Law test Flashcards
How long does a client have to cencel a contract for repairs that resulted from an event which a State of Emergency was declared
a) 5 business days
b) 5 calendar days
c) 7 business days
d) 7 calendar days
7 business days
Which of the following is considered a direct cost
a) office personnel
b) monthly rent for construction office
c) insurance policies
d) field superintendent
field superintendent
Why?
Direct costs are the expenses a business incurs that can be directly tied to the production of a good or the provision of a service
A, b and c are indirect cost
When may a client cancel a service and repair contract
a) when the repair or service is under $750
b) within 3 days of signing the contract
c) before the contractor starts work
d) at any time if the contract was initiated by the client
before the contractor starts work
When a subcontractor does work on a public works contract, the public agency considers the subcontractor to be
a) an employee of the agency
b) a subcontractor of the agency
c) an employee of the prime contractor
d) a subcontractor of the contractor
an employee of the prime contractor
DOSH must investigate a complaint charging a serious violation of health or safety standards within
a) one working day
b) two working days
c) three working days
d) five calendar days
three working days
non serious violations within 14 calendar days
Insured employers must report ever work related illness or injury to their workers’ compensation carrier with in _____ of the incident
a) 24 hours
b) 2 days
c) 5 days
d) 10 days
5 days
Which of the following financial ratios is the strictest measure of liquidity
a) quick ratio
b) current ratio
c) profitability ratio
c) leverage ratio
quick ratio (acid test)
An employer remit State income tax and state disability taxes withheld from an employee’s wage to the
a) Internal revenue service
b) Employment Development Department
c) Frachise Tax Board
d) Board of Equalization
Employment Development Department
To whom do you report and pay sales tax
a) County Tax Collector
b) Internal Revenue Services
c) California Department of Tax and Fee Administration
d) Franchise tax Board
California Department of Tax and Fee Administration
On a time-and-material job, you should
a) not charge for profit and overhead
b) add profit and overhead to labor only
c) add profit and overhead to material only
d) add profit and overhead to labor and materials
add profit and overhead to labor and material
Which agency should sole owners contact to obtain a fictitious business name (DBA) if they do not want to use their legal name for the construction business
a) CSLB
b) Department of Consumer and Business Affairs
c) Secretary of State
d) city or county government
city or county government
Is it legal for a contractor to require employees to take a lie detector test
a) It is not legal for a contractor to require lie detector tests, but it would be legal for a federal, state, or local public agency to require lie detector test of their employees
It is not legal for a contractor to require lie detector tests, but it would be legal for a federal, state, or local public agency to require lie detector test of their employees
Which of the following statement about home improvement laws is not correct
a) subcontractor may give a salesperson a bonus
b) a general contractor may give a salesperson a bonus
c) a subcontractor may not give the general contractor a bonus
d) The homeowner may give the salesperson a bonus
The homeowner may give the salesperson a bonus
A notice of Cessation is only effective if labor has ceased for at least how many days prior to recording
a) 30 days
b) 20 day
c) 15 days
d) 10 days
30 days
A mechanics lien is a written document that must be signed and verified by the claimant.
Step 1: Obtain the exact legal description of the property
Step 2:
Step 3: Find out if the person requesting the work improvement of improvement is the owner
What is step 2
a) Determine the amount of the lien claim
b) Find out the name of the legal owner of the property as well as the percent of ownership
c) List the attorney representing the contractor
d) List the attorney representing the owner
Find out the name of the legal owner of the property as well as the percent of ownership
What does it mean when a subcontractor signs aWaiver and Release form on a publiv works project
a) gives up right to lien the real property
b) gives up the right to lien the construction funds
c) waives right to lien the real property or the construction funds
d) is no longer responsible for correcting defector work
gives up the right to lien the construction funds
Several prospective employees remembered their Social Security numbers but did not have a card or other documentation. The practice of relying on memorized SSN is
a) acceptable: A memorized SSN is sufficient
b) acceptable: New employees do not have to provide documentation of their SSN
c) acceptable: Employees must show documentation of their SSN only if they are resident aliens working in this country
d) unacceptable: The actual Social Security card should have been inspected
acceptable: A memorized SSN is sufficient
Which of the following methods of accounting is not recommended for contractors
a) accrual
b) percentage
c) completed contract
d) cash
cash
Accrual method is recommended.
