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Business & Licensing

211 questions
51. An unlicensed contractor completes a project but is not fully paid, then sues the customer for the unpaid balance. Under §7031, the court will most likely:
a.Award the contractor the full unpaid balance
b.Award the contractor the cost of materials only
c.Bar the contractor from recovering any compensation for the work✓
d.Order the customer to pay 50 percent of the balance

Section §7031 bars an unlicensed contractor from bringing or maintaining an action to collect compensation for work that required a license. The contractor cannot recover the unpaid balance, regardless of work quality.

Bus. & Prof. Code §7031
52. A husband and wife want to operate a contracting business together and share equal responsibility. Which entity structures are available to them under §7065?
a.A sole proprietorship only, with the spouse as an employee
b.A partnership, a corporation, or a limited liability company✓
c.A corporation only, since two owners require incorporation
d.A joint revocable trust holding the license for both spouses

A contractor's license may be issued to a sole proprietor, a partnership, a corporation, a limited liability company, or a joint venture, so two people sharing ownership may use a partnership, a corporation, or an LLC. (a) is a real and lawful arrangement, but it gives one spouse the license and the other the status of employee, which is not the equal responsibility the question asks about. (c) invents a rule that co-ownership requires a corporation. (d) fails because a trust is not among the entity forms that may hold a license.

Bus. & Prof. Code §7065
53. Which of the following best describes when a person may serve as the qualifying individual for a contractor license?
a.Only if that person personally finances the whole business
b.If that person passes the examinations and has the experience✓
c.Only if that person is over forty years of age at the time
d.Only if that person has never owned another business before

§7068(a) requires the board to make an applicant show the degree of knowledge and experience in the classification applied for, plus general knowledge of the building, safety, health and lien laws and of the administrative principles of the contracting business. §7065(a) is where the registrar tests that by written examination, and 16 CCR §825 supplies the four years of journey-level experience within the preceding ten. §7068(b) says who may appear to qualify — the individual owner, a general partner, a responsible managing officer, manager or member, or a responsible managing employee — and §7068(c) adds that a responsible managing employee must be permanently employed and actively engaged, meaning 32 hours a week or 80 percent of the hours the business operates, whichever is less. Age, personal financing and prior business ownership appear nowhere in any of it, which is what makes (a), (c) and (d) wrong.

Bus. & Prof. Code §7068(a)-(c), (e); §7065(a); 16 CCR §825
54. A licensed C-10 electrical contractor advertises that it can also perform general roofing work, although it does not hold a C-39 roofing classification. This advertising is:
a.Acceptable, because the contractor holds at least one valid licence
b.Acceptable, because roofing and electrical are related trades
c.Acceptable, provided each roofing job stays under $5,000
d.Improper, because it advertises a classification the licence lacks✓

§7027.1(a) makes it a misdemeanour for any person to advertise for construction work covered by the chapter unless that person holds a valid licence in the classification so advertised, with the single allowance that a licensed building or engineering contractor may advertise as a general contractor, and §7027.1(c) adds a fine of $700 to $1,000 on top of any other punishment. §7059.1(a) attacks the same conduct from the name side, barring a business name that indicates the licensee is qualified in classifications its licence does not carry. So holding a C-10 buys no right to advertise roofing, which is (a)'s mistake; the trades being adjacent is beside the point, which is (b)'s; and no dollar figure makes advertising outside a classification lawful, which is (c)'s — the $1,000 in §7048(a) is about who needs a licence at all, not about what a licensee may advertise, and §7048(c) withdraws even that exemption from anyone who advertises as a contractor. §7030.5 separately requires the licence number in all of it.

Bus. & Prof. Code §7027.1(a), (c); §7059.1(a); §7030.5; §7048(a)
55. If a contractor fails to notify the CSLB within 90 days that its sole qualifying individual has left, the most likely consequence is that:
a.The contractor receives an automatic 90-day extension
b.The license may be suspended for lack of a qualifier✓
c.Nothing happens until the next license renewal
d.The contractor is automatically upgraded to a Class A license

Under §7076, a contractor must report a qualifier change within 90 days. If the license is left without a qualifying individual and the contractor fails to act, the CSLB may suspend the license until a qualified replacement is associated.

Bus. & Prof. Code §7068.2
56. A general partnership holds a contractor license. One of the two partners dies. With respect to the license, the surviving partner should understand that:
a.The license automatically continues unchanged in the surviving partner's name
b.The license is permanently void and the trade can never be resumed
c.The death dissolves the partnership, so the license must be addressed with the CSLB✓
d.The deceased partner's heirs automatically become licensees

A contractor license is issued to a specific entity under §7065. The death of a general partner dissolves the partnership as it was constituted, so the surviving partner must notify the CSLB and, typically, apply for a license for the new business form.

Bus. & Prof. Code §7065
57. A person engages in the business of contracting on a project requiring a license without holding any contractor license. Under California law, this is:
a.Permitted if the person is supervised by a licensed friend
b.Permitted if the person carries general liability insurance
c.A misdemeanor, and subsequent offenses carry increased penalties✓
d.Permitted if the project is for a relative

Under §7028, it is a misdemeanor to engage in the business or act in the capacity of a contractor without a license when one is required. Repeat violations carry escalating penalties, including higher fines and possible jail time.

Bus. & Prof. Code §7028
58. A licensed contractor allows the $25,000 contractor license bond to lapse because the bond premium was not paid. The effect on the license is that:
a.Nothing changes; the bond is optional after the first renewal
b.The license may be suspended until a valid bond is again in effect✓
c.The license is upgraded to inactive status with full work rights
d.The contractor simply pays a $100 fee with no other effect

Maintaining the §7071.6 contractor license bond is a condition of an active license. If the bond lapses, the CSLB may suspend the license, and the contractor cannot lawfully contract until a valid bond is reinstated.

