Law.txt

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Law.txt
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  1. #1) Which of the following is not exempt from the requirements ofthe Contractors License Law?

    A.a government agency
    B.a person working on his/her own property when it is not for the purpose of resale
    C.a firm that installs, maintains, or monitors fire alarm systems
    D.a material supplier who does not install the materials
    C. A firm that installs, maintains, or monitors fire alarm systems

    Although a license is not required for security alarm systems, one is required for fire alarm systems. 
    (this multiple choice question has been scrambled)
  2. #2) A contractor's license is not required for a project in which the total price for all labor and materials is less than:

    A.$200
    B.$300
    C.$500
    D.$1,000
    C. $500
    (this multiple choice question has been scrambled)
  3. #3) Which of the following individuals will be required to pass the qualifying examination in order to obtain a contractor's license?

    A.a person who currently is the qualifier on a license who is applying for a new license as a Responsible Managing Employee
    B.a person who passed the qualifying examination two years ago, but did not ever receive a license
    C.a person who has been listed as a partner on an active license for the past four years and has been actively engaged in that business' construction operations
    D.a person who was the Responsible Managing Employee for another licensee three years ago
    C. a person who has been listed as a partner on an active license for the past four years and has been actively engaged in that business' construction operations
    (this multiple choice question has been scrambled)
  4. #4) Which of the following statements is true with regard to a Responsible Managing Employee?

    A.An RME may have his/her own active individual license while he/she qualifies for another active license.
    B.An RME may qualify for up to three separate licenses.
    C.An RME must own at least 10% of each business for which he/she serves as the qualifying individual.
    D.An RME must have a separate bond issued to accompany the licensee's bond.
    D. An RME must have a separate bond issued to accompany the licensee's bond.
    (this multiple choice question has been scrambled)
  5. #5) A group of four persons obtains a contractor's license as a partnership. After five years one of these partners, who did not serve as the qualifying individual for the license, disassociates from the partnership. In this situation, which ofthe following statements is not correct?

    A.The remaining partners may file a new application to obtain a new partnership license.
    B.The remaining partners may apply for a continuation of the license within 90 days in order to complete any existing contracts.
    C.The remaining partners may continue to conduct business using the same license since the qualifying individual is still involved with the business.
    D.The partner who disassociated from the license may obtain his/her own individual license without passing the examination.
    C. The remaining partners may continue to conduct business using the same license since the qualifying individual is still involved with the business.


    (Since a partnership license is issued to a specific group of partners, any change to that partnership renders the license void. Therefore, the remaining partners must either apply for a continuation ofthe license or apply for a new license altogether.) 
    (this multiple choice question has been scrambled)
  6. #6) An individual may qualify for as many as three separate licenses provided that he/she owns at least__ ofthe equity ofeach business for which he/she serves as the qualifying individual.

    A.20%
    B.50%
    C.10%
    D.33%
    A. 20%
    (this multiple choice question has been scrambled)
  7. #7) If a license is not renewed within following its expiration date, the license will be considered void and cannot be reinstated in any way.

    A.three years
    B.90 days
    C.two years
    D.five years
    D. five years
    (this multiple choice question has been scrambled)
  8. #8) What must a licensee do if the qualifying individual disassociates from the business?

    A.notify the Registrar and replace the qualifier within 90 days
    B.take and pass the qualifying examination within 90 days
    C.surrender the license immediately
    D.surrender the license within one year following the disassociation
    A. notify the Registrar and replace the qualifier within 90 days
    (this multiple choice question has been scrambled)
  9. #9) Which of the following is required by law to be included in all advertising placed by a contractor?

    A.contractor's license number
    B.address and telephone number
    C.name of the qualifying individual
    d.all of the above
    A. contractor's license number
    (this multiple choice question has been scrambled)
  10. #10) Which ofthe following statements is not true regarding the contractor's bond?