percentage and completed are modifications of accrual
Where must a contractor include the “Mechanical Lien Warning”
a) home improvement and service and repair contracts
b) home improvement contracts, including swimming pool contracts
c) home improvement, swimming pool, and service and repair contracts
d) public works contracts
Home improvement contracts, including swimming pool contracts
Mechanics Lien warning is not required for service and repair contracts
Within how many days must an employer make personnel records available for inspection by an employee after receiving a written request
a) immediately
b) no later than 10 calendar days
c) no later than 30 calendar days
d) within 60 working days
no later than 30 calendar days
After the building plans are approved, what is the next step
a) review the plans and estimate
b) hire employees
c) schedule the job
d) order materials
review the plans and estimate
How often should a job supervisor or responsible managing employee visit the job site
a) once a day
b) once a week
c) once a month
d) whenever they are near the job site
once a day
A contractor finds a 6 inch discrepancy on a set of plans. He should
a) make the correction
b) contact the owner
c) ignore the discrepancy because it is minor
d) contact the architect or the building designer
contact the architect or the building designer
The required injury and illness Prevention Program (IIPP) takes the form of
a) written plan
b) oral safety talks supplemented by a written plan
c) an oral or written plan approved by the contractor and an employee representative
d) a written plan that includes procedures and that is put into practice and documented
a written plan that includes procedures and that is put into practice and documented
Written an put into practice
Which of the following injuries must be reported to DOSH
a) Worker suffers a concussion and is unable to return to work for a full day
b) Worker suffers a burn than requires first aid
c) all job related injuries must be reported
d) employers are not required to report injuries unless they are series
Worker suffers a concussion and is unable to return to work for a full day
must be reported if results in absence from a full day of work
an employer who receives a citation for a serious violation of Cal/OSHA regulations can be assessed a penalty of up to ____ for each violation
a) $1000
b) $5000
c) $10000
d) $25000
$25000
serious civil penalty up to $30000
not serious is up to $8000
in the cash system of accounting, a transaction is recorded or posted
a) when cash changes hands
b) when an amount is approved for payment
c) when an amount is invoiced
d) when cash is earned and expenses are incured
when cash is earned and expenses are incured
not recommended for contractors
Employees must provide the contractor with Form W-4
a) with their job application
b) when they start work
c) within 10 days of starting work
d) no later than January 31 of each year
when they start work
A supplier who is furnishing a contractor with equipment or materials without any form of security other than the reputation of the contractor for paying debts when due has extended what type of credit
a) unsecured loan
b) open account
c) uninsured load
d) closed account
open account
To whom does an employer pay FUTA tax
a) Employment Development Department
b) Internal Revenue Service
c) US Department of Labor
d) State Franchise Tax Board
Internal Revenue Service
Federal payroll taxes are collected by the IRS
Which of the following is a correct statement about budgets
a) budgets do not require accurate books
b) budgets do not require detailed cost information
c) the goal of a budget is to forecast expenses as accurately as possible
d) a budget should allow leeway for month to month variations
a budget should allow leeway for month to month variations
a budget is not to forecast but establish ideal level of expense and income
a home improvement salesperson’s (HIS) registration must be renewed every
a) four years
b) two years
c) year
d) job
two years
renewal is 2 years of last day of the month issued
Bob Smith is the RME and works full time for XYZ Construction Co. Bob holds an individual license with a different name and license number and want to bid and build wood decks on weekends. Is this legal?
