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211 câu hỏi
101. A contractor installs only electrical wiring and equipment on a project and performs no other trade. Which classification fits this work?
a.Class A - General Engineering
b.Class C - Specialty (C-10 Electrical)✓
c.Class B - General Building
d.No license is required for electrical work

Under B&P Code section 7058, a Specialty (Class C) contractor performs work in a single, recognized trade. Electrical work falls under the C-10 Electrical classification. Class A and B cover engineering and general building scopes, not a single specialty.

B&P Code §7058
102. On a project involving only framing, may a Class B General Building contractor take the prime contract and perform that trade itself?
a.No, a Class B may never take a single-trade prime contract
b.No, unless the CSLB approves the single-trade contract first
c.Yes, framing and carpentry are §7057(b)'s exception✓
d.Yes, a Class B may prime any single trade it chooses

B&P §7057(b) says a general building contractor may take a prime contract or a subcontract for a framing or carpentry project, and that for any other project it may take the prime only where the contract requires at least two unrelated trades other than framing or carpentry, or where it holds the appropriate specialty classification. Framing alone is therefore permitted. (a) states the single-trade bar while dropping the exception the same subdivision creates. (b) invents a pre-approval procedure; classification controls, not permission. (d) stretches the exception to every trade — a roofing-only or electrical-only prime contract still needs the C classification or a licensed subcontractor.

B&P Code §7057(b)
103. What does the 'two unrelated trades' rule mean for a Class B General Building contractor?
a.The project itself must call for two unrelated trades✓
b.The contractor must hire at least two subcontractors per job
c.The contractor may build only residential structures
d.The contractor may perform any specialty trade without limit

B&P §7057(a) defines the general building contractor by a structure whose construction requires the use of at least two unrelated building trades or crafts, and §7057(b) turns that definition into a limit on the prime contracts the contractor may take. (b) converts a scope test into a headcount: the question is what the project requires, and the contractor may self-perform trades its own classification covers. (c) invents a residential limit, while the definition reaches any structure built for the support, shelter, and enclosure of persons, animals, or property. (d) drops the §7057(b) limit, which is exactly what keeps a Class B out of single-trade specialty prime contracts.

B&P Code §7057(a)-(b)
104. What is the required amount of the contractor's license bond for an active California contractor's license?
a.$12,500
b.$15,000
c.$100,000
d.$25,000✓

Under B&P Code section 7071.6, an active contractor's license must be secured by a $25,000 contractor's license bond filed with the Registrar. This bond protects consumers and specified others harmed by the contractor's violations.

B&P Code §7071.6
105. When the CSLB requires a bond of qualifying individual because an RMO or RME owns less than 10% of the entity, what is the required amount?
a.$25,000✓
b.$12,500
c.$15,000
d.$7,500

Under B&P Code section 7071.9, the bond of qualifying individual is $25,000. It is required when a responsible managing officer or employee does not own at least 10 percent of the voting stock or equity of the licensed entity.

B&P Code §7071.9
106. After a contractor's license has been disciplined, the CSLB may require a disciplinary bond as a condition of reinstatement. What is the MINIMUM amount of that bond?
a.$15,000
b.$25,000✓
c.$12,500
d.$7,500

Since SB 607 took effect on January 1, 2023, B&P Code section 7071.8 sets the disciplinary bond at not less than $25,000 (b), and not more than ten times the section 7071.6 license bond. The Registrar fixes the actual figure case by case above that floor. (a) $15,000 is the pre-2023 amount and is the answer a candidate studying an older manual gives. (c) $12,500 was the pre-2023 bond of qualifying individual, also raised to $25,000 by SB 607, and (d) $7,500 is not a CSLB bond figure at all.

B&P Code §7071.8
107. The $25,000 contractor's license bond primarily protects which of the following?
a.Consumers damaged by the licensee's license law violations✓
b.Only the contractor's employees, for unpaid wages and benefits
c.Only suppliers who served a valid preliminary notice
d.The contractor itself, against owners' defect claims

B&P §7071.5 lists who the §7071.6 bond is for: homeowners and single-family owners damaged by a violation, anyone damaged by a willful violation or by the licensee's fraud, and employees for unpaid wages and fringe benefits. (b) is the wage-bond misconception — employees are beneficiaries, but not the only ones; the wage-and-benefit-only bond is the LLC's separate $100,000 bond under §7071.6.5. (c) imports lien practice: a preliminary notice preserves mechanics lien and stop payment notice rights, not bond claims. (d) reverses the instrument — a surety bond protects the public from the contractor, and the surety may seek indemnity back from the contractor; it is not the contractor's own liability insurance.