    A.Any claims against such a bond must be filed within two years following the expiration date of the license period for which the bond was provided.
    B.A contractor cannot legally refer to any required bond in hislher advertising.
    C.A bond must remain in full force and effect in order to maintain an active license.
    D.A licensed corporation is required to obtain two separate bonds for the corporation and its qualifYing individual.
    D. A licensed corporation is required to obtain two separate bonds for the corporation and its qualifying individual.

    Two bonds are required only if the qualifying individual owns less than 10% of the stock of the corporation. 
    (this multiple choice question has been scrambled)
  11. #1) The Contract Notice must be included in:

    A. all prime contracts only
    B. all subcontracts only
    C. all contracts which involve a construction lender
    D. all prime contracts and subcontracts
    A. all prime contracts only
    (this multiple choice question has been scrambled)
  12. #2) A licensed contractor enters into a verbal agreement with a customer for home improvement work. The total price for this project is $450. After reviewing this agreement, the contractor decides that he/she does not want to do the work at this price. Which of the following statements is true in this situation?

    A. The contractor is not allowed to cancel or change this contractwithout the consent of the customer.
    B. The contractor is not allowed to cancel the contract, but he/she isallowed to change its price.
    C. The contractor is allowed to cancel the contract within threebusiness days.
    D. The contractor is allowed to cancel the contract because averbal home improvement contract is not legal and binding.
    A. The contractor is not allowed to cancel or change this contract without the consent of the customer.
    (this multiple choice question has been scrambled)
  13. #3) In a non-emergency situation, a contractor must give a customer at least to cancel a home solicitation contract.

    A. one week
    B. five business days
    C. three business days
    D. 48 hours
    C. three business days
    (this multiple choice question has been scrambled)
  14. #4)Which of the following is not required in a home improvement contract in which the total price exceeds $500?

    A. a description of the work to be done, the materials to beinstalled, and the total cost of all labor and materials to beprovided
    B. a statement that the owner has the right to require the contractorto post a performance and payment bond
    C. the approximate beginning and completion dates of the project
    D. a notice stating that the contractor must begin work within 10days following the scheduled start date or be in violation of thelaw
    D. a notice stating that the contractor must begin work within 10 days following the scheduled start date or be in violation of the law
    (this multiple choice question has been scrambled)
  15. #5) Which of the following is the least effective way to guard against problems when negotiating a construction contract?

    A. Document all contracts and change orders in writing, and haveall parties sign these agreements.
    B. Communicate frequently with the owner to determine whatexactly is to be done and to insure that the owner understandsthe contract.
    C. Do not anticipate problems, but instead write up a changeorder later for any necessary adjustments to the contract.
    D. Recheck the terms of the contract with the owner before itis signed.
    C. Do not anticipate problems, but instead write up a change order later for any necessary adjustments to the contract.
    (this multiple choice question has been scrambled)
  16. #6)Which of the following is not recommended when executing a change order?

    A. Make the owner aware of any extra delays or problems whichwill be brought about by the change.
    B. Document the change in writing and have it signed by the owner.
    C. Document the price of the change as well as the amendedtotal price of the contract.
    D. Bill the customer for the price of the change immediatelyupon completion of the contract.
    D. Bill the customer for the price of the change immediately upon completion ofthe contract.
    (this multiple choice question has been scrambled)
  17. #7) What is usually the least expensive method of dispute resolution?

    A. lawsuit
    B. small claims court
    C. settlement
    D. arbitration
    C. Settlement
    (this multiple choice question has been scrambled)
  18. #8) Which of the following statements about the filing of a mechanics' lien is not correct?

    A. A mechanics' lien can only be filed against private property, andcannot be filed on a public works proj ect.
    B. Normally, a mechanics' lien cannot be filed more than 90 daysfollowing completion of the contract.
    C. A mechanics' lien serves to attach the owner's constructionfunds.
    D. A lawsuit to perfect a mechanics' lien must be filed within 90days following the filing ofthe lien.
    C. A mechanics' lien serves to attach the owner's constructionfunds.
    (this multiple choice question has been scrambled)
  19. #9.) Which of the following is not required to give a Preliminary Notice?