Bus. & Prof. Code §7071.6
59. A specialty (Class C) contractor takes on a project. Which statement best describes the proper scope of work for that contractor?
a.Work in its own classification, plus trades incidental and supplemental✓
b.Any trade at all, on the view that the C classifications are interchangeable
c.The role of general building contractor, whatever trades the job requires
d.Engineering work such as dams, highways and flood-control channels

§7059(a) says it outright: nothing prevents a specialty contractor from taking and executing a contract involving two or more crafts, provided the work in the other crafts is incidental and supplemental to the craft it is licensed for, and 16 CCR §831 is the board's definition of that phrase. (b) treats the C classifications as one licence when each is separately applied for and qualified. (c) ignores that general building is Class B under §7057, a classification the licensee would have to add. (d) reaches into Class A general engineering under §7056. §7059(b)(1) adds the public-works twist worth remembering: the awarding authority sets the classification needed to bid, and no prime contract may go to a specialty contractor whose classification is less than a majority of the project.

Bus. & Prof. Code §7059(a)-(b); §7056; §7057; 16 CCR §831
60. A contractor wants to keep a license on file but does not intend to contract for a period of time. The contractor may:
a.Inactivate the licence, keeping it on record but barring work✓
b.Simply stop renewing it, since an expired licence still covers work
c.Transfer the licence to a friend until the business starts again
d.Keep contracting, because an inactive licence still allows work

§7076.5(a) lets a contractor inactivate the licence by filing the prescribed form with the current certificate, and the holder of an inactive licence is not entitled to practise as a contractor until it is reactivated; §7076.5(c) keeps the inactive licence valid for four years from its due date. The attraction is §7076.5(d): while the licence is inactive the bonding requirements of §7071.6, §7071.8 and §7071.9, the qualifier requirement of §7068, and the workers' compensation requirement of §7125 all fall away, and §7071.6(c) says the same from the bond's side. (b) is not free: §7141(a) does allow renewal within five years of expiration, but the record reads expired for the whole gap and contracting during it is a misdemeanour under §7028(a). (c) is impossible — §7075.1(a) forbids transferring any licence — and (d) is the very thing §7076.5(a) denies.

Bus. & Prof. Code §7076.5(a)-(d); §7071.6(c); §7141(a); §7028(a); §7075.1(a)

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61. A prime contractor planning a large remodel wants the simplest reliable way to confirm a prospective subcontractor is properly licensed and in good standing. The best method is to:
a.Accept the subcontractor's verbal assurance that it is licensed
b.Rely on the licence number printed on the business card
c.Assume a subcontractor who owns his own tools is licensed
d.Check the subcontractor's status on the board's public website✓

The prime contractor has its own skin in this. §7118 makes entering into a contract with a contractor while that contractor is not licensed a cause for disciplinary action against the licensee who did it, and no knowledge requirement appears anywhere in the section. §7031(a) then stops the unlicensed sub suing for its money, and §7031(b) lets whoever paid it recover everything back, so an unlicensed sub in the chain is a live problem for the prime's own books as well. The board's public record is the only source that answers the question at the moment it matters: §7124.6(d) publishes the date, nature and disposition of legal actions and §7124.6(e) keeps citations posted for five years after compliance, so the lookup shows not just whether a licence exists but whether it is suspended, expired or carrying discipline, and in which classification. (a), (b) and (c) all rest on the sub's own say-so, and a printed card is exactly what an expired licensee still has in his pocket.

Bus. & Prof. Code §7118; §7031(a)-(b); §7124.6(d)-(e)
62. A specialty contractor wants to use the word 'general' in its company name and advertising, even though it does not hold a Class A or Class B license. Under California law, this is:
a.Generally prohibited, because it misleads on the classification held✓
b.Always permitted, because business names are not regulated by the board
c.Permitted, provided the contractor explains it to each customer
d.Permitted only where the company name is in a foreign language

§7059.1(a) is a flat prohibition with no cure: a licensee shall not use any business name that indicates the licensee is qualified to perform work in classifications other than those issued for that licence, nor any name incompatible with the type of entity licensed. The word 'general' points straight at the two classifications a specialty contractor does not hold — general engineering under §7056 and general building under §7057 — so the name itself is the violation, whatever the contractor says afterwards. That is why (c) fails: nothing in §7059.1 turns on an oral explanation, and the consumer reading the advertisement is precisely the person the section protects. (b) is simply false, and §7059.1(b) adds a second limit by allowing only one business name for each licence. (d) invents a translation exemption; the test is what the name conveys, not the language it is written in. §7027.1(a) runs alongside, making it a misdemeanour to advertise for work in a classification the advertiser does not hold.

Bus. & Prof. Code §7059.1(a)-(b); §7027.1(a); §7056; §7057
63. When CSLB enforcement representatives have probable cause to believe an unlicensed person is acting as a contractor, they may:
a.Seize the person's home and vehicles there on the spot
b.Issue a citation for contracting without a licence✓
c.Revoke a licence the person has never actually held
d.Have the local court jail the person without a hearing

§7028.7(a) is mandatory rather than discretionary: if on inspection or investigation, whether on a complaint or otherwise, the registrar has probable cause to believe a person is acting in the capacity of, or engaging in the business of, a contractor or salesperson without a licence or registration in good standing, and that person is not otherwise exempt, the registrar shall issue a citation. §7028.7(c) requires each citation to be in writing and to describe the basis with particularity, and §7028.7(b) extends the power to the responsible officer or employee of a public entity that awards a contract to an unlicensed contractor after written warning, by way of §7028.15. (a) confuses a licensing citation with a criminal seizure. (c) is impossible on the facts — there is no licence to revoke, which is the whole premise. (d) skips the hearing a cited person may request, and the criminal route in §7028 belongs to a prosecutor and a court, not to the board.