a) Yes: Bob may qualify an unlimited number of active contractor’s license
b) Yes: Bob may work under his individual license if he works at least 32 hours a week for XYZ
c) No: Bob must take another qualifying exam to qualify a second license
d) No: Bob may qualify only with XYZ license in this case
No: Bob may qualify only with XYZ license in this case
If Bob is a RME with XYZ, he must inactivate his individual contractor’s license
An individual who meets certain conditions may serve as a qualifier for up to ____ firms in any one year
a) one
b) two
c) three
d) four
three, they own 20% equity of each firm
As a subcontractor on a public work of improvement, you complete your contract in a workmanlike manner. The prime contractor, Mr Adams, informs you that he cannot pay you. One of your best options is to file a stop payment notice, which has what effect
a) it starts foreclosure proceedings
b) it instructs Mr Adams to “stop” work until you are paid, or else face felony charges
c) it creates a lien on the construction funds
d) it creates a lien on the property you improved
it creates a lien on the construction funds
Stop payment notice - lien on funds
mechanics lien - stop payment notice may be filed on a public works project
Of the following, which is usually the most difficult item to estimate
a) labor
b) materials
c) overhead
d) profit
labor
How long should a contractor keep employee payroll records
a) 3 years
b) 2 years
c) 1 year
d) for as long as a worker is employed
3 years
_____, although usually the largest single item in a bid, can be fairly accurately determined
a) permit
b) overhead
c) labor
d) materials
materials
Disabled access laws went into effect in ____ for public buildings and in _____ for private buildings
a) 1960, 1961
b) 1968, 1970
c) 1970, 1971
d) 1975, 1976
1968, 1970
Suppose you include depreciation on your income statement your first year in business, but you do not include it in the second year. How will this affect your net income being reported
a) it illegal to omit depreciation
b) Your net income will be the same for both years
c) your net income will be less than it should be in the second year
d) your net income will be greater than it should be in the second year
your net income will be greater than it should be in the second year
depreciation is an expense
What happens to a partnership if a general partner leaves the business or dies
a) nothing
b) the partnership will have to merge with another business
c) The partnership license will be converted to an individual license
d) the partnership license will be cancelled
The partnership license will be cancelled
a new license must be applie for
Of the following, which is the best way to monitor and analyze labor cost
a) use detailed time cards with task breakdown for each worker
b) compare previous labor cost
c) ask crew supervisor
d) check the profit and loss statement
use detailed time cards with task breakdown for each worker
In most construction contracts, the retention may be held up to ____ days as a guarantee that the prime pays the subcontractors and suppliers
a) 10
b) 30
c) 60
d) 90
60
subcontractors and suppliers have 30 days to record liens
primary has 60 days to record a lien
How long are contractors required to keep records after completing a construction project
a) 2 years
b) 5 years
c) 7 years
d) 10 years
5 years
A notice cancelling a home solicitation contract become effective
a) when the written notice is deposited in the mail
b) when signed be the owner
c) the day the owner cancels by telephone
d) within 72 hours from the postmark on the cancellation letter
when the written notice is deposited in the mail
If the owner cancels a home solicitation on March 20, by what date must the contractor return the down payment
a) march 23
b) march 30
c) april 1
d) april 30
march 30
return down payment within 10 days
How many days does a subcontractor have to file a lien after a Notice of Cessation is recorded
a) 10 days
b) 30 days
c) 60 days
d) 90 days
30 days
If no notice of Completion or Cessation is given on a job, how many days does a contractor have to file a mechanics lien after completion of work
a) 30 days
b) 60 days
c) 90 days
d) 180 days
90 days
if neither notice is given, all claimants have 90 days from completion of work to file liens
If you are a subcontractor, there are three general steps in the mechanics lien procedure to make sure you are paid for works of improvement upon property
Step 1: Determine the exact legal description of the property (map book, page, etc)
Step 2:
Step 3: Complete the work and record a Claim of lien if you are not paid on time
a) Request prepayment for you work
b) Serve a preliminary 20-day notice
c) Run credit checks on the owner and prime contractor
d) List the attorney representing the contractor
Serve a preliminary 20 day notice
Can also file Preliminary Notice with County Recorder.