B&P Code §7071.5 / §7071.6
108. A Responsible Managing Officer qualifies a corporation's license. What does the 'officer' in that title mean?
a.That the person is an outside consultant retained by the board
b.That the person is an employee, but never a shareholder of it
c.That the person is a bona fide officer of that corporation✓
d.That the person is a licensed engineer employed by the firm

B&P §7068(b)(3) lets a corporation qualify through the appearance of a responsible managing officer or a responsible managing employee, so an RMO is an officer of the corporation itself, holding the office as well as the experience; an RME is the employee version of the same role. (a) is the opposite of a bona fide officer, and an outside consultant cannot supply the supervision §7068.1 demands. (b) confuses the RMO with the RME and adds a shareholding bar that does not exist — §7071.9(c) actually rewards an RMO who owns 10 percent or more of the voting stock by waiving the qualifier's bond. (d) imports a professional credential the classification does not require.

B&P Code §7068(b)(3) / §7071.9(c)
109. What is the qualifying individual's core statutory duty toward the license he or she qualifies?
a.To sign personally every contract that the licensed firm enters
b.To guarantee the firm's payments to owners and to suppliers
c.To hold at least 51 percent of the firm's voting equity
d.To supervise and control the firm's construction operations✓

B&P §7068.1(a) makes the qualifying individual — the RMO or RME — responsible for exercising supervision and control of the employer's or principal's construction operations to secure compliance with the license law and the board's regulations. (a) confuses supervision with signature authority; nothing requires the qualifier to execute the contracts. (b) imports the surety's job: the $25,000 qualifier's bond under §7071.9 answers to claimants, and the qualifier does not personally guarantee the firm's debts. (c) invents a controlling-ownership test — the ownership figures in this area are the 20 percent common ownership in §7068.1(a)(1) that lets one person qualify a second firm, and the 10 percent of voting stock in §7071.9(c) that waives the qualifier's bond.

B&P Code §7068.1(a)
110. A Responsible Managing Employee (RME) qualifying a license must meet which key employment condition?
a.Own at least 20 percent of the firm's voting stock
b.Be available by phone during the firm's operating hours
c.Be a bona fide employee actively engaged 32 hours weekly✓
d.Be an independent contractor retained on a per-project basis

16 CCR §823, implementing B&P §7068, requires an RME to be a permanent, bona fide employee actively engaged at least 32 hours per week or 80 percent of the hours the business operates, whichever is less. (a) moves an ownership figure into the wrong rule: 20 percent is the §7068.1 common-ownership threshold that lets one person qualify more than one firm, and it is an RMO question in any event — an RME is an employee, not an owner. (b) is the 'rental qualifier' the statute exists to stop; being reachable is not active engagement. (d) fails on its face, because an independent contractor is by definition not an employee of the firm.

B&P Code §7068 / 16 CCR §823
111. How many contractor's licenses may a single qualifying individual (RMO/RME) generally serve as the qualifier for, absent a qualifying ownership exception?
a.One firm only, in every case without exception
b.Two firms, if both hold the same classification
c.Three firms in any single one-year period✓
d.Ten firms, if the qualifier owns part of each

B&P §7068.1(a) lets one person qualify more than one active licensee only where there is common ownership of at least 20 percent of the equity of each firm (or a parent/subsidiary/joint-venture relationship), and §7068.1(b) caps the qualifier at three firms in any one-year period. (a) states the default rule as though it were absolute — it is the rule only for firms with no common ownership. (b) invents a same-classification test; the statute keys on ownership, not on the class held. (d) uses 10 percent thinking, which is the §7071.9 qualifier-bond threshold rather than the §7068.1 ownership threshold, and no provision allows ten firms.

B&P Code §7068.1(a)-(b)
112. How many years of journey-level (or equivalent) experience must an applicant generally have to qualify to take the contractor's license exam?
a.Four years within the last ten years✓
b.One year within the last five years
c.Ten years within the last twenty years
d.Two years within the last three years

Under B&P Code section 7068, an applicant must have at least four years of journey-level, foreman, supervising, or contractor experience in the classification applied for, obtained within the ten years immediately preceding the application.

B&P Code §7068
113. Which of the following may be credited toward part of the four-year experience requirement for a contractor's license?
a.Any four years of construction employment, whatever the skill level
b.Time spent working unsupervised on the applicant's own property
c.Owning a contracting business, regardless of the trades performed
d.Technical training or an apprenticeship, for up to three years✓

B&P §7068 requires four years of journey-level experience within the preceding ten years, and CSLB rules let technical training, an apprenticeship, or a related degree substitute for up to three of those years — at least one year must still be practical journey-level experience. (a) drops the journey-level test: helper or labourer time does not qualify no matter how long it runs. (b) fails the supervision and employment test; work on one's own property is not journey-level experience gained under a licensee. (c) confuses ownership with skill — the qualifier must have performed or supervised the trade, and owning the firm proves neither.