Bus. & Prof. Code §7028.7(a)-(c); §7028.15; §7028
64. An LLC applying for a CSLB contractor license must satisfy an additional financial requirement that does not apply to most other entities. That requirement is:
a.Liability insurance with an aggregate limit of at least $1,000,000✓
b.A cash deposit of one million dollars held in the board's own accounts
c.Five responsible managing officers listed on the licence itself
d.Ten years of operating history before the company may apply for one

§7071.19(a) makes liability insurance a condition of issuing, reinstating, reactivating or continuing an LLC's licence, on top of any bond this article requires, and it must answer damages from acts, errors or omissions arising out of the contracting services the company provides. §7071.19(b) sets the size: an aggregate limit of not less than $1,000,000 where five or fewer persons are listed as personnel of record, plus a further $100,000 for each person beyond five, and never more than $5,000,000 in any one designated period. The LLC separately files the $100,000 employee wage and benefit bond under §7071.6.5, which is a bond rather than insurance. That is why (b) is wrong twice over: what the statute requires is a policy, not money, and nothing is deposited with the board. (c) invents a headcount — the number of listed personnel only moves the insurance limit — and (d) invents a waiting period that no section imposes on any entity.

Bus. & Prof. Code §7071.19(a)-(b); §7071.6.5
65. Which of the following is the BEST example of lawful advertising by a licensed contractor?
a.An online ad by a licensed contractor that leaves out its CSLB licence number
b.An unlicensed person's ad offering a kitchen remodel for about $9,000
c.A licensee's website ad giving its name and number, for work in its class✓
d.A specialty contractor advertising trades outside its classification

§7030.5 requires every licensee to include the licence number in all construction contracts, in subcontracts and calls for bid, and in all forms of advertising the registrar prescribes, so (a) fails on its face however good the underlying work may be. §7027.1(a) makes it a misdemeanour for any person to advertise for covered work without holding a licence in the classification advertised, with a fine of $700 to $1,000 on top of any other punishment. That disposes of (b), because §7027.2 opens the door to an unlicensed advertiser only where the aggregate price is under $1,000 and the ad says the person is unlicensed, and it disposes of (d) as well, since advertising trades outside the classification held is advertising without a licence in the classification advertised. Only (c) carries the number and stays inside the class.

Bus. & Prof. Code §7030.5; §7027.1(a), (c); §7027.2
66. A contractor changes the business address and main telephone number for the licensed business. With respect to the CSLB, the contractor should:
a.Notify the CSLB so the official license record stays current✓
b.Do nothing, because address changes do not affect a license
c.Apply for an entirely new license number
d.Wait until renewal and ignore any mail in the meantime

Contractors must keep the CSLB informed of current contact information. Reporting an address or telephone change ensures the contractor receives renewal notices and official correspondence and that the public record is accurate.

Bus. & Prof. Code §7065
67. A qualifying individual disassociates from a contractor license. The contractor wants to keep operating. Under California law, the contractor generally has a limited window to replace the qualifier; if it fails to do so, the license:
a.Is automatically transferred to the CSLB for safekeeping
b.Remains fully active indefinitely with no qualifier
c.Is downgraded to a home improvement salesperson registration
d.May be suspended or invalidated for lack of a qualifying individual✓

Under §7068.2, when a qualifier disassociates, the contractor must notify the CSLB and replace the qualifier within the time allowed. Failure to associate a new qualifying individual can result in suspension or invalidation of the license.

Bus. & Prof. Code §7068.2
68. A homeowner needs only interior and exterior painting on a house. The appropriate contractor classification for a contractor performing only this trade is:
a.A Class A General Engineering license
b.A Class B General Building license, which is mandatory for painting
c.A Class C specialty license (C-33 Painting and Decorating)✓
d.No license at all, regardless of the contract price

Painting is a recognized Class C specialty trade (C-33) under §7058. A contractor performing only painting work above the $1,000 minor-work threshold needs the C-33 specialty classification, not a general engineering or general building license.

Bus. & Prof. Code §7058
69. Which statement most accurately summarizes the licensing rule a contractor must satisfy to recover compensation in a lawsuit over a construction contract?
a.The contractor needs a licence only when the lawsuit is filed
b.The contractor must have been licensed at all times during the work✓
c.The contractor needs a licence only when final payment falls due
d.Licensing does not matter if the work itself was done properly

§7031(a) bars any person engaged in the business or acting in the capacity of a contractor from bringing or maintaining an action to collect compensation for work requiring a licence without alleging that they were a duly licensed contractor at all times during the performance of that act or contract, and it says so expressly regardless of the merits of the cause of action. The moment that matters is therefore the whole period of performance, not the filing date in (a) or the payment date in (c). §7031(d) adds how it is proved once licensure is controverted: a verified certificate of licensure from the board establishing proper licensure throughout. §7031(b) is the mirror image and the reason good work cannot save (d) — the person who used an unlicensed contractor may sue to recover all compensation already paid, however well the job was done. The one carve-out §7031(a) names is for contractors each individually licensed who fail to comply with §7029's joint venture licence.

