcontractor within how many days after receiving a progress payment?

A. 3 days

B. 7 days

C. 15 days

D. 30 days

A

B. 7 days

47
Q

Form I-9 must be completed by all employees, including U.S. citizens. When must an employer complete Form I-9?

A. when they apply for the job

B. the first day they start work

C. within 3 business days of the date of hire

D. within 30 business days of the date of hire

A

C. within 3 business days of the date of hire

48
Q

By law, the maximum hours in a day a minor may work is:

A. 6.

B. 7.

C. 8.

D. 9.

A

C. 8

49
Q

What is the maximum number of hours a minor may work on the day before a school day?

A. 6

B. 7

C. 8

D. 9

A

C. 8

50
Q

By law, the maximum hours in a week a minor may work is:

A. 30.

В. 35.

C. 40.

D. 45.

A

C. 40

51
Q

What is the best time to talk to a client about liens and stop payment notices?

A. before the job starts

B. 10 days after the job starts

C. 20 days after the job starts

D. 30 days after the job starts

A

A. before the job starts

52
Q

When it comes to liens:

A. the owner is responsible for paying for the work of improvement,

B. subcontractors may not file a lien.

C. any contractor may file a lien at any time.

D. suppliers may not file a lien.

A

A. the owner is responsible for paying for the work of improvement

53
Q

Your workers’comp insurance policy lapsed two weeks ago. You mailed the check yesterday, and today one of your employees is injured on the job. Which of the following statements is true?

A. You are covered because you mailed a check.

B. You are covered because the injury occurred within 30 days of the lapse of coverage.

C. You are not covered because the policy lapsed.

D. You are not covered because the injury occurred after the two-week grace period.

A

C. You are not covered because the policy lapsed.

54
Q

Which type of bond ensures that the contractor will pay all labor and material bills and fulfill the terms of the contract?

A. contract bond

B. performance bond

C. materials bond

D. bid bond

A

A. contract bond

55
Q

What must licensed plumbing (C-36), electrical sign (C-45), and well drilling (C-57) contractors have displayed on both sides of their commercial vehicles?

A. name, business address, phone number, and contractor’s license number

B. name, business address, and contractor’s license number

C. name and contractor’s license number only

D. nothing

A

B. name, business address, and contractor’s license number

56
Q

You have determined that the job you are working on involves asbestos. What should you do?

A. File for an Asbestos Abatement Certificate.

B. Stop work immediately.

C. Register with DOSH.

D. Remove any asbestos and keep working.

A

B. Stop work immediately

57
Q

Which of the following would qualify a person as an “independent contractor”

A. can make a profit or loss on work

B. doesn’t punch a time clock

C. works at home

D. only works on small jobs

A

A. can make a profit or loss on work

58
Q

When may a contractor have an owner sign a waiver from building standards in order to cut costs?

A. If the building is a detached single-family home with only one bathroom.

B. If the owner agrees to the waiver.

C. Never.

D. Only for a utility building such as a shed.

A

C. Never.

59
Q

A bookkeeper for a construction company sends out bills once a month. How should the company file its copy of each bill?

A. accounts payable

B. notes payable

C. operating profit

D. accounts receivable

A

D. accounts receivable

60
Q

What should construction employees wear when working at night?

A. bright-colored vests

B. dark-colored jackets

C. light sticks on strings around their necks

D. night vision goggles

A

A. bright-colored vests

61
Q

Which of the following muscles should be used more when lifting heavy materials?

A. back

B. arms

C. legs

D. shoulders

A

C. legs

62
Q

Where would a contractor go to verify that building permits were issued for all construction work done on a house?

A. agency that granted the initial permit

B. State Department of Housing

C. OSHA

D. County Recorder’s office

A

A. agency that granted the initial permit

63
Q

Which of the following must be included in a home improvement contract?

A. project name

B. schedule of payments

C. job specifications

D. exact dates of job duration

A

B. schedule of payments

64
Q

How many times may the qualifying individual take the State license exam before the application is voided?

A. once

B. twice

C. three times

D. as many times as necessary within 18 months

A

D. as many times as necessary within 18 months

65
Q

A time card includes the day and hours the person worked, as well as:

A. the hourly wage.

B. the location of the job.

C. the employees date of birth.

D. a description of the work.

A

D. a description of the work.

66
Q

When a contractor is bidding a job, which of the following is the biggest risk factor?

