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Utah Contractor Exam Real Estate
A cancellation of contract happens: a. When the buyer's agent informs the seller of the buyer's intention not to be bound by contract b. When the buyer tenders written notice of cancellation to the seller at the contracts specified address c. At the instant the buyer calls the seller d. When the contract is lost - Correct Answer-B ... Explanation: When the buyer tenders written notice of cancellation to the seller at the contracts address. Once I submit my application, can I work until I get my license from DOPL? a. Yes b. No c. Only if the projects do not exceed $10, d. Only if the projects do not exceed $50,000 - Correct Answer-B ... Explanation: No. Applicants must wait until the application is processed and the license is issued to begin If a subcontractor signs an unconditional waiver and release, this would imply that a: a. Subcontractor cannot ask anything more of the owner b. Owner cannot ask anything more of the subcontractor c. Subcontractor cannot get anything from the prime d. Subcontractor cannot ask anything more of the prime - Correct Answer-A ... Explanation: Once the subcontractor signs an unconditional waiver and release, the subcontractor cannot ask anything more of the owner. Any applicant who has been denied a license to practice on the basis of credentials, or failure to pass a required examination, may submit a request for agency review to the executive director ____ following notification of the denial of a license or refusal to renew or reinstate a license. a. Within 10 days b. Within 20 days c. Within 30 days d. Within 60 days - Correct Answer-5. C ... Explanation: Any applicant who has been denied a license to practice on the basis of credentials, character, or failure to pass a required examination, or who has been refused renewal or reinstatement of a license to practice on the basis that the applicant does not meet qualifications for continued licensure in any occupation or profession under the jurisdiction of the division may submit a request for agency review to the executive director within 30 days following notification of the denial of a license or refusal to renew or reinstate a license.
What should a contractor do if after starting a home improvement project the contractor discovers that the details and specifications do NOT correctly show the existing construction? a. Stop and work on a correction b. Stop the job and inform the owner or his agent c. Continue the work if variations are only minor d. Stop the job and inform the Building Department - Correct Answer-B ... Explanation: Any details and specifications are not represented correctly then it is the contractor's duty to inform the owner or his agent. Keeping good accounting records is important for: a. Maintaining financial statements b. Obtaining financing c. Effective management d. All of the above - Correct Answer-D ... Explanation: Effective management, maintaining financial statements and obtaining proper financing are all the result of keeping good accounting records.
- The promise by a party called the guarantor to make good the mistake, debt, or default of another party found in the construction contract law is called: a. Surety b. Guarantee c. Warrantee d. Agreement - Correct Answer-B ... Explanation: Guarantee.
- The plans and specifications of a home improvement project usually describe: a. Layout sizes b. Liquidated damages c. Consent to arbitrate d. Neighborhood regulations - Correct Answer-9. A ... Explanation: Layout sizes are usually described in plans and specifications of home improvement projects. Depreciation is taken on which of the company's assets? a. Loans b. Current assets c. Fixed assets d. None of the above - Correct Answer-C ... Explanation: Depreciation is counted from fixed assets. A private employer who employs __ or more people as of July 1, 2010, may not hire a new employee unless the employer is registered with and uses a status verification system such as E - Verify to verify the federal legal working status of any new employee. a. 5 b. 10 c. 15
b. A list of all the owners of the company c. The contractor's license number d. The company's address - Correct Answer-C ... Explanation: A contractor's license number should be presented when advertising for legitimacy purposes. Which type of specification is most commonly used for public work? a. Bidder's choice b. Restricted c. Closed d. Open - Correct Answer-D ... Explanation: Open. ______ you pass the state required exams, all applicants must complete the required application to obtain a contractor license. The contractor application consists of numerous pages of information you must fill out completely and correctly or you will be denied a license. a. After b. Before c. Both A and B d. None of the above - Correct Answer-A ... Explanation: After you pass the state required exams, all applicants must complete the required application to obtain a contractor license. The contractor application consists of numerous pages of information you must fill out completely and correctly or you will be denied a license. The best way to determine if a contractor is duly licensed? a. Ask the contractor if he is licensed b. Look at the contractor's pocket license c. Ask to see the contractor's license bond d. Call the Utah Department of Professional Licensing - Correct Answer-D ... Explanation: The Utah Department of Professional Licensing has records of all licensed construction personnel and is the best place to see if someone is licensed. A ___________ is needed if an owner wants a contractor to start earlier before the formalities associated with the signing of the contract can be completed. a. Writ of mediation b. Proviso of estoppel c. Escape clause d. Letter of intent - Correct Answer-D ... Explanation: A new contract specifying the new time or a letter of intent can be written if the owner wants the contractor to start work earlier than the indicated time. _____ your application is submitted to the D.O.P.L. you must purchase the required public liability insurance. a. After b. Before c. Both A and B
