LICENSING REQUIREMENTS

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Questions and Answers

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?

<p>32 hours per week or 80% of the operating time of the business, whichever is less (C)</p> 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?

<p>No, an RME can only be a qualifying individual for one contracting business (C)</p> Signup and view all the answers

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

<p>Not paying subcontractors immediately upon receipt of a progress payment (B)</p> Signup and view all the answers

Which of the following is not a form of advertising?

<p>Lunch meets (C)</p> Signup and view all the answers

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

<p>Apply for the corporation’s own contractor’s license (B)</p> Signup and view all the answers

Which of the following requires a home improvement salesperson registration?

<p>The employee who negotiates a service and repair contract (C)</p> 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?

<p>The contractor may face a lawsuit for damages (A)</p> 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?

<p>The Contractors State License Board (A)</p> Signup and view all the answers

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

<p>A person installing only security alarm systems (D)</p> 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?

<p>90 days (C)</p> Signup and view all the answers

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

<p>An inactive license still requires a contractor’s bond (C)</p> 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.

<p>20% (A)</p> Signup and view all the answers

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

<p>Death of the owner in an individual license (C)</p> Signup and view all the answers

How often should a contractor renew their license?

<p>Every two years (B)</p> Signup and view all the answers

Which of the following statements about advertising is correct?

<p>An unlicensed contractor may advertise for jobs if the advertisement states that they are unlicensed. (B)</p> Signup and view all the answers

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

<p>All of the above (D)</p> Signup and view all the answers

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

<p>All of the above (D)</p> 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?

<p>15 working days (B)</p> Signup and view all the answers

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

<p>A contractor filing the claim for damages with the general liability insurance instead of paying for damages (C)</p> Signup and view all the answers

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

<p>Notify the Registrar and replace the qualifier within 90 days (C)</p> 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?

<p>It is never allowed (A)</p> Signup and view all the answers

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

<p>Coastal Commission (B)</p> Signup and view all the answers

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

<p>18 (D)</p> 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?

<p>By April 30, 2012 (C)</p> Signup and view all the answers

Which of the following will potentially require a business license?

<p>Any city or county where the contractor is working (D)</p> Signup and view all the answers

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

<p>Repeat the open-book asbestos exam (A)</p> Signup and view all the answers

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

<p>Anytime, so long as the contractor follows protocol (C)</p> Signup and view all the answers

What does SWIFT mean?

<p>Statewide Investigative Fraud Team (A)</p> Signup and view all the answers

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

<p>Between $5,000 and $25,000 per violation (C)</p> Signup and view all the answers

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

<p>Perform specialty work only (A)</p> Signup and view all the answers

When is a licensed contractor subject to disciplinary action?

<p>When allowing an unaffiliated unlicensed person the use of the license (B)</p> 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?

<p>Oregon (B)</p> Signup and view all the answers

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

<p>An RME must have a separate bond issued to accompany the contractor's bond (A)</p> 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?

<p>The remaining partners may continue to conduct business using the same license since the qualifying individual is still involved with the business (C)</p> Signup and view all the answers

A contractor’s license will be valid if:

<p>It is renewed by the expiration date and a valid bond is maintained (D)</p> Signup and view all the answers

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

<p>5 years (A)</p> 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.

<p>20% (B)</p> Signup and view all the answers

The CSLB requires licensees to submit name change or address within __days.

<p>90 (D)</p> Signup and view all the answers

How long does a contractor have to renew their license after the expiration date without retaking the license exam?

<p>5 years (D)</p> Signup and view all the answers

Which of the following would cause a contractor’s license to be suspended or revoked?

<p>Giving a kickback to the homeowner before a contract is signed (C)</p> Signup and view all the answers

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