CSLB Contractor's Law practice test Part 2 Questions and Answers 2022/2023, Correct Verified Answers.

Document Content and Description Below

CSLB Contractor's Law practice test Part 2 Questions and Answers 2022/2023, Correct Verified Answers. When should you let your attorney see a construction contract? A. Before you let the client s ... ee the contract B. After the contract is prepared but before you sign it C. After the building permit is obtained D. After the contract is signed by you and the client ✔✔ B. After the contract is prepared but before you sign it Which is the most correct statement as to what must be included in every home improvement contract? A. Notice of right to cancel B. Contractor's license number C. Truth-in-lending notice D. Name of the project ✔✔ B. Contractor's license number Which is NOT required on a home improvement contract? A. A notice, in at least 10 point print, in close proximity to the signature, and a statement that the owner has a right to require a performance and payment bond B. The name and home address of all the personnel listed on the license C. An approximate date when work will begin and be substantially completed D. A description of the work to be done and materials and equipment to be used or installed ✔✔ B. The name and home address of all the personnel listed on the license. Know that A, C and D are required. Only the contractor's name, address and license number are required. When a home improvement contract is signed, the contractor must substantially begin work within ____ days of the date specified in the contract? A. 5 B. 10 C. 15 D. 20 ✔✔ D. 20 Which is true concerning home improvement sales persons? A. They must register with the Registrar's office and may work for only one contractor at a time B. Anyone who sells home improvement contracts for a licensed contractor outside the contractor's normal place of business is required to be registered with the Attorney General's office C. They must be at least 18 years of age. There are no residency or educational requirements D. They may begin to negotiate home improvement contracts as soon as they have filled out the appropriate application and paid the required fees ✔✔ C. They must be at least 18 years of age. There are no residency or educational requirements - must register for "each" contractor with the Registrar and receive a registration number first Judy, a contractor, employs Sam as her registered home improvement salesperson. Sam meets with Mr. And Mrs. Jones and negotiates home improvement work that totals $350. When Sam returns to his boss and tells her of the verbal contract, his employer says she will not work for the contracted price. The Contractor's License Law states: A. The contractor is required by law to abide by the verbal agreement since verbal home improvement contracts under $500 are binding B. The contractor is not bound by a verbal agreement C. The contractor may cancel a home improvement contract that she did not negotiate D. The contractor is not bound by the contract since all home improvement contracts must be in writting ✔✔ A. When registered salespersons enter into an agreement, verbal or written, they are bound by it. They are acting as the agent of the contractor. Verbal improvement contracts are legal and binding Which type of contract can be cancelled by a consumer? A. Sub contract B. Home solicitation contract which involves fencing, burglar alarm, carpentry and texture coating C. Prime construction contract D. Home improvement contract involving free standing bookcases, rugs and window air conditioner ✔✔ B. Home solicitation contract which involves fencing, burglar alarm, carpentry and texture coating - only home solicited contracts can be cancelled which contain "permanent fixtures" A consumer may cancel a home solicitation contract at any time prior to midnight of the ___ business day after the date of the transaction. A. 1st B. 2nd C. 3rd D. 5th ✔✔ C. 3rd If an owner cancels a home solicitation contract on March 20, by what date must the contractor return the down payment? A. April 23 B. March 30 C. April 1 D. April 20 ✔✔ B. March 30 -10 Days A notice canceling a home solicitation contract becomes effective: A. When the written notice is deposited in the mail B. When signed by the owner C. The day the owner cancels by telephone D. When the contractor receives it ✔✔ A. When the written notice is deposited in the mail An "emergency" job has been contracted for between the owner and a contractor. The materials have been purchased. If the owner decides to cancel, who is responsible for the materials? A. The owner B. The contractor C. The supplier D. No one ✔✔ A. The owner - During emergencies, the cancelation period is waived Which of the following is NOT true concerning a joint-control addendum to a contract? A. It prevents the contractor from being paid more than the value of the work completed B. It safeguards the consumer's property from liens by requiring contractor's to supply lien releases C. It analyzes the contract, plans, breakdown of costs and prepares an account from which funds will be disbursed D. It is controlled by the Contractor's State License Board ✔✔ D. It is controlled by the Contractor's State License Board Who must sign a joint-control addendum to a home improvement contract? A. Contractor's only B. Owner and contractor C. Owner, contractor and Notary Public D. Owner,contractor and joint control officer ✔✔ D. Owner,contractor and joint control officer When a joint-control addendum is issued, which of the following does NOT have to be included in a home improvement contract? A. Owner's signature B. Schedule of payments C. Notice to owner D. License number of the contractor ✔✔ B. Schedule of payments Which of the following is true concerning surety bonds? A. They are required in order to obtain a contractor's license number B. They are valued at $7500 for all contractor's C. They are required in case you accidentally damage the customer's property D. All of the above ✔✔ A. They are required in order to obtain a contractor's license number -Bonds do not cover damage Of the following, who will NOT stand to benefit from a contractor's bond? A. Any client damaged as a result of regulation violations by the contractor B. Any person damaged due to fraud on the part of the contractor C. Any subcontractor damaged due to an accident D. Any employee damaged by the contractor's failure to pay wages ✔✔ C. Any subcontractor damaged due to an accident Which of the following is NOT eligible to receive benefits from a contractor's license bond? A. A customer who was defrauded by the contractor B. A subcontractor involved in an accident on the job site C. An employee who was not paid wages that where due D. A homeowner with a valid claim that the contractor abandoned the job ✔✔ B. A subcontractor involved in an accident on the job site [Show More]

Last updated: 3 years ago

Preview 1 out of 10 pages