d. None of the above - Correct Answer-B ... Explanation: Before your application is submitted to the D.O.P.L. you must purchase the required public liability insurance. Which can be said about fixed expenses? a. Overhead is generally considered a fixed expense b. Fixed expenses vary over time c. Direct labor is generally considered a fixed expense d. Fixed expenses usually amount to less than 10% of total expenses - Correct Answer- A ... Explanation: In this case a fixed expense is considered to be overhead costs. One way of guaranteeing project completion and correction of defects is by withholding funds which is also called: a. Stipulation b. Retention c. Umbrage d. Remainder - Correct Answer-B ... Explanation: Retention is the process of not paying in order for the project to be completed. _________ defines the total financial resources available to the contractor. a. Accounting losses b. Positive financial Ratios c. Capitalization d. Equity - Correct Answer-D ... Explanation: Equity defines the total financial resources to the contractor. When doing several prime contracts in a construction project, the limits of each prime contract will usually be established in the: a. Bidding requirements b. Agreement c. General conditions d. Specifications - Correct Answer-D ... Explanation: The specifications usually establish limits in the prime contract. My license was up for renewal, but it expired. Why wasn't I contacted? a. It is the licensee responsibility to provide current and up to date contact information b. All licenses are automatically renewed c. You failed to request the application for renewal d. All of the above - Correct Answer-A ... Explanation: Approximately two months before the expiration date of the license, DOPL sends out one notice of license renewal to every licensee holding an active license. These notices are mailed to each licensee at the address of record as submitted to DOPL by the licensee. If you fail to notify DOPL directly of a change in mailing address, there is no guarantee that the notice of renewal will reach you. It is your responsibility, as a licensee, to maintain a current address with DOPL and to make sure that the license is renewed before the expiration date. If your address is incorrect, you will not receive renewal notices or other correspondence.
d. Until the working hazard is resolved - Correct Answer-D ... Explanation: OSHA has the power to stop work until all unsafe or hazardous working conditions are resolved. As a safety precaution, how many feet should there be between explosives and electrical wiring? a. 25 feet b. 50 feet c. 100 feet d. 500 feet - Correct Answer-A ... Explanation: 25 feet minimum. If a homeowner requests that the contractor to obtain a payment and performance bond, the Owner is wanting coverage for: a. Materials, labor and supplies b. Equipment, tools and supplies c. Personal injury, overhead and equipment d. Property damage, personal injury and acts of God - Correct Answer-A ... Explanation: A payment and performance bond is a surety bond that ensures that the contractor completes his work. In this case, it is coverage for materials, labor and supplies. Written reports are required to be written by employer in case of which job related injury? a. An injury requiring just first aid b. An injury requiring medical attention beyond first aid c. If the employee is required to return to work after the injury d. All of the above - Correct Answer-D ... Explanation: The employer is required to write a report for injuries that require first aid, injuries beyond the requirement of first aid and if the employee is required to return to work after their injury. The term for the written documents which describe the rights, responsibilities, and relationships of the contracting parties is called: a. Specifications b. Standard documents c. General conditions d. Contract documents - Correct Answer-C ... Explanation: General conditions. The DOPL has authority to enforce the: a. Contractor's warranties b. Manufacturer's warranties c. Lender's rates of interest d. Consumer's change of plans - Correct Answer-A ... Explanation: The DOPL can enforce contractor's warranties. A minor must be paid what percentage of the normal wage? a. 80% b. 90% c. 100%
d. 110% - Correct Answer-C ... Explanation: All employees must be treated equally and must be paid for the job they perform. You are allowed to take the contractor license exam ______ times before your original application is voided. a. An unlimited number b. Ten c. Three d. As many times as necessary within 18 months - Correct Answer-C ... Explanation: Candidates must wait 30 days before retaking the examination they did not pass. Candidates are allowed 3 attempts to pass each examination. After 3 failed attempts, they must wait 6 months before retaking the examination they did not pass. How long can a licensed contractor be liable for latent defects? a. 2 years b. 4 years c. 5 years d. 10 years - Correct Answer-D ... Explanation: A contractor can be liable for 10 years for latent defects. When dealing with a public works project, a stop notice is used to: a. Stop all payments to the prime contractor until the subcontractors are paid b. Lien the property c. Withhold sufficient money from the prime contractor to pay the subcontractors who file stop notices d. Stop all construction activity on a particular job - Correct Answer-C ... Explanation: A stop notice withholds sufficient money from a prime contractor to pay the subcontractors who file the stop notice. The acceptance period in the bidding process of construction projects is a period of______ days. a. 90 b. 60 c. 30 d. 10 - Correct Answer-C ... Explanation: 30 days. If asbestos is found in a home improvement project, the responsible party for the abatement is: a. Homeowner b. Contractor c. City inspector d. Department of Building Safety - Correct Answer-A ... Explanation: The homeowner is responsible to hire a licensed individual to remove asbestos from the property. Prime contractor and a subcontractor have what kind of relationship? a. Employer-employee
