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Construction Contractor Licensing and Regulations, Exams of Nursing

An overview of the key regulations and requirements for construction contractors in california. It covers topics such as the purpose of a 20-day preliminary notice, the timeline for recording a notice of completion, the liability period for latent or structural defects, the requirements for contractor licensing, the responsibilities of contractors for employee training and safety, the process for filing mechanics liens, the differences between performance and payment bonds, the subletting and subcontracting fair practices act, and various other legal and financial considerations for construction businesses. The information presented could be useful for construction professionals, students studying construction management or law, or anyone interested in understanding the regulatory environment for the construction industry in california.

Typology: Exams

2023/2024

Available from 10/14/2024

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Download Construction Contractor Licensing and Regulations and more Exams Nursing in PDF only on Docsity! CA CONTRACTORS LAW ACTUAL EXAM Questions with 100% Correct Verified Answers Latest Updates 2024 GRADED A+ 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 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. 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. --: correct answer :--b. It is not legal to ask prospective employees about arrests not leading to convictions. 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 --: correct answer :--d. owner, contractor, and joint control officer A contractor entered into a home improvement contract for more than $500 with Mrs. Swenson to remodel her kitchen and bathroom. The contract calls for a down payment before work is to begin. According to the Business and Professions Code, how much may the contractor accept from Mrs. Swenson as down payment for the work? a. The contractor may accept as much as Mrs. Swenson agrees to pay. seven days and the other 10 days. If the two tasks can be done simultaneously, for how many days do you schedule the job? a. 7 days b. 13 days c. 15 days d. 20 days. --: correct answer :--b. 13 days For which of the following would you not obtain a short-term loan? a. wages b. bid bond c. job materials d. office rent --: correct answer :--d. office rent 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 --: correct answer :--b. at least once every ten working days DOSH must investigate a complaint charging a serious violation of health or safety standards within: a. one working day b. two working days c. three working days d. five calendar days --: correct answer :--c. three working days Every employer of or more full- or part-time employees must keep written health and safety records for years. a. 1 ...... 3 b. 7 ...... 4 c. 10 ..... 3 d. 11 .... 5 --: 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 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? 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 yard. John was behind schedule and hired his 18-year-old son, Bart, to help on a part-time basis. After working on the project for a month, Bart slipped on a plank that John had laid across the deck but did not nail securely. As a result of the fall, Bart broke his leg. John is insured for workers' compensation, but Bart wants to sue his father for negligence in a civil action. Which of the following statements is CORRECT? a. John is not liable for damages in a civil action because the employee is his son. b. John is liable for damages in a civil action and must prove that the injury did not result from his negligence. 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 c. Franchise Tax Board d. Board of Equalization --: correct answer :--b. Employment Development Department Who pays FICA? a. employer b. employee c. 50% employer and 50% employee d. 90% employer and 10% employee --: correct answer :--c. 50% employer and 50% employee How often are FICA taxes reported and paid? a. weekly b. monthly c. quarterly d. yearly --: correct answer :--c. quarterly Who pays FUTA? a. employer b. employee c. 50% employer and 50% employee d. 90% employer and 10% employee --: correct answer :--a. employer What happens after an employee's taxable wages exceed $7,000? a. After $7,000, the FUTA rate increases. b. After $7,000, the FUTA rate decreases by 50%. c. After $7,000, the employer does not pay FUTA. d. Nothing. FUTA is not subject to a wage limit. --: correct answer :--c. After $7,000, the employer does not pay FUTA. Which of the following may not be deducted from an employee's paycheck? a. SDI b. FICA c. Medicare tax d. workers' compensation insurance premiums --: 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? 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. 