A contract bond
a) is required to obtain a corporate contractor’s license
b) guarantees payment of labor and materials only
c) guarantees job completion only
d) guarantees job completion and payment of all labor and materials
guarantees job completion and payment of all labor and materials
contract bond is a type of surety bond that guarantees that a contract will be fulfilled
Who determines the prevailing wage rate on public works projects
a) prime contractor negotiates rate with workers
b) CSLB
c) EDD
d) DIR
DIR
Department of Industrial Relations
Which of the following payroll taxes does not have a limit
a) FICA
b) FUTA
c) FIT
d) SDI
FIT
Federal Income Tax has no limit
How long must a contractor retain records for employees exposed to hazardous materials
a) 15 years
b) 30 years
c) 40 years
d) as long as an employee works for the contractor
30 years
Which of the following is classified as a job related direct cost
a) performance bond
b) contractor’s license renewal fee
c) trade association membership fee
d) office rent
performance bond
direct cost because they are directly chargeable to individual job
Home solicitation Contracts must include a notice call the “Three Day Right to Cancel” in at least ___
typeface
12 pt bold
Except in an emergency, refunds must be made within ____ of cancellation
10 days
If you get a quote from a material supplier, the quote is
a) not firm and can change
b) a guarantee price that cannot increase
c) firm and includes all materials
d) firm but may not include all materials
firm but may not include all materials
Who is responsible for selecting supplies for a first a kit for a jobsite
a) first aid kit
b) doctor
c) nurse
d) RN
doctor
How long must an employer keep records of FUTA and other federal payroll taxes
a) 2 years
b) 4 years
c) 6 years
d) 10 years
4 years
Which state agency issues an employer’s ID number
a) Board of Equalization
b) Secretary of State
c) Employment Development Department
d) Franchise Tax Board
Employment Development Department
unemployment, employment tax items
When asbestos is found in a home improvement project, who is responsible for the abatement
a) contractor
b) city inspector
c) Department of Building Safety
d) homeowner
homeowner
unless contract states otherwise
A contractor is offering a job that will last at least 6 months but could last longer. What should the contractor tell people when interviewing for the job
a) the job is temporary
b) the job is permanent
c) the job is temporary and may become permanent
d) the job is part time
the job is temporary
When would an employee be required to complete a new IRS Form W-4
a) after a change in martial status
b) after a change in address and phone number
c) after a change in age
d) after a pay raise
after a change in martial status
A swimming pool contract must include which of the following
a) contract bond
b) performance bond
c) surety company’s name and address
d) plan and scale drawing
plan and scale drawing
Which of the following costs is the easiest for the contractor to control
a) subcontractor
b) employees who are paid hourly
c) indirect labor
d) direct labor
subcontractors
With how many days must an “Agreement ro Arbitrate” be returned by the participants after being mailed by the Registrar
a) within 60 calendar days
b) within 30 calendar days
c) within 15 calendar days
d) within 10 working days
within 30 calendar days
What type of lien release is required upon completion of a home improvement contract and payment
a) unconditional Waiver and Release
b) conditional Waiver and Release
preliminary Waiver and Release
d) temporary waiver
Unconditional Waiver and Release
Which of the following best describes the difference between “claims-made” and “occurrence” type of liability insurance
a) Unlike occurrence insurance, a claims-made policy covers “claims-made” after the policy expires
b) an occurrence policy is intended to cover a particular one time accident
c) A claims-made policy is intended to cover a particular one time accident
d) Unlike claims-made coverage, occurrence insurance covers claims made after the policy expires
Unlike claims-made coverage, occurrence insurance covers claims made after the policy expires
claims-made policy covers only during policy period
Which of the following is most important regarding safety at a job site
a) the contractor should show workers how to use safety equipment
b) the contractor should provide and require the workers to use safety equipment
c) the contractor should inspect the safety equipment every day
d) the contractor should properly store safety equipment when no in use
the contractor should provide and require the workers to use safety equipment
Which of the following is not eligible to receive benefits from a contractor’s license bond
a) a customer who was defrauded by the contractor
b) a subcontractor involved in an accident on the job
c) an employee who was not paid wages that were due
d) a homeowner with a valid claim that the contractor abandoned the job
a subcontractor involved in an accident on the job
this will be workers comp
How deep must asbestos be buried within 24 hours of delivery at a disposal site
a) 6 inches
b) 10 inches
c) 12 inches
d) 18 inches
6 inches
A health and safety citation or order must be
a) handed out by supervisors at their quarterly meeting
b) handed out with monthly pay checks
c) posted in a conspicuous place at the job site where the violation occurred
d) posted in an administrative office that is available to employees
posted in a conspicuous place at the job site where the violation occurred
When a contract includes a “complete agreement” clause
a) the contractor and owner are bound by the exact words of the contract
b) the work must be completed by a certain date or contractor must pay liquidated damages
c) contractor must supply a completion bond
