Download CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) and more Exams Nursing in PDF only on Docsity! CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) When is an employee allowed to view their own personnel file? a. never b. when they have a court order c. whenever they wish d. during employee evaluations - Correct Answer ✅c. when ever they wish As required by the immigration reform 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 - Correct Answer ✅a. I-9 By law, a "hard laborer" may not be younger than _____ years old. a. 14 CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) b. 15 c. 16 d. 17 - Correct Answer ✅c. 16 years of age Ms. Gomez applies for a job. Of the following, the only reason an employer may lawfully 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. lifing is involved and she is a woman d. she has no work experience or Social Security number - Correct Answer ✅d. she has no work experience or Social Security number 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. CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) d. After the contract is signed by you and your client. - Correct Answer ✅b. After the contract is prepared, but before you sign it. 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 - Correct Answer ✅a. must be in Spanish 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 CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) 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. - Correct Answer ✅c. within 20 days after cancellation 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 - Correct Answer ✅d. critical path method Who is responsible for checking the site before the building inspector arrives? a. contractor b. owner c. foreperson d. architect - Correct Answer ✅a. contractor CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) 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 - Correct Answer ✅c. both the contractor and the architect 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. - Correct Answer ✅a. Write a new contract and ask the owner to sign it. CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) d. 11 .... 5 - Correct Answer ✅d. 11 .... 5 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 responsiblility. d. Call Cal/OSHA - Correct Answer ✅a. notify the contractor, who is responsible for safety. Which would not have to be reported to DOSH immediately or withing 24 hours? a. death from a three-story fall b. drunken crane operator its 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 - Correct Answer ✅c. car accident in which an employee steps onto a public road, gets hit by a car, and suffers a concussion CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) When purchasing insurance, what is the best way to choose among different companies? a. referral b. cost and converage c. location of the company d. word-of-mouth - Correct Answer ✅b. cost and coverage 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 - Correct Answer ✅c. 5 days Your employee sets a cabinet wrong. The cabinet falls from the wall and damages the client's counter top. What should you do? CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) 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. - Correct Answer ✅a. Claim the damage on your general liability insurance policy. 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 - Correct Answer ✅d. umbrella John Meyers, a general contractor, had a contract with Mr. and Mrs. Barnes to construct a gazebo and deck in their back CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) d. It compares what others are charging for subcontracted work. - Correct Answer ✅a. It gives a cost history to analyze labor and material costs. An employee workd 60 hours in one week. If the hourly wage rate is $12, what are the gross wages? a. $600 b. $840 c. $960 d. $1,080 - Correct Answer ✅b. $840 Gross wages = Regular Time + Overtime Regular Time = 40 hrs x $12/hr = $480 Overtime = 20 hrs x 1.5 x $12/hr = $360 Gross Wages = $480 + $360 = $840 A(n) _____ represents a company's financial position on a specified date. a. balance sheet b. income statement CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) c. cash flow statement d. profit plan - Correct Answer ✅a. balance sheet A(n) _____ summarizes revenues, costs of sales, and operating expenses over a period of time. a. profit plan b. balance sheet c. cash flow statement d. income statement - Correct Answer ✅d. income statement 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 - Correct Answer ✅b. January 31 CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) Which of the following financial ratios is the strictest measure of liquidity? a. quick ratio b. current ratio c. profitability ratio d. leverage ratio - Correct Answer ✅a. quick ratio The Federal Employer Identification Number (EIN) is issued by the: a. Franchise Tax Board b. Board of Equalization c. Internal Revenue Services d. Employment Development Department - Correct Answer ✅c. Internal Revenue Service 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 CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) d. workers' compensation insurance premiums - Correct Answer ✅d. workers' compensation insurance premiums To whom do you report and pay sales tax? a. County Tac Collector b. Internal Revenue Service c. Board of Equalization d. Franchise Tax Board - Correct Answer ✅d. Board of Equalization How often are you required to pay sales tax? a. monthly b. quarterly c. annually d. It depends on the expected amount of sales tax. - Correct Answer ✅b. quarterly When balancing the accounts receivable, which of the following would have no effect? CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) 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. - Correct Answer ✅a. posting to the wrong accounts- receivable account. 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% - Correct Answer ✅b. 1% - 2% If a newly hired employee does not have an SSN, what should be done? a. The employee must apply for an SSN. CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) 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. - Correct Answer ✅a. The employee must apply for an SSN. 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 only if the business has cash flow problems - Correct Answer ✅b. contractor should do the best possible job of staying within the budget Which of the following procedures BEST ensures error-free bids? a. working with an attorney b. having another person draft the bid CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) 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. - Correct Answer ✅b. Walk the job. 