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企业组织与执照

211 道题
151. A person lends a qualifying credential to a firm without genuinely supervising its operations. How does the license law treat this?
a.As a prohibited practice, and cause for discipline✓
b.As lawful, so long as the firm pays the qualifier a fee
c.As lawful for one project in any twelve-month period
d.As a paperwork error the Registrar corrects at renewal

B&P §7068.1(a) makes the qualifying individual responsible for exercising supervision and control of the firm's construction operations to secure compliance with the license law, and §7068.1(d) makes a violation of the section grounds for disciplinary action against both the licensee and the qualifier. A credential lent without real supervision — a rented qualifier — is therefore a violation from the first day. (b) treats a fee as a cure; payment is beside the point, since the duty is supervision. (c) invents a de minimis allowance the section does not contain. (d) treats a substantive duty as a clerical matter.

B&P Code §7068.1(a) / §7068.1(d)
152. An unsatisfied final judgment related to the construction business can affect a license how?
a.Not at all, because a civil judgment is a private matter
b.Suspension, unless the judgment is paid, bonded, or settled✓
c.The $25,000 license bond is raised to cover the judgment
d.Revocation, with no new license for the following five years

B&P §7071.17(b)(1) requires a licensee to notify the Registrar in writing of any unsatisfied final judgment, and the license is automatically suspended if that notice does not come within 90 days; a licensee who does report must, within 90 days of the board's notification, file a bond sufficient to guarantee payment of an amount equal to the unsatisfied judgment, or supply a notarized copy of an accord with the judgment holder. (a) misses the reporting duty entirely. (c) confuses two bonds: the §7071.17 judgment bond is written in the amount of the judgment and sits on top of the §7071.6 bond, which is never enlarged. (d) overstates the consequence — the suspension lifts on proof of satisfaction or on the accord.

B&P Code §7071.17(a)-(b)
153. The CSLB offers a process to help resolve disputes between contractors and consumers short of formal discipline. What is it?
a.Mediation and arbitration under the CSLB dispute program✓
b.Binding small claims court filings prepared by CSLB staff
c.Payment from the CSLB recovery fund while the complaint is open
d.A CSLB-appointed receiver who finishes the disputed work

B&P §7085 and §7085.5 authorize the CSLB to offer mediation and to refer eligible complaints to arbitration, giving consumers a route short of litigation or formal discipline. (b) confuses two forums — small claims is a court proceeding the parties bring themselves, and CSLB staff do not litigate it. (c) imports a remedy California does not have for contractors: unlike some states, California has no contractor recovery fund, which is precisely why the §7071.6 bond matters. (d) invents an authority; the Registrar can discipline a license but cannot take over and complete a job.

B&P Code §7085 / §7085.5
154. Who has the authority to suspend or revoke a contractor's license for violating the license law?
a.The city council where the disputed work was performed
b.The consumer who filed the verified written complaint
c.The surety company that wrote the contractor's bond
d.The Registrar of Contractors, after due process✓

B&P §7090 gives the Registrar the power to deny, cite, temporarily suspend, or permanently revoke a license or registration, acting on the Registrar's own motion or on a person's verified written complaint, through the disciplinary procedures of the article. (a) confuses local authority with state licensure: a city controls permits and its own contracts, not the license. (b) confuses starting a case with deciding one — a complaint triggers an investigation. (c) mistakes a consequence for a power: a surety can cancel its bond, and the license is then suspended for want of a bond, but the surety itself disciplines nobody.

B&P Code §7090
155. Before a license may be revoked through a formal disciplinary proceeding, the licensee is generally entitled to what?
a.An immediate criminal trial, before any administrative action
b.A refund of the license fees paid for the disputed period
c.An accusation, and a hearing before an administrative law judge✓
d.Automatic reinstatement once the appeal period has run

B&P §7090 lets the Registrar suspend or revoke only through the disciplinary article, which runs on the Administrative Procedure Act (Gov. Code §11500 et seq.): a written accusation, notice, and an opportunity for a hearing before an administrative law judge. (a) confuses forums — a criminal prosecution for unlicensed activity is brought by a prosecutor and is not a precondition to license discipline. (b) is not a remedy the disciplinary statutes provide. (d) reverses the sequence: reinstatement comes only on petition after discipline, and it is never automatic.

B&P Code §7090 / Gov. Code §11500 et seq.
156. What happens to an active license if the required contractor's bond lapses or the surety cancels it?
a.Nothing happens until the license comes up for renewal
b.The license is suspended until an acceptable bond is on file✓
c.The license is revoked, and reinstatement requires a new exam
d.The license continues, and the surety covers the gap period

B&P §7071.6(a) makes a bond on file a condition precedent not only to issuance but to the continued maintenance of the license, so an unbonded license cannot stay in good standing and is suspended until an acceptable bond is filed. §7071.7 then softens the landing: the Registrar accepts the bond as of its effective date and reinstates the license retroactively if the bond arrives within 90 days of that date. (a) treats renewal as the checkpoint, but the bond requirement is continuous. (c) confuses suspension with revocation; no examination is involved. (d) misreads the surety's role — the bond answers to claimants, and it does not keep the license alive.

