Law Test 3

Question 1

What statement below is the most correct statement?
a) The contractor’s license number must be on every form that the contractor prints and submits
b) The Contractors State License Board needs to be on all advertising for the contractor
c) To advertise, a contractor must have a valid license number
d) The contractor’s name, address and phone number must be on all their advertising

Answer 1

c) To advertise, a contractor must have a valid license number

Question 2

What must be displayed on the sides of a commercial truck for licensed plumbers, electrical sign and
well-drilling contractor’s?
a) The contractor’s license number, Name, business address, and phone number
b) The contractor’s license number, Name, and business address
c) The contractor’s license number and Name only
d) Nothing needs to be on the commercial truck

Answer 2

b) The contractor’s license number, Name, and business address

Question 3

In an excavation area, what is the color of the paint that is normally used?
a) Green b) Red
c) White d) Brown

Answer 3

c) White

Question 4

If a contractor bids on a home improvement contract, the contractor should include: labor costs, material costs, permits, direct costs, profit and:
a) Costs of office expenses
b) Costs for any repairs
c) Costs for overhead
d) None of the above

Answer 4

c) Costs for overhead

Question 4

What is the most important item when bidding a job?
a) Material b) Labor c) Overhead d) Profit

Answer 4

d) Profit

Question 5

What would be the reason that would place a bid out of the range of other bids that are submitted for a job?
a) The Overhead under 15%
b) The Profit above 10%
c) The Labor above 10%
d) The Overhead and Profit over 10%

Answer 5

b) The Profit above 10%

Question 6

When bidding, what is a common pitfall or problem?
a) When bidding on a project that is not completely understood
b) When you are bidding against the competition and not the job
c) When the job site hasn’t been inspected before bidding the job d) All of the above

Answer 6

b) When you are bidding against the competition and not the job

Question 7

The homeowner thinks the contract with “extras” is too high and asks the contractor to lower the price. What should the contractor do?
a) The contractor should lower the bid to cost and hopes to recover the overhead later
b) The contractor should negotiate with the owner to reduce the scope of the work the owner is asking for
c) Decline to do the work in the bid
d) The contractor should lower the bid to cost and overhead and don’t include profit

Answer 7

b) The contractor should negotiate with the owner to reduce the scope of the work the owner is asking for

Question 8

When a contractor is bidding on a job, what is the best way for a contractor to access the job?
a) Make a call to the planning department
b) Make a call to the owner
c) Make a call to the architect
d) Go and inspect the job in person

Answer 8

d) Go and inspect the job in person

Question 9

If a general contractor files for bankruptcy and fails to pay the subcontractor:
a) The subcontractor will recover all funds
b) The subcontractor cannot recover funds in the case of a bankruptcy
c) The subcontractor would probably be awarded a portion of the subcontractors claim
d) The general contractors can’t file for bankruptcy

Answer 9

c) The subcontractor would probably be awarded a portion of the subcontractors claim

Question 10

How can job costs be better controlled by contractors?
a) The contractor could spend less time on the job supervising
b) The contractor could hire inexperienced workers for less money
c) The contractor could work on several jobs at the same time
d) The contractor could coordinate all job activities properly

Answer 10

d) The contractor could coordinate all job activities properly

Question 11

What would be the best way to determine the source of problems on a job that you are losing money on?
a) Compare the job cost records to the budget records for the job
b) Analyze the payroll records for the job
c) Balance the cash worksheet for the job
d) Review the payment schedules in the jobs contract

Answer 11

a) Compare the job cost records to the budget records for the job

Question 12

When ordering materials for a job that is in progress, what is the best procedure to use? a) Review the plans and the original bid
b) Inspect the job site to get a look at what has been used on the site.
c) Verify the order with the homeowner.
d) Before ordering materials or supplies consult with the job supervisor.

Answer 12

d) Before ordering materials or supplies consult with the job supervisor.