Bus. & Prof. Code §7031(a)-(d); §7029
70. Why does the CSLB require each separate business entity to hold its own license rather than allowing one license to cover several businesses?
a.Because the licence names the responsible legal entity and its qualifier✓
b.To raise the number of licensing examinations the board administers yearly
c.Because federal law forbids two businesses from sharing one licence
d.To charge the larger companies a higher renewal fee each cycle

§7065(b)(1) issues licences to individual owners, partnerships, corporations, limited liability companies and participating tribes, and §7065(b)(1)(A)-(B) requires every officer, member, responsible manager, director or partner to be listed as personnel of record; §7068(b) then attaches a qualifying individual to that entity. One licence per entity is what lets the record answer the only question a homeowner or a claimant really has: which legal person is responsible for this work, and who qualifies it. §7075.1(a) completes the logic by making the licence untransferable, so the answer cannot be moved from one business to another. (b) and (d) treat the rule as workload or revenue, which no section supports, and (c) invents a federal rule where contractor licensing is entirely state law.

Bus. & Prof. Code §7065(b)-(c); §7068(b); §7075.1(a)
71. A contractor receives a formal citation, pays the civil penalty, and corrects the violation. Regarding the public record, the citation:
a.Comes off the public record the moment the penalty is paid
b.Was never a part of the public record to begin with at all
c.Stays on the public record for five years after compliance✓
d.Stays on the public record permanently and never comes off it

§7124.6(e)(1)(A) is precise about both ends: a citation is disclosed from the date of issuance and for five years after the date of compliance — so paying the penalty and correcting the violation starts the five years running rather than ending the disclosure, which is (a)'s mistake. The same paragraph adds a condition worth knowing: if further disciplinary action is filed against the licensee during those five years, all of the disciplinary actions stay posted for as long as the most recent one is disclosable, so a second citation extends the first. §7124.6(e)(1)(B) also puts the disclosure onto the record of any other licence that shares a qualifier listed among its personnel of record. (b) is simply wrong, because §7124.6(d) publishes the date, nature and disposition of all legal actions. (d) errs in the other direction: the section ends disclosure at the close of the stated period, and it gives accusations that ended in suspension, stayed suspension or stayed revocation a seven-year window under §7124.6(e)(2). The short version is the letter of admonishment, disclosed for one or two years under §7124.6(c)(2).

Bus. & Prof. Code §7124.6(d), (e)(1)-(2), (c)(2)
72. A contractor accepts a substantial down payment, performs almost no work, and then walks away from the project without legal excuse. In addition to disciplinary action against the license, the harmed homeowner may also:
a.Take possession of the contractor's personal residence automatically
b.Have the contractor jailed without any hearing
c.Make a claim against the contractor's $25,000 license bond✓
d.Force the CSLB to personally rebuild the project

Project abandonment is grounds for discipline under §7107, and a homeowner harmed by the contractor's violation may also file a claim against the §7071.6 contractor license bond to recover damages caused by the misconduct.

Bus. & Prof. Code §7107
73. A licensed limited liability company (LLC) contractor in California is required to carry a separate liability insurance policy intended to compensate employees and workers injured by the LLC's actions. What is the minimum aggregate amount of this policy?
a.$50,000 aggregate, whatever the number of listed personnel
b.$1,000,000 aggregate, rising $100,000 per person above five✓
c.$250,000 aggregate, whatever the size of the payroll
d.$10,000 for each person listed on the license

B&P §7071.19 requires an LLC licensee to carry liability insurance with an aggregate limit of at least $1,000,000 where five or fewer persons are listed on the license, plus $100,000 for each additional listed person, capped at $5,000,000. (a) and (c) state flat figures and miss the scaling, which is the whole design of the section. (d) inverts it into a per-person minimum with no floor. None of these should be confused with the separate $100,000 LLC worker bond under §7071.6.5, which answers wage and fringe-benefit claims rather than injury liability.

Bus. & Prof. Code §7071.19
74. An LLC contractor must file a special bond, distinct from the standard $25,000 contractor's license bond, specifically intended to satisfy wage and benefit claims of the LLC's employees. What is the amount of this LLC employee/worker bond?
a.$25,000
b.$50,000
c.$100,000✓
d.$15,000

B&P §7071.6.5 makes a $100,000 surety bond a condition of issuing, renewing or keeping an LLC contractor licence. It runs to the LLC's own employees, for wages, interest on wages and fringe benefits — and where a collective bargaining agreement applies, to welfare, pension and apprenticeship fund contributions. It is separate from, and additional to, the $25,000 licence bond under §7071.6, which protects consumers rather than employees. (Do not look for this in §7065.1: that section governs examination waivers.)

Bus. & Prof. Code §7071.6.5
75. A qualifier (RMO) leaves a contractor licensee on June 1. By what date must the licensee notify the Registrar of the disassociation to avoid automatic suspension of the license?
a.Within 90 days of the disassociation (by approximately August 30)✓
b.Within 30 days (by July 1)
c.Within one year (by the following June 1)
d.Notification is optional unless the Registrar requests it

Under B&P §7068.2, when a qualifying individual is disassociated from a license, the licensee must notify the Registrar in writing within 90 days. Failure to do so or to replace the qualifier within the statutory window subjects the license to automatic suspension.

Bus. & Prof. Code §7068.2
76. Under the "substantial supervision" requirement, a qualifying individual (RME or RMO) must be responsible for which of the following on behalf of the contractor licensee?
a.Personally performing the field labor on every job the licensee takes
b.Reviewing the company's advertising so that it lists the license number
c.Signing the original license application and each renewal that follows
d.Supervising and controlling the licensee's construction operations✓

§7068.1(a) makes the qualifier responsible for exercising supervision and control of the employer's or principal's construction operations to secure compliance with the contractors' law, and §7068.1(c)(4) lists what that means: supervising construction operations, making technical and administrative decisions, checking jobs for proper workmanship, and supervision on the construction site. It does not mean swinging the hammer, as (a) assumes, and it is not satisfied by the paper-only roles in (b) and (c) — a qualifier who lends a name without that control commits a misdemeanor punishable by a $3,000 to $5,000 fine under §7068.1(e).

