Contractors Law Exam CA Practice Test 1 Questions and Answers (Latest Update 2023) Verifie, Exams of Nursing

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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 Answers ✅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- b. W- c. US- 99 d.N-14 - Correct Answers ✅a. I- By law, a "hard laborer" may not be younger than _____ years old. a. 14 b. 15 c. 16

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d. 17 - Correct Answers ✅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 Answers ✅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.

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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 Answers ✅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 Answers ✅d. owner, contractor, and joint control officer A contractor entered into a home improvement contract for more than $ 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. The down payment is limited to $1,000 or 10% of the total price, whichever is less.

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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. - Correct Answers ✅b. The down payment is limited to $1, or 10% of the total price, whichever is less. When should you let an attorney see a construction contract? a. Before you let your client see the contract. b. After the contract is prepared, but before you sign it. c. After the building permit is obtained. d. After the contract is signed by you and your client. - Correct Answers ✅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

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d. must be translated into English and notarized - Correct Answers ✅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 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 Answers ✅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 Answers ✅d. critical path method

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Who is responsible for checking the site before the building inspector arrives? a. contractor b. owner c. foreperson d. architect - Correct Answers ✅a. contractor 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 Answers ✅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.

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c. Do the additional work for free. d. Get the owner to sign a change order. - Correct Answers ✅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 Answers ✅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 Answers ✅d. office rent

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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 Answers ✅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 Answers ✅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

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b. 7 ..... 4 c. 10 .... 3 d. 11 .... 5 - Correct Answers ✅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 Answers ✅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

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d. employee falls off forklift and suffers a severe back injury - Correct Answers ✅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 Answers ✅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 Answers ✅c. 5 days

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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 Answers ✅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 Answers ✅d. umbrella

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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. c. In a civil action, John may use the defense that the injury was the result of the contributory negligence of his son. d. A civil action is not a possibility when the dispute involves a job-related injury, unless the employer is not insured for workers' compensaiton. The case would be handled by the Department of Industrial Relations. - Correct Answers ✅d. A civil action is not a possiblity when the dispute involves a job- related injury, unless the employer is not insured for workers' compensation.

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A prime contractor entered into a construction contract with a subcontractor. An employee of the subcontractor was injured, bu unfortunately, the subcontractor had not secured workers' compensation coverage. Which of the following statements best describes the situation, except in cased of fraud? a. The subcontractor is guilty, but the prime contactor is not responsible. b. The prime contractor is guilty, but the subcontractor is not responsible. c. Neither the prime contractor nor the subcontractor are responsible. d. The subcontractor is guilty, but the prime contractor must take responsibility for the injuries. - Correct Answers ✅d. The subcontractor is guilty, but the prime contractor must take responsibility for the injuries. Your accountant advises you to set up a cost management system. What does this system do? a. It gives a cost history to analyze labor and material costs. b. It shows where profits and losses are. c. It shows costs of materials only. d. It compares what others are charging for subcontracted work. - Correct Answers ✅a. It gives a cost history to analyze labor and material costs.

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An employee workd 60 hours in one week. If the hourly wage rate is $12, what are the gross wages? a. $ b. $ c. $ d. $1,080 - Correct Answers ✅b. $ Gross wages = Regular Time + Overtime Regular Time = 40 hrs x $12/hr = $ Overtime = 20 hrs x 1.5 x $12/hr = $ Gross Wages = $480 + $360 = $ A(n) _____ represents a company's financial position on a specified date. a. balance sheet b. income statement c. cash flow statement d. profit plan - Correct Answers ✅a. balance sheet

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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 Answers ✅d. income statement An employer must furnish an employee with a completed IRS Form W- (Wage and Tax Statement) by: a. January 1 b. January 31 c. April 15 d. the final day of employment - Correct Answers ✅b. January 31 Which of the following financial ratios is the strictest measure of liquidity? a. quick ratio b. current ratio c. profitability ratio

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d. leverage ratio - Correct Answers ✅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 Answers ✅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 Answers ✅b. Employment Development Department Who pays FICA? a. employer

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b. employee c. 50% employer and 50% employee d. 90% employer and 10% employee - Correct Answers ✅c. 50% employer and 50% employee How often are FICA taxes reported and paid? a. weekly b. monthly c. quarterly d. yearly - Correct Answers ✅c. quarterly Who pays FUTA? a. employer b. employee c. 50% employer and 50% employee d. 90% employer and 10% employee - Correct Answers ✅a. employer What happens after an employee's taxable wages exceed $7,000?

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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 Answers ✅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 Answers ✅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 Answers ✅d. Board of Equalization

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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 Answers ✅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 Answers ✅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%

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b. 1% - 2% c. 4% - 8% d. 10% - 12% - Correct Answers ✅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 Answers ✅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 Answers ✅b. contractor should do the best possible job of staying within the budget

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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 Answers ✅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 c. $43,383.37 d. $44,578.31 - Correct Answers ✅d. Sum of overhead and profit percentages = 12% + 5% = 17% Percent of selling price that is direct costs = 100% - 17% = 83% = .83 Selling price = $37,000 / .83 = $44,578.31 Direct costs = 44,578.31 x .83 = $37,000.00 Overhead = 44,578.31 x .12 = $ 5,349.40 Profit = 44,578.31 x .05 = $ 2,228.92

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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 Answers ✅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 Answers ✅d. Decline to bid on the work.

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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 Answers ✅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 Answers ✅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

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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 Answers ✅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 Answers ✅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

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c. four years d. five years - Correct Answers ✅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 Answers ✅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 Answers ✅c. $500 or more in labor and materials