CSLB Practice Law B: Questions &
Answers
A subcontractor or material supplier has _____ days to file a lien once a notice of completion has been recorded.(Ans- 30
How must a client submit a claim for service or repair of a defect on fit and finish items after a remodel?(Ans- By certified mail
By overnight mail
By personal delivery
A contractor meets Mr. Jones at his home to discuss remodeling. The contractor and Mr. Jones sign a contract 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?(Ans- Yes. Mr. Jones' letter does cancel the contract because it indicates his intention not to be bound by the contract.
If a contractor forgets to renew his or her license on time, the expired license may be renewed any time within _____ after its expiration without reapplying for a license and fulfilling the exam or waiver requirements again.(Ans- Five years
- / 3
You are the qualifier for an active contractor's license. How do you inactivate the license?(Ans- Write to the CSLB, requesting that the license be made inactive.
When a subcontractor does work on a public works contract, the public
agency considers the subcontractor to be:
(Ans- a subcontractor of the prime contractor
A contractor hires a subcontractor to demolish a concrete wall. Who is responsible for supplying safety goggles?(Ans- subcontractor
Sometimes contracts prove to be too vague to interpret without disagreement between owner and contractor. Which of the following steps would best prevent such problems?(Ans- Review the plans and specifications with the owner.
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?(Ans- umbrella
To whom do you report and pay sales tax?(Ans- Board of Equalization
The federal Employer Identification Number (EIN) is issued by the:
(Ans- Internal Revenue Service
When purchasing insurance, what is the best way to choose among different companies?(Ans- cost and coverage
- / 3
As required by the Immigration Reform and Control Act, all employees hired on or after November 7, 1986 must complete Form _____ to verify their employment eligibility status.(Ans- I-9
If required safety devices are missing from tools, what should an employee do?(Ans- Notify the contractor, who is responsible for safety.
Of the following, which document is usually delivered first in a transaction involving a home improvement contract?(Ans- "Notice to Owner"
Who is ultimately responsible for seeing that safety equipment is actually put to use on the jobsite?(Ans- contractor
A mechanics' 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?(Ans- Find out the name of the legal owner of the property as well as the percent of ownership.
A(n) _____ represents a company's financial position on a specified date.(Ans- balance sheet
When you get an approved set of plans, what should you do first?(Ans- Read any notes from the building department.
When bidding on work, which of the following would you NOT include in the price of your bid?(Ans- worker's compensation insurance premium
- / 3