Question 13

Should contractors maintain large inventories?
a) Discounts are available
b) To meet increases that is for short-term demands
c) Yes
d) Never

Answer 13

d) Never

Question 14

If a contractor is purchasing materials from a supplier that is experiencing a strike from its employees, what should the contractor do?
a) The contractor should contact the owner immediately
b) The contractor should contact the architect immediately
c) The contractor should contact the general contractor immediately
d) The contractor should continue working as usual

Answer 14

a) The contractor should contact the owner immediately

Question 15

The best way to avoid a problem with a customer regarding change orders during the construction period is:
a) When a change order is disputed, all work should stop
b) During the course of construction, the customer should be communicated with frequently
c) The architect should be contacted before making and changes
d) Complete the contract first, then write a new contract, and then complete the changes

Answer 15

b) During the course of construction, the customer should be communicated with frequently

Question 16

Which is the least effective way that the contractor should handle change orders?
a) All of the changes should be in written form
b) The contractor should have a written clear and concise agreement
c) After the job is completed, bill the customer for the changes
d) All of the above

Answer 16

c) After the job is completed, bill the customer for the changes

Question 17

What do you attach the change order to?
a) attach to the contract
b) attach to the progress report
c) Attach with the plans and Specs
d) With the county

Answer 17

a) attach to the contract

Question 18

Which of the below should be a part of a change order?
a) Start date
b) A revised list of costs
c) The increased profit percentage
d) Any new subcontractor’s names

Answer 18

b) A revised list of costs

Question 19

What should you do first when you get an approved set of plans for the building department?
a) Order all the materials for the job
b) Read any and all notes
c) Hire employees for the job
d) Prepare a bid for the job

Answer 19

b) Read any and all notes

Question 20

A supplier established a line of credit for a contractor. What is the most correct statement?
a) The supplier could record a lien against the contractor’s equipment if the line wasn’t paid
b) The supplier could offer discounts based on future purchases
c) Due to the contractor’s payment history, and his reputation for paying the debts when they are due, the supplier established a credit line to the contractor with their company
d) Obtaining a credit line is a wise decision

Answer 20

c) Due to the contractor’s payment history, and his reputation for paying the debts when they are due, the supplier established a credit line to the contractor with their company

Question 21

If an employee installs a cabinet that falls and damages the countertop, who is responsible?
a) The employee
b) The contractor
c) the Bonding Company
d) The owner

Answer 21

b) The contractor

Question 22

Mr. Diaz, an electrical contractor, did a job for Mr. Maples, the prime contractor. Mr. Diaz mistakenly tore a hole in the wall what was not necessary during the course of his work. The customer did not notice the hole until the job was done. The contractors were paid and had left the premises. Who is liable to correct the damage?
a) The customer is responsible because the hole should have been reported before the job was completed and the contractors had left
b) The subcontractor who made the hole should be liable
c) The prime contractor should be liable
d) No one is liable, as the damage was not intentional

Answer 22

c) The prime contractor should be liable

Question 23

If a client is unhappy with your work, what should you do?
a) Let the client cool-off while you keep working
b) Keep working and worry about the client at the end of the job
c) Ignore the client until after the work is done
d) When it comes up, handle the problem in a timely manner

Answer 23

d) When it comes up, handle the problem in a timely manner

Question 24

What should you do when a customer can’t pay for the work that you performed? a) turn the customer’s account over to a collection agency b) contact the customer and offer to give the customer an extension until they can pay c) Contact the Contractors State License Board about the customer d) Forget about it

Answer 24

b) contact the customer and offer to give the customer an extension until they can pay

Question 25

What is the significance of retention? a) It is important because retention usually exceeds profit b) It is important because profits exceeds retention c) It is not important because profit exceeds retention d) It is not important because retention usually exceeds profit

Answer 25

a) It is important because retention usually exceeds profit

Question 26

In most construction contracts, the retentions may be held for ____ days as a guarantee that the subcontractors and suppliers are paid by the prime. a) 10 days c) 60 days b) 30 days d) 90 days

Answer 26

c) 60 days

Question 27

The problems of retentions are greater for: a) The subcontractors that complete their work early in the project b) The subcontractors that complete their work later in the project c) All contractors in all cases d) The original contractors only