B&P Code §7071.6(a) / §7071.7
157. A contractor holds a Class C-10 (Electrical) license only. May the contractor legally contract to build an entire new house?
a.Yes, because any active license permits taking a prime contract
b.Yes, if every trade outside C-10 is properly subcontracted out
c.No, because a whole house requires a Class B classification✓
d.No, unless the house is under the permit valuation threshold

B&P §7059 limits a licensee to the classifications held, and a whole house involves two or more unrelated trades, which is Class B general building work under §7057 — a C-10 specialty license does not authorize the prime contract. (a) is the misconception that a license is a general trading permit rather than a scope. (b) is the closest wrong answer and a real trap: subcontracting the other trades does not enlarge the prime's classification, and §7057 reserves the multi-trade prime contract to Class B. (d) invents a valuation exemption; the license law has no small-house exception.

B&P Code §7057 / §7059
158. A Class B General Building contractor takes a project requiring framing, roofing, plumbing, and electrical work. For the trades it will not perform itself, what must it do?
a.Self-perform every trade, because the prime contract is its own
b.Leave the license check to the owner when hiring each specialty firm
c.Subcontract each specialty trade to a contractor licensed for it✓
d.Obtain a Class A license before subcontracting any trade

Under B&P §7057 a General Building contractor holds the prime contract and either self-performs work its own classification covers — framing and carpentry expressly, plus any specialty class it also holds — or subcontracts each specialty trade to a contractor licensed in that trade. (a) ignores classification limits: taking the prime contract does not license the plumbing or the electrical work. (b) misplaces the duty, and §7118 makes contracting with an unlicensed contractor a cause for discipline against the licensee doing the hiring. (d) confuses classes; Class A is engineering work under §7056 and authorizes no specialty trade either.

B&P Code §7057(b) / §7118
159. The CSLB's Statewide Investigative Fraud Team (SWIFT) targets which conduct?
a.Late filing of a licensee's state payroll tax returns
b.Disputes over a building inspector's reading of the code
c.Union jurisdictional disputes among the trades councils
d.Unlicensed contracting and unlawful contractor advertising✓

SWIFT is the CSLB's enforcement field team, and its subject is unlicensed contracting and the advertising that feeds it: §7027.1 makes it a misdemeanor to advertise for work covered by the chapter without a license in the classification advertised, and §7028.7 directs the Registrar to cite a person acting as a contractor or salesperson without a license. (a) belongs to the EDD and the Franchise Tax Board. (b) is the local building department's business, not the CSLB's. (c) is a labor-relations dispute for the NLRB or the courts.

B&P Code §7027.1 / §7028.7
160. A homeowner hires an unlicensed handyman for a $900 repair that is casual and complete in itself and needs no building permit. Is a license required?
a.No, the total is under $1,000 and no permit is required✓
b.Yes, because the exemption counts labor only, not materials
c.Yes, unless the homeowner signs a written waiver of the rule
d.No, and the same holds for a $900 slice of a $9,000 remodel

B&P §7048(a) exempts a project only when the aggregate contract price for labor, materials, and all other items is less than $1,000, the work is casual, minor, or inconsequential, and no building permit is required — this $900 repair clears all three. (b) counts labor alone; the statute adds materials and all other items together, which is how a job that looks exempt often is not. (c) invents a waiver: the threshold is statutory and a homeowner cannot consent it away. (d) is the evasion §7048(b) closes — work that is part of a larger operation, or a job divided into sub-$1,000 contracts, gets no exemption.

B&P Code §7048(a)-(b)
161. A contractor breaks a $3,000 job into four separate $750 invoices to stay under the license threshold. Is that permitted?
a.Yes, since each of the separate invoices is under $1,000
b.Yes, if the customer agrees to be invoiced in stages
c.No, because the aggregate price of the operation controls✓
d.No, unless no phase of the work needs a building permit

B&P §7048(a) measures the exemption by the aggregate contract price for labor, materials, and all other items on one undertaking or project, and §7048(b) removes the exemption where the work is part of a larger operation or where the operation is divided into contracts of less than $1,000 to evade the chapter. The job is a $3,000 project and needs a license. (a) reads the paperwork rather than the project. (b) makes the customer's agreement decisive, which no exemption does. (d) states a real condition of §7048(a) — the work must require no building permit — but applies it to phases instead of to the whole project, and no permit test rescues a job split for evasion.

B&P Code §7048(a)-(b)
162. Two licensed firms form a joint venture to bid one large project. What licensing does the joint venture itself need?
a.A joint venture license, with each member currently licensed✓
b.No license of its own, since both members are already licensed
c.A joint venture license in a class neither member holds
d.A state registration in place of a contractor's license

B&P §7029 issues a joint venture license to the combination itself, and every member must hold a current, active license in good standing; the venture's license may issue in any classification in which at least one member is licensed, and it is automatically suspended by operation of law whenever a member's license stops being current and active. (b) is the shortcut the section forecloses: the venture is a separate licensee. (c) reverses the classification rule, which draws the venture's scope from what the members already hold. (d) confuses entity registration with licensure; the Secretary of State does not license contractors.