Bus. & Prof. Code §7068.1(a), (c)(4), (e)
77. An unlicensed person performs $5,000 of contracting work and is cited by the CSLB for the first time. Under §7028.7, what is the maximum administrative civil penalty the Registrar may impose for this citation, separate from any criminal prosecution?
a.$1,500
b.$15,000✓
c.$25,000
d.$5,000

B&P §7028.7(c) requires each citation for unlicensed contracting to carry an order of abatement and a civil penalty of not less than $1,500 nor more than $15,000, so $15,000 is the ceiling. (a) is the floor of that same range, which is the near-miss for anyone who remembers one number from the section. (c) is the §7071.6 contractor's license bond, a different sum entirely and not a penalty. (d) assumes the penalty equals the unlawful contract price; it does not, and the Registrar may cite well above or below what the job was worth.

Bus. & Prof. Code §7028.7(c)
78. A contractor obtained his Class C-10 licence by submitting forged journeyman certifications and a falsified experience affidavit. Once the Registrar discovers the fraud, what is the most likely outcome?
a.A written warning only, because the work he performed met the code
b.A higher bond in place of discipline while the file is corrected
c.Discipline up to revocation for misrepresenting a material fact✓
d.Automatic reinstatement of the licence after a six-month wait

§7112 makes the omission or misrepresentation of a material fact in obtaining, renewing, or adding a classification to a licence a cause for disciplinary action, and §7090 lets the registrar deny, cite, temporarily suspend or permanently revoke the licence for any such cause — so forged certifications and a false experience affidavit go to whether the licence should exist at all, which is why (a)'s warning misses the point even if the finished work was sound. (b) treats a money cushion as a substitute for discipline; a bond protects claimants and buys no forgiveness. (d) inverts the process: reinstatement after a revocation is something the licensee has to petition for and prove, never a date that arrives on its own.

Bus. & Prof. Code §7112; §7090
79. A general contractor, without obtaining the owner's written consent or any change order, deliberately deviates from the engineer-stamped structural plans by substituting smaller beams. Which statute most directly addresses this as a ground for discipline?
a.§7109 — willful departure from the plans or the specifications✓
b.§7110 — willful violation of the building laws of the state
c.§7048 — the exemption for minor work under $1,000 in total
d.§7031 — no action for compensation without a valid licence

§7109(b) makes a willful departure from or disregard of plans or specifications in any material respect a cause for disciplinary action where it is prejudicial to another and the owner has not consented — which is exactly substituting smaller beams for the stamped structural design. (b) is the near miss most candidates take: §7110 reaches willful violation of the building laws themselves, and of the safety, labor and workers' compensation laws, so it would come in if the smaller beams also broke a code provision or a permit condition, but the charge for ignoring the drawings is §7109. (c) is an exemption from licensure for jobs under $1,000 that need no building permit, not a discipline section, and §7031(a) in (d) is the civil bar on an unlicensed contractor suing for payment.

Bus. & Prof. Code §7109(b); §7110; §7048(a); §7031(a)
80. A subcontractor abandons a project after pouring a defective foundation and refuses to return calls or correct the defects, leaving the owner to hire someone else at greater cost. Which provision most directly supports CSLB discipline?
a.§7108 — diverting funds received for the project elsewhere
b.§7113 — not completing the project for the contract price✓
c.§7159 — omitting a required term from the written contract
d.§7068.2 — failing to report the qualifier's disassociation

B&P §7113 makes a licensee's failure in a material respect to complete a construction project for the price stated in the contract a cause for discipline, which is exactly what the owner's higher completion cost evidences. (a) would require evidence that project money went somewhere else, and nothing in the facts says it did. (c) polices the paperwork of the contract, not the performance of it. (d) is a reporting duty about the qualifying individual and has nothing to do with abandoned work.

Bus. & Prof. Code §7113
81. Maria, a sole proprietor licensed contractor, wants to do business under the name "Bay Area Premier Builders." What do the contractor-licensing rules require of that name?
a.She must form an LLC before she may use any trade name at all
b.A fictitious business name statement filed with the county is enough
c.The name must be carried on her license, and one license carries one name✓
d.Only corporations and LLCs must report a business name to the Registrar

§7059.1(b) allows a licensee to conduct business under only one name for each license, and §7059.1(a) bars a name that suggests classifications the license does not hold or a business form it is not; the name Maria contracts under must therefore be the name on the license. §7083(a) is how it gets there: a change to information recorded on the license, business name expressly included, must be reported to the registrar in writing within 90 days, and §7083(c) makes failing to do so a ground for discipline. (b) is the trap — a county fictitious-business-name filing satisfies the county, not the board, and both may be needed. (a) confuses trade names with entity type, and (d) invents an exemption for sole proprietors that §7083 does not give.

Bus. & Prof. Code §7059.1(a)-(b); §7083(a), (c)
82. Which of the following parties is NOT a permissible claimant against a contractor's $25,000 license bond under B&P §7071.5?
a.A homeowner damaged by the contractor's willful violation of construction laws
b.A material supplier furnishing materials directly to the licensed contractor on a residential job
c.An employee for unpaid wages earned in the course of contracting business
d.A competing contractor seeking lost-profit damages for being underbid on a public job✓

B&P §7071.5 limits bond claims to specified categories: homeowners injured by violations of the contractor law, persons damaged by failure to complete a construction project, employees for unpaid wages, and certain express trust fund contributions. A competitor's lost-profit claim is not a covered category.

