California CSLB Business and Law Test Questions Answers Graded A
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Course
NU1426
Institution
NU1426
California CSLB Business and Law Test- Questions & Answers (Graded A)
1-2%
Bid Bond
Performance Bond or Contract Bond
Payment Bond
$35,000
Fidelity Bond
$15,000
$15,000
True
$12,500 (They can be exempt if the RMO can certify ownership of 10% or more of the voting stock in the company.)
$...
California CSLB Business and Law Test-
Questions & Answers (Graded A)
1). 1-2%
Ans: Bonds can be purchased from bonding companies for ___% of the original
contract price.
2). Bid bond
Ans: This acts as an assurance that the contractor will be able to complete the job as
described in the contract.
3). Performance bond or contract bond
Ans: This guarantees a contractor will complete the project according to the agreed
upon terms & conditions.
4). Payment bond
Ans: This guarantees that subcontractors and suppliers will be paid by the contractor
for properly performed work.
5). $35,000
Ans: Payment Bonds are required for federal government contracts over $__________.
6). Fidelity bond
Ans: This covers the business owner in case of employee dishonesty or theft.
7). $15,000
Ans: Contractors must file a contractors bond OR submit a cash deposit with the
CSLB for $_______.
8). $15,000
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, Ans: The value of a contractors bond must be $________
9). 90
Ans: The contractors bond must be filed with the CLSB within ___ days from the bond
effective date.
10). True
Ans: True or False: A contractor must identify their type of insurance when referring to
themselves as "bonded" or "insured" in advertisements or publications.
11). $12,500 (they can be exempt if the rmo can certify ownership of 10% or more of the voting
stock in the company.)
Ans: A business must submit a separate $________ bond for RMEs or RMOs.
12). $100,000
Ans: A Limited Liability Surety Bond for $__________ is required in addition to the
contractors bond for an LLC license.
13). Disciplinary bond
Ans: This must be filed with the Registrar after a license has been revoked or denied.
14). False. it's an additional requirement and may not be filed in place of another bond.
Ans: True or False: A Disciplinary Bond can be combined with any other bond.
15). $15,000 up to 10x the amount of the contractor's bond
Ans: The Disciplinary bond amount ranges from _______ to _______, depending on the
violation.
16). 2 years
Ans: The Disciplinary Bond must be valid & on file with the Registrar for how long?
Within 90 days
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, 17).
Ans: How soon should the Disciplinary bond be filed with the CSLB?
18). C) stocks or fluctuating investments
Ans: All of these are approved alternatives to surety bonds except:
A) Certificate of deposit
B) Cash
C) Stocks/fluctuating investments
D) Savings & loan investments
E) U.S. government bearer bond
19). D) all of the above
Ans: A license may be suspended if:
A) One or more of the required bonds are canceled by their surety company
B) The bond amount is reduced by a judgment or payment claim
C) There's failure to maintain either the Disciplinary bond or cash deposit for the required
time period
D) All of the above
20). Proof of worker's compensation insurance
Ans: What must a contractor submit before a contractor's license is issued?
21). Within 30 days
Ans: How soon must an employee provide written notification of an injury to their
employer?
22). $2000
(increases to $10,000 if a jobsite injury occurs, maxing out at $100,000.)
Ans: An employer is fined $_________ per uninsured employee if they don't provide
workers comp.
23). County recorder
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