B&P Code §7029
163. Two licensed contractors want to bid and perform one large project together. What does the license law require of them?
a.Merge into one corporation before they bid the project together
b.Obtain a joint venture license, each member staying licensed✓
c.Surrender their individual licenses to the joint venture
d.Nothing more, since each of them already holds an active license

B&P §7029 issues a joint venture license to a combination of entities each of which holds a current, active license in good standing, in any classification at least one of them holds, and the joint venture license is automatically suspended by operation of law during any period in which a member's own license is not current and active. (a) is unnecessary, since the joint venture is the point. (c) inverts the rule: the members' individual licenses are exactly what keeps the joint venture license alive. (d) is the common shortcut, and the §7029 license is still required — though note §7031(a) does not bar contractors who are each individually licensed from suing for payment merely because they failed to comply with §7029.

B&P Code §7029 / §7031(a)
164. A consumer is harmed by a licensed contractor's abandonment of a job. Which financial protection may the consumer make a claim against?
a.The $25,000 contractor's license bond✓
b.The contractor's personal credit card
c.The CSLB's operating budget
d.The building department's fund

Under B&P Code section 7071.6, consumers damaged by a licensee's violation, such as abandonment or defective work constituting a license law violation, may file a claim against the $25,000 contractor's license bond.

B&P Code §7071.6
165. Which contract is governed by the disclosure and formatting rules of the Home Improvement Business article?
a.A remodel of a homeowner's own residence✓
b.A public works contract to widen a bridge
c.A grading subcontract on a highway job
d.An erection contract for an industrial plant

B&P §7151 defines home improvement as work on residential property, and §7151.2 defines the home improvement contract as an agreement between a contractor and an owner or tenant for that work, which is what pulls in the written-contract, down-payment, progress-payment, and cancellation rules of §7159 and §7159.5. (b) and (c) are public works, governed by the Public Contract Code and the prevailing wage law. (d) is industrial construction for a business owner, outside the article no matter how detailed the contract is.

B&P Code §7151 / §7151.2
166. For purposes of the Home Improvement Business article, which project is a 'home improvement'?
a.Erecting a new commercial warehouse on a vacant parcel
b.Building a tract of new houses for sale to homebuyers
c.Grading and paving a stretch of public highway
d.Remodeling a dwelling and the land adjacent to it✓

B&P §7151(a) defines home improvement as repairing, remodeling, altering, converting, or modernizing, or adding to, residential property, and expressly includes driveways, swimming pools and spas, patios, awnings, solar energy systems, landscaping, fences, porches, garages, and other improvements to the structure or to the land adjacent to a dwelling. (a) is commercial construction, outside the article whatever its size. (b) is new residential construction built for sale, which the article does not reach — the article governs improvements to residential property already there. (c) is public works, governed by the Public Contract Code rather than the home improvement rules.

B&P Code §7151(a)
167. A home improvement contractor may collect progress payments in what manner?
a.In amounts not exceeding the value of work performed✓
b.In equal monthly installments fixed when the job starts
c.In any amount, if the total matches the contract price
d.In advance of the work, if the contract permits it

B&P §7159.5 caps the down payment at $1,000 or 10 percent of the contract price, whichever is less, and requires that each later payment request not exceed the value of the work performed or the material delivered. (b) is the schedule misconception: a payment schedule is allowed, but it may not run ahead of the work regardless of how evenly it is spread. (c) looks at the total instead of the timing, which is exactly what the section polices. (d) is the front-loading arrangement the section prohibits, and a contract term cannot authorize it.

B&P Code §7159.5
168. The disclosure statements required in certain contracts, informing consumers about the CSLB and mechanics liens, serve what purpose?
a.To limit the contractor's liability for defects to the bond amount
b.To tell consumers their rights, lien risk, and CSLB contact✓
c.To substitute for the written contract on jobs under $500
d.To record the consumer's consent to any future change order

B&P §7030 requires the notice telling consumers that contractors are licensed by the CSLB and how to reach it, and §7159 requires the mechanics lien warning inside the home improvement contract; together they exist to inform, not to shift risk. (a) inverts the purpose — a disclosure does not cap liability, and the $25,000 bond is a floor of protection, not a ceiling on damages. (c) confuses a notice with the contract; §7159 still requires the written contract itself. (d) is the change-order misconception: §7159 requires each change order to be separately signed, which no advance disclosure can supply.

B&P Code §7030 / §7159
169. Which experience would best satisfy the four-year requirement for a Class C-27 Landscaping license?
a.Four years running a landscape supply yard and estimating jobs
b.Four years of landscaping work performed twelve to sixteen years ago
c.Four years of journey-level landscape work for a licensee✓
d.Four years as an apprentice landscaper with no journey-level time

B&P §7068 requires four years of journey-level or higher experience in the classification sought, gained within the ten years immediately preceding the application. (a) fails the trade test: supply and estimating work is not performing the classified trade. (b) fails the recency test only — the work is the right kind but sits outside the ten-year window, which is the trap most candidates miss. (d) fails the level test: apprentice time may be credited toward up to three years as training, but at least one year must be at journey level.