    A. a contractor who contracts directly with a tenant or lessee on aprivate job
    B. a prime contractor on a public works project
    C. a subcontractor whose contract price is less than $1,000
    D. a prime contractor on a private job that is not funded by aconstruction loan
    C. A subcontractor whose contract price is less than $1,000
    (this multiple choice question has been scrambled)
  20. #10) Which of the following statements is not true regarding a stop notice?

    A. A stop notice must be filed with the county recorder's office inorder to be valid.
    B. A stop notice requires the construction lender or awardingauthority to withhold the disputed amount from the constructionfunds.
    C. A stop notice is to be given to the construction lender orawarding authority.
    D. A stop notice serves as a lien on the funds of aconstruction project.
    A. A stop notice must be filed with the county recorder's office inorder to be valid.
    (this multiple choice question has been scrambled)
  21. #1) Which of the following statements with regard to hiring practices is not correct?

    A.It is illegal for an employee to be required to join a union after being hired.
    B.It is illegal for an employer to advertise for job applicants under 40 years of age.
    C.It is illegal for an employer to require a job applicant to promise not to join a union in order to be hired.
    D.It is illegal for a private employer to require a job applicant to pass a polygraph test.
    A. It is illegal for an employee to be required to join a union after being hired.

    Although it is illegal to require someone to be a union member before he is hired, it is legal to require that person to join a union after he is hired.
    (this multiple choice question has been scrambled)
  22. #2) The California Labor Code states that no employee can be required to work more than ____ consecutive days.

    A.6
    B.7
    C.8
    D.5
    B. 6
    (this multiple choice question has been scrambled)
  23. #3) If an employee is terminated, when are his/her earned wages due and payable from the employer?

    A.immediately
    B.within 72 hours
    C.on the next scheduled payday
    D.within 24 hours
    A. Immediately
    (this multiple choice question has been scrambled)
  24. #4) If an employee believes that he/she has not been paid wages which are due to him/her, he/she may file a complaint with the:

    A.Internal Revenue Service
    B.Labor Commissioner
    C.Division of Occupational Safety and Health
    D.Employment Development Department
    B. Labor Commissioner
    (this multiple choice question has been scrambled)
  25. #5) An employer who fails to pay wages due to an employee is subject to which of the following penalties?

    A.a fine of$100 plus 25% of the unpaid wages
    B.at least 30 additional days of the employee's wages plus a fine of no more than $100
    C.up to 30 additional days of the employee's wages plus a fine of at least $50
    d.all of the above
    C. up to 30 additional days of the employee's wages plus a fine of at least $50

    An employer who has committed his first such offense is subject to 30 days' additional wages plus a fine of $50, while the fine amount increases for subsequent offenses to $100 plus 25% of the unpaid wages. 
    (this multiple choice question has been scrambled)
  26. #6) Paul Evans is a licensed contractor who is building an addition to a customer's horne. He contracts with Reliable Painting Co. to do the painting work on this project. During the course of the job, one of the employees of Reliable Painting is injured. If Reliable Painting failed to cover its employees with a workers' compensation insurance policy and Paul did not check this fact beforehand, which of the following would be true?

    A.Paul's workers' compensation insurance policy would be required to cover the employees of Reliable Painting.
    B.Paul can file a lawsuit against Reliable Painting for failure to notify him that they had no workers' compensation insurance.
    C.The injured employee may file a lawsuit against both Paul and Reliable Painting.
    D.Paul would not be liable for coverage, since the injured employee did not work for his business.
    C. The injured employee may file a lawsuit against both Paul and Reliable Painting.


    Paul, the prime contractor, can be held liable for the injured employee's benefits because it is his responsibility to make sure that the employees of any subcontractor with whom he contracts are covered by some form of workers' compensation insurance. 
    (this multiple choice question has been scrambled)
  27. #7) At what point must a contractor obtain a federal employer identification number?