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 c. discussing details of the bid with the supplier d. rechecking the bid before submitting it to the client --: correct answer :-- d. rechecking the bid before submitting it to the client Direct costs are $37,000, overhead is 12%, and profit is 5%. What is the selling price? a. $39,272.47 b. $41,373.45 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 c. $500 or more in labor and materials d. $500 or more in labor only --: correct answer :--c. $500 or more in labor and materials When should a contractor renew the contractor's license bond? a. the day it expires b. 10 days before it expires c. 30 days before it expires d. within 30 days after it expires --: correct answer :--c. 30 days before it expires 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 liscense 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 the are listed on the partnership license. --: correct answer :--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. A subcontractor who does not serve a preliminary notice: a. may not sever a stop notice but may file a mechanic's lien b. may not file a mechanic's lien but may serve a stop notice c. loses both stop notice and mechanic's lien rights d. loses nothing because subcontractors are not required to file preliminary notices --: correct answer :--c. loses both stop notice and mechanic's lien rights When an owner signs a receipt for a stop notice, it usually means the owner: 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 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. 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 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 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 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 th --: correct answer :--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. A contractor, on his own initiative, changed the design of a building and carried out the change. The owner rejected the change and stated that the building has lost market value. If the owner takes the contractor to court and obtains a favorable judgement, the owner is: a. due the cost of repairs or the loss of market value b. due any loss of profits c. entitled to a new building d. due only the loss of market value --: correct answer :--a. due the cost of repairs or the loss of market value Of the following, which document is usually delivered first in a transaction involving a home improvement contract? a. three-day notice of right to cancel b. the contract c. "Notice to Owner" d. 20-day preliminary notice --: correct answer :--c. "Notice to Owner" The applicant for a contractor's license receives a notice from the Contractor's State Licensing Board, dated October 1, that the applicant passed the written exam. To receive an active license, the applicant must file a license bond and fee no later than: a. October 31 b. October 29 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 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 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. 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. 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 b. personal vehicle c. insurance d. payroll tax --: correct answer :--d. payroll tax 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 --: correct answer :--d. National Labor Relations Act of 1935 When is the last day a customer can cancel a contract that was signed on Friday, December 21st? a. the following Friday b. the following Tuesday c. the following Wednesday d. the following Thursday --: correct answer :--c. the following Wednesday; customer has 3 business days to cancel a contract. 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 --: correct answer :--c. 75 feet Why would a contractor have a case in Superor 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 --: correct answer :--c. if it is a dispute of more than $25,000 When a subcontractor does work on a public works contract, the public agency considers the subcontractor to be: a. an employee of the agency b. a subcontractor of the agency c. an employee of the prime contractor d. a subcontractor of the prime contractor --: correct answer :--c. an employee of the prime contractor How much time does a contractor have to renew his license after the expiration date without retaking the exam? --: correct answer :--5 year When you collect sales tax from your customer for goods, which agency do you report and pay sales tax collected? --: correct answer :--State board of equalization Sales tax is a state tax. State income taxes are payable to the franchise tax board. IRS only collects federal taxes How long is the contractor liable for patent or visible defects? --: correct answer :--4 years How long is the contractorr liable for latent or structural defects --: correct answer :--Latent is an invisible or structural defect liable for up to 10 years Accounts receivable contains --: correct answer :--Retention If the contractor obtains his contractors license on April 7, 2010 when will the license need to be renewed? --: correct answer :--April 30 2012 Contract expires 2 years at the end of the month Where would depressiation appear on the balance sheet> --: correct answer :--Fixed assets. Only fixed assets can be depreciated Homeowners have how many days from the date of completion to file a notice of completion --: correct answer :--15 On public projects, the contractor must pay his employees at what rate? --: correct answer :--Regular pay What are fixed costs in the construction business --: correct answer :--Rent, Managers salary What does the ceiling limit mean in tax --: correct answer :--Max tax that can be imposed What does the occurrence basis cover in liability insurance? --: correct answer :--After the insurance policy has expired, the contractor is still covered Occurrence basis means that as long as you had insurance during the time of the accident, you will be covered, even if the claim was filed after the expiration of the policy If an employee shows up 15 minutes late to work, what is the max amount of time the employer can deduct from wages? --: correct answer :--30 minutes Whats the max amount of time a