B&P Code §7068 / 16 CCR §825
170. An applicant fails the trade or law portion of the licensing examination. What is the general consequence?
a.The application is void and a new application must be filed
b.The applicant may retake it once, then waits five years
c.The applicant must retake both portions, including the one passed
d.The applicant may reschedule and retake it for a fee✓

An applicant who fails may reschedule and retake the examination on payment of the rescheduling fee set under B&P §7137; only a failure to pass within the period the application stays valid voids the application. (a) treats a single failure as fatal, which it is not. (b) invents a waiting period — there is a limit on how long the application stays alive, not a multi-year bar on reapplying. (c) is the closest trap and is wrong: a passed portion stands, and only the failed portion is retaken.

B&P Code §7137 / 16 CCR §869
171. An original contractor's license application generally becomes void if the applicant fails to complete requirements within what period after the application is accepted?
a.Thirty days from the date of acceptance
b.Ninety days from the date of acceptance
c.Five years from the date of acceptance
d.One year from the date of acceptance✓

CSLB rules give an applicant roughly one year from acceptance to finish everything the license requires — passing the examinations, filing the bond, and paying the initial fee — after which the application is void and the fees are forfeited. (a) and (b) borrow short deadlines that belong elsewhere, such as the §7083 periods for reporting changes of address and personnel, not to the life of an application. (c) stretches the window toward the §7068 ten-year experience lookback, which measures how old an applicant's experience may be and says nothing about the application.

B&P Code §7069 / 16 CCR §869
172. A contractor licensed only as Class A General Engineering is asked to remodel the interior of an existing office (a general building project). What is the proper course?
a.Take it, because Class A is the broadest classification issued
b.Take it, subcontracting each building trade to licensed specialists
c.Take it, because remodels of existing structures need no classification
d.Take it only within engineering scope, or add Class B✓

B&P §7056 confines Class A to fixed works requiring specialized engineering knowledge, and §7059 confines every licensee to the classes held, so an office remodel is Class B general building work under §7057 unless it falls within the engineering scope. (a) is the hierarchy misconception: Class A is not a superset of Class B; they are different scopes. (b) is the common trap — subcontracting does not enlarge the prime contractor's classification. (c) invents a remodel exemption; the license law draws no line between new construction and alteration.

B&P Code §7056 / §7057 / §7059
173. The contractor's license bond and the bond of qualifying individual are two separate bonds. When is the bond of qualifying individual required?
a.For every license, in addition to the $25,000 license bond
b.Whenever the qualifier owns less than 20 percent of the equity
c.When the qualifier owns under 10 percent of the voting equity✓
d.Only when the qualifier is an employee rather than an officer

B&P §7071.9 requires a $25,000 qualifying individual's bond, and excuses it where an RMO owns 10 percent or more of the corporation's voting stock, or the LLC's qualifier holds at least a 10 percent membership interest. (a) ignores that exemption, which is the whole content of the section. (b) swaps in the 20 percent figure, which belongs to §7068.1's common-ownership test for qualifying more than one firm. (d) is close enough to trap: an RME will in practice almost always need the bond, but the statute turns on the ownership percentage, not on the officer-versus-employee label.

B&P Code §7071.9
174. An RMO who owns 15 percent of the licensed corporation's voting stock qualifies its license. Is a bond of qualifying individual required?
a.No, because the RMO owns at least 10 percent of the stock✓
b.Yes, because the waiver takes 20 percent of the stock
c.Yes, because only a general partner is ever excused
d.No, because a corporation's RMO never files that bond

B&P §7071.9(a)(1) requires a $25,000 qualifying individual's bond whenever the qualifier is neither the proprietor, a general partner, nor a joint licensee, and §7071.9(c) excuses the responsible managing officer of a corporation who owns 10 percent or more of the voting stock and certifies to that fact on the Registrar's form; 15 percent clears the threshold. (b) borrows the 20 percent common-ownership figure from §7068.1(a)(1), which governs qualifying a second firm, not this bond. (c) reads only subdivision (a)(1) and misses the ownership waiver. (d) overstates that waiver: it is conditional on the 10 percent holding and on the certification, and §7071.9(d) sets the parallel 10-percent membership-interest test for an LLC's qualifier.

B&P Code §7071.9(a)(1) / §7071.9(c)
175. A licensee changes the business name style (for example, from 'ABC Builders' to 'ABC Construction Inc.'). What is generally required?
a.Applying to the CSLB, which the Registrar reviews and approves✓
b.Filing a fictitious business name statement with the county only
c.Notifying the CSLB in writing within ninety days of the change
d.Nothing, as long as the license number stays on all advertising

A change in the name or style of a licensed business must be applied for and approved by the Registrar under B&P §7083.1, and a change that also changes the entity — a sole proprietorship incorporating, as here — requires a new license, with the old number reissued only if §7075.1's continuity conditions are met. (b) stops at the county filing, which does not reach the license. (c) borrows the §7068.2 ninety-day qualifier-disassociation deadline and applies it to the wrong event. (d) confuses §7030.5's advertising requirement with the duty to keep the licensed name accurate under §7059.1.

