CSLB – California Contractors Examination (2021) Practice Test #1 (Law & Business): 50 Question Practice Test covering: OSHA, payroll, IIPP, asbestos, advertising, license maintenance, bonds…

1 50 QUESTION PRACTICE TEST WITH DETAILED ANSWER KEY

The Contractors State Licensing Board (CSLB) Law & Business Exam – Practice Test

This practice test was created directly from the documents recommended from the CSLB, construction industry publications, Ca Employment tax law, and current Business and Profession Regulations as of July 2021. The Law & Business exam is a requirement for all trades and covers many areas’ such as California employment law, insurance, bonds, maintaining your license, contracts, work-site safety(OSHA), Home Improvement, advertising, arbitration,, Board organization, contractor obligations, worksite safety, payroll, job site postings and much more.

Our questions are not designed to trick you, and our approach is straight forward. We compile all of the suggested readings into one document. We take that document and locate the most testable items within. Our questions are crafted directly from the material chosen to be on your exam.

Our tests include multiple choice, True/False, and fill in the blank. Each question is accompanied by a detailed description of the answer at the end of your practice test. We also include the actual portion of text from where each question was derived if possible such as: California Code of Regulations, EDD withholdings publications and IRS tax publications or OSHA/DOSH to name just a few.

Don’t be fooled by those PASS 100% that have hundreds of test questions, created 10 years ago. Laws change all the time, your test-prep should too. If you want relevant and up to date test questions utilizing current law and current industry material, you’ve come to the right place. You invested this much of your life into this so far, don’t stop until you sign your name on your license.

Thank you for your visit, and we wish you the very best of luck on of your exam endeavours!!

Here are some sample questions:

Q1.
You have just passed your contractors exam and are now a fully licensed Contractor in the state of California. You started your business and have hired your first employee. When are you required to report this new employee to the state?

a. within 24 hours
b. before the first full pay period
c. within 20 days of their start date
d. the State will recognize the employee status when it receives their withholdings.

Answer:
c. within 20 days of their start date

Employment Development Department of California
Report of New Employee(s) (DE 34)
You must report all new or rehired employees who work in California to the New Employee Registry within 20 days of their start date. The start date is the first day services were performed for wages.

Q2.
Why would a subcontractor send a Preliminary Notice to an owner?

a. to add something to his bid.
b. to inform him or her that work will begin on a specific day.
c. a subcontractor does not send a Preliminary Notice, the prime contractor does.
d. to preserve his or her right to file a mechanics lien.

Answer:
d. to preserve his or her right to file a mechanics lien.

CCR BPC 7159.
To preserve their right to record a lien, each subcontractor and material supplier must provide you with a document called a ‘Preliminary Notice.’ This notice is not a lien. The purpose of the notice is to let you know that the person who sends you the notice has the right to record a lien on your property if they are not paid.
The Preliminary Notice can be sent up to 20 days after the subcontractor starts work or the supplier provides material.
You will not get Preliminary Notices from your prime contractor or from laborers who work on your project. The law assumes that you already know they are improving your property.