minor can work on a school day? --: correct answer :--4 hrs It is recommended for a contractor to renew the contractors license bond when? --: correct answer :--30 days before it expires What costs are significant when bidding on public works projects --: correct answer :--wages Where would the mechanics lien be recorded --: correct answer :--county recorder office What's the difference between fixed costs and overhead costs --: correct answer :--Fixed costs fall under the overhead What is the first step that should be taken if you discover human remains or burial artifacts at any site other than a cemetary --: correct answer :--Stop immediately and contact the county coroner What is the most effective scheduling system --: correct answer :--Critical path method is the most effective. Calendar planner and bar chart are also applicable When the company ownership has changed, the collective bargaining agreement will be binding or effective for how long? --: correct answer :-- Will be binding until it expires If the area contains more than of asbestos, The contractor must obtain a permit from DOSH --: correct answer :--100 Complaints for non-serious violation must be investigated by DOSH within how many days --: correct answer :--14 Complaints for serious violation must be investigated within how many days? --: correct answer :--3 Emplooyer contractor must pay FUTA deposits how often? --: correct answer :--Quarterly If the customer does not pay his or her invoice on time, what do you do? --: correct answer :--Start charging interest If a license is revoked, how long until the licensee can obtain another license? --: correct answer :--1 year and then apply for an entirely new license Penal Code --: correct answer :--Deals with crimes, penalties, state prisons, county jails, criminal law procedures and apprehension of criminals in california Gov Code --: correct answer :--Laws regulating how different local and state gov agencies are to be organized and operated. Civil code --: correct answer :--Deals with relationships between people Criminal law --: correct answer :--deals with acts that are against society Bids for gov work fall under which code? --: correct answer :--Gov code Performance bond --: correct answer :--Guarantees the job will be completed according to the building plans and specifacations. If the work is unacceptable or the project is abandoned, the bonding company may chose another contractor to complete the wok or settle for damages Payment bond --: correct answer :--Guarantee to the owner that no liens for materials or labor will be filed against the property Contract bonds --: correct answer :--Guaantees both job completion and payment of all labor and materials Subletting and subcontracting fair prices act is also known as --: correct answer :--Listing laws - intended to prevent prime contractors from bid shopping and bid pending Bid shopping --: correct answer :--prime contractor discloses a subcontractors bid to other subcontractorsin an attempt to obtain a lower bid than the one in which it based its bid to the owner Bid peddling --: correct answer :--Subcontractor whose bid was not selected lowers its bid in an attempt to induce the prime contractor to substitute it for another subcontractor after the prime contractors bis has been awarded Listng laws apply to which projects? --: correct answer :--State and local public works projects insolvency --: correct answer :--State of not being able to pay debt Clerical error --: correct answer :--an error comitted by a secretary or assistant, often a distraction from what caused the actual error 4 components of a contract --: correct answer :--offer, acceptance, consideration, legality Which of the following requires a home improvement salesperson registration? A. RMO making outbound calls B. Contractor who negotiates contracts outside of their place of business C. Employee who negotiates a service and repair contract D. RME who goes door-to-door and negotiates contracts --: correct answer :- -C. Employee who negotiates a service and repair contract If a Responsible Managing Employee is fired from a company, how much time does the company get to replace the RME with another qualified individual? A. None B. 10 business days C. 90 days D. 1 year --: correct answer :--C. 90 days Which of the following statements is true regarding a Responsible Managing Employee? A. An RME must have a separate bond issued to accompany the licensee's bond B. An RME may have their own active individual license while qualifying for another active license C. An RME may qualify for up to four separate licenses D. An RME must own at least 10% of each business for which they serve as the qualifying individual --: correct answer :--A. An RME must have a separate bond issued to accompany the licensee's bond When is a licensed contractor subject to disciplinary action? A. When allowing their employees the use of the contractors license B. When allowing an unaffiliated unlicensed person the use of the license C. Signing contracts over $500 with a valid contractor's license D. When selling goods or negotiating contracts outside of the contractor's normal place of business --: correct answer :--B. When allowing an unaffiliated unlicensed person the use of the license What is the simplest way for a contractor to verify that a subcontractor has a valid contractor's license? A. Visit the CSLB website to verify the license status B. Ask for written documentation from the CSLB C. Inspect the pocket card for authenticity D. Contact the subcontractor's