    A.as soon as he/she obtains his/her contractor's license
    B.before he/she obtains his/her contractor's license
    C.as soon as he/she hires any employees
    D.after he/she hires at least five employees
    C. As soon as he/she hires any employees.
    (this multiple choice question has been scrambled)
  28. #8) How often should federal tax returns be filed with the Internal Revenue Service?

    A.quarterly
    B.annually
    C.bi-monthly
    D.monthly
    A. Quarterly
    (this multiple choice question has been scrambled)
  29. #9) Which of the following taxes is to be paid by the employer only?

    A.Social Security (FICA) tax
    B.state disability insurance
    C.state unemployment insurance
    D.federal income tax
    C. State unemployment insurance
    (this multiple choice question has been scrambled)
  30. #10) An employer is required to file quarterly state tax returns with the:

    A.Franchise Tax Board
    B.Board of Equalization
    C.Internal Revenue Service
    D.Employment Development Department
    D. Employment Development Department
    (this multiple choice question has been scrambled)
  31. #1) Which of the following agencies is responsible for enforcing the Cal/OSHA health and safety standards?

    A.Cal/OSHA Consultation Service
    B.Division of Occupational Safety and Health
    C.Division of Labor Statistics and Research
    D.Division ofIndustrial Accidents
    B. Division of Occupational Safety and Health

    (Although the Cal/OSHA Consultation Service is concerned with the CaI/OSHA health and safety standards, this service is not involved with enforcement ofthese regulations.)
    (this multiple choice question has been scrambled)
  32. #2) If DOSH receives a complaint alleging a serious hazard to employees, they must investigate this complaint within:

    A.five working days
    B.14 calendar days
    C.10 calendar days
    D.three working days
    D. three working days
    (this multiple choice question has been scrambled)
  33. #3) Which of the following is not a requirement for employers according to Cal/OSHA regulations?

    A.have DOSH personnel personally monitor all safety conferences
    B.have a first aid kit present at all job sites
    C.adopt a written Code of Safe Practices and post it in a conspicuous location
    D.schedule regular safety inspections
    A. have DOSH personnel personally monitor all safety conferences

    (The employer is required to conduct regular safety meetings with his supervisors and employees,but DOSH does not need to conduct or be present at these meetings. )
    (this multiple choice question has been scrambled)
  34. #4) Employers are required to have their supervisory personnel conduct "tailgate" safety sessions with their employees at least once:

    A.every 10 working days
    B.every two weeks
    C.every week
    D.every 15 working days
    A. every 10 working days
    (this multiple choice question has been scrambled)
  35. #5) Which of the following types of work does not require a DaSH permit?

    A.construction of a five-story office building
    B.digging an eight-foot trench into which workers will descend
    C.construction of scaffolding to be used to reach the top of a fourstorybuilding
    D.excavation ofa 10-foot deep swimming pool
    D. Excavation ofa 10-foot deep swimming pool

    (Swimming pools are specifically exempted from the DOSH permit requirements for excavations.) 
    (this multiple choice question has been scrambled)
  36. #6) An employer who wishes to receive a permanent variance from Cal/OSHA regulations may apply to the:

    A.Occupational Safety and Health Appeals Board
    B.Division of Occupational Safety and Health
    C.Occupational Safety and Health Standards Board
    D.Cal/OSHA Consultation Service
    C. Occupational Safety and Health Standards Board

    (An application for a temporary variance is submitted to DOSH, but permanent variances are controlled by the Standards Board.) 
    (this multiple choice question has been scrambled)
  37. #7) When hazardous materials are delivered to a contractor, the supplier must furnish him/her with a ____regarding the hazardous materials.

    A.MSDS
    B.hazardous substance certificate
    C.permit
    D.HESIS
    A. MSDS
    (this multiple choice question has been scrambled)
  38. #8) A contractor who works on a structure that was built prior to ____ must first inquire if asbestos is present in the structure.