B&P Code §7083.1 / §7075.1
176. A sole proprietor licensee incorporates the business. Can the new corporation keep operating under the sole proprietor's license number without action?
a.Yes, because the owner and the qualifier have not changed
b.No; the corporation needs its own license, number possibly reissued✓
c.Yes, for one year, while the corporation applies itself
d.No, and the number is permanently retired when the proprietorship ends

A corporation is a separate legal person, so under B&P §7075.1 it must be separately licensed; where continuity of ownership and personnel exists, the Registrar may reissue the original number to the successor corporation on application. (a) is the identity misconception — the same human being behind both entities does not make them the same licensee. (c) invents a grace period, and contracting in the corporate name before the license issues is unlicensed contracting under §7031. (d) overshoots in the other direction by denying the reissuance §7075.1 expressly allows.

B&P Code §7075.1
177. Claims against the $25,000 contractor's license bond are generally handled how when total claims exceed the bond amount?
a.The earliest claim to reach the surety is paid in full first
b.The surety raises the bond limit to cover all proven claims
c.The licensee designates which claimants the surety should pay first
d.All claimants share the proceeds in proportion to their claims✓

B&P §7071.11(a) caps the surety's exposure at the face amount of the bond and provides that if the bond is insufficient to pay all claims in full, it is distributed to all claimants in proportion to their respective claims; the surety's aggregate liability on wage and fringe-benefit claims is separately capped at $4,000. (a) applies a first-in-time rule the statute does not use, which is why racing to file buys a claimant nothing. (b) misunderstands suretyship — the penal sum is the ceiling, which is why a $25,000 bond is thin protection on a large job. (c) puts the choice with the principal, when the statute fixes it.

B&P Code §7071.11(a)
178. A licensee willfully departs in a material respect from accepted trade standards for good and workmanlike construction. What does the license law provide?
a.A correction notice from the local building department only
b.A cause for disciplinary action against the contractor's license✓
c.Nothing, unless the owner first wins a civil judgment
d.A misdemeanor charge, with no effect on the license

B&P §7109(a) makes a willful material departure from accepted trade standards a cause for disciplinary action, unless the departure followed plans prepared by or under an architect's supervision; §7110 does the same for willful disregard of building, safety, labor, and compensation insurance laws. (a) confuses the forums: a building department can require correction, but only the Registrar can reach the license. (c) makes a civil judgment a precondition the statute does not impose — CSLB discipline runs independently of the owner's contract remedies. (d) mistakes the track: workmanship discipline is administrative, and no conviction is needed for the Registrar to act.

B&P Code §7109(a) / §7110
179. A licensee willfully and deliberately disregards state and local building laws. What does §7110 make of that?
a.It is acceptable where the owner agrees in writing
b.It is the building inspector's concern, not the CSLB's
c.It is outside the license law, being a local code matter
d.It is cause for disciplinary action against the license✓

B&P §7110 makes willful or deliberate disregard and violation of state or local building laws a cause for disciplinary action, and the same section reaches safety laws, labor laws, compensation insurance laws, the Unemployment Insurance Code, and the Subletting and Subcontracting Fair Practices Act. (a) treats a public duty as waivable by the owner, which it is not. (b) and (c) assume the two enforcement systems are exclusive; the building department enforces the code on the project, and the Registrar acts against the license for the same conduct, without waiting for the local agency.

B&P Code §7110
180. Diversion of funds or property received for a specific construction project, causing inability to complete it, is known as what violation?
a.Abandonment of the project without legal excuse under §7107
b.Diversion of funds, a ground for disciplinary action (§7108)✓
c.Willful departure from accepted trade standards under §7109
d.Taking an excessive down payment on a home improvement contract

B&P §7108 reaches the diversion of funds or property received for a project, or for payment of materials or services, where the diversion causes the contractor to fail to complete the work or pay for those items — the classic robbing-Peter-to-pay-Paul violation. (a) is §7107 abandonment, which turns on walking off the job, not on where the money went. (c) is §7109 workmanship, a quality violation rather than a financial one. (d) is the §7159.5 down-payment cap, which governs what may be collected at the front end, not what is done with money already collected.

B&P Code §7108
181. On a private project, a prime contractor must generally pay a subcontractor its share of a progress payment within how many days after receiving that payment from the owner?
a.30 days
b.7 days✓
c.60 days
d.90 days

Under B&P Code section 7108.5 a prime contractor must pay each subcontractor its share within seven days after receiving a progress payment from the owner (b). Wrongful withholding carries a 2%-per-month penalty plus attorney's fees and is grounds for discipline. (a) 30 days and (d) 90 days are commercial terms, not the statute's. (c) 60 days is the Public Contract Code §7107 window for a public agency to release retention after completion — a different rule for a different project type. The 10-day figure candidates often reach for is Civil Code §8814, which governs passing RETENTION through to a subcontractor, not progress payments.

