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Business & Licensing

211 questions
1. A contractor who holds a Class "B" General Building Contractor license may perform work in which situation?
a.Framing, roofing, and drywall on a new home✓
b.Grading and paving a parking lot only
c.Installing a new electrical panel only
d.Replacing underground water mains only

A Class B licensee may take contracts for structures and can self-perform two or more unrelated subcontractor trades. Installing only an electrical panel or replacing water mains would require C-specialty licenses, and grading/paving is Class A work.

Bus. & Prof. Code §7057
2. What is the maximum amount of the Contractor License Bond required by the CSLB?
a.$10,000
b.$15,000
c.$25,000✓
d.$50,000

All licensed contractors must maintain a $25,000 Contractor License Bond filed with the CSLB. This bond protects consumers from contractor misconduct.

Bus. & Prof. Code §7071.6
3. A Responsible Managing Employee (RME) may qualify how many contractor licenses simultaneously?
a.Unlimited licenses
b.Up to three licenses
c.One license only✓
d.Two licenses maximum

An RME may qualify only one license at a time. This differs from a Responsible Managing Officer (RMO), who is an owner and may be associated with multiple licenses in some circumstances.

Bus. & Prof. Code §7068
4. A contractor must notify the CSLB of a change in the qualifying individual (RME or RMO) within how many days?
a.30 days
b.60 days
c.90 days✓
d.180 days

Contractors must notify CSLB within 90 days when the qualifier leaves, is replaced, or the business structure changes. Failure to notify can result in license suspension.

Bus. & Prof. Code §7068.2
5. Which of the following business entities CANNOT hold a CSLB contractor license?
a.Sole proprietorship
b.Trust✓
c.General partnership
d.Corporation

Trusts cannot hold CSLB licenses. Eligible entities include sole proprietorships, partnerships (general and limited), corporations, and limited liability companies (LLCs).

Bus. & Prof. Code §7065
6. A licensed contractor must display their license number on all of the following EXCEPT:
a.Business cards handed out to prospective customers
b.Internal payroll records kept for the bookkeeper only✓
c.Written construction contracts signed with owners
d.Advertisements placed on a website or in print

§7030.5 requires a licensee to include the licence number in all construction contracts, in subcontracts and calls for bid, and in all forms of advertising as the registrar prescribes. That squarely covers (c) and (d), and it covers (a) as well: a business card put into a customer's hand is a form of advertising, not private correspondence. What the section reaches is the material the public sees. Internal bookkeeping is published to no one, so no licence number is required on it, which makes (b) the exception the question asks for. The purpose is the one §7027.1(a) enforces from the other side — a consumer must be able to read the number off whatever brought the contractor to the door and check it against the board's record before signing anything.

Bus. & Prof. Code §7030.5; §7027.1(a)
7. If a contractor operates under a fictitious business name (DBA), the name must be:
a.Approved by CSLB before use
b.Filed only with the county recorder
c.Posted only at the job site
d.Registered and listed on the CSLB license✓

Any fictitious business name used by a contractor must be registered with the CSLB and listed on the license. Operating under an unregistered DBA is a violation.

Bus. & Prof. Code §7083
8. The CSLB may issue a Disciplinary Bond in addition to the regular license bond when:
a.A contractor fails to pay a citation fine on time
b.A contractor voluntarily applies for additional consumer protection bonding
c.A contractor hires an RME to qualify its license
d.A formal disciplinary action is taken against the license✓

The disciplinary bond lives in B&P §7071.8, not §7071.17. After a formal disciplinary action against the license, the Registrar may require it as a condition of reissuance, reinstatement or continued licensure (d). Since SB 607 took effect on January 1, 2023 the amount is at least $25,000, capped at ten times the §7071.6 bond, and it sits on top of the standard $25,000 license bond; $15,000 is the pre-2023 figure. (a) is too narrow: an unpaid citation fine is one road to discipline, not the trigger itself. (b) is wrong because the bond is imposed by the Registrar, never applied for voluntarily. (c) confuses this with the §7071.9 bond of qualifying individual, which turns on how much of the entity the RMO or RME owns.

Bus. & Prof. Code §7071.8
9. How often must a CSLB contractor license be renewed?
a.Annually
b.Every three years
c.Every two years✓
d.Every five years

CSLB contractor licenses must be renewed every two years. Renewal notices are sent to the address on file, so contractors must keep contact information current.

Bus. & Prof. Code §7140
10. Which statement about unlicensed contractors is TRUE?
a.They may legally perform work under $1,000
b.They cannot enforce a contract in court or collect payment✓
c.They may work as a subcontractor under a licensed contractor
d.They may collect payment for work already completed

Unlicensed contractors generally cannot enforce contracts or collect compensation in court. The minor-work exemption (§7048) applies to the total project cost, not just labor, and has strict conditions — the threshold was raised from $500 to $1,000 by AB 2622 (in effect for 2026).