Answer 27

a) The subcontractors that complete their work early in the project

Question 28

Who is liable when a contractor constructs a building exactly per the approved plans only to find out that during the inspection, the structure does not meet the code because of an error by the Building & Safety Department? a) The Architect/Engineer b) The Contractor c) The Building & Safety Department d) The Owner

Answer 28

a) The Architect/Engineer

Question 29

What is the best way to check that all the phases of a job have been performed? a) The contract b) The contract and the subcontractors c) The punch list d) The plans and specifications

Answer 29

c) The punch list

Question 30

What is the best way to insure that funds are readily available for a job? a) Check the balance sheet b) Check your ledgers and journals c) Check for cost overruns d) Check your balance sheet and income statement

Answer 30

c) Check for cost overruns

Question 31

When you purchase insurance, what is the best way for you to choose the right company? a) Referrals b) The companies credit rating and the cost of the insurance c) The location of the insurance company d) Word of mouth

Answer 31

b) The companies credit rating and the cost of the insurance

Question 32

What would NOT be covered by a standard contractor’s insurance policy? a) Employee’s tools b) Employer’s tools c) Damages from fire, storm, theft, and vandalism d) Job materials

Answer 32

a) Employee’s tools

Question 33

Taxes for a business are calculated a) depending on the size of the business b) depending on the organizational structure c) is the same for large businesses and corporations d) is the same for all businesses

Answer 33

b) depending on the organizational structure

Question 34

If a prime contractor fails to obtain a building permit before starting a job, he is subject to: a) Suspension of his contractor’s license b) Double the cost of the permit fee c) A fine of $1000 d) Both A & B

Answer 34

d) Both A & B

Question 35

What is the agency that can give you direction and information pertaining to local building codes and regulations? a) The local office of the Registrar b) The State Architect c) The issuing agency or department d) The City Clerk

Answer 35

c) The issuing agency or department

Question 36

Which building code should a contractor follow? a) the most stringent code b) The national code c) The state code d) The local code

Answer 36

d) The local code

Question 37

A contractor entered into a home improvement contract for more than $500 with Mrs. Alexander 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. Alexander as down payment for the work? a) The contractor may accept as much as Mrs. Alexander agrees to pay. b) The down payment is limited to $1000 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 37

b) The down payment is limited to $1000 or 10% of the total price, whichever is less.

Question 38

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 38

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

Question 39

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 general building contractor immediately. d) Continue work as usual.

Answer 39

a) Contact the owner immediately.

Question 40

Who pays FICA? a) Employer b) Employee c) 50% employer and 50% employee d) 90% employer and 10% employee

Answer 40

c) 50% employer and 50% employee

Question 41

If, during excavation, you unearth human remains or burial artifacts at a construction site, what should you do? a) Notify the owner of the property. b) Stop work and place a warning ribbon three feet from the remains around the perimeter of the site. c) Stop work immediately at that site. d) Stop work immediately at that site and any other nearby area that may have remains.

Answer 41

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

Question 42

Which act establishes the rights of workers to organize into unions and negotiate contracts? a) Civil Rights Act of 1964 b) Civil Rights Act of 1972 c) Civil Rights Act of 1984 d) National Labor Relations Act of 1935

Answer 42

d) National Labor Relations Act of 1935

Question 43

Where is the "Notice of Right to Cancel" found on a home improvement contract? a) At the top of the page b) Near the client signature c) In the middle of the page d) On the back

Answer 43

b) Near the client signature

Question 43

The purpose of a 20-day 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 43

b) Notify the owner that the person or firm who sent the notice has improved the property

Question 44

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 44

c) Internal Revenue Service

Question 45

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 45

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

Question 46

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 46

b) Cost and coverage

Question 47

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 47

d) It depends on the expected amount of taxable sales.

Question 48

When you get 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 48

d) Read any notes from the building department.

