Law and Business 2

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Author:
pablojr
ID:
28594
Filename:
Law and Business 2
Updated:
2010-08-08 19:33:54
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Legal
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Description:
State Examination
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  1. When should you let your attorney see a construction contract?
    AFTER THE CONTRACT IS PREPARED BUT BEFORE YOU SIGN IT
  2. What is the most correct statement as to what must be included in every home improvement contract?
    CONTRACTORS LICENSE NUMBER
  3. Which is not a requirement on a home improvement contract?
    THE NAME AND HOME ADDRESSES OF ALL THE PERSONNEL LISTED ON THE LICENSE
  4. When a home improvement contract is signed, the contractor must substantially begin work within _____ days of the date specified in the contract.
    20
  5. Which is true concerning home improvement sales persons?
    THEY MUST BE AT LEAST 18 YEARS OF AGE. THERE ARE NO RESIDENCY OR EDUCATIONAL REQUIREMENTS
  6. Which type of contract can be cancelled by a consumer?
    HOMES SOLICITATION CONTRACT WHICH INVOLVED FENCING, BURGLAR ALARMS, CARPENTRY, AND TEXTURE COATING
  7. A consumer may cancel a home solicitation contract at any time prior to midnight of the ______ business day after the date of the transaction.
    3RD
  8. If an owner cancels a home solicitation contract on March 20th, by what date must the contractor return the down payment?
    MARCH 30
  9. A notice cancelling a home solicitation contract becomes effective:
    WHEN THE WRITTEN NOTICE IS DEPOSITED IN THE MAIL
  10. 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 material?
    THE OWNER
  11. Which of the following is not true concerning a joint-control addendum to a contract?
    IT IS CONTROLLED BY THE CONTRACTORS STATE LICENSING BOARD
  12. Who must sign a joint-control addendum to a home improvement contract?
    OWNER, CONTRACTOR, AND JOINT CONTROL OFFICER
  13. When a joint-control addendum is used, which of the following does not have to be included in a home improvement contract?
    SCHEDULE OF PAYMENTS
  14. WHich of the following is true concerning surety bonds?
    THEY ARE REQUIRED IN ORDER TO OBTAIN A CONTRACTORS LICENSE NUMBER (BONDS TO NOT COVER DAMAGE)
  15. Of the following, who will NOT stand to benefit from a contractors bond?
    ANY SUBCONTRACTOR DAMAGED DUE TO AN ACCIDENT
  16. Which of the following is NOT eligible to receive benefits from a contractors license bond?
    A SUBCONTRACTOR INVOLVED IN AN ACCIDENT ON THE JOB SITE
  17. Which bond guarantees that a contractors work will be free of defects in materials and workmanship for a specified period of time?
    MAINTENANCE BOND
  18. Match the correct bond with what it does?
    • A. Performance bond guarantee the project is complete according to plans and specs
    • B. Payment bonds guarantee payment of all labor and material
    • C. Contract bonds guarantee both job completion and payment of all labor and materials
  19. For most contractors, the required bond needed to obtain a contractors license is.....
    $12,500
  20. What could the Contractor License Board NOT accept as an alternative to filling a license bond?
    BLUE-CHIP STOCKS
  21. Bonds are often required on large jobs. A bond company will charge approximately ________% of its fee based on the contract price.
    1-2
  22. Where would a contractor obtain a surety bond?
    INSURANCE AGENT
  23. When should a contractor renew the contractor's license number?
    30 DAYS BEFORE IT EXPIRES
  24. What is the best way to ensure that your license bond remains in effect after its expiration date (in other words, what is the best way to avoid a period of suspension)?
    MAKE SURE THE NEW BOND DATE IS THE SAME AS THE CANCEL BOND DATE
  25. Which of the following needs a contractors license?
    MOVING A MOBILE HOME
  26. Which of the following individuals will be required to obtain a contractors license?
    AN INDIVIDUAL WHO INSTALLS, REPAIRS, OR MONITORS A FIRE ALARM SYSTEM
  27. General building contractors with a "B" classification can not do:
    REMODELING WHICH INCLUDES CARPENTRY, DRYWALL, AND ASBESTOS REMOVAL
  28. A client wants the house painted and carpet installed. What license(s) is/are required for this work?
    PAINTING, FLOORING
  29. How many times can you take the contractors license exam before your original application is voided (assuming you conform to scheduling)?
    THREE TIMES ( THREE TIMES IS THE OLD ANSWER. IF THEY OFFER "AS MANY TIMES AS YOU CAN WITHIN EIGHTEEN MONTHS, CHOOSE IT")
  30. When must a contractor show proof of licensure?
    IN EACH COUNTY OR CITY WHEN PULLING PERMITS
  31. IF a contractor forgets to renew his license on time, the expired license may be renewed within ______ after its expiration without reapplying for a license and fulfilling the exam or waver requirements again.