Bus. & Prof. Code §7031

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11. A contractor whose license has been expired for more than five years must:
a.Pay a reinstatement fee and file the usual renewal form
b.Apply as a new applicant under current requirements✓
c.Retake and pass the trade portion of the licence exam
d.Submit a renewal application with the delinquency fee

§7141(a) sets the window: an expired licence may be renewed at any time within five years of expiration on the prescribed form, with the renewal fee and, past the grace period, a delinquency fee — and the record still shows a break in licensing for the gap. Once those five years have run there is nothing left to renew, so the contractor files as a new applicant under §7065 and meets the requirements in force now, which is why (a) and (d) both fail: no fee reopens a window that has closed. (c) is at most half of the answer. A new application does normally mean examination, but §7065.1 can waive it where the qualifying individual was on a licensee's record in the same classification for five of the seven preceding years, so retaking the trade exam is neither the whole requirement nor invariably required. §7141.5 is the section people confuse with this one: it grants retroactive renewal only if the application is delivered or postmarked within 90 days of expiration.

Bus. & Prof. Code §7141(a); §7141.5; §7065; §7065.1
12. A Class "A" General Engineering Contractor license authorizes work primarily involving:
a.Residential and commercial buildings
b.Infrastructure such as highways, bridges, and dams✓
c.Specialty trades like electrical and plumbing
d.Home improvement projects only

Class A contractors focus on fixed works requiring engineering skills: highways, airports, dams, sewers, and other infrastructure projects. Residential buildings are primarily Class B work.

Bus. & Prof. Code §7056
13. Who is responsible for verifying that a subcontractor is properly licensed before awarding them work?
a.The property owner
b.The CSLB
c.The prime (general) contractor✓
d.The local building department

The prime contractor is responsible for verifying subcontractor licensure. Using an unlicensed subcontractor can result in disciplinary action against the prime contractor's license.

Bus. & Prof. Code §7068.1
14. A sole proprietor who wants to add a partner to their licensed contracting business must:
a.Simply notify CSLB by phone
b.Have the partner take the law exam only
c.File a new application and the new entity must qualify✓
d.Do nothing; the license automatically covers new partners

Adding a partner changes the business entity, requiring a new license application. The new entity (partnership) must qualify separately. The old sole proprietor license does not transfer.

Bus. & Prof. Code §7075
15. What action may the CSLB take against a contractor who abandons a project without legal excuse?
a.Issue a warning letter only
b.Suspend or revoke the contractor's license✓
c.Only notify the property owner
d.Refer the matter to the county court exclusively

Abandonment of a contract without legal excuse is grounds for license suspension or revocation. CSLB has broad disciplinary authority to protect consumers from this type of misconduct.

Bus. & Prof. Code §7107
16. A contractor wants to install only plumbing systems in residential homes. Which license classification is appropriate?
a.A Class C specialty (C-36 Plumbing)✓
b.Class A General Engineering
c.Class B General Building
d.No license is required for plumbing work

Class C licenses cover specialty trades, each limited to a specific craft. Plumbing is the C-36 specialty classification under §7058, separate from the general engineering and general building classes.

Bus. & Prof. Code §7058
17. A Responsible Managing Officer (RMO) of a corporation that holds a contractor license must own at least what percentage of the company's voting stock to be exempt from filing the bond of qualifying individual?
a.20 percent or more
b.Exactly 25 percent
c.A majority (over 50 percent)
d.10 percent or more✓

Under §7068, an RMO who owns 10 percent or more of the voting stock is generally not required to file a separate bond of qualifying individual. An RMO owning less than 10 percent must file that bond.

Bus. & Prof. Code §7068
18. An unlicensed person places an advertisement offering to perform construction work that requires a license. Under California law, this is:
a.A violation, even if no work is actually performed✓
b.Permitted if the ad states 'unlicensed'
c.Permitted as long as no contract is signed
d.Permitted if the work will be under $1,000

Under §7027.1, it is unlawful for an unlicensed person to advertise for construction work requiring a license. The violation occurs upon advertising itself, regardless of whether any work is performed.

Bus. & Prof. Code §7027.1
19. Under the minor work exemption, an unlicensed person may perform a construction job only if the aggregate contract price for labor, materials, and all other costs is:
a.Less than $1,000✓
b.Less than $750
c.Less than $250
d.Less than $500

Section §7048 exempts work where the aggregate contract price for labor and materials is less than $1,000 (raised from the old $500 by AB 2622, effective 2025, and re-enacted at $1,000 by AB 1170 for 2026). The threshold applies to the total job cost, not just the labor portion, and a larger job cannot be split to evade licensing.

Bus. & Prof. Code §7048
20. A licensed contractor preparing a written bid for a project must include which of the following?
a.Only the contractor's phone number
b.Only the contractor's business address
c.The contractor's CSLB license number✓
d.The contractor's federal tax identification number

Section §7030 requires a licensed contractor to include the license number in contracts, subcontracts, and bids. This allows consumers to verify the license status with the CSLB before agreeing to the work.

Bus. & Prof. Code §7030.5
21. Which of the following business entities IS eligible to hold a CSLB contractor license?
a.A revocable living trust
b.An unincorporated charitable association
c.A self-directed individual retirement account
d.A limited liability company (LLC)✓

Under §7065, eligible entities include sole proprietorships, partnerships, corporations, and limited liability companies. Trusts and similar arrangements are not eligible to hold a contractor license.

