Test 4 Flashcards
When must a contractor notify new employes of their right to receive workers’ compensation benefits if injured on the job?
A. Within 30 days of hiring.
B. At the time of hiring or by the end of the first pay period.
C. Within 24 hours after a job-related injury.
D. When the new employee requests information on workers rights and benefits.
B. At the time of hiring or by the end of the first pay period.
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 seems kind and has an honest reputation.
A. When emergency repairs or services are required.
When should an employer provide information on safety procedures?
A. When a new employee is hired.
B. Within 30 days of hiring.
C. If safety procedures are not covered in Cal/OSHA publications.
D. Every 30 days at meetings conducted by supervisors.
A. When a new employee is hired.
Of the following, a stop payment notice would block funds from the:
A. owner to the prime contractor.
B. prime contractor to the subcontractor.
C. owner to the subcontractor.
D. owner to the material supplier.
A. owner to the prime contractor
Why should a contractor visit the work site frequently?
A. To know when to schedule the final payment.
B. To keep the subcontractors informed of the job’s progress and to check on what materials must be ordered for the next phase of construction.
C. To know when to schedule float time.
D. To know the approximate final cost.
B. To keep the subcontractors informed of the job’s progress and to check on what materials must be ordered for the next phase of construction.
When is a worker considered an employee rather than an 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 own hours.
B. When the employer has direct control over the work being performed.
How can a new employee learn about the 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.
A. Employees may request access to records of job-related injuries and illnesses.
What is the most common problem facing new contractors when trying to obtain a performance or bid bond?
A. They do not have an insurance broker.
B. No prior track record.
C. Poor credit.
D. Not familiar with bond requirements.
B. No prior track record
Which of the following must employees have in order to pass a job performance evaluation?
A. The results 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.
D. They must have a detailed job description.
If retention is withheld until substantial completion of the entire job, the subcontractors who worked on the early stages of the project can be put at a financial disadvantage. What is the best
way to remedy this situation?
A. Tie the release of proportional retentions to the completion of the subcontractors’ work rather than to the entire job
B. Pay the subs when they finish, no matter what.
C. Contact the owner immediately.
D. Negotiate lower progress payments with subcontractors.
A. Tie the release of proportional retentions to the completion of the subcontractors’ work rather than to the entire job
If you find that you are not getting work because your bids are too high, you should try:
A. using a standard 10% overhead figure.
B. lowering your fixed expenses.
C. hiring employees at a lower wage.
D. offering gifts as incentives for customers to sign contracts.
B. lowering your fixed expenses
How often should time cards be filled out?
A. daily
B. weekly
C. monthly
D. yearly
A. daily
Which of the following types of injuries or illnesses does not have to be reported to the Division of Labor Statistics and Research?
A. A cut that requires first aid after which the employee returns to work.
B. A broken arm requiring a cast.
C. An employee who suffers heat stroke and is sent to an Emergency Room.
D. A cut that requires fewer than 4 stitches to close.
A. A cut that requires first aid after which the employee returns to work.
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.
B. The contractor must hang a safety poster in an area near the time clock.
C. The contractor must adopt a Code of Safe Practices that relates to work at each job site.
D. The contractor should require employees to wear a dust mask.
C. The contractor must adopt a Code of Safe Practices that relates to work at each job site.
When you take an employee with you to City Hall to get a building permit, what should you bring besides your contractor’s license pocket card and the plans?
A. photo of the job site
B. copy of your license bond
C. copy of the signed contract
D. certificate of workers’ compensation insurance
D. certificate of workers’ compensation insurance
If you are bidding on a job that is similar to a job you completed six months ago and planning to use the same materials, what should you bid for the materials?
A. The same price as the previous job.
B. Get bids from suppliers.
C. The average price for jobs during the past year plus 10%.
D. The same price as the previous job plus 5%.
B. Get bids from suppliers.
You sign a contract that includes fixing the hinges of a homeowner’s door. After finishing the work, the owner complains that you did not remove the dog scratches from the door’s finish. Which is the best way to avoid a dispute or lawsuit?
A. Be very specific about the work to be done: Review the contract and specifications line-by-line with the owner.
B. Write a change order.
C. Schedule an on-site meeting with the owner.
D. Have an attorney explain the job description to the owner.
A. Be very specific about the work to be done: Review the contract and specifications line-by-line with the owner.
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 both pay.