Question 49

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? a) daily b) at least once every ten working days c) at least once a month d) at least once a quarter

Answer 49

b) at least once every ten working days

Question 50

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 50

d) five years

Question 51

A (n) _____ summarizes revenues, cost of sales, and operating expenses over a period of time. a) Profit plan b) Balance sheet c) cash flow statement d) Income statement

Answer 51

d) Income statement

Question 52

A subcontractor who does not serve a preliminary notice: a) May not serve a stop notice but may file a mechanics' lien b) May not file a mechanics' lien but may serve a stop notice c) Loses both stop notice and mechanics' lien rights d) loses nothing because subcontractors are not required to serve preliminary notices

Answer 52

c) Loses both stop notice and mechanics' lien rights

Question 53

A notice of completion must be recorded within: a) 10 days after work is completed b) 10 days after work has ceased c) 30 days after work is completed d) 60 days after work has ceased

Answer 53

a) 10 days after work is completed

Question 54

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 54

d) Office rent

Question 55

Harry and Linda have done business as a licensed partnership. If Linda is a general partner, but not the qualifier, what must she do to get an individual license? a) If Linda was listed as a partner on the license and was actively engaged in the business for at least five of the past seven years, she may apply for a license with a waiver of the exam. b) If Linda applies for an individual license, the partnership license must be inactivated. c) Linda is not entitled to apply for an individual license. d) General partners may automatically receive an individual license if they are listed on the partnership license.

Answer 55

a) If Linda was listed as a partner on the license and was actively engaged in the business for at least five of the past seven years, she may apply for a license with a waiver of the exam.

Question 56

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 56

c) During bankruptcy, settling obligations incurred as a contractor for less than the full amount owed

Question 57

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 57

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

Question 58

What do you do if a new employee does not have a Social Security Number? a) Give them a W-2 Form b) Employee must apply for a Social Security Card c) Call border patrol d) Have them fill out a Non-compliance certificate

Answer 58

b) Employee must apply for a Social Security Card

Question 59

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 59

d) Rechecking the bid before submitting it to the client

Question 60

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 60

c) 5 days

Question 60

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 60

a) 32 hr per week or 80% of the work week

Question 60

As required by the Immigration Reform and Control Act, all employees hired on or after November 7, 1986 must complete Form _____ to verify their employment eligibility status. a) I-9 b) W-4 c) US-99 d) N-14

Answer 60

a) I-9

Question 61

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) A lien release informs the owner of progress on the job. c) A lien release provides for rights of cancellation. d) The owner's property covered by the release may not be liened.

Answer 61

d) The owner's property covered by the release may not be liened.

Question 61

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 61

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 62

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 62

d) add profit and overhead to labor and materials

Question 62

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 62

c) 75 feet

Question 63

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 63

b) Walk the job.

Question 63

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 63

a) as many times as necessary within 18 months

Question 64

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 you 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 64

d) Decline to bid on the work

Question 65

A subcontractor or material supplier has _____ days to file a lien once a notice of completion has been recorded. a) 10 b) 30 c) 60 d) 90

Answer 65

b) 30

Question 65

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 65

a) Notify the contractor, who is responsible for safety.

Question 66

Why would a contractor have a case in a Superior Court? a) if it is transferred from a Small Claims Court b) if it is transferred from a Municipal Court c) if it is a dispute of more than $25,000 d) if two or more parties are involved in the case

Answer 66

c) if it is a dispute of more than $25,000

Question 66

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 66

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

Question 67

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 67

d) 90 days

Question 67

How often are FICA taxes reported and paid? a) weekly b) monthly c) quarterly d) yearly

Answer 67

c) quarterly

Question 67

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 67

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

Question 68

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 68

d) owner, contractor, and joint control officer

Question 68

Who is responsible for checking the site before the building inspector arrives? a) contractor b) owner c) foreperson d) architect

Answer 68

a) contractor

Question 69

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 69

b) The subcontractor gives up the right to lien the construction funds.