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 - Correct Answer ✅d. add profit and overhead to labor and materials All of the following are causes for disciplinary action EXCEPT: a. allowing your license to be used by an unlicensed contractor CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) 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 d. willful or deliberate failure to pay money when due for materials or service - Correct Answer ✅c. during bankruptcy, settling obligations incurred as a contractor for less than the full amount is not cause for disciplinary action The qualifying RME for a construction firm must work at least: a. 32 hrs per wk or 80% of the work week b. 30 hrs per wk or 70% of the work week c. 24 hrs per wk or 65% of the work week d. 12 hrs per wk or 51% of the work week - Correct Answer ✅a. 32 hrs per wk or 80% of the work week If a contractor forgets to renew his or her license on time, the expire license may be renewed any time within _____ after its expiration without reapplying for a license and fulfilling the exam or waiver requirements. CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) a. one year b. two years c. four years d. five years - Correct Answer ✅d. five years 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 - Correct Answer ✅d. five years 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 CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) a. owes money to the contractor for labor and materials b. recognizes that work will stop in 30 days c. owes the sub money d. recognizes that a lien could be placed on funds - Correct Answer ✅d. recognizes that a lien could be placed on funds What possible reason would an owner 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. - Correct Answer ✅d. The owner's property covered by the release may not be liened. The CSLB has established a mandatory arbitration program of verified complaints in which the damages are: a. $1,000 or less b. $7,500 or less CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) c. $7,500 or more d. $5,000 to $20,000 - Correct Answer ✅b. $7,500 or less A contractor usually will not be held liable for a suppllier going on strike, but if your supplier did go on strike what would you do? a. Contact the owner immediately. b. Contact the architect immediately. c. Contact the general building contractor immediately. d. Continue work as usual. - Correct Answer ✅a. Contact the owner immediately. If, during an 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 fee from the remains around the perimeter of the site. c. Stop work immediately at that site. CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) d. Stop work immediately at that site and any other nearby area that may have remains. - Correct Answer ✅D. Stop work immediately at that site and any other nearby area that may have remains. If you are planning to dig, drill, and bore at a job site, you should notify ______ before starting work. a. DOSH b. Environmental Protection Agency c. the County Engineer d. the regional Underground Service Alert Notification Center - Correct Answer ✅d. the regional Underground Service Alert Notification Center 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 CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) c. retention d. stipulation - Correct Answer ✅c. retention 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 sales person a bonus. c. A subcontractor may not give the general contractor a bonus. d. The homeowner may give the salesperson a bonus. - Correct Answer ✅d. The homeowner may give the salesperson a bonus. 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. CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) d. Read any notes from the building department. - Correct Answer ✅d. Read any notes from the building department. 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 - Correct Answer ✅b. you will do that part of the work yourself A contractor meets Mr. Jones at his home to discuss remodeling. The contractor and Mr. Jones sign a contrat 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 CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) 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 cancelled the contract had it been sent by certified or registered mail. - Correct Answer ✅c. Yes. Mr. Jones' letter does cancel the contract because it indicates his intention not to be bound by the contract. 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 CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) c. December 30 d. January 1 - Correct Answer ✅c. December 30 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 - Correct Answer ✅d. 90 days 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 an unlimited number of times - Correct Answer ✅a. as many times as necessary within 18 months CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) 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. - Correct Answer ✅a. Write to the CSLB, requesting that the license be made inactive. 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 mechanic's lien laws CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) d. waive the contractor's or subcontractor's lien rights - Correct Answer ✅b. notify the owner that the person or firm who sent the notice has improved the property 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 - Correct Answer ✅a. 10 days after work is completed A mechanic's 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. CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) 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. - Correct Answer ✅c. No. The contractor is subject to a maximum fine of $1,000 and/or a maximum jail sentence of 90 days. 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. - Correct Answer ✅a. Yes, if the contractor provides each employee with a wage deduction statement semimonthly or at the time of each wage payment. CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) A contractor hires a subcontractor to demolish a concrete wall. Who is responsbile for supplying safety goggles? a. Cal/OSHA b. subcontractor c. property owner d. contractor - Correct Answer ✅b. subcontractor 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. - Correct Answer ✅d. You must pay the additional tax in the county where the materials were purchased. CA Contractors Law Exam Practice Test 1 Questions and Answers (Latest Update 2024) 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 - Correct Answer ✅b. near the client signature How long does a client have to cancel a contract for repairs that are the result of 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 - Correct Answer ✅c. 7 business days Which of the following is considered a direct cost? a. telephone use by employees