CSLB Practice Law B - Questions and Answers

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CSLB Practice Law B - Questions and Answers A subcontractor or material supplier has days to file a lien once a notice of completion has been recorded. - Correct answer-30 How must a client submit a ... claim for service or repair of a defect on fit and finish items after a remodel? - Correct answer-By certified mail By overnight mail By personal delivery A contractor meets Mr. Jones at his home to discuss remodeling. The contractor and Mr. Jones sign a contract that includes a three-day cancellation form. After the contractor leaves, Mr. Jones decides not to have the work done. Instead of using the cancellation form, Mr. Jones sends the contractor a letter by first-class mail stating that he is canceling the contract. Is Mr. Jones' cancellation effective? - Correct answer-Yes. Mr. Jones' letter does cancel the contract because it indicates his intention not to be bound by the contract. If a contractor forgets to renew his or her license on time, the expired license may be renewed any time within after its expiration without reapplying for a license and fulfilling the exam or waiver requirements again. - Correct answer-Five years You are the qualifier for an active contractor's license. How do you inactivate the license? - Correct answer-Write to the CSLB, requesting that the license be made inactive. When a subcontractor does work on a public works contract, the public agency considers the subcontractor to be: - Correct answer-a subcontractor of the prime contractor A contractor hires a subcontractor to demolish a concrete wall. Who is responsible for supplying safety goggles? - Correct answer-subcontractor Sometimes contracts prove to be too vague to interpret without disagreement between owner and contractor. Which of the following steps would best prevent such problems? - Correct answer-Review the plans and specifications with the owner. A contractor is looking for an insurance policy to cover a high degree of exposure to risk. Of the following, which policy would be best for this purpose? - Correct answer- umbrella To whom do you report and pay sales tax? - Correct answer-Board of Equalization The federal Employer Identification Number (EIN) is issued by the: - Correct answer- Internal Revenue Service When purchasing insurance, what is the best way to choose among different companies? - Correct answer-cost and coverage As required by the Immigration Reform and Control Act, all employees hired on or after November 7, 1986 must complete Form to verify their employment eligibility status. - Correct answer-I-9 If required safety devices are missing from tools, what should an employee do? - Correct answer-Notify the contractor, who is responsible for safety. Of the following, which document is usually delivered first in a transaction involving a home improvement contract? - Correct answer-"Notice to Owner" Who is ultimately responsible for seeing that safety equipment is actually put to use on the jobsite? - Correct answer-contractor A mechanics' lien is a written document that must be signed and verified by the claimant. The first and third steps a contractor should take in filing a lien are listed below. Step 1: Obtain the exact legal description of the property. Step 2: Step 3: Find out if the person requesting the work of improvement is the owner. What is Step 2? - Correct answer-Find out the name of the legal owner of the property as well as the percent of ownership. A(n) represents a company's financial position on a specified date. - Correct answer-balance sheet When you get an approved set of plans, what should you do first? - Correct answer- Read any notes from the building department. When bidding on work, which of the following would you NOT include in the price of your bid? - Correct answer-worker's compensation insurance premium The purpose of a "Preliminary 20-day Notice" for private work is to: - Correct answer- notify the property owner that the subcontractor or firm who sent the notice will be making improvements on the property When should you let your attorney see a construction contract? - Correct answer-After the contract is prepared, but before you sign it. When [Show More]

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