d) the owner agrees to pay for completion bond
The contractor and owner are bound by the exact words of the contract
only obligated to what is written down
What is the best way to make sure your bond and insurance is up to date
a) Choose insurance companies that will notify you by mail when your bond or insurance policy is due to expire
b) Review you bond and insurance policies every two months
c) Purchase only short term bonds and insurance
d) Review your bond and insurance policies before each bid is prepared
Review your bond and insurance policies before each bid is prepared
check status before every bid
Two licensed contractors want to contract as the prime on a 300k project. Can they work together on the same project without a joint venture license
a) no
b) yes, if both contractors are licensed
c) Yes, as long as the owner agrees
d) yes, because the contract is les than 500k
no, must always has a joint venture license
Which type of job related injury requires the employer to make a written report
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
an injury requiring medical attention beyond first aid
written report required for an injury that leads to lost time at work
The most accurate method of estimating the cost of materials for a remodeling job is
a) stick by stick
b) material takeoff
c) current price list
d) price per square foot
stick by stick
A stop payment notice on a public works project cound be used to
a) stop all payments to a prime contractor until all subcontractors are paid in full
b) lien on property
c) with sufficient money from the prime contractor to pay subs who files the stop payment notice
d) stop all construction activity on a particular job
with sufficient money from the prime contractor to pay subs who files the stop payment notice
A contractor’s California personal income tax return should be sent to which office
a) Franchise Tax Board
b) EDD
c) IRS
d) Board of Equalization
Franchise Tax Board
Patent defects are
a) hidden
b) readily observable flaws or faults
c) the lender’s responsibility
d) the owners responsibility
readily observable flaws or faults
Which type of bond guarantees job completion
a) payment bond
b) performance bond
c) bid bond
d) labor and material bond
performance bond - guarantees completion
payment bond (labor and material bond) guarantees subcontractors are paid
bid bond guarantees that a contractor will sign the contract and provide any required performance and payment bond
Which is the foloowing not by itself an acceptable for of documentation for filing out IRS form I-9
a) Social Security card
b) green card
c) US passport
d) Employment Authorization Document
Social Security card
Start!!!!!
When may a contractor perform a home improvement contract requiring a loan as a precondition
a) when emergency repairs or services are required
b) when the owner has bad credit
c) when the owner has an amount in the bank equal to the contract price
d) when the owner seem kind and has an honest reputation
when emergency repairs or services are required
When is a worker considered an employee rather than a independent contractor
a) When the employer has the right to tell the worker to do certain work
b) When the employer has direct control over the work being performed
c) When the worker can make a profit or loss on the work
d) When the worker doesn’t set his or her hours
When the employer has direct control over the work being performed
How can a new employee learn about safety record of a company
a) Employees may request access to records of job-related injuries and illnesses
b) View a Cal/OSHA safety video tape
c) Call the Cal/OSHA consultant services
d) Safety records are confidential
Employees may request access to records of job related injuries and illnesses
Which of the following must employees have in order to pass a job performance evaluation
a) the result of a health examination
b) how to safely use tools on the jobsite
c) how to perform CPR
d) they must have a detailed job description
They must have a detailed job description
What precautions must a contractor take with hazardous substances
a) each employee must sign a sheet stating that he or she understands the safety and health risks
the contractor must hang a safety poster sign near the time clock
c) the contractor must adopt a Code of Safe Practices that relates to work at each job site
d) contractor should require employees to wear a dust mask
The contractor must adopt a Code of Safe Practice that relates to work at each job site
Who is responsible for paying SDI
a) The employee pays the entire amount
b) the employer pays the entire amount
c) the employee and employer pay both
d) SDI is not paid by employers and employees
Employee pays the entire amount
Employer withholds SDI from employee wages and pays EDD
When applying for a permit to re-install wiring that has been removed from an old Victorian house, the minimum contractor’s license needed is
a) specialty electrical license (C-10)
b) general building contractor license(B)
c) general engineering contractor’s license(A)
d) no license in required
specialty electrical license
B license require use of at least 2 unrelated trades
Records of accidents and injuries are kept
a) for the exclusive benefit of employees
b) to help determine the causes of accidents and injuries
c) to show the insurance adjuster
d) to show the clients that you are responsible
to help determine the causes of accidents and injuries
An employee weighing 270 pounds is working at the jobsite. Which of the following portable ladders should be used
a) Light duty
b) medium duty
c) heavy duty
d) extra heavy duty
extra heavy duty
a) Light duty - 200 lbs
b) medium duty - 225 lbs
c) heavy duty - 250 lbs
d) extra heavy duty - 300 lbs
A basic insurance package for a new contractor would usually not include
a) property insurance
b) general liability