B&P Code §7108.5
182. A home improvement contract must include the approximate start and completion dates. Failure to include required contract terms can result in what?
a.A citation only, since the contract itself remains fully enforceable
b.Automatic voiding of the contract, with all payments refunded
c.No consequence, provided the consumer signed the contract anyway
d.Discipline, with those terms unenforceable against the buyer✓

B&P §7159 lists the terms a home improvement contract must contain, including approximate start and completion dates; omitting them is a cause for discipline and the missing protections cannot be enforced against the consumer. (a) understates the exposure by treating the license and the contract as unconnected. (b) overstates it — the statute does not automatically void the contract or order restitution of everything paid. (c) is the waiver misconception again: the consumer's signature cannot supply a term the statute requires.

B&P Code §7159
183. Which practice by a home improvement contractor is expressly prohibited?
a.Taking a $500 deposit on a $20,000 kitchen contract
b.Taking a $2,500 deposit on a $20,000 kitchen contract✓
c.Billing for materials already delivered but not yet installed
d.Collecting the final payment only after work is complete

B&P §7159.5 caps the down payment at $1,000 or 10 percent of the contract price, whichever is less, and forbids later payments that exceed the value of work performed or material delivered. On a $20,000 contract 10 percent is $2,000, so the $1,000 cap controls: the $2,500 deposit in (b) is prohibited and the $500 deposit in (a) is lawful. The trap is reading 10 percent as the operative figure on a large job — it only controls when the contract price is under $10,000. (c) is lawful because delivered material counts toward value furnished, and (d) is lawful and merely conservative.

B&P Code §7159.5
184. During a declared state of emergency, contracting without a license for repair work may be charged as what?
a.The same misdemeanor as unlicensed contracting anywhere else
b.An administrative citation only, since emergency repairs are exempt
c.A licensed act, because emergencies suspend the licensing requirement
d.A crime carrying enhanced penalties, chargeable as a felony✓

B&P §7028.16 makes unlicensed contracting for repair or restoration in a declared emergency or disaster area punishable more severely than ordinary unlicensed contracting, up to a felony, because disaster victims are the intended targets of this fraud. (a) is the closest wrong answer: §7028 misdemeanor treatment is the baseline the emergency provision deliberately exceeds. (b) treats the citation route as exclusive when it is not. (c) is the dangerous misconception — an emergency declaration relaxes some permit timelines, never the licensing requirement.

B&P Code §7028.16 / §7028.17
185. Which statement about the $25,000 contractor's license bond is correct?
a.It covers damages from the licensee's license law violations✓
b.It guarantees the licensee's performance to every project owner
c.It stands in place of workers' compensation for the employees
d.It insures the contractor against an owner's construction defect claim

B&P §7071.5 names the beneficiaries of the §7071.6 bond: a homeowner damaged by a violation on home improvement work, the owner of a single-family dwelling not built for sale, any person damaged by a willful and deliberate violation, and employees for unpaid wages and fringe benefits — the last capped in the aggregate at $4,000 by §7071.11(a). (b) describes a performance bond, a separate instrument bought project by project. (c) is the workers' compensation confusion: §7125 requires that coverage separately, and no surety bond pays an injured worker's medical and indemnity benefits. (d) reverses the instrument, since the surety pays the claimant and then seeks indemnity from the contractor.

B&P Code §7071.5 / §7071.6 / §7071.11(a)
186. A licensee with employees must maintain what insurance to keep the license valid?
a.Commercial auto liability on every company vehicle
b.Workers' compensation coverage for those employees✓
c.A general liability policy of at least $1,000,000
d.Disability coverage for the qualifying individual

B&P §7125 makes a current Certificate of Workers' Compensation Insurance or Certification of Self-Insurance a condition of issuing, renewing and keeping a license, and a licensee with employees has no way around it; §7125.2 enforces it by suspending the license automatically, by operation of law, on the date coverage lapses. (a) is a Vehicle Code financial-responsibility matter rather than a licensing condition. (c) is the $1,000,000 figure §7071.19 imposes on limited liability company licensees only. (d) is required of no licensee. Know the no-employee side too: under §7125 as amended by SB 1455 (Stats. 2024, ch. 485), a licensee with no employees may file an exemption statement unless it holds a C-8, C-20, C-22, C-39 or D-49 classification, and from January 1, 2028 that exemption is left only to a §7029 joint venture with no employees.

B&P Code §7125 (as amended by SB 1455, Stats. 2024, ch. 485) / §7125.2
187. What happens to a license if a contractor with employees fails to maintain workers' compensation coverage?
a.The license is suspended at once by operation of law✓
b.The license is suspended only after a Registrar hearing
c.The license stays active until the next renewal date
d.The license is revoked and cannot be reinstated

Under B&P §7125.2 the license is suspended by operation of law on the date coverage lapses, and §7125.4 makes the suspension retroactive to that date, so work performed in the gap is unlicensed work with §7031 consequences. (b) imports due-process machinery that applies to disciplinary revocations, not to this automatic suspension. (c) is the misconception that renewal is the checkpoint; the certificate is verified continuously, not annually. (d) confuses suspension with revocation — the license is restored when acceptable coverage is filed.

