Test 3 Flashcards
Of the following four items to consider when bidding, which is the most important?
A. overhead
B. labor
C. materials
D. profit
D. profit
An employee was injured because the contractor had overlooked a hazardous situation. Which of the following is a correct statement regarding responsibility for the injury?
A. The employee is not guilty of contributory negligence because safety laws were violated by the employer.
B. The employee and the employer are equally guilty of negligence because the employee accepted the job knowing it was unsafe.
C. The employee’s labor contract would not cover damages.
D. Everyone is at fault: The emplovee should have been more careful.
A. The employee is not guilty of contributory negligence because safety laws were violated by the employer.
Which of the following statements about an inactive contractor’s license is correct?
A. The term of an inactive license is two years.
B. An inactive license requires a contractor’s license bond.
C. A qualifying individual does not have to be listed on an inactive license.
D. An inactive license may only be renewed twice.
C. A qualifying individual does not have to be listed on an inactive license.
If there is no collective bargaining agreement, which of the following is a correct statement regarding the payment of wages by an employer?
A. The employer may pay wages whenever the employer chooses.
B. The employer may pay wages at the end of the job.
C. The employer may pay wages at the end of the job if the employees agree.
D. The employer may pay wages twice a month.
D. The employer may pay wages twice a month.
A Cal/OSHA permit is required for trenches that are __________ or more in depth.
A. 4 feet
B. 5 feet
C. 6 feet
D. 8 feet
B. 5 feet
A customer wants to accept a bid but does not have enough money. A wise contract decision would be to:
A. eliminate the profit and take the job for overhead.
B. match the lowest bid of another contractor.
C. do the job at cost.
D. stick close to your bid even if it means losing the job.
D. stick close to your bid even if it means losing the job
You may not represent yourself in court and must be represented by an attorney if you are a:
A. sole proprietor.
B. corporation.
C. partnership.
D. qualifying individual.
B. corporation.
A contractor must keep change orders on file:
A. for at least six months.
B. for at least five vears.
C. until the project is completed.
D. for tax purposes.
B. for at least five vears
What should be done with the contractor’s copy of an employee’s Form W-2?
A. File the copy in the contractor’s office.
B. Give the copy to the employee.
C. Submit the copy with the contractor’s
payroll tax return.
D. Destroy the copy to protect the employee’s right to privacy.
A. File the copy in the contractor’s office.
You must report FICA and withheld income tax (Form 941) every:
A. month
B. two months
C. three months
D. four months
C. three months
If you get a quote from a material supplier, the quote is:
A. not firm and can change.
B. a guaranteed price that cannot increase.
C. firm and includes all materials.
D. firm but may not include all materials.
D. firm but may not include all materials.
If a home solicitation contract is signed on Friday afternoon, what is the deadline for cancellation?
A. Tuesday midnight
B. Tuesday afternoon
C. Wednesday midnight
D. Wednesday afternoon
A. Tuesday midnight
Contractors do not have to be licensed if:
A. all of their jobs are under $1,000.
B. they carry commercial general liability insurance.
C. the value of labor and materials for a job is under $500.
D. all potential customers are told that they are not licensed.
C. the value of labor and materials for a job is under $500.
When there is a third-party lender, a home improvement contract is unenforceable against the buyer per the Contractors License Law and federal Truth in Lending Act, if;
A. obtaining a loan is a condition precedent to the contract, and the loan is not offered and/or accepted.
B. funding is provided by a government loan or grant.
C. the home improvement contract is sold by a salesperson.
D. the owner decides that a competing contractor will finish the remaining work for less than the amount stated in the contract.
A. obtaining a loan is a condition precedent to the contract, and the loan is not offered and/or accepted.
Who is responsible for selecting supplies for a first-aid kit for a jobsite?