c) umbrella policy
d) worker’s compensation policy
umbrella policy
When an employee who is not hired for a specified period quits without notice, the employee must be paid
a) within 5 days of quitting
b) within 72 hours of quitting
c) half at the time of quitting with the balance due within 30 days
d) immediately
within 72 hours of quitting
On a jobsite, a Cal/OSHA inspector discovers that a piece of equipment does not comply with a new safety standard. A temporary variance may be granted if the equipment
a) is new and requires extra time to be brought into compliance
b) is old but had a good safety record in the past
c) will be replaced within one year
d) can be recycled
is new and requires extra time to be brought into compliance
Form I-9 must be completed by all employees including US citizens. When must an employer complete For I-9
a) when they apply for the job
b) the first day they start work
c) within 3 business days of the date. of hire
d) within 30 business days of the date of hire
within 3 business days of the date of hire
By law, what is the maximum hours in a day minor may work is
a) 6
b) 7
c) 8
d) 9
8
8 hours for non school days
school days
3 hours for 14 or 15 years old
4 hours for 16 or 17 years old
Your workers’ comp insurance policy lapsed 2 weeks ago. You mailed the check yesterday and today one of your employees is injured on the job. Which of he following statement is true
a) you are covered because you mailed a check
b) you are covered bc the injury occurred within 30 days of the lapse of coverage
c) you are not covered because the policy lapse
d) you are not covered because the injury after the 2 week grace perior
you are not covered bc the policy lapsed
lapsed is after the grace period
What time of bond ensures that the contractor will pay all labor and material bills and fulfill the terms of the contract
a) contract bond
b) performance bond
c) materials bond
d) bid bond
contract bond - guarantees both job completion and payment of all materials and labor
performance bond - guarantees job completion according to plans and specs
What must licensed plumbing, electrical sign, and well drilling contractors have displayed on both sides of their commercial vehicle
a) name, business address, phone number, and contractor’s license number
b) name, business address, and contractor’s license number
c) name and contractor’s license number
d) nothing
name, business address, and contractor’s license number
A time card includes the day and hours the person worked as well as
a) the hourly wage
b) location of the job
c) the employees date of birth
d) a description of the work
a description of the work
Which is a complete code that adopts portions of local codes
a) it is a complete code that adopts portions of local codes
b) it is a complete code that adopts all local codes
c) several state agencies are involved with regulation of the code
d) it is the only code you must consult
several state agencies are involved with regulation of the code
Contractors should keep good business records
a) for insurance purposes
b) to determine if the business is making a profit
c) to monitor the change in cost over a five year plan
d) in case the IRS audit them
to determine if the business is making a profit
Which of the following is/are grounds for a disciplinary action
a) failure to provide the owner with a Mechanics Lien Warning
b) Failure to pay employees after receiving payment from the owner
c) Failure to complete a project for the price stated in the contract
d) all of the above
all of the above
If an employee is fired as a result of a wage garnishment because of a judgement, he must notify the ____ within ____ days, if he or she intends to file a claim disputing lost wages following the firing
a) employer, 30
b) employer, 60
c) labor commission, 30
d) labor commission, 60
employer, 30
give notice to employer within 30 to give INTENTION to file
has 60days to file with Labor Commission
In small claims court, if you want to be represented by an attorney
a) the attorney must remain quiet except when consulting
b) you are limited to one attorney
c) you may not consult with an attorney in Small Claims court
d) the attorney is limited to 10 mins of bench time
you may not consult with an attorney in small claim court
you can consult attorney before and after court
Disputes over an alleged violation qualify for the CSLB’s arbitration program if
a) the license has less than 3 violations in the past 10 years
b) the license was in good standing at the time of alleged violation
c) all parties have previously agreed to private abitration
d) the alleged damages exceed 50k
the license was in good standing at the time of alleged violation
to qualify for CSLB arbitration
How many empoyees must an employer have before State disablity insurance deductions are required
a) 0
b) 1 or more
c) 2 or more
d) 3 or more
1 or more
SDI is deducted from the wages regardless of the number of employees
The Contractors State License Board’s arbitration program provides free of charge an arbitrator and
a) one expert witness and one attorney
b) one licensed building inspector
c) one expert witness
d) one licensed “B” contractor consultant and one attorney
one expert witness
When a contractor furnishes a performance and payment bond for a home improvement project, it is not necessary for a contractor to provide which of the following
a) Contract price
b) Mechanics Lien Warning
c) Arbitration clause notice
d) schedule of payment
Mechanics Lien Warning
If an employee is 20 mins late for work, the employer may
a) deduct a half hour’s wage
b) deduct an hour’s wage
c) deduct for 20 mins only
d) not deduct from wages
deduct a half hour’s wage
employer may deduct half hour’s wage for any time lost during the first 30 mins for workday
Of the following, who may file a mechanics lien