B&P Code §7125.2 / §7125.4
188. An applicant has been convicted of a crime substantially related to the qualifications of a contractor. What does the license law allow?
a.Automatic denial, with no chance to show rehabilitation
b.Possible denial, after the board weighs rehabilitation evidence✓
c.No consequence at all, since a conviction is not the board's concern
d.Denial only where the applicant was actually incarcerated

B&P §7069(a) bars licensure to an applicant who has committed acts or crimes that are grounds for denial under §480, and §480(a)(1) permits denial for a substantially related crime convicted within the preceding seven years; §482 requires the board to apply its rehabilitation criteria before denying. So denial is possible, not automatic. (a) skips the individualized rehabilitation review the statute requires. (c) is the opposite of §7069, which also requires fingerprints and a DOJ and FBI record check. (d) misreads §480(a)(1): a conviction inside the seven-year window counts regardless of whether the applicant was incarcerated.

B&P Code §7069 / §480(a)(1) / §482
189. A specialty (Class C) contractor takes a prime contract. The license law permits a specialty contractor to take a prime contract when?
a.Never, since only Class A or Class B may contract directly with owners
b.Whenever the other trades on the job are subcontracted to licensees
c.Only where the owner consents in writing to the arrangement
d.When the project is within the specialty and other work is incidental✓

B&P §7058 defines a specialty contractor by the trade performed, and §7059 lets that contractor take the prime contract for a project within its specialty, with other trades only where they are incidental and supplemental to it. (a) is over-broad: specialty contractors take prime contracts routinely on single-trade projects. (b) is the standard trap — subcontracting the other trades does not convert a single-trade license into a general building license. (c) invents consent as a cure; scope of license is not something an owner can waive.

B&P Code §7058 / §7059
190. Which project is a Class B General Building contractor classified to take as the prime contract, rather than a specialty contractor?
a.A custom home whose framing, roofing, and finish trades are combined✓
b.A tear-off and reroof of an existing house, with no other trade
c.A concrete slab and footings placed for another prime contractor
d.A service-panel upgrade with new branch circuits in one dwelling

B&P §7057(a) defines the General Building contractor by the structure and by the use of at least two unrelated building trades, so the multi-trade custom home is the prime contract a Class B is classified to take. The other three are each a single trade belonging to a specialty class — C-39 roofing, C-8 concrete, C-10 electrical — and §7057(b) bars a Class B from taking a prime contract on a project involving a single trade other than framing or carpentry unless it holds that specialty classification.

B&P Code §7057(a)-(b)
191. A qualifying individual must document experience. Who typically certifies the applicant's qualifying experience?
a.The applicant, by sworn declaration under penalty of perjury
b.A notary public, who attests to the applicant's signature
c.The CSLB investigator assigned to verify the application
d.A person with firsthand knowledge, such as a supervisor✓

Qualifying experience is certified on CSLB's Certification of Work Experience by a qualified and responsible person who personally observed the work — an employer, licensed contractor, supervisor, fellow journeyman, building inspector, architect, or union representative. (a) is the most attractive wrong answer because the form is signed under penalty of perjury, but the applicant's own declaration is not the certification; a third party's is. (b) confuses attesting a signature with vouching for the underlying facts. (c) reverses the burden: CSLB may audit or verify, but it does not supply the certification.

B&P Code §7068 / 16 CCR §825
192. Beyond the original application fee, an applicant must also pay which fee upon license issuance?
a.The initial license fee in the CSLB fee schedule✓
b.A renewal fee covering the first two-year license period
c.The annual premium on the $25,000 contractor's license bond
d.Nothing further, because the application fee covers issuance

B&P §7137 sets the fee schedule, under which the applicant pays an application fee to be examined and a separate initial license fee before the license is issued; renewal fees start at the end of the first two-year cycle. (b) confuses the two: renewal comes later and is a different fee. (c) is not a CSLB fee at all — the bond premium is paid to a surety company, which is why it is not on the fee schedule. (d) is the misconception that one payment covers the whole process.

B&P Code §7137
193. A contractor renews on time and keeps the license active. How long is the new license term?
a.One year
b.Four years
c.Two years✓
d.Indefinite

Under B&P Code section 7140, licenses are renewed for two-year terms. Timely renewal keeps the license active continuously; the two-year cycle repeats for the life of the license.

B&P Code §7140
194. A license is not renewed by its expiration date. What is its status, and what can be done about it?
a.Revoked at once, with a new application the only route back
b.Suspended, then reinstated the day the renewal fee is paid
c.Expired, and renewable retroactively any time in five years
d.Expired, and renewable for five years, with a break in licensure✓

B&P §7141(a) lets an expired license be renewed at any time within five years of expiration on a renewal application plus the renewal fee and, after the expiration date, a delinquency fee — but the section is explicit that the licensee is unlicensed and that there is a break in the licensing time between expiration and the effective date of the renewal. (c) is the trap: renewal without that gap is RETROACTIVE renewal, and §7141.5 grants it only where the completed application is delivered or postmarked within 90 days of expiration. (a) confuses expiration with revocation, which is a disciplinary act under §7090. (b) confuses it with suspension, which is imposed for cause such as a lapsed bond or lapsed workers' compensation coverage.