Bus. & Prof. Code §7071.5
83. Under §7090, which scenario gives the Registrar the clearest basis for suspending or revoking a contractor's license?
a.A finding that he violated the contractor or the building laws✓
b.He changed his own home address without ever telling the post office
c.He decided not to bid on one particular public works project at all
d.A customer left a critical online review about scheduling delays

§7090 lets the registrar, on its own motion or on the verified written complaint of any person, investigate an applicant, contractor or home improvement salesperson, and deny licensure or renewal, cite, temporarily suspend or permanently revoke a licence where that person is guilty of or commits any act or omission that this chapter makes a cause for disciplinary action. So the real question is always whether a statute names the conduct as a cause. §7110 does exactly that for the willful or deliberate disregard and violation of the state's building laws, and of its safety laws, labour laws and compensation insurance laws; §7090 adds that the registrar shall take action where a contractor has willfully and deliberately violated a state or local law on the issuance of building permits. None of the other three is a cause anywhere in the chapter: an address change is reportable to the registrar within 90 days under §7083(a) and has nothing to do with the post office, declining to bid is an ordinary business decision, and a customer's review is not conduct by the licensee at all. §7090 also reaches conduct that arose while the person was exempt under §7044, §7045, §7046 or §7048.

Bus. & Prof. Code §7090; §7110; §7083(a)
84. The Contractors State License Board's own membership is fixed by statute. Which statement best describes its statutory composition?
a.Nine members, each an actively licensed contractor, chosen by the Governor
b.Fifteen members, part licensed contractors and part public members✓
c.Fifteen members named by the Attorney General from sitting judges
d.Fifteen members elected each year by a vote of all active licensees

§7000.5(a) puts 15 members on the Board, and §7002(a) fixes the mix: one general engineering contractor, two general building contractors, two specialty contractors, one member of a building-trades labor organization, one active local building official, and eight public members, one of them from a statewide senior citizen organization. §7003 splits the appointments — the Governor names the five contractor members, the building official, the labor member and four public members, while the Senate Rules Committee and the Speaker of the Assembly each name two public members. So (a) both undercounts and erases the public majority, (c) invents an appointing authority, and (d) invents an election that no section provides.

Bus. & Prof. Code §7000.5; §7002; §7003
85. Specialty (Class C) licence classifications are set by statute and Board regulation. Which of the following is the BEST description of what a C-specialty licence authorizes?
a.Any construction work at all that the licensee believes he can do well
b.The same field of work as a Class A general engineering licence
c.Its own craft, plus work incidental and supplemental to that craft✓
d.Only work valued under $1,000, whatever the trade involved may be

§7058(a) defines a specialty contractor by craft: operations requiring special skill whose principal business is a specialized building trade. The individual classifications come from the board's regulations — 16 CCR §832 runs C-2 through C-61 — and 'incidental and supplemental' is defined at 16 CCR §831 and echoed in §7059(a), which lets a specialty contractor take a contract using two or more trades only where the other trades are incidental and supplemental to the one it is licensed for. (a) is exactly the self-assessment the classification system exists to replace. (b) ignores that general engineering is its own classification under §7056, with its own experience and examination. (d) confuses the scope of a licence with the §7048 minor-work exemption, which is about who needs a licence at all, not about what a C licence covers.

Bus. & Prof. Code §7058(a); §7059(a); 16 CCR §831, §832
86. An unlicensed person posts online ads offering kitchen-remodel services for $20,000 and lists a fake license number. Which two statutes most directly reach the advertisement itself?
a.§7031 alone, which bars the unlicensed person from suing for payment
b.§7068 alone, because the advertiser named no qualifying individual
c.§7028.16, which covers unlicensed work in a declared disaster
d.§7027.1 forbids the ad, and §7027.2 allows it only under $1,000✓

§7027.1(a) makes it a misdemeanor for any person to advertise for work covered by the contractors' law without holding a license in the classification advertised, punishable by a $700 to $1,000 fine on top of any other penalty. §7027.2 is the only opening: an unlicensed person may advertise only where the aggregate price is under $1,000 and the ad states that the person is not licensed, so a $20,000 remodel is outside it. (c) is the common mix-up — §7028.16 punishes unlicensed contracting for damage after a declared disaster, not advertising. (a) is a civil consequence of unlicensed work rather than a rule about ads, and (b) is about who qualifies a licensee, which this advertiser never became.

Bus. & Prof. Code §7027.1; §7027.2; §7028.16
87. A responsible managing employee qualifies a contractor's licence. To count as 'actively engaged' in the classification, that employee must work at least:
a.Forty hours every week, with no exception of any kind at all
b.Thirty-two hours a week, or 80 percent of operating hours✓
c.Twenty hours a week, half of a normal full-time week
d.Ten hours a week, if he qualifies more than one licence at once

§7068(c)(1) defines a responsible managing employee as an individual who is a bona fide employee of the applicant and actively engaged in the classification of work for which that person is the qualifying individual, and §7068(c)(2) then defines both halves of the phrase: a bona fide employee is one permanently employed by the applicant, and actively engaged means working 32 hours per week, or 80 percent of the total hours per week that the applicant's business is in operation, whichever is less. The 'whichever is less' is what (a) and (c) miss from opposite sides — (a) picks a round 40-hour week the statute never uses and drops the operating-hours alternative that a part-time business relies on, while (c) simply halves the figure. (d) describes the arrangement the licence law exists to stop: qualifying more than one firm is governed by §7068.1, which requires common ownership, a subsidiary or joint venture relationship, or the same majority of partners, officers or managers, and caps the total at three firms in any one-year period — it reduces nobody's hours. A responsible managing officer's duty is stated differently again: §7068.1(a) requires supervision and control of the construction operations, defined at §7068.1(c)(3)-(4) by the activities involved rather than by a weekly hour count, and §7068.1(e) makes a violation a misdemeanour with a fine of $3,000 to $5,000.