Bus. & Prof. Code §7065
22. When the CSLB issues a citation against a licensed contractor, how long is that citation generally disclosed to the public?
a.For five years after the date the citation is complied with✓
b.For one year, counted from the date on which the citation issued
c.Permanently, since it is never removed from the record at all
d.It is never disclosed to any member of the public at all

§7124.6(e)(1)(A) fixes both ends of the window: a citation is disclosed from the date of issuance and for five years after the date of compliance — so the clock that decides when it comes down starts when the licensee has actually paid and corrected, not when the citation went out, which is the distinction (b) misses. The paragraph adds a condition worth carrying: if additional disciplinary action is filed during those five years, all of the actions stay posted for as long as the most recent one is disclosable, and §7124.6(e)(1)(B) carries the disclosure onto the record of any other licence that shares a qualifier listed among its personnel of record. (c) is wrong because the section ends disclosure at the close of the stated period, and (d) is wrong at the opposite extreme. The one-year figure in (b) is not invented from nothing: §7124.6(c)(2) discloses a letter of admonishment for either one year or two. An accusation that ended in suspension, stayed suspension or stayed revocation gets seven years after settlement under §7124.6(e)(2).

Bus. & Prof. Code §7124.6(e)(1)(A)-(B); §7124.6(c)(2); §7124.6(e)(2)
23. The bond of qualifying individual is required primarily in which situation?
a.Every time any contractor renews an existing contractor licence
b.When the qualifier is an RME, or an RMO with under 10 percent✓
c.When the contractor puts its first employee on the payroll
d.Only when the contractor bids on state or local public works

§7071.9(a)(1) requires the $25,000 qualifying individual's bond whenever the qualifier is neither the proprietor, a general partner, nor a joint licensee — which covers every responsible managing employee — and §7071.9(c) exempts a responsible managing officer only where he owns 10 percent or more of the corporation's voting stock and certifies that fact. So the trigger is who the qualifier is, not the events in the other three options: renewal in (a) does not create the bond; (c) points at the certificate of workers' compensation insurance under §7125, which turns on having employees (or on holding a C-8, C-20, C-22, C-39 or D-49 classification) and has nothing to do with this bond; and public works in (d) brings bid and payment bonds that have nothing to do with this one. This bond is in addition to the §7071.6 contractor's bond and may not be combined with it, and §7071.9(b) caps the surety's aggregate liability at $7,500 for claims other than those of the §7071.10(a)(1) beneficiaries.

Bus. & Prof. Code §7071.9(a)-(c); §7071.10(a)(1); §7071.6
24. A corporation's contractor license is qualified by an RMO who resigns. To keep the license valid, the corporation must:
a.Continue operating; a qualifier is optional after the first year
b.Wait until the next renewal to address the qualifier
c.Designate any current employee, licensed or not, as qualifier
d.Associate a new qualifier who meets experience and exam requirements✓

Every contractor license must be continuously qualified by an individual who has met the experience and examination requirements under §7068. If the qualifier leaves, a qualified replacement must be associated with the license or it cannot remain active.

Bus. & Prof. Code §7068
25. The qualifying individual of a contractor license has a duty to:
a.Personally perform all of the physical labour on every job site
b.Guarantee that the company never loses money on a contract
c.Exercise direct supervision and control of the operations✓
d.Sign every employee's weekly timecard before it is processed

§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 chapter, and the definitions do the real work. §7068.1(c)(3) defines supervision and control as direct supervision or control, or monitoring and being available to assist others to whom direct supervision and control has been delegated — so the duty can be met through a competent chain of command rather than in person everywhere. §7068.1(c)(4) then lists what counts as direct supervision or control: supervising construction operations, managing construction activities by making technical and administrative decisions, checking jobs for proper workmanship, and supervision on construction sites. That is why (a) demands too much and (d) far too little, and why (b) confuses a licensing duty with a business guarantee no statute imposes. §7068.1(d) makes the board collect detailed information on those duties, and §7068.1(e) makes a violation a misdemeanour with a fine of $3,000 to $5,000.

Bus. & Prof. Code §7068.1(a), (c)(3)-(4), (d)-(e)
26. A homeowner hires an unlicensed contractor who completes a $40,000 remodel and is fully paid. Under §7031, the homeowner may:
a.Sue to recover all the compensation paid to that contractor✓
b.Recover nothing at all, because the work was in fact completed
c.Recover only the cost of repairing any defects that are found
d.Recover only the profit margin the contractor built into it

§7031(b) is a disgorgement remedy rather than a damages remedy: a person who used the services of an unlicensed contractor may bring an action to recover all compensation paid to that contractor for the performance of any act or contract requiring a licence. It never asks whether the work was any good, which is why the other three all measure the wrong thing — (b) treats completion as a defence, (c) turns the claim into an ordinary construction-defect claim, and (d) tries to leave the contractor its costs. §7031(a) is the same policy from the other side, barring the unlicensed contractor from suing for an unpaid balance regardless of the merits. §7031(e) leaves one narrow door, and only for someone who has at some point held a California licence: the court may find substantial compliance where the person had been duly licensed before performing, acted reasonably and in good faith to maintain proper licensure, and acted promptly and in good faith to remedy the failure on learning of it. Contracting without a licence is also a misdemeanour under §7028(a).