B&P Code §7068 / 16 CCR §825
114. What is the application fee required when submitting an original application for a contractor's license (single classification)?
a.$150
b.$1,000
c.$450✓
d.$25

Under the fee schedule in B&P Code section 7137, the original application processing fee for a single classification is $450. This nonrefundable fee is separate from the initial license issuance fee.

B&P Code §7137
115. How often must a California contractor's license be renewed to remain active?
a.Every year
b.Every three years
c.Every two years✓
d.Every five years

Under B&P Code section 7140, an active contractor's license must be renewed every two years. The Registrar mails a renewal notice before expiration, but nonreceipt does not relieve the licensee of the renewal duty.

B&P Code §7140
116. A contractor lets a license expire but wants it restored. Up to how long after expiration may the license generally be renewed retroactively without reapplying as a new applicant?
a.Five years✓
b.One year
c.Ninety days
d.Ten years

Under B&P Code section 7141.5, an expired license may be renewed retroactively within five years of expiration by paying the renewal fee plus a delinquency fee. After five years, the applicant must file a new original application.

B&P Code §7141.5
117. A contractor's license expired more than five years ago. What must the former licensee do to be licensed again?
a.Renew at any time by paying the renewal and delinquency fees
b.Petition the Registrar to waive the five-year limit for cause
c.Apply under §7141.5, which permits retroactive renewal at will
d.File a new original application and meet current requirements✓

B&P §7141 allows an expired license to be renewed at any time within five years of expiration; once that window closes there is nothing left to renew, and the person must file a new original application and satisfy the requirements then in force. (a) ignores the five-year outside limit. (b) invents a waiver power §7141 does not give the Registrar. (c) misuses §7141.5, which grants retroactive renewal — renewal with no break in licensure — only if the completed application is delivered or postmarked within 90 days of expiration.

B&P Code §7141 / §7141.5
118. What is the minimum dollar value of a construction project that triggers the requirement to hold a contractor's license in California?
a.$1,000✓
b.$100
c.$500
d.$5,000

Under B&P Code section 7048, a license is not required where the aggregate contract price for labor, materials, and all other costs is less than $1,000 (the minor work exemption), provided the work is casual and not part of a larger project. At or above $1,000, a license is required.

B&P Code §7048
119. The 'minor work' exemption allows unlicensed work only when which condition is also met?
a.The customer signs a written waiver of the license requirement
b.The work is minor, not part of a larger project✓
c.The labor portion alone stays under the dollar threshold
d.The worker holds a home improvement salesperson registration

B&P §7048 exempts work only where the aggregate price for labor, materials, and all other items is under $1,000, the work is casual, minor, or inconsequential, no building permit is required, the person employs no one to help, and the person does not hold out as a contractor. Splitting a larger job into sub-$1,000 pieces is expressly evasion. (a) is the most common misconception on this rule: licensure is not a private right a consumer can waive. (c) states the threshold in the wrong terms — the statute counts the aggregate contract price including materials, not the labor alone. (d) confuses two registrations; a §7153 salesperson registration lets a person sell home improvement contracts for a licensee, and authorizes no unlicensed work.

B&P Code §7048
120. An unlicensed person performs work requiring a license and sues the customer for nonpayment. What is the result?
a.The court awards the contract price, less a statutory penalty
b.The contractor recovers its documented labor and material cost
c.The contractor recovers in quantum meruit, but no profit
d.The action is barred, whatever the merits of the claim✓

B&P §7031(a) bars a person from bringing or maintaining any action for the collection of compensation for work requiring a license without alleging licensure at all times during performance, and it says so 'regardless of the merits of the cause of action'; §7031(b) goes further and lets the customer recover back what was already paid. (a), (b) and (c) are the equitable compromises the courts have refused — no discounted contract price, no cost recovery, no restitution in quantum meruit. The one narrow escape is the substantial-compliance showing under §7031(e).