Bus. & Prof. Code §7068(c)(1)-(2); §7068.1(a), (c)(3)-(4), (e)
88. An applicant for a contractor's license must generally show how many years of journey-level experience in the classification applied for within the 10 years immediately preceding the application?
a.Two years of journey-level experience in the classification applied for
b.Five years of experience, at least one of them as a supervisor
c.Four years of journey-level experience within the preceding 10 years✓
d.Three years of experience, plus a passing grade on the trade exam

§7068(a) leaves the degree of experience to the board, and the board's regulation, 16 CCR §825, sets it at four years of journey-level experience in the classification applied for, gained within the 10 years immediately preceding the application; journey-level means fully qualified to do the work unsupervised, and time as a foreman, supervising employee or contractor counts too. (a) shortens the period, and (d) both shortens it and treats the trade examination as a substitute for experience when it is an additional requirement everyone must meet. (b) overstates the years and imports a supervisory year the rule never demands. An applicant who wants out of the examination is looking at a different section, §7065.1, which turns on five of the last seven years on the record of a licensee in the same classification.

Bus. & Prof. Code §7068(a); 16 CCR §825; §7065.1
89. Under Bus. & Prof. Code §7030.5, a licensed contractor must include which of the following on all contracts, subcontracts, and bids?
a.The contractor's workers' compensation policy number
b.The contractor's federal EIN and DIR registration number on every document
c.The Contractors' State License Board's headquarters address
d.The contractor's license number✓

Bus. & Prof. Code §7030.5 requires licensees to place their contractor's license number on all contracts, subcontracts, calls for bids, and all forms of advertising used in business. The EIN is a federal tax requirement, not a CSLB disclosure rule. DIR registration numbers are required only on public works bids and contracts. CSLB headquarters address is not required content. Workers' comp policy info is disclosed via the §7125.2 exemption/declaration filed with CSLB, not printed on every contract.

Bus. & Prof. Code §7030.5
90. Under the CSLB's classification rules, a C-specialty contractor may take a prime contract that involves work outside its classification only if:
a.The outside work is incidental and supplemental to the licensed specialty✓
b.The contractor obtains a temporary cross-classification permit from CSLB
c.The owner signs a waiver acknowledging the contractor is not licensed for it
d.The added work comes to less than five thousand dollars in total

§7059(a) is the only door: nothing prevents a specialty contractor from taking and executing a contract involving two or more crafts if the work in the other crafts is incidental and supplemental to the craft it is licensed for, and 16 CCR §831 is the board's definition of that phrase. There is no $5,000 carve-out, so (d) is invented — the figure in §7048(a) is $1,000, and it exempts a small job from licensure altogether rather than widening anyone's classification. (b) invents a permit the board does not issue. (c) is the most dangerous of the three, because an owner cannot consent his way around licensure and §7031(a) will still bar the contractor from suing for compensation on work that required a licence. On public work §7059(b)(1) adds a further limit: the awarding authority fixes the classification needed to bid, and no prime contract may go to a specialty contractor whose classification is less than a majority of the project.

Bus. & Prof. Code §7059(a)-(b); 16 CCR §831; §7031(a); §7048(a)
91. An LLC seeking a contractor's license in California must maintain a separate Liability Insurance policy with aggregate limits of at least:
a.$2,000,000 in all cases, regardless of personnel
b.$1,000,000, plus $100,000 per person above five✓
c.$250,000, if the LLC posts the $100,000 worker bond
d.$500,000, regardless of the number of personnel

B&P §7071.19 sets the LLC's liability insurance at an aggregate of at least $1,000,000 for five or fewer listed persons, with $100,000 added for each additional person and a $5,000,000 ceiling. (a) and (d) state flat numbers and lose the scaling that is the point of the section. (c) treats the insurance and the bond as alternatives: the $100,000 bond under §7071.6.5 answers employees' wage and fringe-benefit claims and is required in addition to this insurance, not instead of it.

Bus. & Prof. Code §7071.19
92. A licensed contractor changes its business address. Under Bus. & Prof. Code §7083, the contractor must notify the CSLB Registrar within:
a.Within 30 days of the change of address
b.10 days
c.15 business days
d.90 days of the change✓

Bus. & Prof. Code §7083 requires every licensee to report any change of address to the CSLB Registrar in writing within 90 days of the change. This is one of the few CSLB notification rules with a relatively long window, and the exam often tests it specifically because students assume a shorter period like 30 days. Failure to update the address can cause the licensee to miss legal notices and lead to discipline under §7090. The 10/15/30-day options are common 'gotcha' wrong answers drawn from other licensing rules.

Bus. & Prof. Code §7083
93. A qualifying individual (RME/RMO) disassociates from a licensed entity on March 1. Under Bus. & Prof. Code §7068.2, by when must the licensee notify the CSLB Registrar?
a.Within 30 days of the disassociation, by certified mail
b.Within 10 days of the disassociation, by telephone call
c.At the next license renewal, on the renewal application
d.Within 90 days of the disassociation, by written notice✓

B&P §7068.2 requires the licensee to notify the Registrar in writing within 90 days of a qualifier's disassociation, and gives the licensee 90 days from that date to replace the qualifier before the license is automatically suspended or revoked; if the notice is late, the suspension runs back to the disassociation date. (a) and (b) borrow the short reporting periods that belong to §7083 changes such as address and personnel. (c) treats renewal as the checkpoint, which would leave the firm operating without a qualifier for up to two years — precisely what the section prevents.

