CALIFORNIA LAW 2024 UPDATE COMPREHENSIVE
QUESTIONS AND VERIFIED CORRECT ANSWERS
The maximum penalty for a contractor who's license has been revoked,
suspended or has lapsed is:
1. 3 years probation
2. 1 year in jail
3. 6 months in jail and a $15,000 fine
4. 3 years in prison
6 months in jail and a $15,000 fine
A _____ contract is when a single business is contracted to do the job from
beginning to end.
1. Cost Plus
2. Turnkey
3. Design/build
4. Lump sum
Design/build
When can you allow your employee to view their personal file?
1. Only when there is a problem
2. When they have a court order
3. Only when they are hired
4. Whenever they wish to
Whenever they wish to
A payment bond would be posted by the:
1. Prime contractor or property owner
2. Prime contractor or subcontractor
3. Subcontractor or material supplier
4. Property owner or material supplier
Prime contractor or property owner
How many employees must an employer have before he must apply for workers
compensation insurance?
1. 0
2. 1 or more
3. 2 or more
4. 3 or more
1 or more
Which of the following type of financial statements do companies use?
1. Balance sheet
2. Income statement
3. Statement of cash flows
4. All of the above
,All of the above
A common difference between contract law and construction contract law is that
under most construction contracts:
1. A prime contractor's bid proposal is normally considered to be irrevocable
after the bid opening and during the acceptance period prescribed in the bidding
documents
2. Breach of contract is used the most
3. A subcontractors bid is normally considered to be irrevocable even if the
acceptance period is extended without his knowledge or consent
4. Construction contract law is not used in the state of California
A prime contractor's bid proposal is normally considered to be irrevocable after the bid
opening and during the acceptance period prescribed in the bidding documents
Construction documents must be prepared by:
1. A construction worker
2. The building official
3. An artist
4. A registered design professional
A registered design professional
The person responsible before the building inspector arrives is?
1. Owner
2. Fore-person
3. Architect
4. Contractor
Contractor
A payment bond guarantees that the bonding company will pay valid claims for
unpaid bills owed by the _____ posting the bond.
1. Prime contractor or subcontractor
2. Subcontractor or material supplier
3. Prime contractor or property owner
4. Property owner or material supplier
Prime contractor or property owner
Before the completion of work, the person who authorizes a temporary certificate
of _____ is the building official.
1. Property
2. Ownership
3. Occupancy
4. Possession
Occupancy
Majority of the negotiated construction contracts are on a _____ basis.
1. Fee simple
2. Unit-price
3. Lump-sum
4. Cost-plus-fee
Cost-plus-fee
What must a contractor do to prevent cash flow problems at the end of a
construction project?
,1. Obtain a line of credit from a bank
2. Order all materials before beginning work
3. Seriously consider changing the payment schedule
4. Aske the owner to make payments before they are due
Obtain a line of credit from a bank
What should be done with the contractors IRS form W-2?
1. Destroy the copy to protect the employees privacy
2. Submit the copy with the contractor's payroll tax return
3. Give the copy to the employee
4. File the copy in the contractor's office
File the copy in the contractors office
By law, your workers may not be younger than _____ years of age.
1. 17
2. 16
3. 15
4. 14
16
You would use a _____ contract when you have no way of knowing the exact
span of the project.
1. Unit price
2. Lump sum
3. Cost plus
4. None of the above
Unit price
A _____ contract is an agreement wherein the purchaser agrees to pay the cost of
all labor and materials plus an amount for contractor overhead and profit.
1. Unit price
2. Lump sum
3. Cash sum
4. Cost plus
Cost plus
The only reason an employer can lawfully deny employment is _____?
1. No work experience or social security number
2. The employee looks too old
3. The employee is a female
4. Heavy lifting is involved
No work experience or social security number
Which of the following is not a misdemeanor?
1. A home improvement salesperson failed to disclose the name of the contractor
on a home improvement contract form
2. A home improvement salesperson gave a homeowner $20 for each new
customer the homeowner referred to the salesperson
3. A home improvement salesperson failed to give the contractor a $50 down
payment 'the salesperson received from the customer'
4. A home improvement salesperson gave a prospective customer an
unconditional gift valued at $5 as part of a sales promotion
, A home improvement salesperson gave a prospective customer an unconditional gift
valued at $5 as part of a sales promotion
The only time a contractor does not have to be licensed is if:
1. The client is told that the contractor is not licensed
2. The value of labor and materials is under $500
3. He carries insurance
4. All of his jobs are under $2000
The value of labor and materials is under $500
When is the best time to let your attorney see your construction contract?
1. After the contract is signed by you and your client
2. After the building permit is obtained
3. After the contract is prepared but before you sign it
4. Before you let your clients see the contract
After the contract is prepared but before you sign it
Prime contractor usually pays the subcontractor within _____ after receiving a
progress payment.
1. 6 days
2. 10 days
3. 15 days
4. 20 days
10 days
One reason why a contractor keeps change orders on file is:
1. For tax purposes
2. To get paid when the job is over
3. By law
4. UBC requirement
By law
Which form authorizes a contractor to proceed with work until a formal change
order can be processed?
1. Letter of intent
2. Presentment
3. Field order
4. Writ of mandamus
Field order
The employer may deduct _____ if an employee is late 20 minutes for work.
1. Deduct a half hour's wage
2. Deduct an hour's wage
3. Deduct for 20 minutes only
4. Not deduct from wages
Deduct a half hour's wage
A permit is required from CAL/OSHA for trenches that are _____ or more in depth.
1. 8'
2. 6'
3. 5'
4. 2'
5'
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