Bus. & Prof. Code §7031(b), (a), (e); §7028(a)
27. A general building (Class B) contractor takes a contract that involves only a single specialty trade. Under California law, the Class B contractor must:
a.Hold the matching C classification or subcontract that trade out✓
b.Perform the work freely, because Class B covers every specialty trade
c.Apply to upgrade the Class B licence to a Class A licence
d.Decline the contract, since Class B may not touch specialty work

§7057(a) defines the general building contractor by the structure and by the requirement that its construction use at least two unrelated building trades. §7057(b) supplies the rule this question turns on: a Class B may take a prime contract or a subcontract for framing or carpentry, but shall not take a prime contract for any project involving other trades unless the prime contract requires at least two unrelated trades other than framing and carpentry, or unless the Class B holds the appropriate licence classification itself or subcontracts with an appropriately licensed contractor. A single-trade job fails the two-trade test, which is why (b) is wrong. (c) misreads the ladder: Class A is general engineering under §7056, a separate classification with its own experience requirement, and holding it would not license the specialty trade either. (d) overshoots, because the contract is perfectly available by either route the statute names — and §7059(a) lets the licensee add the C classification without a further licence fee.

Bus. & Prof. Code §7057(a)-(b); §7056; §7059(a)
28. A licensed contractor begins using a new trade name 'BuildRight Pros' on its trucks and contracts without listing it on the CSLB license. This practice is:
a.Acceptable, because trade names are governed only by county recorders
b.Acceptable, as long as the trucks also show the license number
c.Acceptable, because the contractor is still licensed
d.A violation, because a fictitious business name must be registered with the CSLB✓

Under §7083, any fictitious business name or DBA a contractor uses must be reported to and registered with the CSLB so it appears on the license. Using an unregistered business name on contracts and advertising violates the law.

Bus. & Prof. Code §7083
29. A contractor's license expires and the contractor renews it 30 days later, within the renewal grace period. During the grace period, the contractor:
a.May carry on contracting as normal and without penalty
b.May contract only on the jobs that had already started
c.May contract, but must post double the bond amount first
d.May not contract until the licence is active again✓

§7141(a) says two things, and the second is the one candidates miss: an expired licence may be renewed within five years, and the renewal is effective on the date an acceptable application is filed — the licensee is considered unlicensed, and there is a break in the licensing time between the expiration date and the date the renewal becomes effective. §7141(b) then explains what the 30-day grace period actually buys: it applies only to the delinquency fee, where a corrected application follows an incomplete one submitted by the expiration date. It authorises not a single day of contracting. So work done in that window is unlicensed work: a misdemeanour under §7028(a), and unrecoverable under §7031(a), which bars any action for compensation unless the contractor was duly licensed at all times during performance. (a) treats a fee concession as permission, (b) invents a carve-out for work in progress, and (c) borrows the double bond, which §7071.6(d) may impose at licensure on certain prior offenders and has nothing to do with renewal timing.

Bus. & Prof. Code §7141(a)-(b); §7028(a); §7031(a); §7071.6(d)
30. A contractor licensed as a partnership has one partner leave the business. The contractor must notify the CSLB of this change within:
a.10 days
b.30 days
c.There is no deadline to notify
d.90 days✓

Under §7076, a contractor must notify the CSLB within 90 days of any change in personnel listed on the license, including the departure of a partner. The change in partnership membership affects the validity of the license.

Bus. & Prof. Code §7076
31. What is the key difference between a Responsible Managing Employee (RME) and a Responsible Managing Officer (RMO)?
a.An RME must own at least fifty-one percent of the business
b.Only an RMO has to pass the licensing examinations at all
c.An RME may qualify an unlimited number of separate active licences
d.An RMO is an officer or owner; an RME is a bona fide employee✓

§7068(b) lists who may appear to qualify a firm: a general partner, a responsible managing officer, a responsible managing manager or member, or a responsible managing employee. The RMO sits inside the business as an officer, manager or member. §7068(c)(1) defines the RME from the other direction, as an individual who is a bona fide employee of the applicant and actively engaged in the classification for which that person qualifies it, and §7068(c)(2) puts numbers on both halves: permanently employed, and working 32 hours a week or 80 percent of the hours the business operates, whichever is less. Both must show the same knowledge and experience and both sit the examinations, which is (b)'s error. (a) invents an ownership test for the RME; ownership matters in the other direction, since §7071.9(c) excuses an RMO from the qualifying individual's bond only where he owns 10 percent or more of the voting stock. (c) is wrong as well: §7068(e) bars a qualifier from holding another active licence except under §7068.1, which reaches related firms only and caps the whole arrangement at three in any one-year period.

Bus. & Prof. Code §7068(b)(1)-(4), (c), (e); §7068.1(a)-(b); §7071.9(c)
32. A contractor advertises its services on a website and on social media. Regarding the CSLB license number, the contractor must:
a.Include the license number in the online advertising✓
b.Include it only in print newspaper ads
c.Include it only if the ad mentions a specific price
d.Omit it from online ads to avoid identity theft

Section §7030.5 requires the license number to appear in all forms of advertising, including websites and social media. Online advertising is treated the same as print and broadcast advertising for this requirement.