    5 YEARS
  32. Which is not a requirement to renew your license?
    REPEAT THE OPEN BOOK ASBESTOS EXAM
  33. Pablo and Sophia have done business as a licensed partnership. If Sophia is a general partner, but not qualified what must she do to get an individual license?
    IF SOPHIA WAS LISTED AS A PARTNER ON THE LICENSE AND WAS ACTIVELY ENGAGED IN THE BUSINESS FOR AT LEAST FIVE OF THE PAST SEVEN YEARS, SHE MAY APPLY FOR A WAVER OF THE EXAM
  34. The qualifying RME for a construction firm must work at least _____
    32 HOURS PER WEEK OR 80% OF THE WORK WEEK
  35. How many companies can the RME qualify at one time?
    ONLY ONE
  36. Pablo wishes to qualify for more than one active license at a time. According to the contractors license law, he must own at least ______ of the equity for each business where he serves as the qualifying individual.
    20%
  37. Pablo Arellano is the RME of XYZ Construction Co. where he works all week his own construction business under a different name and license number builds decks on the weekend. Is this an acceptable practice for Pablo?
    NO, PABLO MAY QUALIFY ONLY XYZ COMPANIES LICENSE IN THIS CASE.
  38. Where must a contractor include the "notice to owner"?
    IN ALL HOME IMPROVEMENT CONTRACTS OVER $500
  39. The notice to owner is given to inform the owner....
    IS KNOW THE PROPERTY CAN BE LIENED
  40. Who is least affected by the Notice to Owner?
    THE LENDER
  41. To who is the Preliminary Notice not sent?
    THE SUB-CONTRACTORS
  42. Which of the following statements is NOT true regarding the Preliminary Notice?
    THE NOTICE NEED TO ONLY BE USED ON JOBS IN EXCESS OF $1000
  43. Which of the following is required in order to file a mechanics' lien?
    • ALL OF THE ABOVE
    • ( A. NAME OF THE OWNER AND THE AMOUNT OF THE CLAIM
    • B. THE KIND OF LABOR FURNISHED AND THE PERSON WHO FURNISHED THE WORK
    • C. A DESCRIPTION OF THE SITE SUFFICIENT FOR IDENTIFICATION)
  44. Who cannot file a mechanics' lien?
    AN UNLICENSED CONTRACTOR WHO HAS DONE A JOB FOR $500
  45. Which is true of a mechanics' lien?
    • NONE OF THE ABOVE
    • (A. IT IS FILED AT THE COUNTY CLERK'S OFFICE IN THE COUNTY WHERE THE CONTRACTOR LIVES
    • B. IT CAN BE FILED BY ANY CONTRACTOR AT ANY TIME
    • C. IT IS A CLAIM THAT CAN BE MADE AGAINST PRIVATE OR PUBLIC LAND TO FORCE PAYMENT)
  46. When does Sam, a licensed contractor who has a contract with a customer to build a home, have lien rights?
    SAM AUTOMATICALLY HAS LIEN RIGHTS
  47. Which is true concerning a stop notice?
    • ALL OF THE ABOVE
    • (A. IT IS A LIEN ON FUNDS THAT OBLIGATES THE PERSON HOLDING CONSTRUCTION FUNDS TO WITHHOLD SUFFICIENT FUNDS
    • B. IS USED ON PUBLIC AND PRIVATE
    • C. MUST BE DELIVERED TO THE OWNER PERSONALLY OR LEFT AT THE OWNER'S RESIDENCE WITH SOME PERSON IN CHARGE OR DELIVERED TO THE ARCHITECT)
  48. If a subcontractor were to serve the owner with a stop notice, the most likely reason would be to:
    INFORM THE OWNER THAT THE SUB HAS NOT BEEN PAID BY THE PRIME
  49. A stop notice is the only single means to force payment on a public-works job. you may not lien public property, so in the event a contractor needs to serve a stop notice on a public-works job, he should serve it to the:
    AWARDING AUTHORITY
  50. If a stop notice is given on a private home construction job, it is given to the lends with a bond in the amount of:
    1-1/4 TIMES THE AMOUNT OF THE ACTUAL CLAIM
  51. Mr. Garcia learns that a lien has been placed on his property. he believes that the lien is invalid and unfairly clouded the title of his home. how can he release the property from the lien?
    HE CAN PURCHASE A BOND IN THE AMOUNT OF ONE AND A HALF TIMES THE AMOUNT OF THE LIEN
  52. if a contractor commits a serious violation of the contractor's laws, the Registrar can"
    • ALL OF THE ABOVE
    • (A. REQUIRE THE CONTRACTOR TO MAKE A RESTITUTION TO THE OWNER
    • B. REQUIRE THE CONTRACTOR TO CORRECT THE PROJECT
    • C. FINE THE CONTRACTOR UP TO $2000)
  53. All of the folowing are causes for disciplinary action EXCEPT:
    DURING BANKRUPTCY, SETTLING OBLIGATIONS INCURRED AS A CONTRACTOR, FOR LESS THAN THE FULL AMOUNT OWED

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