c. For an interstate dispute d. All of the above - Correct Answer-D ... Explanation: A district court handles, interstate disputes, constitutional issues, and federal law cases. A sole proprietorship has how many members running the company? a. 1 b. 2 c. 3 d. 4 or more - Correct Answer-A ... Explanation: A sole proprietorship has one managing member. A sole proprietorship has how many members running the company? a. 1 b. 2 c. 3 d. 4 or more - Correct Answer-A ... Explanation: A sole proprietorship has one managing member. Which act establishes the rights of workers to organize into unions and negotiate contracts? a. Civil Rights Act of 1964 b. Civil Right Act of 1962 c. Civil Right Act of 1984 d. National Labor Relations Act of 1935 - Correct Answer-D ... Explanation: National Labor Relations Act of 1935. If a home solicitation contract is signed on Thursday afternoon, what is the deadline for cancellation? a. Sunday midnight b. Monday midnight c. Tuesday midnight d. Wednesday midnight - Correct Answer-B ... Explanation: The deadline for cancellation of a home solicitation contract is three business days and in this case Monday midnight is the answer. What is the purpose of OSHA? a. Adopts safety and health laws and standards b. Helps employers voluntarily follow safety and health laws and standards c. Makes decisions on appeals of citations for safety and health violations d. Issues permits and registers contractors who do asbestos-related work - Correct Answer-B ... Explanation: The purpose of OSHA is to help employers follow safety and health laws and standards. Do I need to keep paying for liability insurance, maintain financial responsibility, etc. for my license while I am not actively contracting? a. Yes
b. No c. Only if the bids exceed $10, d. Only if the bids exceed $50,000 - Correct Answer-A ... Explanation: Yes. Utah law requires that every active contractor license must maintain general liability insurance and financial responsibility. Only inactive licenses are exempt from these requirements. You must report FICA any withheld income tax (Form 941) every: a. Month b. Two months c. Three months d. Four months - Correct Answer-C ... Explanation: Three months. The best way to reduce insurance cost without reducing risk is to: a. Compare premiums and coverage yearly b. Decrease the coverage c. Increase the deductible d. Get a policy for overlapping coverage - Correct Answer-A ... Explanation: Compare premiums and coverage yearly. Which of the following is least likely to result in a claim dispute between the contractor and an owner? a. Rejection of or equal substitutions b. Acceleration c. Change conditions d. Rejection of sub-contractor - Correct Answer-D ... Explanation: Rejection of a sub- contractor. Which of the following is least likely to result in a claim dispute between the contractor and an owner? a. Rejection of or equal substitutions b. Acceleration c. Change conditions d. Rejection of sub-contractor - Correct Answer-D ... Explanation: Rejection of a sub- contractor. Which of the following payroll taxes does not have a limit? a. FUTA b. FIT c. FICA d. SDI - Correct Answer-B ... Explanation: FIT (Federal Income Tax) Which of the following payroll taxes does not have a limit? a. FUTA b. FIT c. FICA d. SDI - Correct Answer-B ... Explanation: FIT (Federal Income Tax)
a. A supplier must deliver material to the job site in order for a mechanics' lien to be valid b. The prime contractor is responsible for the debt stated in the lien c. The owner is responsible for the debt stated in the lien d. A supplier does not have a right to a mechanics' lien - Correct Answer-C ... Explanation: In a mechanics' lien, the owner is responsible for the debt stated in the lien. Who usually pays for your pre-employment physical? a. Workers compensation insurer b. Employer c. Employee d. None of the above - Correct Answer-B ... Explanation: The employer. Can I inactivate my professional license? a. Yes b. No, never c. Only if you're an out-of-state contractor d. None of the above - Correct Answer-A ... Explanation: Inactive status is available if the license is active and in good standing. You must apply for this status by application and pay the applicable processing fees. It is important to note that for inactive licenses, the license holder must continue to pay renewal fees and meet other criteria. Contact DOPL for more information and the specific requirements. Of the following, which is the best way to determine if more materials must be ordered? a. Compare the present inventory to the inventory for last year b. Walk the job c. Ask a supervisor d. Compare material lists for similar jobs - Correct Answer-D ... Explanation: Comparing material lists for similar jobs. Specifications in construction contracts written without reference to brand names or proprietary makes, are known as ______ specifications. a. Alternate listing b. Bidder's choice c. Base bid d. Open - Correct Answer-C ... Explanation: Base bid specifications lists or describes materials, equipment and methods of construction upon which the base bid must be established. The person responsible for keeping records of changes on jobs is: a. The general contractor b. The project manager c. The subcontractor d. The supervisor - Correct Answer-A ... Explanation: The general contractor.