Bus. & Prof. Code §7030.5
33. What is the primary purpose of the $25,000 Contractor License Bond required by §7071.6?
a.To pay consumers and unpaid employees harmed by the licensee✓
b.To reimburse a subcontractor any progress payment the licensee withheld
c.To guarantee the contractor's own profit on each project it takes
d.To stand in for the workers' compensation coverage §7125 requires

§7071.6(a) makes the $25,000 contractor's bond a condition precedent to issuing, reinstating, reactivating, renewing or maintaining a licence, and §7071.5 lists exactly who may claim on it: a homeowner damaged on home improvement to a personal family residence, the owner of a single-family dwelling not built for sale, any person damaged by a willful and deliberate violation of the licence law or by the licensee's fraud, an employee owed wages, and the funds owed employee fringe benefits. §7071.6(b) then reserves everything above $7,500 for the homeowners named in §7071.5(a). That list is why (b) is wrong: an unpaid subcontractor's remedies are the mechanics lien and the stop payment notice, and it reaches this bond only through the willful-violation or fraud door. (c) has the bond backwards — it protects others from the licensee, not the licensee's margin — and (d) confuses it with the coverage §7125 requires.

Bus. & Prof. Code §7071.6(a)-(b); §7071.5(a)-(e)
34. An individual holds a contractor license as a sole proprietor and decides to incorporate the business. Regarding the license, the individual must:
a.Simply mail a name change form to the CSLB
b.Transfer the existing sole proprietor license number to the corporation
c.File a new application, because the corporation is a separate legal entity✓
d.Do nothing, since the same person controls the business

Under §7075, a contractor license is not transferable between entities. A corporation is a distinct legal entity from the sole proprietor, so the business must apply for a new license in the corporate name.

Bus. & Prof. Code §7075
35. A contractor is hired to build a new highway interchange involving grading, paving, drainage, and structural concrete. Which license classification is required as the prime contractor?
a.Class B General Building Contractor
b.A single Class C specialty license
c.No license, because it is a public project
d.Class A General Engineering Contractor✓

Under §7056, a Class A General Engineering Contractor handles fixed works requiring specialized engineering knowledge, such as highways, interchanges, and drainage systems. A highway interchange is classic Class A work.

Bus. & Prof. Code §7056
36. A prime contractor awards part of a project to a subcontractor without checking whether the subcontractor is licensed. The subcontractor turns out to be unlicensed. The prime contractor:
a.Bears no responsibility, since the subcontractor signed a contract
b.Is protected because the property owner approved the subcontractor
c.May face disciplinary action for using an unlicensed subcontractor✓
d.Faces consequences only if the subcontractor's work is defective

Under §7068.1 and related law, the prime contractor must verify subcontractor licensure. Using an unlicensed subcontractor can expose the prime contractor to discipline against its own license, regardless of work quality.

Bus. & Prof. Code §7068.1
37. A contractor's license has been expired for six years. To resume contracting, the contractor must:
a.Pay a small renewal fee together with the late penalty
b.Ask that the old licence number simply be reactivated
c.Wait until the licence has been expired for ten years
d.File a new application under current requirements✓

§7141(a) is the window and it is five years: an expired licence may be renewed at any time within five years of expiration, on the prescribed form, with the renewal fee and — past the grace period — a delinquency fee, and the record still shows a break in licensing for the whole gap. Six years is outside it, so there is nothing left to renew and the contractor files as a new applicant under §7065, meeting the requirements in force now. That is why (a) and (b) both fail: no fee and no request reopens a closed window, and §7141.5 does not help either, because it grants retroactive renewal only where the application is delivered or postmarked within 90 days of expiration. (c) inverts the rule — waiting makes the position worse rather than better, and no ten-year period appears anywhere in the article. Examination is not automatic on the new application: §7065.1 can waive it where the qualifying individual was on a licensee's record in the same classification for five of the seven preceding years. The different animal here is the inactive licence, valid four years from its due date under §7076.5(c).

Bus. & Prof. Code §7141(a); §7065; §7065.1; §7141.5; §7076.5(c)
38. A consumer reviews a contractor's license record on the CSLB website. Which of the following information is the consumer most likely to see disclosed publicly?
a.The balance in the contractor's personal bank account
b.The details of the contractor's home mortgage loan
c.The contractor's individual income tax return figures
d.Citations from the past five years and the licence status✓

§7124.6 is the section that decides what the registrar publishes. §7124.6(d) makes the date, nature and disposition of all legal actions public, and §7124.6(e)(1)(A) fixes the window for citations: disclosed from the date of issuance and for five years after the date of compliance, provided no further disciplinary action was filed against the licensee in that period — and if one was, everything stays posted as long as the most recent action is disclosable. §7124.6(e)(2) gives accusations that ended in suspension, stayed suspension or stayed revocation a seven-year window after settlement. §7124.6(a) also opens up complaints referred for accusation, or referred for investigation after enforcement staff found a probable violation serious enough for suspension, revocation or prosecution, with the disclaimer §7124.6(b) requires to make clear that a complaint is only an allegation, while §7124.6(c)(1) keeps complaints resolved in the contractor's favour off the record. None of that reaches the private financial material in (a), (b) and (c), which the board does not collect in the first place.

