CSLB Contractors Law practice test

CSLB Contractor's Law practice test Part 2

When should you let your attorney see a construction contract?

• Before you let the client see the contract
• After the contract is prepared but before you sign it
• After the building permit is obtained
• After the contract is signed by you and the client

(Ans- B. After the contract is prepared but before you sign it

Which is the most correct statement as to what must be included in every home improvement contract?

• Notice of right to cancel
• Contractor's license number
• Truth-in-lending notice
• Name of the project

(Ans- B. Contractor's license number

Which is NOT required on a home improvement contract?

• A notice, in at least 10 point print, in close proximity to the signature,

and a statement that the owner has a right to require a performance and payment bond

• The name and home address of all the personnel listed on the license
• An approximate date when work will begin and be substantially

completed

• A description of the work to be done and materials and equipment to be

used or installed (Ans- B. The name and home address of all the personnel listed on the license. Know that A, C and D are required. Only the contractor's name, address and license number are required.

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When a home improvement contract is signed, the contractor must substantially begin work within ____ days of the date specified in the contract?

• 5
• 10
• 15
• 20 (Ans- D. 20

Which is true concerning home improvement sales persons?

• They must register with the Registrar's office and may work for only one

contractor at a time

• Anyone who sells home improvement contracts for a licensed contractor

outside the contractor's normal place of business is required to be registered with the Attorney General's office

• They must be at least 18 years of age. There are no residency or

educational requirements

• They may begin to negotiate home improvement contracts as soon as

they have filled out the appropriate application and paid the required fees (Ans-

• They must be at least 18 years of age. There are no residency or

educational requirements - must register for "each" contractor with the Registrar and receive a registration number first

Judy, a contractor, employs Sam as her registered home improvement salesperson. Sam meets with Mr. And Mrs. Jones and negotiates home improvement work that totals $350. When Sam returns to his boss and tells her of the verbal contract, his employer says she will not work for the

contracted price. The Contractor's License Law states:

• The contractor is required by law to abide by the verbal agreement

since verbal home improvement contracts under $500 are binding

• The contractor is not bound by a verbal agreement
• The contractor may cancel a home improvement contract that she did

not negotiate

• The contractor is not bound by the contract since all home improvement

contracts must be in writing

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