LICENSING REQUIREMENTS

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How should a homeowner inform the builder of a claim for damages under a construction defect?

By suing the contractor in a court of law

By sending an email listing the issues

By submitting a claim in writing, sent using certified mail (correct)

By contacting the local homeowner’s association

What is the simplest way for a contractor to verify that a subcontractor has a valid contractor’s license?

Visit the CSLB website to verify the license status (correct)

Ask for written documentation from the CSLB

Inspect the pocket card for authenticity

Contact the subcontractor’s insurance company

Which of the following individuals will be required to pass the qualifying examination to obtain a contractor’s license?

A person who currently is the qualifier on a license who is applying for a new license as a Responsible Managing Employee

A person who passed the qualifying examination two years ago, but did not ever receive a license

A person who is listed as a partner on a license for the past four years and has been engaged in that business’ construction operations (correct)

A person who was the Responsible Managing Employee for another license three years ago

How many hours will an RME have to work in order to be a qualifying individual?

32 hours per week or 80% of the operating time of the business, whichever is less Signup and view all the answers

Can a responsible managing employee (RME) have a separate contracting business from the one for which he is the qualifying individual for?

No, an RME can only be a qualifying individual for one contracting business Signup and view all the answers

Which of the following is NOT a cause of disciplinary action by the board?

Not paying subcontractors immediately upon receipt of a progress payment Signup and view all the answers

Which of the following is not a form of advertising?

Lunch meets Signup and view all the answers

How does a contractor change his or her contractor’s license from a sole proprietorship to a corporation?

Apply for the corporation’s own contractor’s license Signup and view all the answers

Which of the following requires a home improvement salesperson registration?

The employee who negotiates a service and repair contract Signup and view all the answers

If an employee is injured when the contractor’s license is suspended or revoked, then what happens to the contractor?

The contractor may face a lawsuit for damages Signup and view all the answers

If a contractor is operating as a partnership and obtains a federal tax ID number, to whom should the contractor send the number?

The Contractors State License Board Signup and view all the answers

Which of the following does not require a contractor’s license?

A person installing only security alarm systems Signup and view all the answers

If a Responsible Managing Employee is fired from a company, how much time does the company get to replace the RME with another qualified individual?

90 days Signup and view all the answers

Which of the following is NOT true of an inactive license?

An inactive license still requires a contractor’s bond Signup and view all the answers

James wishes to qualify for more than one active license at a time. According to the Contractors’ License Law, he must own at least ____ of the equity for each business where he serves as the qualifying individual.

20% Signup and view all the answers

Which of the following circumstances means the cancellation of a license?

Death of the owner in an individual license Signup and view all the answers

How often should a contractor renew their license?

Every two years Signup and view all the answers

Which of the following statements about advertising is correct?

An unlicensed contractor may advertise for jobs if the advertisement states that they are unlicensed. Signup and view all the answers

Which of the following are grounds for disciplinary action by the CSLB?

All of the above Signup and view all the answers

If the CSLB determines that a contractor committed a serious violation, what is the penalty?

All of the above Signup and view all the answers

A contractor receives a citation from the registrar. How many days does the contractor have to appeal the citation?

15 working days Signup and view all the answers

Which of the following is NOT considered a violation of the contractor’s license law?

A contractor filing the claim for damages with the general liability insurance instead of paying for damages Signup and view all the answers

What must a licensee do if the qualifying individual disassociates from the business?

Notify the Registrar and replace the qualifier within 90 days Signup and view all the answers

If Bob is a licensed general builder and Frank is Bob’s friend, when is Frank allowed to use Bob’s contractor’s license as his own?

It is never allowed Signup and view all the answers

In addition to the building and zoning departments, what authority has jurisdiction for projects along the California Coastline?

Coastal Commission Signup and view all the answers

The contractor is given ___ months to complete the application process and pass the examination.

18 Signup and view all the answers

If the contractor obtains their contractor’s license on April 7, 2010, when will the license need to be renewed?

By April 30, 2012 Signup and view all the answers

Which of the following will potentially require a business license?

Any city or county where the contractor is working Signup and view all the answers

Which of the following is not a requirement to renew a license?

Repeat the open-book asbestos exam Signup and view all the answers

When is a contractor allowed to inactivate their contractor’s license?

Anytime, so long as the contractor follows protocol Signup and view all the answers

What does SWIFT mean?

Statewide Investigative Fraud Team Signup and view all the answers

What is the penalty for the willful misclassification of individuals as independent contractors?

Between $5,000 and $25,000 per violation Signup and view all the answers

Which of the following is a general building contractor NOT allowed to do?

Perform specialty work only Signup and view all the answers

When is a licensed contractor subject to disciplinary action?

When allowing an unaffiliated unlicensed person the use of the license Signup and view all the answers

A contractor held a contractor’s license in California for five years. Which of the following states is not reciprocal with California?

Oregon Signup and view all the answers

Which of the following statements is true regarding a Responsible Managing Employee?

An RME must have a separate bond issued to accompany the contractor's bond Signup and view all the answers

A four-person group obtains a contractor’s license as a partnership. After five years one partner, who did not serve as the qualifying individual for the license, disassociates from the partnership. In this situation, which of the following is false?

The remaining partners may continue to conduct business using the same license since the qualifying individual is still involved with the business Signup and view all the answers

A contractor’s license will be valid if:

It is renewed by the expiration date and a valid bond is maintained Signup and view all the answers

An expired license may be renewed anytime within _____ after its expiration date.

5 years Signup and view all the answers

An individual may qualify for as many as three separate licenses if they own at least _____ of the equity of each business for which they serve as the qualifying individual.