Bus. & Prof. Code §7068.2
94. How many separate active CSLB licenses may a single qualifying individual (RMO or RME) qualify simultaneously?
a.Only one firm, with no exception for commonly owned firms
b.Up to five firms in any one-year period, related or not
c.Up to three firms, and only where the firms are commonly owned✓
d.Any number of firms, provided the qualifier holds a Class A license

§7068.1(b) caps a qualifying individual at three firms in any one-year period, and §7068.1(a) permits the second or third firm only where the firms are linked: at least 20 percent common equity ownership, a subsidiary or joint-venture relationship, or the same majority of partners, officers or managers. Without that link the qualifier may act for one firm only — which is what (a) gets wrong by making the one-firm limit absolute. (b) invents a five-firm cap, and (d) treats classification as the controlling factor when a Class A license buys no extra slots. Violating the section is a misdemeanor carrying a fine of $3,000 to $5,000 under §7068.1(e).

Bus. & Prof. Code §7068.1(a)-(b), (e)
95. Two licensed contractors want to bid on a single project as a joint venture. Under Bus. & Prof. Code §7029, they must:
a.Note the joint venture on the bid and use the larger member's license
b.Get a joint venture license only if both members hold that classification
c.Obtain a separate joint venture license issued in the joint venture's name✓
d.Have one member contract as prime and the other as its subcontractor

§7029 makes the joint venture itself the licensee: the JV license is issued to the combination of licensees, every member must hold a current active license in good standing, and a lapse by any one member suspends the JV license by operation of law. Classification is the trap in (b) — §7029 lets the JV license issue in any classification in which at least one of the entities is licensed, not only one both hold. (a) borrows a license the joint venture does not hold, and (d) describes two separate contracts rather than one bid under a single joint name. An unlicensed JV cannot sue for its compensation under §7031 even though each member is individually licensed.

Bus. & Prof. Code §7029; §7031
96. Under Bus. & Prof. Code §7059.1, a licensed contractor's business name (including any DBA/fictitious business name) may NOT:
a.Be longer than thirty characters, including the entity suffix
b.Imply a license classification the contractor does not hold✓
c.Be registered as a federal trademark by the licensee
d.Combine the contractor's surname with the city of operation

B&P §7059.1 forbids a contractor's name, including any fictitious business name used in advertising, from indicating or implying a classification the licensee does not hold or otherwise misleading the public about license status — so a C-10 electrical contractor may not trade as 'Acme General Construction' or 'Ace Roofing'. (a) invents a character limit the section does not impose. (c) confuses trademark law with the license law; registering a mark neither cures nor creates a §7059.1 problem. (d) describes the most ordinary contractor name there is. Note that §7030.5 separately requires the license number on advertising; §7059.1 polices the name itself.

Bus. & Prof. Code §7059.1
97. When a sole proprietor licensed contractor incorporates the business and wants the new corporation to hold the license:
a.Use the sole proprietor's license number as soon as the articles are filed
b.Wait 12 months after incorporating before the corporation may apply
c.File a new license application for the corporation as a new entity✓
d.Ask CSLB to transfer the license once the new EIN has been issued

§7075.1(a) is absolute: no license, whatever its type or classification, is transferable to another person or entity under any circumstances. The corporation is a separate legal person, so it applies under §7065 with its own $25,000 contractor bond, its own qualifying individual, and its own workers' compensation certificate. §7075.1(c)(5) does allow the old license NUMBER to be reissued to a corporation formed by the individual licensee who keeps more than 50 percent of the voting power — but only on application, which is exactly what (a) skips and (d) imagines the board does by itself. (b) invents a waiting period; and the qualifier escapes a new examination only through §7065.1, which requires five of the seven years immediately preceding the application in the same classification.

Bus. & Prof. Code §7075.1(a), (c)(5); §7065; §7065.1; §7071.6
98. An applicant claims journey-level experience under a former employer who has since dissolved. Under Bus. & Prof. Code §7068 and CSLB procedures, the applicant's experience is generally certified by:
a.A sworn affidavit from the applicant alone, duly notarized
b.A field verification visit made by the CSLB Registrar
c.A Certification of Work Experience from a qualified person✓
d.A notarized statement from the applicant's spouse or relative

Experience is certified on CSLB's Certification of Work Experience, signed under penalty of perjury by a qualified and responsible person who personally observed the work — a former employer, supervisor, fellow journeyman, licensed contractor, building inspector, architect, or union representative. That the old employer has dissolved does not change the requirement; any of those others may sign. (a) is the most tempting wrong answer because the form is signed under penalty of perjury, but the applicant cannot certify their own experience. (b) reverses the burden — CSLB may audit, but it does not go out and verify the work. (d) fails the qualified-person test, and a false certification is itself grounds to deny or revoke under §7124.

Bus. & Prof. Code §7068 / 16 CCR §825
99. A contractor wants to build residential and commercial buildings that require the use of at least two unrelated building trades or crafts. Which license classification is appropriate?
a.Class A - General Engineering
b.Class B - General Building✓
c.Class C - Specialty
d.Class D - Limited Specialty

A Class B General Building contractor, under B&P Code section 7057, builds structures requiring the use of at least two unrelated building trades or crafts. General Engineering (Class A) is for fixed works, and Class C covers a single specialty trade.

B&P Code §7057
100. A firm specializes in building highways, dams, and other fixed works requiring specialized engineering knowledge. Which classification must it hold?
a.Class B - General Building
b.Class A - General Engineering✓
c.Class C-8 - Concrete
d.Class C-12 - Earthwork and Paving

Under B&P Code section 7056, a General Engineering (Class A) contractor performs fixed works requiring specialized engineering knowledge and skill, such as dams, highways, and irrigation systems. That scope is broader than any single Class C specialty.

B&P Code §7056
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