Question 70

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 70

b) 1978

Question 71

An employer remits State income tax and State disability taxes withheld from an employee's wages to what agency? a) Internal Revenue Service b) Employment Development Department c) Franchise Tax Board d) Board of Equalization

Answer 71

b) Employment Development Department

Question 71

Which of the following is considered a direct cost? a) telephone use by employees b) personal vehicle c) insurance d) payroll tax

Answer 71

d) payroll tax

Question 71

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 71

c) Board of Equalization

Question 71

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 71

c) both the contractor and the architect

Question 72

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 72

d) critical path method

Question 72

When is an employee allowed to view their own personnel file? a) Never b) When they have a court order. c) Whenever they wish to d) During employee evaluations

Answer 72

c) Whenever they wish to

Question 73

As required by the Immigration Reform and Control Act, all employees hired on or after November 7, 1986 must complete Form______to verify their employment eligibility status. a) I-9 b) W-4 c) US-99 d) N-14

Answer 73

a) I-9

Question 74

By law, a “hard laborer” may not be younger than _______ years old. a) 14 b) 15 c) 16 d) 17

Answer 74

c) 16

Question 75

Ms. Flores applies for a job. Of the following, the only reason an employee may lawfully deny her employment is: a) She is over 50 years old 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 75

d) She has no work experience or Social Security Number

Question 76

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 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 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 76

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

Question 77

Who must sign a joint control addendum to a home improvement contract? a) Subcontractor and Supplier b) Bank and Contractor c) Prime and Subcontractor d) Owner, Contractor, and joint control officer

Answer 77

d) Owner, Contractor, and joint control officer

Question 78

A contractor entered into a home improvement contract for more than $500 with Mrs. Horner 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. Horner as down payment for the work? a) Half at the beginning and half when the job is done. b) $1000 or 10 % - whichever is less c) $400 for materials and $100 and the end d) All of it up front

Answer 78

b) $1000 or 10 % - whichever is less

Question 79

When should you let your attorney see a construction contract? a) After you have signed it b) After prepared but before signed c) During the signing process d) After you have signed it but before the client

Answer 79

b) After prepared but before signed

Question 79

If a sales presentation is made in Spanish, the home improvement contract: a) Must be in Spanish b) Does not matter c) Must always be in English d) Must be co-signed by an English speaking person

Answer 79

a) Must be in Spanish

Question 80

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 30 days b) Within 10 days c) Within 20 days d) Within 40 days

Answer 80

c) Within 20 days

Question 81

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) Project schedule b) Bar chart c) Bar graph d) Critical path method

Answer 81

d) Critical path method

Question 82

Who is responsible for checking the site before the building inspector arrives? a) Contractor b) Employee c) Architect d) Owner

Answer 82

a) Contractor

Question 83

After a job is completed, the owner decides to have additional work done. How should the contractor proceed? a) Write a new contract b) Write a change order c) Make verbal agreement with client d) Just take care of it for free

Answer 83

a) Write a new contract

Question 84

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) 9 b) 13 c) 25 d) 45

Answer 84

b) 13

Question 85

For which of the following would you obtain a short-term loan? a) Job materials b) Bid Bond c) Wages d) All the above

Answer 85

d) All the above

Question 86

How often must contractors’ supervisors are required to conduct “tailgate” or “toolbox” safety meetings? a) Every Monday b) Every Friday c) Once every 10 days d) Once every 8 days

Answer 86

c) Once every 10 days

Question 87

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) Owner b) Subcontractor c) Contractor and Architect d) Prime Contractor

Answer 87

c) Contractor and Architect

Question 88

How soon must DOSH investigate a serious violation of health and safety complaint? a) Three working days b) Five working days c) Two working days d) One working day

Answer 88

a) Three working days

Question 89

Every employer of ______ or more full or part time employees must keep all written health and safety records for ________ years. a) 11 & 5 b) 3 & 7 c) 5 & 10 d) 6 & 12

Answer 89

a) 11 & 5

Question 90

What should an employee do if required safety devices are missing from their tools? a) Notify Owner b) Notify Cal/OSHA c) Notify Contractor d) Notify DOSH

Answer 90

c) Notify Contractor

Question 91

Which would not have to be reported to DOSH immediately or within 24 hours? a) Earthmover rolls in to high voltage electric line b) Nail gun death c) Death from fall d) A bike accident from an employee on a public road

Answer 91

d) A bike accident from an employee on a public road

Question 92

What is the best way to choose among competing insurance companies? a) Cost and Coverage b) Referral c) Location of insurance agency d) Newly formed insurance company