B&P Code §7031(a) / §7031(e)
121. Under the disgorgement provision of the license law, what may a customer who hired an unlicensed contractor do?
a.Withhold future payments, but keep no right to money already paid
b.Recover all compensation already paid for the unlicensed work✓
c.Recover only the payments above the $1,000 exemption amount
d.Recover nothing once the work is finished and put to use

B&P §7031(b) lets a person who used the services of an unlicensed contractor sue to recover all compensation paid for the work, and §7031(a) separately bars that contractor from suing for anything unpaid. (a) is the set-off misconception: the remedy reaches money already handed over, not merely money still owed. (c) treats the §7048 $1,000 threshold as a deductible, but it is a test of whether a license was needed at all, and a job that needed one gives no credit for the first $1,000. (d) is the good-work defense the courts have rejected; the only narrow escape is the substantial-compliance showing in §7031(e).

B&P Code §7031(b) / §7031(e)
122. Acting in the capacity of a contractor without a license, when one is required, is generally what kind of offense for a first violation?
a.An infraction with no possible jail time
b.A felony in all cases
c.A misdemeanor✓
d.A purely civil matter with no criminal exposure

Under B&P Code section 7028, engaging in the business or acting in the capacity of a contractor without a license is a misdemeanor. Penalties escalate for repeat offenses and can include fines and jail time.

B&P Code §7028
123. The CSLB issues a citation to a licensee for a violation. What may that citation include?
a.Automatic revocation of the license, with no hearing at all
b.A criminal conviction entered directly by the Registrar
c.An order of correction and an assessment of a civil penalty✓
d.A recorded lien against the contractor's own residence

B&P §7099 lets the Registrar issue a citation in lieu of proceeding by accusation; the citation describes the violation and may contain an order of correction — or, against a licensee only, an order to pay a specified sum to the injured party instead of correcting — and may assess a civil penalty, which §7099.2(b)(1) sets at not less than $500 and not more than $8,000. (a) confuses the citation with discipline; the license is reached only if the citation goes unpaid or uncorrected. (b) hands an administrative officer a criminal power. (d) invents a collection remedy the section does not provide.

B&P Code §7099 / §7099.2(b)(1)
124. A person sells home improvement contracts for a licensed contractor away from the contractor's fixed place of business. What must that person hold?
a.A home improvement salesperson registration✓
b.A contractor's license in the same classification
c.A qualifying individual's bond of $25,000
d.Nothing, if the licensee signs each contract

B&P §7152(a) defines the home improvement salesperson as a person engaged in soliciting, selling, negotiating, or executing home improvement contracts on behalf of a licensed home improvement contractor, and §7152(b) requires that person to register with the board; §7153 makes acting as one without a current registration a misdemeanor. (b) overshoots: a registration lets the person sell, and a license is what lets a firm perform the work. (c) borrows the §7071.9 qualifier's bond, which belongs to the person qualifying a license. (d) is the common arrangement the registration requirement defeats, since it is the soliciting and negotiating that trigger it.

B&P Code §7152(a)-(b)
125. Which person is NOT required to register as a home improvement salesperson?
a.A commissioned seller negotiating home improvement contracts door to door
b.A field representative who signs home improvement contracts at the home
c.An officer of record of the licensed corporation that is doing the selling✓
d.A phone solicitor who sets and negotiates home improvement contract terms

B&P §7152(a) defines the home improvement salesperson as a person who solicits, sells, negotiates, or executes home improvement contracts for a licensed contractor, and §7152(b) requires that person to register. §7152(d) then exempts an officer of record of a licensed corporation (or a manager, member, or officer of record of a licensed LLC), a general partner listed on a licensed partnership's record, and the qualifying person under §7025 — the exemption follows the person's status on the license record, not what the person's duties happen to be. (a), (b) and (d) each perform one of the four listed acts — soliciting, negotiating, executing — for the licensee, so each must register.

B&P Code §7152(a) / §7152(d)
126. A licensed corporation wants to add a new classification to its existing license. What must it generally do?
a.Apply to add the class and have a qualifier for it✓
b.Add it at renewal by checking the box on the form
c.Post a second $25,000 license bond for the new class
d.Form a separate corporation to hold the new classification

Under B&P §7059 a licensee may hold more than one classification, but each added class must be qualified by someone who meets the experience and examination requirements for that class, on an application to add the classification. (b) treats classification as a renewal formality; renewal continues what is already on the license and adds nothing. (c) confuses classification with bonding — the §7071.6 bond is one $25,000 bond per license, not per class. (d) is the misconception that scope is tied to the entity rather than to the license; the same corporation can carry several classes on one license number.