Bus. & Prof. Code §7124.6(a)-(e)
39. An unlicensed handyman advertises 'home repairs of any size' in a local newspaper. Under §7027.1, which statement best describes the legal limit on his advertising?
a.He may advertise any size of job as long as his stated price is honest
b.He may advertise without limit, because newspaper notices are exempt
c.He may advertise only under $1,000 and must say he is unlicensed✓
d.He may advertise large projects if he means to get licensed later on

§7027.2 is the section that lets an unlicensed person advertise at all, and it imposes two conditions at once: the aggregate contract price for labour, material and all other items on the project must be less than $1,000, and the advertisement must state that the person is not licensed under this chapter. Miss either and §7027.1(a) applies in full — a misdemeanour for advertising for covered work without a licence in the classification advertised, with a fine of $700 to $1,000 under §7027.1(c). That $1,000 tracks the minor-work exemption in §7048(a), which also requires that the work need no building permit, and §7048(c) withdraws the exemption entirely from anyone who advertises as a contractor or employs another person to do the work. So 'home repairs of any size' is unlawful on its face. (a) confuses honesty about price with the price limit itself, (b) invents a media exemption, and (d) treats a licence he might get later as though it worked backwards.

Bus. & Prof. Code §7027.2; §7027.1(a), (c); §7048(a), (c)
40. Approximately how many Class C specialty contractor classifications does the CSLB issue?
a.About five, one for each of the major building trades
b.About twelve, grouped by the kind of structure built
c.About twenty-five, one for each craft the board lists
d.More than forty, each covering a distinct craft✓

The list is regulatory, not statutory: 16 CCR §832 runs from C-2, insulation and acoustical, through C-61, limited specialty, and more than forty C classifications are issued, each tied to a separate craft — C-10 electrical, C-36 plumbing, C-39 roofing, C-27 landscaping, C-33 painting and so on. §7058(a) supplies the definition those classifications implement, and §7059(a) is what keeps a licensee inside the one it holds. (a) and (c) simply undercount; (b) undercounts and also misdescribes the scheme, because the classifications are organised by craft and not by the type of structure; and the rough figure matters less than knowing that each classification is its own licence with its own experience and examination.

16 CCR §832 (C-2 through C-61); Bus. & Prof. Code §7058(a); §7059(a)
41. When a contractor license is held by a partnership and the qualifying individual is one of the general partners, the license is valid only:
a.Only for projects inside the partner's own home county alone
b.While the partnership and its listed personnel stay unchanged✓
c.For one year, after which it must be reissued to a corporation
d.For residential work alone, and for nothing else at all

A licence belongs to an entity, and a partnership is defined by who is in it. §7065(b)(1)(B) requires every member of a partnership seeking licensure to be listed on the application as a member of the personnel of record, and §7065(c)(2) lets the partnership qualify by the appearance of a general partner or of a responsible managing employee. Change the partners and the licensed entity is no longer quite the one on the record, which is why §7083(a) requires written notice to the registrar within 90 days of any change to recorded information, personnel expressly included, why §7083(b) makes a late notice effective only when it reaches the board's headquarters, and why §7083(c) makes the failure a ground for discipline. §7075.1(a) blocks the obvious shortcut by making a licence untransferable, although §7075.1(b)(2) allows the number to be reissued to a partnership on application where there is no change in the partners or the partnership structure. Nothing in the article limits a licence by county as (a) supposes, to a year as (c) supposes, or to residential work as (d) supposes.

Bus. & Prof. Code §7065(b)(1)(B), (c)(2); §7083(a)-(c); §7075.1(a)-(b)
42. An RME for a contractor company stops actually working for that company but allows the company to keep using his name to maintain the license. This arrangement is:
a.Unlawful, because an RME must be a bona fide employee who supervises✓
b.Lawful, provided the RME is paid a small monthly fee for the name
c.Lawful, because the company is otherwise properly insured and bonded
d.Lawful, provided the RME visits one of the job sites once a year

§7068(c)(1) defines a responsible managing employee as an individual who is a bona fide employee of the applicant and is actively engaged in the classification of work for which that person is the qualifying individual, and §7068(c)(2) puts numbers on both halves: 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 the business is in operation, whichever is less. On top of that §7068.1(a) makes the qualifier responsible for exercising supervision and control of the construction operations. A name on the record with no hours behind it satisfies neither test, so the fee in (b) buys nothing, the insurance in (c) answers an entirely different requirement, and the annual site visit in (d) is nowhere near the 32-hour floor. §7068(f) makes the current qualifying individual file a statement verifying that capacity at every renewal, and §7068.1(e) makes the violation a misdemeanour with a fine of $3,000 to $5,000 for the qualifier personally.

Bus. & Prof. Code §7068(c)(1)-(2), (f); §7068.1(a), (e)
43. Which document is NOT required to display the contractor's CSLB license number?
a.An invoice sent to a materials supplier for goods bought✓
b.A written construction contract signed with the property owner
c.A written bid handed over to a prospective customer
d.A subcontract signed with a specialty trade working on the job

§7030.5 is the licence-number section and it names three places: all construction contracts, subcontracts and calls for bid, and all forms of advertising as the registrar prescribes. (b), (c) and (d) are all on that list — a subcontract is there expressly, and a bid is what a call for bid produces. An ordinary purchase invoice to a materials supplier is none of them, which makes (a) the exception the question wants: it is a buying document rather than an offer of contracting services, and the supplier is not the person the disclosure exists to protect. Do not confuse §7030.5 with §7030(a), which requires something different in the same contracts — the CSLB notice, in at least 10-point type, telling the consumer that a complaint about a patent act or omission must be filed within four years of the alleged violation and one about a latent structural defect within ten. §7027.1(a) polices the advertising side of the same idea.

