Law and Business Study Guide Book + Online Practice Exam

What’s included

• Learn the material: Law and Business Study Guide Book
• Pass the test: Law and Business Practice Exam

What this covers

The Law & Business exam is required for all California contractor license applicants, regardless of trade — it tests the rules, regulations, and business practices the state requires every licensed contractor to know. See the official CSLB Law & Business examination. This printed book covers the subjects the state tests.

Sample questions

1. Mr. Smith has approached contractor Mr. Jones asking for a bid on the construction of a building for which Mr. Smith has drawn plans. Mr. Jones has found numerous items in the plans that conflict with current building codes, but Mr. Smith has said that he wants the building to be built exactly as he has drawn the plans. Mr. Jones, a contractor, should therefore:
   ✓ A. advise Mr. Smith that the building code must be followed, even if he loses the job · B. take the job but build according to code · C. consult with Mr. Smith's wife · D. build it the way the owner wishes
2. A  construction contract was written containing  the following time estimates to complete the job.  It would take 2 days to ready the construction site and then the job itself would be done in 2 phases.  The first phase would take 10 days and the second would take 7 days, but these 2 phases could be at the same time.  It would take one additional day at the end to clean up.  How many days would it take to complete this project?
   A. 15 days · ✓ B. 13 days · C. 11 days · D. 7 days
3. A  contractor receives a notice from  the  Employment Development Department (EDD) that one of his  former employees has filed a claim for Unemployment Insurance (UI) benefits against his reserve account.  He/she may:
   A. call EDD within 5 days and protest · ✓ B. protest, in writing, within 10 days of the mailing date of the notice · C. protest, in writing, within 30 days of the mailing date · D. protest, in writing, within 45 days of the mailing date
4. A  Stop Notice, which is a claim for payment to  a subcontractor, inhibits payment from:
   A. the prime contractor to the subcontractor · ✓ B. the property owner to the prime contractor · C. the property owner to the subcontractor · D. the property owner to the supplier of materials
5. A "class 2" fire hazard means there is/are  ______ present.
   ✓ A. flammable material · B. dust · C. textiles · D. all of the above