B&P Code §7059
127. The sole owner of a licensed sole proprietorship forms a new corporation and wants to keep the license number. What does the license law allow?
a.Nothing at all, because the number dies with the proprietorship
b.Reissuance, if the owner keeps more than 50 percent of the voting power✓
c.Automatic transfer as soon as the corporation registers with the state
d.Transfer by sale, since the license number is the owner's property

B&P §7075.1(a) makes a license non-transferable, but §7075.1(c)(5) lets the Registrar reissue the number to a corporation or LLC formed by an individual licensee where that licensee keeps ownership, directly or indirectly, of more than 50 percent of the voting power. (a) misses that subdivision entirely. (c) skips the CSLB: registering with the Secretary of State creates the entity, it does not license it, and the new corporation must apply and requalify. (d) is the sale-of-a-license myth §7075.1(a) exists to kill — a number may be reissued on statutory conditions, never bought.

B&P Code §7075.1(a) / §7075.1(c)(5)
128. When a corporation applies for a contractor's license, who must appear on the application as the qualifying individual?
a.Whichever shareholder holds the largest block of voting stock
b.An RMO or RME who meets the experience and exam requirements✓
c.The corporation's president, who must always be the qualifier
d.Any officer listed with the Secretary of State for the corporation

B&P §7065 requires a corporation to be qualified by a responsible managing officer or responsible managing employee who has the required experience and passes the qualifying examination for the classification sought. (a) substitutes ownership for competence — stock ownership matters to the §7071.9 bond exemption and the §7068.1 multi-firm rule, never to who may qualify. (c) over-reads the officer requirement: an RMO may be president, vice president, secretary or treasurer, and an RME need not be an officer at all. (d) stops at corporate status; being an officer of record satisfies neither the experience requirement nor the examination.

B&P Code §7065
129. Which business entity form is NOT among those permitted to hold a California contractor's license?
a.A sole proprietorship operating under a fictitious business name
b.A corporation registered with the California Secretary of State
c.A limited liability company that carries the required bonds
d.A loose association of tradespeople with no legal form✓

A contractor's license may be issued to a sole proprietor, a partnership, a corporation, a limited liability company, or a joint venture — every form on this list except an unregistered association, which has no legal existence to hold a license or to be bound by the license law. (a) is licensable: a sole proprietor may use a DBA, subject to the §7059.1 name rules. (b) is the ordinary corporate license under §7065. (c) is licensable since 2012, though an LLC additionally needs the §7071.6.5 $100,000 worker bond and §7071.19 liability insurance.

B&P Code §7065 / §7075.1
130. A licensed limited liability company must carry financial security beyond the $25,000 contractor's bond. What does the license law require?
a.A second $25,000 contractor's bond naming each LLC member
b.A $100,000 surety bond for employee wages and fringe benefits✓
c.A $100,000 cash deposit lodged with the county where it contracts
d.A $250,000 bond, set at ten times the standard contractor's bond

B&P §7071.6.5 requires an LLC licensee to file a $100,000 surety bond for the benefit of employees damaged by unpaid wages, interest on wages, or fringe benefits — and, where a collective bargaining agreement applies, welfare, pension, and apprentice contributions — in addition to the §7071.6 bond; §7071.19 separately requires at least $1,000,000 of liability insurance. (a) simply doubles the contractor's bond, but the LLC's extra security exists for workers, not for the same beneficiaries. (c) misplaces the depositary: a deposit in lieu of a bond goes to the Registrar under §7071.4 and Code of Civil Procedure §995.710, never to a county. (d) is the §7071.8 disciplinary-bond ceiling, ten times the §7071.6 bond, which reaches only a licensee that has been disciplined.

B&P Code §7071.6.5 / §7071.19
131. A licensed LLC contractor must carry liability insurance whose aggregate limit rises with the number of persons on its license record. What is the floor?
a.$250,000 for a company with five or fewer
b.$100,000 for a company with five or fewer
c.$1,000,000 for a company with five or fewer✓
d.$500,000 for a company with five or fewer

B&P §7071.19(b)(1) sets the aggregate limit at not less than $1,000,000 for an LLC licensee with five or fewer persons listed on its personnel of record, and §7071.19(b)(2) adds $100,000 of insurance for each additional listed person, capped at $5,000,000 in any one designated period. (b) is that $100,000 per-person increment mistaken for the floor. (a) and (d) are figures the section never uses. Keep this apart from the LLC's other requirement: the $100,000 wage and fringe-benefit surety bond under §7071.6.5, which protects employees rather than third parties injured by the work.

B&P Code §7071.19(b)
132. A partnership holds a contractor's license and one partner dies. What generally happens to the license?
a.It passes to the surviving partner as the new sole owner
b.It continues unchanged, since the license names the business
c.The entity has changed, so CSLB must be notified promptly✓
d.It is suspended automatically until probate closes the estate

A partnership license is issued to that specific partnership under B&P §7076, so the death or withdrawal of a partner dissolves the licensed entity: the CSLB must be notified and the surviving owner must obtain the licensure appropriate to the new entity. (a) is the inheritance misconception — a license is a personal privilege, not property that passes with the business. (b) confuses the trade name with the licensee; the license attaches to the partnership, not to the name on the truck. (d) invents a probate trigger; nothing in the license law ties the license's status to settlement of the estate.

