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1. A contractor who holds a Class "B" General Building Contractor license may perform work in which situation?

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.

2. What is the maximum amount of the Contractor License Bond required by the CSLB?

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

3. A Responsible Managing Employee (RME) may qualify how many contractor licenses simultaneously?

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.

4. A contractor must notify the CSLB of a change in the qualifying individual (RME or RMO) within how many 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.

5. Which of the following business entities CANNOT hold a CSLB contractor license?

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

6. A licensed contractor must display their license number on all of the following EXCEPT:

CSLB requires the license number on contracts, bids, advertisements (including online), and vehicles. Internal business records like payroll are not public-facing documents requiring license display.

7. If a contractor operates under a fictitious business name (DBA), the name must be:

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.

8. The CSLB may issue a Disciplinary Bond in addition to the regular license bond when:

After a formal disciplinary action, CSLB may require an additional $15,000 Disciplinary Bond. This bond provides extra consumer protection for contractors with a history of violations.

9. How often must a CSLB contractor license be renewed?

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.

10. Which statement about unlicensed contractors is TRUE?

Unlicensed contractors generally cannot enforce contracts or collect compensation in court. The $500 exemption applies to the total project cost, not just labor, and has strict conditions.

11. A contractor whose license has been expired for more than five years must:

A license expired for more than five years cannot be reinstated — the contractor must apply as a new applicant, which includes paying the application fee and potentially retaking exams.

12. A Class "A" General Engineering Contractor license authorizes work primarily involving:

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.

13. Who is responsible for verifying that a subcontractor is properly licensed before awarding them work?

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

14. A sole proprietor who wants to add a partner to their licensed contracting business must:

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.

15. What action may the CSLB take against a contractor who abandons a project without legal excuse?

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.

16. A contractor wants to install only plumbing systems in residential homes. Which license classification is appropriate?

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.

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?

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.

18. An unlicensed person places an advertisement offering to perform construction work that requires a license. Under California law, this is:

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.

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:

Section §7048 exempts work where the aggregate contract price for labor and materials is less than $500. The threshold applies to the total job cost, not just the labor portion, and a larger job cannot be split to evade licensing.

20. A licensed contractor preparing a written bid for a project must include which of the following?

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.

21. Which of the following business entities IS eligible to hold a CSLB contractor license?

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.

22. When the CSLB issues a citation against a licensed contractor, how long is that citation generally disclosed to the public?

Under §7124.6, citations are disclosed on the contractor's public license record for five years from the date the citation is resolved. This gives consumers access to a contractor's recent disciplinary history.

23. The bond of qualifying individual is required primarily in which situation?

Under §7071.9, a bond of qualifying individual is required when the license is qualified by an RME or by an RMO who owns less than 10 percent of the voting stock. It supplements the standard contractor license bond.

24. A corporation's contractor license is qualified by an RMO who resigns. To keep the license valid, the corporation must:

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.

25. The qualifying individual of a contractor license has a duty to:

Under §7068.1, the qualifying individual is responsible for exercising direct supervision and control over the contractor's construction operations. A qualifier who acts in name only, without genuine supervisory involvement, violates the law.

26. A homeowner hires an unlicensed contractor who completes a $40,000 remodel and is fully paid. Under §7031, the homeowner may:

Section §7031 allows a person who used an unlicensed contractor to recover, through disgorgement, all compensation paid for the work, even if the work was completed satisfactorily. Being unlicensed is a powerful penalty under California law.

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:

Under §7057, a Class B contractor generally takes prime contracts requiring at least two unrelated trades. For a job involving only one specialty trade, the Class B contractor must hold that C classification or subcontract the work to a licensed specialty contractor.

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:

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.

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:

An expired license does not authorize contracting. Although §7141 permits late renewal with a delinquent fee within the grace period, the contractor may not perform or bid on work requiring a license while the license is expired.

30. A contractor licensed as a partnership has one partner leave the business. The contractor must notify the CSLB of this change within:

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.

31. What is the key difference between a Responsible Managing Employee (RME) and a Responsible Managing Officer (RMO)?

Under §7068, an RMO is a responsible managing officer or owner of the licensed business, while an RME is a bona fide full-time employee who qualifies the license. An RME may qualify only one active license at a time.

32. A contractor advertises its services on a website and on social media. Regarding the CSLB license number, the contractor must:

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.

33. What is the primary purpose of the $25,000 Contractor License Bond required by §7071.6?

The §7071.6 contractor license bond provides a source of recovery for consumers, employees who are owed wages, and others harmed by a contractor's violation of the Contractors State License Law. It is not insurance for the contractor's own benefit.

34. An individual holds a contractor license as a sole proprietor and decides to incorporate the business. Regarding the license, the individual must:

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.

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?

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.

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:

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.

37. A contractor's license has been expired for six years. To resume contracting, the contractor must:

Under §7141.5, a license that has been expired for more than five years generally cannot be renewed. The contractor must apply as a new applicant and meet all current requirements, which may include retaking examinations.

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?

Under §7124.6, the CSLB publicly discloses license status and citations for five years after they are resolved. Private financial details such as bank balances and tax returns are not part of the public license record.

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?

Under §7027.1, an unlicensed person who advertises for construction work must limit advertising to jobs whose aggregate price is below the $500 minor-work threshold and must state in the advertisement that he or she is not licensed.