    A.1978
    B.1982
    C.1964
    D.1955
    A. 1978
    (this multiple choice question has been scrambled)
  39. #9) Which of the following types of injuries or illnesses does not have to be reported to the Division of Labor Statistics and Research?

    A.a head injury which results in temporary loss of consciousness
    B.a broken arm which results in the employee missing one week of work
    C.a cut which receives immediate medical attention after which the employee returns to workd.an illness which is traced to environmental factors at the work site
    C. A cut which receives immediate medical attention after which the employee returns to work.

    (Injuries which require only first aid treatment, even if such treatment is administered by a doctor or nurse, need not be reported.) 
    (this multiple choice question has been scrambled)
  40. #10) All occupational injuries and illnesses which must be reported are to be submitted on Cal/OSHA Form 5020 within:

    A.three days
    B.24 hours
    C.five days
    D.48 hours
    C. Five days
    (this multiple choice question has been scrambled)
  41. #1) Which of the following agencies is responsible for enforcing the Cal/OSHA health and safety standards?

    A.Division ofIndustrial Accidents
    B.Cal/OSHA Consultation Service
    C.Division of Labor Statistics and Research
    D.Division of Occupational Safety and Health
    D. Division of Occupational Safety and Health

    (Although the Cal/OSHA Consultation Service is concerned with the CaI/OSHA health and safety standards, this service is not involved with enforcement ofthese regulations.)
    (this multiple choice question has been scrambled)
  42. #2) If DOSH receives a complaint alleging a serious hazard to employees, they must investigate this complaint within:

    A.five working days
    B.10 calendar days
    C.three working days
    D.14 calendar days
    C. three working days
    (this multiple choice question has been scrambled)
  43. #3) Which of the following is not a requirement for employers according to Cal/OSHA regulations?

    A.schedule regular safety inspections
    B.adopt a written Code of Safe Practices and post it in a conspicuous location
    C.have DOSH personnel personally monitor all safety conferences
    D.have a first aid kit present at all job sites
    C. have DOSH personnel personally monitor all safety conferences

    (The employer is required to conduct regular safety meetings with his supervisors and employees,but DOSH does not need to conduct or be present at these meetings. )
    (this multiple choice question has been scrambled)
  44. #4) Employers are required to have their supervisory personnel conduct "tailgate" safety sessions with their employees at least once:

    A.every week
    B.every 15 working days
    C.every two weeks
    D.every 10 working days
    D. every 10 working days
    (this multiple choice question has been scrambled)
  45. #5) Which of the following types of work does not require a DaSH permit?

    A.excavation ofa 10-foot deep swimming pool
    B.construction of scaffolding to be used to reach the top of a fourstorybuilding
    C.digging an eight-foot trench into which workers will descend
    D.construction of a five-story office building
    A. Excavation ofa 10-foot deep swimming pool

    (Swimming pools are specifically exempted from the DOSH permit requirements for excavations.) 
    (this multiple choice question has been scrambled)
  46. #6) An employer who wishes to receive a permanent variance from Cal/OSHA regulations may apply to the:

    A.Occupational Safety and Health Appeals Board
    B.Cal/OSHA Consultation Service
    C.Division of Occupational Safety and Health
    D.Occupational Safety and Health Standards Board
    D. Occupational Safety and Health Standards Board

    (An application for a temporary variance is submitted to DOSH, but permanent variances are controlled by the Standards Board.) 
    (this multiple choice question has been scrambled)
  47. #7) When hazardous materials are delivered to a contractor, the supplier must furnish him/her with a ____regarding the hazardous materials.

    A.MSDS
    B.permit
    C.HESIS
    D.hazardous substance certificate
    A. MSDS
    (this multiple choice question has been scrambled)
  48. #8) A contractor who works on a structure that was built prior to ____ must first inquire if asbestos is present in the structure.

