Law and Business Test 1 Flashcards
A contractor forgot to renew a contractor’s license on time. He or she may renew the expired license anytime within ______ after its expiration date without reapplying for the license and fulfilling the exam or waiver request again.
5 years
What is the minimum fine for unlawful asbestos removal?
$1,000.00
To whom do you pay sales tax receipts?
State Board of Equalization
How long is the patent warrant?
4 years
How long is the latent warrant?
10 years
Account Receivable contains?
Retention
What is considered a fixed cost to a contractor?
Office Rent or a fixed amount that is usually due monthly.
What is considered a variable cost to a contractor?
Construction material or office supplies or costs that may vary.
To whom does the employer pay FUTA?
FUTA is a Federal Unemployment Tax and is made payable to IRS (Internal Revenue Service).
If a home solicitation presentation is made in Spanish, the home solicitation contract must be written in….?
Spanish
Who must pay for a pre-employment physical?
Employer
When should contractors renew their license?
Every two years
What is the overtime pay rate after 8 hours of work?
1.5 times the current rate
Who pays FICA?
50% employer and 50% employee
FICA also known as Social Security Tax
Which of the following should be included in a change order form?
Reason for change
What is the benefit of arbitration over litigation?
The cost of arbitration is cheaper than litigation
A contractor must be licensed when the total bid is over what amount?
$500
The Federal Employer Identification Number is issued by the:
Internal Revenue Service (All Federal numbers are issued by Federal agencies).
In small claims court you cannot be presented by an attorney. True or False?
True
Who publishes the material safety data sheet?
Manufacturer
The notice of cessation is filed after labor has ceased for…?
30 days
What is the maximum value of a gift which the home improvement sales person can give to a potential customer?
$5.00
Which of the following groups are not covered by DOSH? A. State employees B. Federal Employees C. County Employees D. Private Employees
Federal Employees (DOSH is a state agency and only covers groups within the State).
What is the maximum limit on a small claims court in California?
$7,500
Who must sign and date the contract?
The client and the contractor
After the lien is filed, what must the claimant do?
Take the lien to court in order to obtain a judgement against the property.
What is the purpose of the Mechanic’s Lien?
It encumbers the owners property as security until the bill is paid.
ABC company buys XYZ company. XYZ had just signed a three year collective bargaining agreement with a labor organization that contained a successor clause. Can ABC change the collective bargaining agreement?
ABC may not make any changes until the collective bargaining agreement expires in three years from when the previous owner signed the agreement.
What information is needed on a time card according to the Fair Labor Standard Act?
Social Security Number
Employees are not required to learn which of the following?
A. Their Job
B. How to conduct tailgate safety meetings
C. The safety procedures
D. All of the above
How to conduct tailgate safety meetings
In a construction business who is responsible for training a new employee?
The contractor
How many days does a subcontractor or supplier have to file a Mechanic’s Lien once a notice of completion has been recorded?
30 days (60 days for a prime contractor)
The “Notice to Owner” is given to…?
Let the owner know that the property can be liened.
An active contractor’s license is issued on January 7, 2012. On what date will the license expire?
January 31, 2014 (The license expires after two years at the end of the month).
Depreciation appears on the balance sheet as part of the…?
Fixed asset section
A notice of completion must be recorded within:
10 days after work is completed
The contractor cannot determine _________ without going to the job site.
The location of the electrical source
When a contractor loses money on a job, the contractor should investigate an important estimating system, trimming labor cost or using material more effectively. Which of the following is the best way to determine the sources of the information?
A. Cut down on the advertising cost
B. Cut down labor cost
C. Substitute the construction material with the cheaper material
D. Comparing the job cost record to the budget
Comparing the job cost record to the budget
What are the fixed costs in the construction business?
Expenses such as rent, managers salary, etc.
What does the ceiling limit mean in tax?
When it reached to ceiling limit the deduction will be the same.
What is the overtime pay rate after 12 hours per day?
2 times the rate
In liability insurance what does the occurrence basis mean?
After the insurance policy has expired, the claim will be covered. If you had an insurance policy when the accident occurred you will be covered, even if the claim is filed after the insurance policy as expired.
If an employee comes to work 20 minutes late how much time can an employer deduct from the wages?
Up to 30 minutes
What is the maximum number of hours a minor can work per day proceeding a school day?
4 hours
When should a contractor renew the contractor’s license bond?
30 days before it expires
When writing a home solicitation contract, the buyer signs the contract at a place other than the contractor’s place of business, what form must be included with the contract?
Notice of cancellation