40. Approximately how many Class C specialty contractor classifications does the CSLB issue?

Under §7058, the CSLB issues more than 40 separate Class C specialty classifications, each covering a distinct trade such as electrical, plumbing, roofing, landscaping, or painting.

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:

Under §7065, a license is issued to a specific entity. When a partnership holds the license, a material change in the partnership's membership affects the license, and the contractor must report the change to the CSLB.

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:

Under §7068, an RME must be a bona fide employee who is permanently employed and actually supervises the contractor's construction operations. Renting out a qualifier's name without genuine involvement is unlawful and can lead to discipline.

43. Which document is NOT required to display the contractor's CSLB license number?

Section §7030 requires the license number on contracts, subcontracts, and bids presented to potential or actual customers. An ordinary purchase invoice sent to a supplier is not one of the documents the statute targets.

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:

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.

45. Compared to the standard $25,000 contractor license bond, the disciplinary bond under §7071.17 is set at:

Under §7071.17, a contractor subject to a disciplinary order may be required to file a disciplinary bond of $15,000, which is in addition to the standard $25,000 contractor license bond required of all licensees.

46. A homeowner asks an unlicensed person to do several small repairs. The person quotes them separately: $300, $250, and $200, all part of the same overall job. Under §7048, this is:

Section §7048 applies the $500 threshold to the aggregate contract price. Splitting a single project into smaller quotes to appear under the limit is a way of evading the licensing law and does not qualify for the exemption.

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?

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.

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 qualifier is generally limited in how many active licenses he or she may qualify. Qualifying more than one license is allowed only in limited circumstances defined by law, such as substantial common ownership between the firms, subject to CSLB rules.

49. A licensed contractor wants its company vehicles to comply with CSLB requirements. The vehicles used in the contracting business must display:

Commercial vehicles used by a contractor must be marked with the business name and the contractor's CSLB license number. This helps the public identify and verify the licensed status of the contractor performing the work.

50. Which CSLB enforcement action is the LEAST severe and typically used to address a minor first-time concern without a formal 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.

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:

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.

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?

Under §7065, eligible license-holding entities include sole proprietorships, partnerships, corporations, and LLCs. Two people sharing a business may form a partnership, corporation, or LLC; a trust is not an eligible entity.

53. Which of the following best describes when a person may serve as the qualifying individual for a contractor license?

Under §7068, a qualifying individual must demonstrate the required trade experience and pass the law and trade examinations. Personal financing, age above 40, or prior business ownership are not the legal criteria.

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 contractor may advertise only for work within the classifications it actually holds. Advertising roofing work without a roofing classification misleads consumers and can be treated as unlawful advertising for unlicensed work.

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:

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.

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 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.

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:

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.

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:

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.

59. A specialty (Class C) contractor takes on a project. Which statement best describes the proper scope of work for that contractor?

Under §7059 and CSLB regulations, a specialty contractor performs work within its classification and may handle other trades only when they are incidental and supplemental to the performance of the specialty work for which the license is held.

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 licensee may request inactive status to retain the license without maintaining a bond or contracting. An inactive license does not authorize the holder to engage in contracting until it is reactivated to active status.

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:

Because the prime contractor is responsible for using only licensed subcontractors, the most reliable method is to verify the subcontractor's license number and status directly through the CSLB's public license lookup.

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:

Under §7059.1, a specialty contractor generally may not use the term 'general' in its name or advertising in a way that implies it holds a general engineering or general building license. Such usage can mislead consumers about the contractor's actual classification.

63. When CSLB enforcement representatives have probable cause to believe an unlicensed person is acting as a contractor, they may:

Under §7028.7 and related provisions, CSLB enforcement staff may issue citations to unlicensed individuals who act in the capacity of a contractor. The citation can include a civil penalty and an order to stop the unlicensed activity.

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 limited liability company seeking a contractor license must carry liability insurance specific to LLCs, in addition to the standard contractor license bond, and must also file an LLC employee/worker bond. This added requirement reflects the LLC's distinct liability structure.

65. Which of the following is the BEST example of lawful advertising by a licensed contractor?

Lawful contractor advertising includes the CSLB license number, accurately reflects the contractor's classification, and is placed by a properly licensed contractor. Omitting the license number or advertising work the contractor cannot legally perform violates the law.

66. A contractor changes the business address and main telephone number for the licensed business. With respect to the CSLB, the contractor should:

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.

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:

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.

68. A homeowner needs only interior and exterior painting on a house. The appropriate contractor classification for a contractor performing only this trade is:

Painting is a recognized Class C specialty trade (C-33) under §7058. A contractor performing only painting work above the $500 minor-work threshold needs the C-33 specialty classification, not a general engineering or general building license.

69. Which statement most accurately summarizes the licensing rule a contractor must satisfy to recover compensation in a lawsuit over a construction contract?

Under §7031, a contractor suing to recover compensation must allege and prove that it was a duly licensed contractor at all times during performance of the contract. A lapse during the work can bar recovery.

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 contractor license under §7065 is tied to a specific legal entity and its qualifying individual. Issuing one license per entity ensures the public and the CSLB can identify exactly who is legally responsible for the contracting work.

71. A contractor receives a formal citation, pays the civil penalty, and corrects the violation. Regarding the public record, the citation:

Under §7124.6, even after a contractor pays a citation penalty and corrects the violation, the citation continues to be disclosed on the public license record for five years from the date it is resolved.

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:

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.