Law & Business Test 1

Question 1

When are employees allowed to view their own personnel files?

Answer 1

When ever they request to view them.

Question 2

As required by the Immigration Reform and Control Act, all employees hired on or after November 6, 1986, must complete Form ___ to verify their employment eligibility status.

Answer 2

From I-9 must be completed by all employees, including U.S citizens.

Question 3

By law. a “hard laborer” may not be younger than ____ years old.

Answer 3

16

Question 4

The only reason an employer may lawfully deny employment is _____

Answer 4

No work experience or Social Security Number

Question 5

When conducting job interviews, may the contractor ask prospective employees about their arrest records?

Answer 5

It is NOT legal to ask prospective employees about arrests NOT leading to convictions.

Question 6

Who must sign a joint control addendum to a home improvement contract?

Answer 6

Owner, Contractor, and joint control officer.

Question 7

According to the Business and Professions Code, how much may the contractor accept as down payment for a job?

Answer 7

The down payment is limited to $1,000 or 10% of the total price, whichever is less.

Question 8

When should you let your attorney see a construction contract?

Answer 8

After the contract is prepared, but before it is signed by you and your client

Question 9

If a sales presentation is made in Spanish, the home solicitation contract:

Answer 9

Must be in the same language it was presented.

Question 10

If a client lawfully cancels a contract, how long does the contractor have to pick up unused material that were delivered to the client’s property?

Answer 10

Within 20 days after cancellation.

Question 11

____ is best for determining the number of hours required for different phases of a project and for making sure the job is on schedule.

Answer 11

Critical Path Method

Question 12

Who is responsible for checking the site before the building inspector arrives?

Answer 12

The contractor

Question 13

Who would ne held responsible if a contractor completes a project according to plans and later discovers that there is a building code violation?

Answer 13

Both the contractor and architect.

Question 14

After a job is completed, the owner decides to have additional work done. How should the contractor proceed?

Answer 14

Write a new contractor and ask the owner to sign it.

Question 15

You have been awarded a job. It requires two days for site preparation and one day for clean up. The contract involves two separate tasks. One lasting seven days and the other 10 days. If the two tasks can be done simultaneously, for how many days should you schedule the job?

Answer 15

13 days.

Question 16

For which of the following would you NOT obtain a short term loan?

A. wages
B. bid bond
C. job materials
D. office rent

Answer 16

Office rent. It is a fixed overhead expense. The rest are direct construction costs that may be financed for a particular project.

Question 17

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?

Answer 17

At least once every 10 working days.

Question 18

DOSH must investigate a complaint charging a serious violation of health or safety standards within :

Answer 18

Three working days.

Question 19

Every employer of _____ or more full- or part-time employees must keep written health and safety records for 5 years.

Answer 19

11

Question 20

If required safety devices are missing from tools, what should an employee do?

Answer 20

Notify the contractor, who is responsible for safety.

Question 21

Which would NOT have to be reported to DOSH immediately or within 24 hours?

A. Death from a 3 story fall
B. drunken crane operator hits a high voltage power-line
C. accident in which an employee steps into a public road, gets hit by a car, and suffers a concussion
D. employee falls off forklift and suffers a severe back injury

Answer 21

C

Question 22

When purchasing insurance, what is the best way to choose among different companies?

Answer 22

Cost & Coverage

Question 23

Insured employers must report every work related illness or injury to their workers’ compensation carrier within ____ of the incident.

Answer 23

5 days

Question 24

Your employee sets a cabinet wrong. The cabinet falls from the wall and damages the client’s countertop. What should you do?

Answer 24

Claim the damage on your general liability insurance policy.

Question 25

A contractor is looking for an insurance policy to cover a high degree of exposure to risk. Which policy would be best for this purpose?

Answer 25

Umbrella

Question 26

As a result of a fall Bart breaks his leg at work. The contractor is insured for worker’s compensation, but Bart wants to sue for negligence in a civil action. Can Bart proceed with the law suit?

Answer 26

A civil action law suit is not possible when the dispute involves a job related injury, unless the employer is not insured for worker’s compensation.

Question 27

A prime contractor entered into a construction contract with a subcontractor. An employee of the subcontractor was injured, but the subcontractor had no secured works compensation. Who is guilty and responsible for the injury?

Answer 27

The sub contractor is guilty but the prime contractor must take responsibility for the injury.

Question 28

What does a cost management system do?

Answer 28

It gives a cost history to analyze labor, material, and overhead costs.

Question 29

An employee works 60 hours in one week. If the hourly wage is $18, what are the gross wages?

Answer 29

Gross wages = Regular time + overtime
regular time = 40hr x $18/hr =$720
overtime = $720 + $540 = $1,260

Question 30

A(n) _____ summarizes revenues, cost of sales, and operating expenses over a period of time.

Answer 30

Balance Sheet