If a client continues to request change orders, you should: a. Charge administrative fees b. Collect change order costs as you go c. Not proceed until your client has signed each change order d. All of the above - Correct Answer-D ... Explanation: All of the above are correct. The phrase _______ is considered potentially troublesome in construction specifications. a. Or equal b. Guaranteed c. Free of defect d. Contractor shall - Correct Answer-A ... Explanation: "Or Equal." Which of the following statements is correct? A contractor discovers a serious code violation on an approved set of plans: a. Work must stop until the contractor reports the violation and has the plans corrected b. Work may continue if the contractor files a notice of non-responsibility c. Work may continue because it was approved by the authorized agencies d. Work must stop until a new set of plans is submitted - Correct Answer-A ... Explanation: If there are code violations on plans then the contractor must report the violations and have the plans corrected. What is the purpose of the following statement in a contract? "THE AGENT IS LIABLE FOR FINAL PAYMENT." a. The agent is responsible for final payment b. The owner is responsible for final payment c. The owner and the agent are responsible for final payment - Correct Answer-A ... Explanation: The agent is responsible for final payment. The Utah Division of Occupational and Professional Licensing will accept certain examinations an equivalent substitute for the Utah trade classification examinations required if taken in one the following states. a. Arizona, California, Nevada, Louisiana, South Carolina b. Texas, North Carolina, Florida c. Idaho, Colorado, Nebraska d. New Mexico, Virginia, West Virginia - Correct Answer-A ... Explanation: The Utah Division of Occupational and Professional Licensing will accept certain examinations an equivalent substitute for the Utah trade classification examinations required if taken in one the following states: Arizona California Louisiana Nevada South Carolina. The most accurate method of accounting is: a. Cash b. Single entry c. Double entry d. Accrual - Correct Answer-D ... Explanation: Accrual accounting is considered to be more accurate.
b. 20 employees or less c. 30 employees or less d. When the business is family operated - Correct Answer-A ... Explanation: 10 employees or less. An employer is not required to keep written health records for: a. 10 employees or less b. 20 employees or less c. 30 employees or less d. When the business is family operated - Correct Answer-A ... Explanation: 10 employees or less. The specification referring to a standard established for either a material, a test method, or an insulation procedure is called a ________. a. Reference b. Performance c. Descriptive d. Propriety - Correct Answer-A ... Explanation: A reference. Which of these is classified as a job-related direct cost? a. Trade Association membership b. Contractor's license fee c. Performance bond d. Office rent - Correct Answer-C ... Explanation: A performance bond is considered to be a job-related direct cost. If a contract is made between a contractor and an unlicensed person who is in violation of the law? a. The contractor b. Both the contractor and the unlicensed person c. The unlicensed person d. Only the unlicensed person if he didn't notify the contractor - Correct Answer-B ... Explanation: Both parties involved are in violation of the law. Under the terms found in a typical construction project, the contractor is usually to held to guarantee that the completed project: a. Is free of defects and design b. Will accomplish the intended purpose c. Is guaranteed a certain amount of time d. Has been executed with the quality of workmanship and materials specified in the contract documents - Correct Answer-D ... Explanation: The completed project has been executed with the quality of workmanship and materials specified in the contract documents. Form 941 must be submitted how often? a. Weekly