B&P Code §7141(a) / §7141.5
195. A claimant recovers against the contractor's license bond and the surety pays. What may the surety then do?
a.Cancel the consumer's remaining rights under that bond
b.Raise the bond to ten times its original face amount
c.Nothing, since paying claims is the cost of the premium
d.Seek reimbursement from the contractor it paid for✓

A surety bond is not insurance for the contractor: the surety guarantees the contractor's obligations to third parties, and on paying a claim it is entitled to indemnity from its principal, the contractor. §7071.11(e) requires the surety to notify the Registrar within 30 days of any payment, and §7071.11(f) gives the licensee at least 15 days to protest before the surety settles a claim in good faith. (a) reverses the beneficiary, who is the claimant rather than the surety's customer. (b) borrows the §7071.8 disciplinary-bond ceiling, which only the Registrar may impose. (c) describes an insurance policy, where premiums fund losses with no right of recovery against the insured.

B&P Code §7071.11(e)-(f)
196. A home improvement salesperson registration is tied to what?
a.One named customer, for that transaction only
b.One or more licensed home improvement contractors✓
c.The salesperson's own home address on the record
d.One project, ending when that job is finished

B&P §7152(b) requires the salesperson to register with the board, and §7152(c) provides that, subject to §7154, the registered salesperson may be employed by one or more home improvement contractors — while requiring the salesperson, before soliciting, to identify to the owner or tenant the business name and license number of the contractor being represented for that transaction, failure to do which is cause for discipline under §7155. (a) and (d) tie the registration to a customer or a job, which is the usual misconception; the registration follows the person. (c) confuses the address carried on the registration record with what the registration actually authorizes.

B&P Code §7152(b)-(c) / §7155
197. Why does California require home improvement salespersons to register with the CSLB?
a.To collect and remit sales tax on home improvement contracts
b.So CSLB can oversee those who solicit these contracts✓
c.To license them to perform home improvement work themselves
d.So each salesperson posts an individual $25,000 surety bond

B&P §7153 requires anyone who solicits or negotiates home improvement contracts for a licensee to register, so the CSLB has a record of, and disciplinary reach over, the people doing the selling. (a) is a tax function that has nothing to do with the registration. (c) is the central misconception the registration is designed to prevent — a registered salesperson may sell, never perform, contracting work. (d) transplants the §7071.6 license bond onto the individual; the registration carries no separate bond.

B&P Code §7153 / §7153.1
198. A contractor performs work outside the classifications listed on the license. This is best characterized as what?
a.Permitted, because holding any active license satisfies the license law
b.Permitted where the out-of-scope portion is incidental to the contract
c.Acting outside the license scope, a violation subject to discipline✓
d.Permitted if the out-of-scope portion is under $1,000 in value

B&P §7059 confines a licensee to the classifications held; exceeding them is a violation, and under §7031 the contractor may be barred from collecting for work it was not licensed to perform. (a) treats a license as a general permit rather than a scope. (b) is the genuinely hard distractor: work that is truly incidental and supplemental to the licensed trade is allowed, so the item turns on whether the work is incidental — if it is a separate trade, it is not. (d) borrows the §7048 minor-work exemption, which excuses the absence of a license on a small standalone job and does nothing about scope.

B&P Code §7059 / §7031
199. A key difference between the $25,000 contractor's license bond and the disciplinary bond is that the disciplinary bond is required when?
a.From every new applicant, alongside the license bond
b.As a condition of licensure after disciplinary action✓
c.From limited liability company licensees that employ workers
d.From general engineering contractors bidding on public works

Under B&P Code section 7071.8 the disciplinary bond is imposed on a licensee who has been disciplined, as a condition of reissuance, reinstatement or continued licensure (b). It is separate from, and on top of, the $25,000 license bond every licensee carries; since SB 607 took effect on January 1, 2023 the disciplinary bond is at least $25,000, capped at ten times the section 7071.6 bond, and the $15,000 still quoted in older material is the pre-2023 amount. (a) describes the license bond itself under section 7071.6, which every applicant files. (c) is the $100,000 LLC employee/worker bond of section 7071.6.5, which turns on entity type, not discipline. (d) is not a rule at all: classification has no bearing on the disciplinary bond, and the bond a public works prime must furnish is the payment bond of Civil Code §9550.

B&P Code §7071.8
200. How long must a disciplinary bond generally be maintained after it is required?
a.For thirty days after the disciplinary order becomes final
b.Until the license is next renewed, whenever that falls
c.For a period the Registrar sets, often two years or more✓
d.For the life of the license, with no possibility of removal

B&P §7071.8 lets the Registrar require a disciplinary bond of at least $25,000, up to ten times the §7071.6 bond, as a condition of issuing, reinstating, or continuing a license, for the period the Registrar prescribes — commonly two years or more. (a) is far too short to serve the section's protective purpose. (b) ties the bond to the renewal cycle, which the section does not. (d) overshoots: the bond is a condition for a set period, not a permanent brand on the license.

B&P Code §7071.8
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