Bus. & Prof. Code §7030.5; §7030(a); §7027.1(a)
44. A contractor leaves a residential remodel only 40 percent complete, stops all work for two months, and refuses to return without legal justification. Under §7107, this conduct is:
a.Acceptable as long as the contractor refunds part of the deposit
b.Permitted because the homeowner can simply hire someone else
c.A purely civil matter that the CSLB cannot address
d.Project abandonment, which is grounds for disciplinary action✓

Under §7107, the willful departure from or abandonment of a construction project without legal excuse, and without the consent of the owner, is a cause for disciplinary action against the contractor's license.

Bus. & Prof. Code §7107
45. After a disciplinary order, the Registrar may require a contractor to file a disciplinary bond. Under B&P §7071.8, that bond is:
a.$15,000, the flat figure that applied before January 1, 2023
b.Half the license bond, a flat $12,500 in every case
c.The amount of the unsatisfied judgment that prompted the discipline
d.At least $25,000, with the amount set case by case✓

B&P §7071.8, as amended by SB 607, requires a disciplinary bond of not less than $25,000 and not more than ten times the §7071.6 license bond, so the statute sets a floor the Registrar fills in case by case (d), not one fixed sum. (a) $15,000 is the pre-2023 figure and is the most common stale answer. (b) invents a 'half the license bond' rule that appears nowhere in the section; $12,500 is simply the old bond of qualifying individual amount. (c) describes a different bond entirely: §7071.17 covers an outstanding, unsatisfied final judgment and is written in the amount of that judgment.

Bus. & Prof. Code §7071.8
46. A homeowner asks an unlicensed person to do several small repairs. The person quotes them separately: $600, $500, and $400, all part of the same overall job. Under §7048, this is:
a.Improper, because the work may not be split to stay under $1,000✓
b.Proper, because each separate quote comes in under $1,000
c.Proper, because all of the repairs are minor in nature
d.Proper, as long as the homeowner agrees to the arrangement

§7048(a) exempts a work or operation on one undertaking or project, by one or more contracts, only where the aggregate contract price for labour, materials and all other items is less than $1,000 and the work does not require a building permit. The word doing the work is aggregate: $600 plus $500 plus $400 on the same job is $1,500, which is over the line before anyone even reaches the evasion rule. §7048(b) then closes the door in terms, saying the section does not apply where a division of the operation is made into contracts of amounts less than $1,000 for the purpose of evasion or otherwise — so (b) describes precisely the manoeuvre the statute names and forbids. (c) mistakes the label for the test: 'minor' in §7048 is the conclusion the dollar figure and the permit question produce, not a judgment about how small the jobs feel. (d) forgets whom the licence law protects, since the homeowner cannot consent on behalf of the public and §7031(b) lets that same homeowner sue later to recover everything paid. §7048(c) withdraws the exemption altogether from anyone who advertises as a contractor or employs another person to do the work, and unlicensed contracting is a misdemeanour under §7028(a).

Bus. & Prof. Code §7048(a)-(c); §7028(a); §7031(b)
47. To qualify a contractor license, the qualifying individual generally must demonstrate at least how many years of journey-level or equivalent experience in the classification applied for?
a.1 year
b.2 years
c.4 years✓
d.8 years

Under the experience requirements tied to §7068, an applicant's qualifier must generally show at least four years of journey-level, foreman, supervising, or contractor experience in the trade within the prior ten years.

Bus. & Prof. Code §7068
48. One person serves as the qualifying individual for an existing licensed company. That same person now wants to also qualify a second, separate company. Under California law, this is:
a.Never permitted, whatever the relationship between the firms
b.Automatically permitted, for any number of separate companies
c.Permitted only where the second company does residential work
d.Permitted only where the firms are related, as §7068.1 defines✓

§7068(e) sets the default: a person qualifying on behalf of a firm may not hold any other active contractor's licence while acting as its qualifying individual, except in accordance with §7068.1. §7068.1(a) lists the three relationships that open the door — common ownership of at least 20 percent of the equity of each firm, the additional firm being a subsidiary of or a joint venture with the first, or the same majority of the partners, officers or managers — and §7068.1(b) caps the whole arrangement at three firms in any one-year period. §7083(a) is where the board comes in: the exemption to qualify multiple licences under §7068.1 is information recorded on the licence, and any change to it must be reported in writing within 90 days. So (a) is too absolute, (b) ignores both the relationship test and the cap, and (c) invents a residential condition. Violating the section is a misdemeanour under §7068.1(e), with a fine of $3,000 to $5,000.