B&P Code §7076
133. A licensee must notify the Registrar of certain changes. Within how many days must a licensee report a change of business address?
a.30 days
b.10 days
c.180 days
d.90 days✓

Under B&P Code section 7083, a licensee must notify the Registrar in writing within 90 days of any change of business or mailing address. Failure to keep a current address on file can lead to disciplinary action.

B&P Code §7083
134. If a qualifying individual (RMO/RME) disassociates from a license, within how many days must the licensee notify the Registrar?
a.10 days
b.30 days
c.90 days✓
d.1 year

Under B&P Code section 7068.2, the licensee must notify the Registrar in writing within 90 days of the disassociation of a qualifying individual. If not replaced within 90 days, the license may be suspended or the classification removed.

B&P Code §7068.2
135. After a qualifier disassociates, how long does the licensee generally have to replace the qualifying individual before the license is suspended or invalidated?
a.30 days
b.1 year
c.90 days✓
d.5 years

Under B&P Code section 7068.2, a licensee has 90 days to replace a disassociated qualifying individual. Failure to do so within that period results in automatic suspension or removal of the affected classification.

B&P Code §7068.2
136. A contractor cannot obtain a surety bond. What alternative does the license law allow to satisfy the bond requirement?
a.A letter of credit issued by the contractor's own bank
b.A certificate of deposit assigned over to the Registrar
c.A deposit of cash or a cashier's check with the Registrar✓
d.A personal guarantee signed by the license's qualifier

B&P §7071.4(a) lets a licensee satisfy any bond in this article either with a bond from an admitted surety or with a deposit made under Code of Civil Procedure §995.710(a)(1) — lawful money of the United States or a cashier's check, held in trust by the Registrar — in the same amount as the bond it replaces. (b) is the alternative the section names and then rejects: 'no other method of deposit, including, but not limited to, a certificate of deposit, shall satisfy a bond requirement under this article.' (a) and (d) are likewise outside the one permitted form, and a qualifier's personal promise is not security the Registrar can hold.

B&P Code §7071.4(a) / Code Civ. Proc. §995.710(a)(1)
137. Which fee does a contractor pay when renewing a license in active status?
a.The original application fee, charged again at each renewal
b.The active renewal fee set for that type of licensed entity✓
c.The inactive renewal fee, plus half of it as a delinquency fee
d.A surcharge fixed at ten percent of the year's gross receipts

B&P §7137(a)(4) sets renewal fees by status and entity type: $450 for an active individual owner and $300 inactive, $700 for an active partnership, corporation, LLC, or joint venture and $500 inactive, and $200 for a home improvement salesperson registration. (a) confuses the original application fee with renewal. (c) picks the wrong status and adds the delinquency fee, which §7137(a)(5) sets at 50 percent of the renewal fee and which applies only when the license is renewed after expiration. (d) invents a revenue-based levy; nothing in §7137 scales with a contractor's receipts.

B&P Code §7137(a)(4)-(5)
138. A licensee wants to place a license on 'inactive' status. What is the effect of inactive status?
a.The license number is cancelled and cannot be reissued later
b.The licensee may not contract, but keeps the license number✓
c.The licensee may still bid, but may not sign a contract
d.The license stays active for warranty and repair work only

B&P §7076.5 lets a licensee inactivate a license: the holder may not engage in contracting, but keeps the license number and renews on the inactive schedule, without maintaining an active bond. (a) confuses inactivation with cancellation — inactivation is reversible, which is the whole point of the status. (c) splits a hair the statute does not: bidding and soliciting are contracting activity, so an inactive licensee may not bid either. (d) invents a carve-out; there is no residual scope of work an inactive license authorizes.

B&P Code §7076.5
139. A contractor advertises services. What must the advertisement generally include under the license law?
a.The contractor's license number✓
b.The contractor's home phone number
c.The RMO's Social Security number
d.A list of all past customers

Under B&P Code section 7030.5, contractors must include their license number in all advertising, contracts, subcontracts, bids, and business cards. This lets consumers verify licensure with the CSLB.