A. owner’s financial stability

B. change orders

C. small extras

D. finding subs

A

A. owner’s financial stability

67
Q

Which of the following statements about the State safety code is correct?

A. It is a complete code that adopts portions of local codes.

B. It is a complete code that adopts all local codes.

C. Several state agencies are involved with regulation of the code.

D. It is the only code you must consult.

A

C. Several state agencies are involved with regulation of the code.

68
Q

Contractors should keep good business records:

A. for insurance purposes.

B. to determine if the business is making a profit.

C. to monitor the change in costs over a five-year period

D. in case the IRS audits them.

A

B. to determine if the business is making a profit.

69
Q

Where can workers obtain the name of the employer’s current workers’ compensation insurance carrier?

A. From the notice that must be posted conspicuously in a location frequented by employees.

B. From the notice printed on every paycheck.

C. Only if the employer chooses to disclose the name of the carrier.

D. By phoning the employer’s insurance agent.

A

A. From the notice that must be posted conspicuously in a location frequented by employees.

70
Q

A small contractor with no employees is working out of his garage. Which of the following types of insurance is not necessary at this time?

A. property damage

B. general liability

C. commercial vehicle

D. workers’ comp

A

D. workers’ comp

71
Q

The Mechanics Lien Warning is for the protection of:

A. the owner.

B. the contractor.

C. the contractor’s employees.

D. all of the above.

A

A. the owner

72
Q

Which of the following is/are grounds for a disciplinary action?

A. Failure to provide the owner with a Mechanics Lien Warning.

B. Failure to pay employees after receiving payment from the owner.

C. Failure to complete a project for the price stated in the contract.

D. All of the above.

A

D. All of the above.

73
Q

A company has 25 total employees: 4 in the office, 6 supervising, and the rest in the field. Which of the following types of insurance is required by law?

A. health insurance

B. commercial general liability insurance

C. builders risk insurance

D. workers’ compensation insurance

A

D. workers’ compensation insurance

74
Q

How do you pay journey-level workers on a public works job?

A. according to skill level

B. no less than the prevailing wage

C. wage rate negotiated between the contractor and workers

D. the same rate paid on previous jobs

A

B. no less than the prevailing wage

75
Q

At what rate must employees be paid if working a 40-hour week that includes work on a Sunday?

A. regular time

B. time-and-a-half

C. double time

D. triple time

A

A. regular time

76
Q

If an employee is fired as a result of a wage garnishment because of a judgment, he must notify the ____________ within ______ days, if he or she intends to file a claim disputing lost wages following the firing.

A. employer … 30

B. employer … 60

C. Labor Commissioner … 30

D. Labor Commissioner …60

A

A. employer … 30

77
Q

In Small Claims Court, if you want to be represented by an attorney:

A. the attorney must remain quiet except when consulting.

B. you are limited to one attorney.

C. you may not consult with an attorney in Small Claims Court.

D. the attorney is limited to 10 minutes of bench time.

A

C. you may not consult with an attorney in Small Claims Court.

78
Q

Disputes over an alleged violation qualify for the CSLB’s arbitration program if.

A. the licensee has less than three violations in the past 10 years.

B. the license was in good standing at the time of alleged violation.

C. all parties have previously agreed to private arbitration.

D. the alleged damages exceed $50,000.

A

B. the license was in good standing at the time of alleged violation.

79
Q

How many employees must an employer have before State disability insurance deductions are required?

A. 0

B. 1 or more

C. 2 or more

D. 3 or more

A

B. 1 or more

80
Q

How many employees must an employer have before workers’ compensation coverage is required?

A. 0

B. 1 or more

C. 2 or more

D. 3 or more

A

B. 1 or more

81
Q

Which of the following is the best indicator of the ability of a business to pay its current bills?

A. net working capital

B. total current assets

C. total current liabilities

D. Pretax income

A

A. net working capital

82
Q

How much may a contractor raise prices during a declared state of emergency and not be guilty of price-gouging?

A. 5%

B. 10%

C. 15%

D. 20%

A

B. 10%

83
Q

What is the maximum penalty for a contractor convicted of price-gouging during a declared state of emergency?