    A.1982
    B.1964
    C.1978
    D.1955
    C. 1978
    (this multiple choice question has been scrambled)
  49. #9) Which of the following types of injuries or illnesses does not have to be reported to the Division of Labor Statistics and Research?

    A.a head injury which results in temporary loss of consciousness
    B.a broken arm which results in the employee missing one week of work
    C.a cut which receives immediate medical attention after which the employee returns to workd.an illness which is traced to environmental factors at the work site
    C. A cut which receives immediate medical attention after which the employee returns to work.

    (Injuries which require only first aid treatment, even if such treatment is administered by a doctor or nurse, need not be reported.) 
    (this multiple choice question has been scrambled)
  50. #10) All occupational injuries and illnesses which must be reported are to be submitted on Cal/OSHA Form 5020 within:

    A.three days
    B.48 hours
    C.24 hours
    D.five days
    D. Five days
    (this multiple choice question has been scrambled)
  51. #1) Which method of accounting is recommended for a construction business?

    A.accrual basis
    B.materiality basis
    C.either the cash or accrual basis
    D.cash basis
    A. Accrual basis
    (this multiple choice question has been scrambled)
  52. #2) Which of the following statements best describes the difference between the balance sheet and income statement?

    A.The balance sheet shows net worth at a particular point in time, while the income statement shows profit earned over a period of time.
    B.The balance sheet is much more important than the income statement for a construction business.
    C.The balance sheet shows profit, while the income statement shows equity.
    D.The balance sheet shows financial position for one year, while the income statement shows activity over a period of many years.
    A. The balance sheet shows net worth at a particular point in time, while the income statement shows profit earned over a period of time.
    (this multiple choice question has been scrambled)
  53. #3) The result of subtracting liabilities from assets is known as:

    A.capitalization
    B.net working capital
    C.net worth
    D.operating capital
    C. Net worth
    (this multiple choice question has been scrambled)
  54. Payments which are currently owed to a contractor but have not yet been collected are known as:

    A.retentions
    B.accounts receivable
    C.accounts payable
    D.accrued expenses payable
    B. Accounts receivable
    (this multiple choice question has been scrambled)
  55. #5) Fixed assets are defined as:

    A.assets which are normally sold within one year
    B.assets which are normally kept for more than one year
    C.materials, buildings, and vehicles
    D.items which become a fixed part of a structure
    B. Assets which are normally kept for more than one year
    (this multiple choice question has been scrambled)
  56. #6) Depreciation is:

    A.the increase in value of a fixed asset due to passage of time
    B.the decrease in value of a fixed asset due to wear and tear, passage oftime, or obsolescence
    C.the decrease in value of a current asset due to wear and tear, passage oftime, or obsolescence
    D.the decrease in value of a liability due to wear and tear or passage oftime
    B. The decrease in value of a fixed asset due to wear and tear, passage oftime, or obsolescence
    (this multiple choice question has been scrambled)
  57. #7) Debts which are due to paid within one year are known as:

    A.current liabilities
    B.notes payable
    C.accrued expenses payable
    D.long-term liabilities
    A. Current liabilities
    (this multiple choice question has been scrambled)
  58. #8) Direct labor burden refers to:

    A.payroll costs for labor, such as taxes and insurance
    B.botha andb
    C.cost of advertising for new employees
    D.employees'wages
    A. Payroll costs for labor, such as taxes and insurance
    (this multiple choice question has been scrambled)
  59. #9) Net working capital is equal to:

    A.assets minus equity
    B.assets minus liabilities
    C.fixed assets minus long-term liabilities
    D.current assets minus current liabilities
    D. Current assets minus current liabilities
    (this multiple choice question has been scrambled)
  60. #10) What is the most common cause of small business failures?

    A.low profit margin
    B.poor record keeping
    C.underbidding jobs
    D.insufficient cash flow
    D. Insufficient cash flow
    (this multiple choice question has been scrambled)

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