B&P Code §7030.5
140. An unlicensed person advertises for construction work. What must the advertisement state, and what work may it offer?
a.That the person is unlicensed, offering only work under $1,000✓
b.That the person is bonded and insured, with no dollar limit
c.That a license application is pending, offering work under $5,000
d.Nothing extra, so long as each separate contract stays small

B&P §7027.1 makes it unlawful to advertise for work covered by the license law without a license, unless the advertisement states that the person is not licensed and the work offered is within the §7048 exemption — under $1,000 in the aggregate, casual or minor, no permit, and no employees. (b) is the surety/insurance substitution: a bond does not cure the absence of a license, and nothing about being bonded lifts the dollar limit. (c) treats a pending application as interim authority; the license law grants none until the license issues. (d) is the evasion the statute names, since dividing one job into small contracts does not bring it under §7048.

B&P Code §7027.1 / §7048
141. A $2,500 home improvement contract must be in writing and contain specified elements. Which element does §7159 require?
a.The contractor's two most recent filed tax returns
b.A copy of the contractor's $25,000 surety bond
c.The contract price and a schedule of progress payments✓
d.The buyer's credit score and the lender's approval

B&P §7159(d)(5) requires the heading 'Contract Price' followed by the amount in dollars and cents, and §7159(d)(9) requires a 'Schedule of Progress Payments' whenever payments other than the down payment come before completion, each payment tied to work performed. (a) and (b) confuse what the CSLB holds on the license record with what the contract must contain; the bond is filed with the Registrar, not attached to the contract. (d) belongs to a lender's file, and the section's disclosures run to the buyer rather than the other way round.

B&P Code §7159(d)(5) / §7159(d)(9)
142. For a home improvement contract, what is the maximum down payment a contractor may require?
a.One-third of the contract amount, collected at signing time
b.$1,000 or 10 percent of the contract amount, whichever is greater
c.10 percent of the contract amount, with no dollar ceiling at all
d.$1,000 or 10 percent of the contract amount, whichever is less✓

B&P §7159.5(a)(3) caps the down payment at $1,000 or 10 percent of the contract amount, whichever is less, so on a $30,000 remodel the ceiling is $1,000 rather than $3,000. (a) is a percentage with no statutory basis. (b) inverts the comparison, which is the most common error on this rule: 'whichever is greater' would let the cap rise with the size of the job, which is exactly what the section prevents. (c) keeps the percentage but drops the $1,000 ceiling, and that ceiling is what binds on nearly every contract.

B&P Code §7159.5(a)(3)
143. The Three-Day Right to Cancel notice required in certain home improvement contracts gives the buyer what?
a.Cancellation within three business days of the work starting
b.Cancellation within three business days of getting a copy✓
c.Cancellation at any time before the final payment is made
d.Cancellation within three calendar days of signing the contract

The notice required by B&P §7159(e)(6)(B)(i) runs the three BUSINESS days from the buyer's receipt of a signed and dated copy of the contract containing the notice, and a timely cancellation costs the buyer nothing: the contractor must return everything paid within 10 days. (a) starts the clock at the start of work, later than the statute allows. (c) confuses this statutory rescission with a general right to walk away mid-job. (d) counts calendar days instead of business days. Note the neighboring periods in the same subdivision: 'three' and 'third' become 'five' and 'fifth' for a senior citizen, a Seven-Day Right to Cancel applies to post-disaster repair contracts under §7159(e)(7), and no cancellation notice is required at all where the contract was negotiated at the contractor's own place of business.

B&P Code §7159(e)(6)-(7) / Civ. Code §1689.6
144. Who is named as the principal on the contractor's license bond?
a.The licensee whose conduct the bond answers for✓
b.The customer who is protected by the bond
c.The admitted surety that executes the bond
d.The Registrar, who holds the filed bond

B&P §7071.6 requires the licensee to file the bond, and §7071.5 says the contractor's bond is executed by an admitted surety in favor of the State of California: the licensee is the principal whose conduct is guaranteed, the surety is the guarantor, and the beneficiaries are the people §7071.5 lists. (b) names a beneficiary, not the principal. (c) names the surety, which is the other party to the bond rather than its principal. (d) names the obligee's custodian — the bond runs in favor of the State and is filed with the Registrar, who is not the principal.

B&P Code §7071.5 / §7071.6
145. What must be in place before the CSLB issues an original license to an applicant who has passed the examination?
a.A $1,000,000 liability policy naming the Registrar as insured
b.The $25,000 bond on file and the initial license fee paid✓
c.A signed contract with a customer to show the business is real
d.A surety's promise to issue the bond within thirty days

B&P §7069 and §7071.6 make the $25,000 contractor's bond (plus a §7071.9 qualifier's bond where one is required), the fingerprint-based criminal history check, and payment of the initial license fee the conditions precedent to issuance. (a) is limited-liability-company thinking: §7071.19 requires $1,000,000 of liability insurance of an LLC licensee only, and no such policy names the Registrar. (c) is backwards — contracting for work before the license issues is itself unlicensed contracting under §7031. (d) falls short of §7071.6, which requires the bond to be on file, not promised; §7071.7 does let the Registrar accept a bond as of its effective date when it arrives within 90 days of that date.

