Contractors Law Exam CA Practice Test 1: Questions and Answers, Exams of Law

Download Contractors Law Exam CA Practice Test 1: Questions and Answers and more Exams Law in PDF only on Docsity! Contractors Law Exam CA Practice Test 1 questions with correct answers 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. 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. You have been awarded a job. It requires two days for site preparation and one day for clean-up. The contract involves two seaparate tasks - one lasting 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. b. income statement 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 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 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? Total = $44,578.32 What is the most likely reason to lose a bid? a. 10% added to profit b. vague specifications c. prices from subs were not exact d. costs of materials were not obtained CORRECT ANSWER b. vague specifications You are bidding 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. CORRECT ANSWER d. Decline to bid on the work. 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 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. 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 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? 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 d. 1990 CORRECT ANSWER b. 1978 The supplier of a potentially hazardous product must be able to provide a(n) ____ with that product. a. Material Safety Data Sheet b. Certificate for Use c. Injury Illness and Prevention Program d. Hazard Evaluation System Information Services bulletin CORRECT ANSWER a. Material Safety Data Sheet Is it legal for a contractor to require employees to take lie detector tests? a. It is not legal for the contractor to require lie detector tests, but it would be legal for a federal, state, or local public agency to require lie detector tests of their employees. b. It is not legal for any employer to require lie detector tests. c. It is only legal for the contractor to require lie detector tests of employees who have criminal records. d. It is legal for the contractor to require lie detector tests, but it would not be legal for a federal, state, or local public agency to do so. CORRECT ANSWER a. It is not legal for the contractor to require lie detector tests, but it would be legal for a federal, state, or local public agency to require lie detector tests of their employees. Sometimes contracts can prove to be too vague to interpret without disagreement between owner and contractor. Which of the following steps would best prevent such problems? a. Walk the job site with the owner. b. Review the plans and specifications with the owner. c. Show the owner the critical path schedule. d. Include a payment schedule in the contract and review other details of the contract with the owner. CORRECT ANSWER b. Review the plans and specifications with the owner. Funds withheld to guarantee completion of a project and correction of defects are called a(n): a. remainder b. umbrage 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. 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 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. 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 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. b. Find out the name of the legal owner of the property as well as the percent of ownership. c. List the attorney representing the contractor. d. List the attorney representing the owner. CORRECT ANSWER b. Find out the name of the legal owner of the property as well as the percent of ownership. When a notice of completion has been filed, the original contractor has ______ days to record a lien. a. 20 b. 30 c. 60 d. 90 CORRECT ANSWER c. 60 days 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 CORRECT ANSWER b. 30 days 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. CORRECT ANSWER b. the subcontractor gives up the right to lien the construction funds. 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 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. 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? 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