a) manufactures of construction materials and subcontractors
b) manufacturers of construction materials and clients
c) clients and subcontractors
d) architects and subcontractors
architects and subcontractors
What is the most correct statement as to what must be included in every home improvement contract
a) Three day right to cancel notice
b) contractor’s license number
c) truth in lending notice
d) name of the project
contractor’s license number
Who of the following may require the prime contractor to obtain a performance and payment bond
a) liability insurer
b) tenant
c) subcontractor
d) CSLB
tenant
the text in a printed home improvement contract must at least
a) 8 point type with headings in 8 point bold face
b) 10 point type with headings in 12 point bold face
c) 10 point type with headings in 10 point bold face
d) 12 point type with heading in 12 point bold face
10 point type with headings in 10 point bold face
On public works, the total retention withheld may not exceed ___ of the contract
a) 5 %
b) 10%
c) 15%
d) 25%
5%
A licensed general contractor enters into a contract with an unlicensed subcontractor. Who is in violation of the law if the work performed required a contractor’s license
a) the general contractor
b) both the general contractor and the subcontractor
c) only the subcontractor if the general contractor was not informed
d) neither
both the general contractor and subcontractor
If an employee violates a safety rule and causes injury to another employee, who is legally responsible
a) The employee who violate the safety rule
b) the employee who violated and employer
c) the employer
d) none of the above
the employer
Truth in Lending Act rescission rights apply when
a) any loan is signed for any improvement work
b) the dollar amount if the contract exceeds 20k
c) a home improvement salesperson procured the contract
d) a non purchase lien or security interest is taken in the consumer’s principal dwelling
a non purchase lien or security interest is taken in the consumer’s principal dwelling
What is the maximum penalty for contracting with an inactive, suspended or expired license
a) revocation of license
b) one year suspension
c) fine and license suspension up to one year
d) suspension of license for five or more days
revocation of license
When preparing a cost estimate, which of the following could not be determined without visiting the site
a) location of the electrical source
b) measurements of the walls and ceiling
c) what materials are needed
d) which subcontractors to us
location of the electrical source
Of the following, who is required as a home improvement salesperson
a) Salesperson working at a fixed location in a shopping mall
b) Salesperson who is soliciting business by calling potential customers on the telephone
c) Salesperson working at the contractor’s office or showroom
d) Salesperson who is an officer or general partner of a licensed construction business
Salesperson who is soliciting business by calling potential customers on the telephone
which of the following are the most effective when used together on a private works project
a) stop payment notice and mechanics lien
b) notice of cessation and mechanics lien
c) preliminary notice and stop payment notice
d) notice of non responsibility and mechanics lien
stop payment notice and mechanics lien
What sort of notes are you looking for when you get a set of as built plans
a) abbreviations
b) changes
c) subdivisions
d) engineering
changes
as built plans are on site plans with changes made as house is built
When can a material supplier perform a mechanics lien
a) after the prime contractor accepts the material suppliers bid
b) after the goods have been installed in the structure
c) after the good have been delivered to the job site
d) a material supplier is not entitled to a lien
after the goods have been installed in the structure
a materials maker is not entitled to mechanics lien
How many days does a claimant have to record a Lis Pendens after filing a mechanics lien foreclosure law suit
a) 10 days
b) 15 days
c) 20 days
d) 60 days
20 days
Lis Pendens - notice that a lawsui is pending that affects real property
if it is discovered that the construction materials in an ara contains more than .1% asbestos
a) the crew should try not to disturb the area but keep working
b) the contractor should contact DOSH immediately
c) the workers should stop and remove the materials wearing masks and gloves
d) the crew should wet down the area with water and continue working
the contractor should contact DOSH immediately
> .1% is asbestos containing material
If the subcontractor wants to substitute material on the job, who must approve the substitutions
a) building inspector
b) prime contractor
c) owner
d) architect
owner
contractor cant make changes
There is a near miss safety situation on a job. what steps should the employer take
a) Report near miss to DOSH
b) Report near miss to worker’s compensation insurance carrier
c) the unsafe situation must be investigated but the investigation must include a written report
d) the unsafe situation must be investigated but a written report is not required
the unsafe situation must be investigated but the investigation must include a written report
Following the completion of a home improvement project of a major phase of construction and upon payment, who is responsible for signing a labor lien
a) home owner
b) contractor
c) each worker
d) subcontractor
each worker
If arbitration of disputes clause is not included and initiated by both parties in a home improvement contract, arbitration may not be enforced against any person other than the
a) licensee
b) homeowner
c) subcontractor
d) material suppliers
licensee
A new contractor who has not established a credit account with a supplier can expect to pay for delivered materials
a) 30-60 days after delivery
b) C.O.D.