D. SDI is not paid by employers or employees.
A. The employee pays the entire amount.
What should vou do if an employee is exposed to a toxic substance?
A. Notify the employee.
B. Wait to see if the employee reports any symptoms.
C. Notification is not required if the employer has a workers’ compensation insurance policy.
D. Notification is optional, but the employer should record the exposure in employee’s file.
A. Notify the employee
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’s license (B)
C. general engineering contractor’s license (A)
D. no license is required
A. specialty electrical license (C-10)
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 adiuster.
D. to show the clients that you are responsible.
B. to help determine the causes of accidents and injuries
Which of the following must be included in a home improvement contract?
A. permit number
B. license bond number
C. approximate starting and completion dates
D. local building department requirements
C. approximate starting and completion dates
Fixed costs apply to which of the following categories?
A. overhead
B. direct costs
C. travel expenses
D. labor
A. overhead
The Contractors State License Board has authority to enforce the:
A. contractor’s warranty.
B. manufacturer’s warranty.
C. lender’s rates of interest.
D. consumer’s change of plans.
A. contractor’s warranty
How many days does a prime contractor have to record a Claim of Lien after a Notice of Completion has been recorded?
A. 90 days
B. 60 days
C. 30 days
D. 10 days
B. 60 days
If you notice that the plans do not specify a fireproof door where one is required, you should:
A. report it to the architect.
B. talk to the owner.
C. fix it yourself.
D. install the door and bill the client.
A. report it to the architect.
How could a cash fow problem best be prevented on a home improvement proiect?
A. Contract should specify 20% down and 80% along the way.
B. Each payment should relate to a definite stage of the project.
C. Owner should pay in full at the start of the job.
D. Owner should pay 50% of total contract at start of the job.
B. Each payment should relate to a definite stage of the project.
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
D. Extra Heavy Duty
When remodeling an older home, it is best for the contractor to ask the homeowner if asbestos materials are present:
A. after the contract is signed.
B. as the job progresses.
C. at their first meeting.
D. at the completion of the job.
C. at their first meeting
Which of the following are the best examples of fixed costs?
A. rent, truck payment, insurance
B. advertising, office supplies, equipment maintenance
C. mortgage, fuel, utilities
D. rent, utilities, equipment maintenance
A. rent, truck payment, insurance
The minimum fine for unlawful asbestos removal is:
A. $1,000.
B. $3,000.
C. $5,000.
D. $7,000.
A. $1,000
A basic insurance package for a new contractor would usually not include:
A. property insurance.
B. general liability insurance.
C. umbrella policy.
D. workers’ compensation policy.
C. 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.
B. within 72 hours of quitting
The “Mechanics Lien Warning” is given to inform the property owner:
A. when work will begin and end.
B. that the property can be liened if the contractor and other claimants are not paid.
C. that the contractor is going to make improvements to the property.
D. that a mechanics lien has been filed against the property.
B. that the property can be liened if the contractor and other claimants are not paid
Which agency would you contact when changing the location of a driveway on private property?
A. state
B. local building department
C. county
D. national
B. local building department
When demolishing a three-story structure, which agency would you contact first?
Law and Business Test 4
A. state
B. local building department
C. county
D. national
B. local building department
Who controls water runoff in a coastal area?
A. fire department
B. Water Resources Control Board
C. DOSH
D. CSLB
B. Water Resources Control Board
What is the best method of adjusting inventory in the general ledger?
A. adding new purchases
B. averaging last year’s inventory
C. counting the existing inventory
D. subtracting what you have used
C. counting the existing inventory
Where must the supplier’s Safety Data Sheets (SDS) be kept?
A. at the job site
B. at the office
C. they should be discarded
D. in a file cabinet
A. at the job site
Which of the following statements is true?
A. A 17-year-old can legally drive a forklift.
B. A 17-year-old can legally work on a roof.
C. A 15-year-old can legally work in a tunnel or mine.
D. An 18-year-old can legally drive a vehicle as part of his or her normal job duties.
D. An 18-year-old can legally drive a vehicle as part of his or her normal job duties.