A. first-aid tech
B. doctor
C. nurse
D. RN
B. doctor
Good accounting records are necessary for:
A. maintaining financial statements.
B. obtaining financing.
C. effective management.
D. all of the above.
D. all of the above
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
B. 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
C. Employment Development Department
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
D. homeowner
A contractor is offering a job that will last at least six 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 my become permanent.
D. The job is part-time,
A. The job is temporary.
Workers’ compensation insurance covers injuries or illnesses:
A. in all cases.
B. resulting from unsafe conditions at the job site.
C. that are job-related.
D. that are not the employee’s fault.
C. that are job-related.
A sales presentation was given in English to a foreign language speaking homeowner. Which of the following statements is correct about a home solicitation contract?
A. The contract must be in the foreign language of the homeowner.
B. The contract must be in English.
C. The contract must be in English and the homeowner’s foreign language.
D. The contract must be in the language of the homeowner’s lawyer.
B. The contract must be in English
A contact for the construction of a single-family dwelling must be signed by.
A. only the contractor.
B. only the owner.
C. the owner and contractor.
D. the architect, owner, and contractor.
C. the owner and contractor.
When would an employee be required to complete a new IRS Form W-4?
A. after a change in marital status
B. after a change in address and phone number
C. after a change in age
D. after a pay raise
A. after a change in marital status
Time and material agreements for home improvement jobs must be written with a fixed price whenever it is anticipated that the total price could exceed:
A. $100.
B. $200.
C. $300.
D. $500.
D. $500.
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 drawings
D. plan and scale drawings
Which of the following insurance policies would protect against a claim if a customer comes to the contractor’s office and falls down and suffers an injury?
A. Professional Liability
B. Builders Risk
C. Workers’ Compensation
D. Commercial Generator Liability
D. Commercial Generator Liability
Who is best qualified to submit plans and specifications for a residence?
A. architect
B. engineer
C. builder
D. owner
A. architect
Who is best prepared to submit a financial statement to a bank to obtain a loan?
A. owner
B. accountant
C. contractor
D. bookkeeper
B. accountant
Which of the following costs is the easiest for the contractor to control?
A. subcontract labor
B. employees who are paid hourly
C. indirect labor
D. direct labor
A. subcontract labor
Which of the following improvements does not require a building permit?
A. room addition
B. roof
C. in-ground swimming pool
D. painting and wallpaper hanging
D. painting and wallpaper hanging
To which agency does the employer send state unemployment insurance (UI) taxes?
A. IRS
B. EDD
C. Board of Equalization
D. Franchise Tax Board
B. EDD
When may contractors licensed in other states do work in California?
A. After they obtain a California contractor’s license.
B. When their work is limited to one project per year.
C. When their contracts are with a public agency.
D. If their work is supervised by a California resident.
A. After they obtain a California contractor’s license.
Where would a contractor obtain a surety bond?
A. bank
B. credit union
C. insurance agent
D. CSLB
C. insurance agent
Within how many days must an “Agreement to 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
B. within 30 calendar days
A joint control company manages the:
A. time and materials costs.
B. home improvement contract writing.
C. disbursement of construction funds.
D. contractor’s personal business.
C. disbursement of construction funds
The following clause is included in a contract:
“THE CONTRACTOR IS NOT RESPONSIBLE FOR DELAYS CAUSED BY WEATHER, EARTHQUAKES, FLOODS, OR OTHER ACTS OF GOD.”
This clause would limit the contractor’s liability for delays caused by:
A. suppliers not delivering materials on time.
B. a labor strike.
C. heavy rains.
D. lack of working capital.
C. heavy rains.
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
C. preliminary Waiver and Release
D. temporary waiver
A. unconditional Waiver and Release
Change orders to a home improvement contract are required to be signed by:
A. an attorney.
B. the building inspector.
C. homeowner and contractor.
D. general contractor’s subcontractors.
C. homeowner and contractor
Which of the following best describes the difference between “claims-made” and “occurrence” types 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.
D. Unlike claims-made coverage, occurrence insurance covers claims made after the policy expires.