c) before delivery
after material are installed
before delivery
A contractor discovers the presence of hazardous material during construction and immediately notifies the homeowner and works work. fter the hazardous materials are properly abated this.
a) lender should be notifies
b) building inspector should be notified
c) contractor should be notified by the homeowner is writing
d) EPA should be notified by the contractor
contractor should be notified by the homeowner is writing
a contractor is required to report a construction-related civel court judgement to the CSLB
a) no later than 10 days fromthe date of judgement
b) with in 30 days of the judgement
c) within 90 days of judgement date
d) within one year after entry of the judgement
within 90 days of judgement date
Which of the following requires an EIN
a) licensed contractor with no employees
b) any business located in california
c) a sole proprietorship with employees
d) the owner of a retail store with no employees
a sole proprietorship with employees
If a contractor changes a business name or address or has any changes in the personnel listed on the license, the Registar must be notified within
a) 10 days
b) 45 days
c) 60 days
d) 90 days
90 days
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
all of the above
Which of the following is not by itself an acceptable for of documentation for filling out IRS Form I-9
a) Social Security card
b) green card
c) US passport
d) Employment Authorization Document
Social Security Card
bc it does not establish identity
A contractor must pay a dump truck carrier for all transportation charges
a) immediately
b) by the 20th day following the last day of the month in which the transportation was performed
c) within 30 days following the last day of the month in which the transportation was performed
d) within 10 days after the transportation was performed
by the 20th day following the last day of the month in which the transportation was performed
What is the minimum amount of sick time employers are required to allow employees to use per year
a) 8 hours
b) 16 hours
c) 24 hours
d) 40 hours
40 hours
A contractor is not required to register with the Department of Industrial Relations (DIR) as a public works contractor if the contract
a) is for repairs only and does not exceed $25,000
b) does not exceed $50,000 for new construction
c) does not exceed $35,000 for alterations
d) is for maintenance only and does not exceed xxxx
is for repairs only and does not exceed $25,000
Small project exemption
$15,000 limit for maintenance
If homeowner is 65 years or older, how long do they have to cancel a home improvement contract
a) 3 days
b) 5 days
c) 7 days
d) 10 days
5 days
If a construction company buys a new car for general use by the sales staff, to which of the following accounts would the depreciation of the car be charged
a) project management expenses
b) general and administrative cost
c) direct job cost
d) company profits
PACE funds are financed by
a) monthly installments
b) full repayment within 3 years
c) the State lottery
d) an assessment to the owner’s property tax
an assessment to the owner’s property tax
PACE programs are typically administered
a) at the federal level
b) the state level
c) the local level
d) by any certified and insured bank
the local level
PACE assessment are secured by
a) a lien on the property
b) State funds
c) Federal funds
d) the owner’s cash deposit
a lien on the property
if property sold the lien transfers to new owner
The provisions of the PACE program apply exclusively to
a) residential real property with FOUR or fewer units
b) residential real property with THREE or fewer units
c) residential real property with TWO or fewer units
d) all residential or light commercial properties
residential real property with FOUR or fewer units