A. permanent license revocation by CSLB

B. $10,000 fine

C. 1 year in jail

D. all of the above

A

D. all of the above

84
Q

Change orders are required when the:

A. contractor’s personnel are changed.

B. material suppliers are changed.

C. contract amount is changed.

D. contract start date is changed.

A

C. contract amount is changed

85
Q

The Contractors State License Board’s arbitration program provides, free of charge, an arbitrator and:

A. one expert witness and one attorney.

B. one licensed building inspector.

C. one expert witness.

D. one licensed “B” contractor consultant and one attorney.

A

C. one expert witness

86
Q

A licensed contractor signs a home improvement contract for $19,800. What is the maximum down payment the contractor may receive?

A. $1,000

B. $1,500

C. $1,980

D. $2,000

A

A. $1,000

87
Q

A joint control company:

A. acts as an escrow holder for construction funds.

B. is usually owned by the general contractor.

C. is the mortgage company for the homeowner.

D. the primary construction lender.

A

A. acts as an escrow holder for construction funds.

88
Q

To prevent cash flow problems at the end of a construction project, the contractor should

A. obtain a line of credit from a bank.

B. order all materials before beginning work.

C. seriously consider changing the payment schedule.

D. ask the owner to make payments before they are due.

A

A. obtain a line of credit from a bank.

89
Q

A home improvement salesperson’s registration must be renewed:

A. for every job.

B. once per year.

C. every two years.

D. every four years.

A

C. every two years.

90
Q

Which of the following is not a misdemeanor?

A. A home improvement salesperson failed to disclose the name of the contractor on a home improvement contract form.

B. A home improvement salesperson gave a homeowner $20 for each new customer the homeowner referred to the salesperson.

C. A home improvement salesperson failed to give the contractor a $50 down payment the salesperson received from the customer.

D. A home improvement salesperson gave a prospective customer an unconditional gift valued at $5 as part of a sales promotion.

A

D. A home improvement salesperson gave a prospective customer an unconditional gift valued at $5 as part of a sales promotion.

91
Q

When a contractor furnishes a performance and payment bond for a home improvement project, it is not necessary for a contractor to provide which of the following?

A. Contract price

B. Mechanics Lien Warning

C. Arbitration clause notice

D. Schedule of payments

A

B. Mechanics Lien Warning

92
Q

If an employee is 20 minutes late for work, the employer may.

A. deduct a half hour’s wage.

B. deduct an hour’s wage.

C. deduct for 20 minutes only.

D. not deduct from wages.

A

A. deduct a half hour’s wage

93
Q

Of the following, who may file a mechanics’ lien?

A. manufacturers of construction materials and subcontractors

B. manufacturers of construction materials and clients

C. clients and subcontractors

D. architects and subcontractors

A

D. architects and subcontractors

94
Q

A subcontractor for a home improvement project decides to file a mechanics lien after failing to receive payment for work performed. The lien should be filed with the:

A. Department of Labor.

B. County Recorder’s Office.

C. Contractors State License Board.

D. City Planning and Building Department.

A

B. County Recorder’s Office

95
Q

An individual with a B license wants to form a corporation with two specialty contractors one has a C-10 license and the other a C-36. The new corporation may:

A. be licensed in the B classification only.

B. be licensed in the C-10 and C-36 classifications only.

C. be licensed in all three license classifications.

D. obtain a special license from the CSLB.

A

C. be licensed in all three license classifications.

96
Q

A homeowner would require a payment and performance bond to assure:

A. coverage for property damage and personal injury.

B. coverage for loss of equipment and tools.

C. job completion and that no liens will be filed for labor and materials.

D. job completion and coverage for property damage and workers’ compensation claims.

A

C. job completion and that no liens will be filed for labor and materials.

97
Q

The text in a printed home improvement contract must be at least:

A. 8-point type with headings in 8-point bold-face.

B. 10-point type with headings in 12-point bold-face.

C. 10-point type with headings in 10-point bold-face.

D. 12-point type with headings in 12-point bold-face.

A

C. 10-point type with headings in 10-point bold-face.

98
Q

What must an employer provide to the insurer for an end-of-the-year workers’ compensation audit?

A. names of employees

B. job locations

C. project names

D. payroll records

A

D. payroll records

99
Q

Who of the following may require the prime contractor to obtain a performance and payment bond?

A. liability insurer

B. tenant

C. subcontractor

D. Contractors State License Board

A

B. tenant

100
Q

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

A. Three-Day-Right to Cancel Notice.

B. contractor’s license number

C. Truth in Lending Notice

D. name of the project

A

B. contractor’s license number

(c51) Law and Business Practice Test (5 decks)

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