Answer 92

a) Cost and Coverage

Question 93

What is the time frame on reporting every work related illness or injury to their workers compensation carrier? a) 30 days b) 10 days c) 5 days d) 3 days

Answer 93

c) 5 days

Question 94

What do you do if your employee installs a cabinet that falls off the wall and damages the counter top? a) File workers compensation claim b) Tell home homer to claim it on Home Owners insurance c) Damaged claimed on General Liability insurance d) Make the employee pay for it

Answer 94

c) Damaged claimed on General Liability insurance

Question 95

What is the best type of insurance policy for covering a high degree of exposure to risk? a) Umbrella b) Property c) General Liability Insurance d) Vehicle Insurance

Answer 95

a) Umbrella

Question 96

Bill Maher, a general contractor, had a contract to construct a Jacuzzi deck on the back patio. Bill was behind schedule and hired his 18 year old daughter to help out on the project. His daughter slips, breaks her leg and now want to sue her dad, who carries workers compensation, for negligence in a civil action. Which would be true: a) Civil action lawsuit is not available for job related injuries unless employer does not have workers compensation b) Does not apply because the hurt is the contractors Daughter c) A Civil action lawsuit is allowed d) None of the above

Answer 96

a) Civil action lawsuit is not available for job related injuries unless employer does not have workers compensation

Question 97

A prime contractor entered into contract with a subcontractor that does not carry workers compensation. One of the employees of the subcontractor gets hurt, which statement best describes the situation: a) The home owners insurance will have to take care of it b) The subcontractor is guilty, but the prime will have to take responsibility c) The general liability insurance will cover it d) The employee is out of luck

Answer 97

b) The subcontractor is guilty, but the prime will have to take responsibility

Question 98

What does a cost management system do? a) It’s a phone application that manages my money b) It informs the contractor of where they can spend their cash c) It tracks the Directs Costs on a job d) It provides a cost history in order to analyze labor and material costs

Answer 98

d) It provides a cost history in order to analyze labor and material costs

Question 99

What are the gross wages of an employee who works 60 in one week and is paid a rate of $15 per hour? a) $1,572.00 b) $1,050.00 c) $1250.00 d) $1,375.00

Answer 99

b) $1,050.00

Question 100

Which financial document best represents the company’s financial position on a specific date? a) Balance Sheet b) Income Statement c) Cash Flow analysis d) Income and Expense Statement

Answer 100

a) Balance Sheet

Question 101

Which financial document best summarizes revenues, cost of sales and operating expenses over a period of time? a) Profit analysis b) Income Statement c) Balance sheet d) Profit and Loss

Answer 101

b) Income Statement

Question 102

An employer must furnish an employee with a completed IRS Form W-2 by: a) April 15th b) June 15th c) February 1st d) January 31st

Answer 102

d) January 31st

Question 103

Which financial ratio is the strictest measure of liquidity? a) Profit ratio b) Current ratio c) Quick ration d) Liquidity ratio

Answer 103

c) Quick ration

Question 104

Who is responsible for issuing the Employer Identification Number or EIN? a) Employment Development Department b) Franchise Tax Board c) Internal Revenue Service d) State Board of Equalization

Answer 104

c) Internal Revenue Service

Question 105

State disability and State income tax withheld from an employee’s wages are submitted to what agency? a) Franchise Tax Board b) State Board of Equalization c) Employer Development Department d) Cal/OSHA

Answer 105

c) Employer Development Department

Question 106

Who pays FICA? a) DOSH b) Employer c) Employee d) Split between Employer and Employee

Answer 106

d) Split between Employer and Employee

Question 107

How often are FICA taxes reported and paid? a) Monthly b) Quarterly c) Bi-annually d) Annually

Answer 107

b) Quarterly

Question 108

Who pays FUTA? a) Employer b) Employee c) Split between employer and employee d) All the above

Answer 108

a) Employer

Question 109

How many days do Senior Citizens get to cancel a contract? a) 3 b) 5 c) 7 d) 10

Answer 109

b) 5

Question 110

When are taxes due for corporations? a) January 15th b) February 15th c) March 15th d) April 15th

Answer 110

c) March 15th