b. Monthly c. Quarterly d. Annually - Correct Answer-C ... Explanation: Quarterly. Page: 7- 3 After an employee is terminated, how long should a company maintain the employee's time card? a. One year b. Two years c. Three years d. Four years - Correct Answer-A ... Explanation: 1 year. If a contractor finds 8" discrepancy on a set of plans the contractor should: a. Contact the architect or building designer b. Contact the owner c. Make the correction d. Ignore the discrepancy because it is minor - Correct Answer-A ... Explanation: Contact the architect or building designer. Overtime laws are considered to be: a. Federal laws b. State laws c. Local laws d. All of the above - Correct Answer-A ... Explanation: Overtime laws are considered to be Federal laws. Which of the following is NOT by itself an acceptable form of documentation for filling out an I-9 form? a. Social Security card b. Green card c. U.S. passport d. Certificate of United States citizenship - Correct Answer-A ... Explanation: The employer is required two appropriate documents to prove identification. Forms of identification are listed on page 3 of the document. In writing construction specifications, each of the following performance characteristics is associated with compatibility EXCEPT: a. Galvanic interaction b. Differential thermal movement c. Dimensional stability d. Chemical interaction - Correct Answer-C ... Explanation: Dimensional stability. When should a contractor accept a job where the owner does not have a pre-approved loan?
d. 3 or more - Correct Answer-B ... Explanation: An employer must have compensation insurance if he/she has one or more employees. The most important aspect to consider when bidding is: a. Profit b. Materials c. Labor d. Overhead - Correct Answer-A ... Explanation: Profit determines your earnings on a project and is important when bidding. What does the acronym GAAP signify is accounting? a. General Accounting Association Party b. Good Accounting Association Philosophies c. Generally Accepted Asset Principles d. Generally Accepted Accounting Principles - Correct Answer-D ... Explanation: Generally Accepted Accounting Principles (GAAP). A payment bond would be posted by the: a. Prime contractor or property owner b. Prime contractor or subcontractor c. Subcontractor or material supplier d. Property owner or material supplier - Correct Answer-B ... Explanation: The prime contractor or subcontractor can post a payment bond. Construction documents must be prepared by: a. A construction worker b. The building official c. An artist d. A registered design professional - Correct Answer-D ... Explanation: A registered design professional is authorized to prepare construction documents. A payment bond guarantees that the bonding company will pay valid claims for unpaid bills owed by the _______ posting the bond. a. Prime contractor or subcontractor b. Subcontractor or material supplier c. Prime contractor or property owner d. Property owner or material supplier - Correct Answer-A ... Explanation: Prime contractor or subcontractor. Before the completion of work the person who authorizes a temporary certificate of ___________ is the building official. a. Property b. Ownership c. Occupancy d. Possession - Correct Answer-C ... Explanation: The building official may provide a temporary certificate of occupancy before completion of a job.
Division of Occupational & Professional Licensing ______ issue a temporary license to a person who has met all license requirements except the passing of an examination. a. May b. May not c. Only if the applicant has failed their examination d. None of the above - Correct Answer-A ... Explanation: The division may issue a temporary license to a person who has met all license requirements except the passing of an examination. What must a contractor do to prevent cash flow problems at the end of a construction project? a. Obtain a line of credit from a bank b. Order all materials before beginning work c. Seriously consider changing the payment schedule d. Ask the owner to make payments before they are due - Correct Answer-A ... Explanation: A line of credit helps prevent money problems at the end of a construction project. What does the W-2 form cover? a. Earnings only b. FICA only c. Earnings, taxes withheld, FICA d. FICA and earnings only - Correct Answer-C ... Explanation: The W-2 form reports what your employees have earned and what taxes were withheld from their paychecks. It will also report on the Federal Insurance Contributions Act tax (the Social Security tax). Success or failure of a business depends largely upon: a. Pay b. Proper Human Resource management c. Extra pay for executives d. Overtime pay - Correct Answer-C ... Explanation: Proper Human Resource Management will allow the workplace to function efficiently getting all construction projects and accounting records done in a very timely manner. State disability and income taxes must be: a. Reported yearly and paid yearly b. Reported and paid quarterly c. Reported and paid monthly d. Reported yearly and paid quarterly - Correct Answer-B ... Explanation: Every quarter you must report state disability taxes. The only reason an employer can lawfully deny employment is _____. a. No work experience or social security number b. The employee looks too old
