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CALIFORNIA CONTRACTORS
LICENSE TEST QUESTIONS AN D
ANSWERS
Question 1: When is the notice of cessation filed?
- After labor has ceased for 10 days
- After labor has ceased for 30 days
- After labor has ceased for 60 days
- Immediately upon project completion
Correct Answer: B) After labor has ceased for 30 days
Question 2: What is the max value of a gift which the home improvement sales
person can give to a potential customer?
- $5
B) $10
C) $25
D) $50
Correct Answer: A) $5
Question 3: Which employees are not covered by DOSH or Cal/OSHA?
- State employees
- County employees
- Private employees
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- Federal employees
Correct Answer: D) Federal employees
Question 4: What is the max limit on small claims court in California?
A) $5,000
B) $7,500
C) $10,000
D) $15,000
Correct Answer: C) $10,000
Question 5: Who must sign and date the contract?
- Only the contractor
- Only the client
- Client and contractor
- The contractor and the project manager
Correct Answer: C) Client and contractor
Question 6: After the lien has been recorded by the contractor, what is the next step?
- File the lawsuit to 'perfect' the lien
- Send a preliminary notice to the lender
- File a stop notice
- Seize the property immediately
Correct Answer: A) File the lawsuit to 'perfect' the lien
Question 7: What is the purpose of the mechanic's lien?
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- To seize the contractor's tools if they fail to perform
- It encumbers the owner's property as security until the bill is paid
- To protect the homeowner from unlicensed contractors
- To void the home improvement contract
Correct Answer: B) It encumbers the owner's property as security until the bill
is paid
Question 8: What info is needed on a time card according to the fair labor
standard act?
- Driver's license number
- Bank account routing number
- Social security number
- Employee's home address
Correct Answer: C) Social security number
Question 9: Who is required to conduct safety/tailgate meetings, and how often?
- The property owner, every 5 days
- Supervisors, every 10 days
- The State Inspector, every 30 days
- Any available journeyman, once a month
Correct Answer: B) Supervisors, every 10 days
Question 10: In a construction business, who is responsible for training new
employees?
- The state licensing board
- Cal/OSHA
- The contractor
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- The property owner
Correct Answer: C) The contractor
Question 11: How much time does a contractor have to renew his license after
the expiration date without retaking the exam?
- 1 year
- 2 years
- 3 years
- 5 years
Correct Answer: D) 5 years
Question 12: When you collect sales tax from your customer for goods, which
agency do you report and pay sales tax collected?
A) IRS
- Franchise Tax Board
- State Board of Equalization
- Department of Consumer Affairs
Correct Answer: C) State Board of Equalization
Question 13: How long is the contractor liable for patent or visible defects?
- 1 year
- 4 years
- 7 years
- 10 years
Correct Answer: B) 4 years
Question 14: How long is the contractor liable for latent or structural defects?