Bus. & Prof. Code §7068(e); §7068.1(a)-(b), (e); §7083(a)
49. A licensed contractor wants its company vehicles to comply with CSLB requirements. The vehicles used in the contracting business must display:
a.The home address of the contractor and nothing else at all
b.The names of all the corporate officers of the firm
c.The words 'Licensed Contractor' in 72-point type
d.The business name and the contractor licence number✓

§7029.6 requires every licensed contractor, except those named in §7029.5, to display the business name and the contractor's licence number in or on each motor vehicle used in the construction business for which a commercial vehicle registration fee has been paid — in a clearly visible location, in print of at least 72-point font or three-quarters of an inch in height and width. Two items, not three: the address in (a) is not one of them, and the officers in (b) belong on the licence record rather than on a truck. (c) keeps the type size and throws away the information, which defeats the purpose — a passer-by is meant to be able to read the number and check it against the board's record. The real trap is §7029.5, which is stricter for three classifications only: a C-36 plumbing, C-45 sign or C-57 well-drilling contractor must show the name, the permanent business address and the licence number on each side of the vehicle in letters at least one and a half inches high, and the same goes for a water-well drill rig.

Bus. & Prof. Code §7029.6; §7029.5
50. Which CSLB enforcement action is the LEAST severe and typically used to address a minor first-time concern without a formal penalty?
a.License revocation
b.License suspension
c.An advisory or warning notice✓
d.A formal citation with a civil penalty

CSLB enforcement ranges from least to most severe: an advisory or warning notice, then a citation with a penalty, then suspension, then revocation. An advisory notice addresses minor issues without a formal penalty or public discipline.

Bus. & Prof. Code §7124.6

Last reviewed: · editorial process

PrepPass team · Verified against California CSLB · How we review

What's on the California CSLB Law & Business Exam?

The California CSLB Law & Business Exam is administered by the California Contractors State License Board (CSLB). Topic weights below come directly from the official exam blueprint — focus your study on the highest-weighted areas first.

Official source: California Contractors State License Board (CSLB) →

Questions
115 questions — 5 independent prep providers agree; CSLB publishes none.
Time limit
210 minutes
Passing score
Not published by CSLB

Every figure above, with the document it came from and the date we read it →

Topic blueprint

  • 21%
    Contracts & Execution
  • 20%
    Employment
  • 15%
    Business Finances
  • 14%
    Safety
  • 13%
    Business & Licensing
  • 12%
    Insurance & Liens
  • 5%
    Public Works
PrepPass team · Verified against California Contractors State License Board (CSLB) · How we review

How hard is the exam?

Moderate difficulty. The CSLB Law & Business exam runs 3.5 hours and is dense with contract law, payroll rules, and Cal/OSHA safety standards. CSLB publishes neither the question count nor the passing score — you are told the percentage of correct answers you need at the test site.

Recommended study hours
40-80 hours over 4-8 weeks (most candidates)
Published pass rate
57% across all attempts (n = 17,737) — CSLB, reporting to the Legislature, FY 2022/23. The same table gives 52% (n = 14,844) in FY 2019/20, 58% (n = 16,724) in FY 2020/21 and 54% (n = 25,061) in FY 2021/22. CSLB labels every one of them “Overall Pass %”, so none is a first-attempt rate.Source: CSLB — 2024 Sunset Review Oversight Report (PDF), Table 8: Examination Data
Where to focus first
Contracts (largest topic by exam weight) and Cal/OSHA Safety — together these are usually 40%+ of the exam.

Fees and salaries are approximate and change over time. The pass rate above is quoted from the source linked beside it, for the period that source covers — where we have not checked a source, we say so and give no number.

Frequently asked questions

How many CSLB Law & Business practice questions are in this bank?+

1,632 original practice questions across all 7 topics of the CSLB Law & Business exam, with full explanations, and California statute citations on 1,359 of them.

Is the CSLB Law & Business practice free?+

Yes — every practice question, organized by topic with full explanations, is free and needs no signup. The full timed mock exam (mock-readiness score, PDF report and weak-area retest) is free too. None of the practice is paywalled. Separately, PrepPass sells optional downloads — the CSLB Law & Business study guide, a printable cheat sheet, and bundles of them — which you never need in order to practice.

Are these the real CSLB exam questions?+

No. All questions are 100% original prose authored from public-domain sources (California Business and Professions Code, Civil Code, Labor Code, Title 16 CCR). We never copy from real CSLB exams or paid prep providers.

What topics does the CSLB Law & Business exam cover?+

Seven topics: Business Organization & Licensing, Business Finance, Employment Requirements, Insurance & Liens, Contracts & Performance, Public Works, and Safety.

What's the passing score for the CSLB Law & Business exam?+

CSLB does not publish one. It says you will be told at the test site what percentage of correct answers you need, and that the percentage varies by exam; passing candidates are never shown their own score. CSLB does not publish the question count either — prep providers quote figures for both, and those are theirs, not CSLB's. What CSLB does publish is the time: 3.5 hours at a PSI testing center.

Can I take the CSLB exam in Spanish?+

Yes — the official CSLB exam is offered in English and Spanish. Other languages may be available by translator request (4–6 weeks lead time). PrepPass practice questions are available in English, 中文, and Español.

Does PrepPass track which questions I get wrong?+

Yes — sign up free and the 'My mistakes' filter shows you only the questions you've missed across all your practice sessions. It updates automatically as you re-attempt and get them right.

Is there a study guide for the CSLB Law & Business?+

Yes. PrepPass sells CSLB Law & Business — Complete Study Guide (2026), a PDF + EPUB download, $24.99 one-time; the practice on this page stays free without it. See the study guide →

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