B&P Code §7069 / §7071.6 / §7071.7
146. Applicants for a contractor's license must submit fingerprints for what purpose?
a.A criminal background check through the Department of Justice✓
b.To verify identity against the Secretary of State's business filings
c.To confirm the applicant's authorization to work in California
d.To match the applicant against the CSLB's unlicensed-activity records

B&P §7069(b) requires an applicant to furnish a full set of fingerprints so the board can obtain state and federal criminal history from the Department of Justice and the FBI, and receive subsequent-arrest notifications; §7069.1 then lets the Registrar demand proof of how an arrest was disposed of. (b) confuses two checks — the CSLB does verify entity standing with the Secretary of State, but that is a records look-up, not what a print card is for. (c) imports a federal employment-eligibility idea into state licensing. (d) points at the right agency and the wrong database: unlicensed-activity enforcement is a separate function, and applicant prints are not run against it.

B&P Code §7069(b)
147. A consumer wants to check whether a contractor has a disciplinary history. What does the CSLB disclose to the public?
a.Only the license number; complaint history is kept confidential
b.Every complaint received, from the day a consumer files it
c.Nothing at all, because licensee records are exempt by statute
d.License status and bonding, plus certain reviewed complaints✓

B&P §7124.6 requires the Registrar to disclose the date, nature, and status of complaints that have been referred for accusation, and of investigated complaints a supervisor has reviewed and found to allege a probable violation serious enough for suspension, revocation, or prosecution — alongside license status, classification, bonding, and workers' compensation information, with a disclaimer that a complaint is only an allegation. (a) understates the record. (b) overstates it: a raw complaint that has not been through that review is not published. (c) is the confidentiality assumption the section rejects.

B&P Code §7124.6
148. Aiding or abetting an unlicensed person to evade the license law is what kind of violation for the licensee?
a.A citable paperwork violation carrying a fine but no discipline
b.A violation only if the unlicensed person is actually convicted
c.Not a violation, since the unlicensed person bears the duty
d.Cause for discipline against the license, and possibly a crime✓

B&P §7114 makes aiding or abetting an unlicensed person to evade the license law, or knowingly combining with one, a cause for disciplinary action against the licensee, and the conduct may also be prosecuted. (a) understates it to a citation; §7114 reaches the license itself, not just the wallet. (b) invents a dependency — the licensee's exposure does not wait on anyone else's conviction, and no conviction is required. (c) is the misconception that only the unlicensed party is at risk, which is exactly the arrangement §7114 exists to reach.

B&P Code §7114
149. A person who, with intent to defraud, uses an expired or revoked license number to enter contracts commits what?
a.A crime chargeable as a felony in specified circumstances✓
b.An administrative citation with a civil penalty only
c.A misdemeanor only, since license law crimes never reach felony
d.A violation only if the contract exceeds the bond

B&P §7027.3 makes using a license number with intent to defraud, after the license has expired or been suspended, revoked, or cancelled, punishable as a felony in specified circumstances — a deliberately heavier penalty than ordinary unlicensed contracting. (b) is the citation misconception: §7028.7 citations with $1,500 to $15,000 penalties exist, but they do not displace criminal exposure for fraud. (c) states the general rule for simple unlicensed contracting under §7028 and misses that §7027.3 was written precisely to exceed it. (d) invents a dollar trigger; the offense turns on intent to defraud, not on contract size.

B&P Code §7027.3
150. The qualifying individual bears personal responsibility for the contractor's operations. What can happen to the qualifier if he or she fails to actively supervise?
a.Nothing, because discipline reaches only the licensed entity
b.The qualifier's own separate license is unaffected in every case
c.The qualifier faces discipline, including any personal license✓
d.Only the $25,000 qualifier's bond is forfeited, with no discipline

B&P §7068.1 makes the qualifier responsible for exercising direct supervision and control of the firm's construction operations, and failure to do so is a cause for disciplinary action against the qualifier — including any license the qualifier holds in his or her own name. (a) is the shield misconception the section removes. (b) states the opposite of the rule: the individual license is expressly exposed. (d) mistakes the §7071.9 bond for the remedy; that bond compensates claimants and does not substitute for discipline, and it is not even required of a qualifier who owns 10 percent or more.

B&P Code §7068.1
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