insurance company --: correct answer :--A. Visit the CSLB website to verify the license status Which of the following statements about advertising is correct? A. An unlicensed contractor may advertise for jobs after applying for a contractor's license. B. An unlicensed contractor may advertise for jobs if the advertisement states that they are unlicensed. C. A licensed general building or engineering contractor may not advertise as a "general contractor". D. All of the above --: correct answer :--B. An unlicensed contractor may advertise for jobs if the advertisement states that they are unlicensed. The contractor is given months to complete the application process and pass the examination. A. 3 B. 6 C. 12 D. 18 --: correct answer :--D. 18 A contractor held a contractor's license in California for five years. Which of the following states is not reciprocal with California? A. Arizona B. Oregon C. Nevada D. Utah --: correct answer :--B. Oregon Which of the following is a general building contractor NOT allowed to do? A. Perform specialty work only B. Perform carpentry work only C. Perform carpentry and two unrelated specialties D. Perform carpentry and three unrelated specialties --: correct answer :--A. Perform specialty work only An individual may qualify for as many as three separate licenses if they own at least of the equity of each business for which they serve as the qualifying individual. A. 10% B. 20% C. 40% D. 50% --: correct answer :--B. 20% Which of the following does not require a contractor's license? A. An owner/builder that remodels and sells their residence every six months B. Building contracts over $500 Which of the following individuals will be required to pass the qualifying examination to obtain a contractor's license? A. A person who currently is the qualifier on a license who is applying for a new license as a Responsible Managing Employee B. A person who passed the qualifying examination two years ago, but did not ever receive a license C. A person who is listed as a partner on a license for the past four years and has been engaged in that business' construction operations D. A person who was the Responsible Managing Employee for another license three years ago --: correct answer :--C. A person who is listed as a partner on a license for the past four years and has been engaged in that business' construction operations If a contractor is operating as a partnership and obtains a federal tax ID number, to whom should the contractor send the number? A. The Contractors State License Board B. The Employment Development Department C. No one, it is used only when filing the income tax D. All government agencies that the contractor deals with --: correct answer :--A. The Contractors State License Board If the CSLB determines that a contractor committed a serious violation, what is the penalty? A. Order the contractor to correct a project B. Require the contractor to make restitution to an injured party C. Civil penalty of up to $5,000 for violations by licensees and $15,000 for unlicensed contractors D. All of the above --: correct answer :--D. All of the above What is the penalty for the willful misclassification of individuals as independent contractors? A. No penalty, many construction firms do it B. $100 for the first offense, and $500 for the second or repeated offense C. Between $5,000 and $25,000 per violation D. The fines may exceed $50,000 --: correct answer :--C. Between $5,000 and $25,000 per violation Which of the following are grounds for disciplinary action by the CSLB? A. Not keeping construction project records for at least 5 years B. Abandoning the jobsite after 30 days of work C. Accepting a home improvement project down payment more than $1000 D. All of the above --: correct answer :--D. All of the above Which of the following circumstances means the cancellation of a license? A. Name of the qualifying individual has changed B. Address and telephone number has changed C. Death of the owner in an individual license D. All of the above --: correct answer :--C. Death of the owner in an individual license How many hours will an RME have to work in order to be qualifying individual? A. 12 hours per week or 51% of the operating time of the business, whichever is less B. 24 hours per week or 65% of the operating time of the business, whichever is less C. 32 hours per week or 80% of the operating time of the business, whichever is less D. 40 hours per week or 100% of the operating time of the business, whichever is less --: correct answer :--C. 32 hours per week or 80% of the operating time of the business, whichever is less Which of the following is not a requirement to renew a license? A. Repeat the open-book asbestos exam B. Return the renewal notice with the appropriate fees C. Be sure the contractor's bond is current and on file with the Contractors State License Board D. Notify the Registrar's office of the name of the worker's compensation insurance company if applicable --: correct answer :--A. Repeat the open- book asbestos exam The CSLB requires licensees to submit name change or address within days. A. 7 B. 14 C. 21 D. 90 --: correct answer :--D. 90 A four-person group obtains a contractor's license as a partnership. After five years one partner, who did not serve as the qualifying individual for the license, disassociates from the partnership. In this situation, which of the following segments is not correct? A. The partner who disassociates form the license may obtain their own individual license without passing the examination