CSLB Contractors Law Business Exam

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CSLB Contractors Law & Business Exam Questions with 100% Correct Answers 1.An employer remits State disability taxes withheld from an employees wages to what agency?Answer Employment Development Department 2.Which act establishes the rights of workers to organize into unions and negotiate contracts?Answer National Labor Relations Act of 1935 3.A contractor has had a problem with employees stealing tools and equip- ment from job sites. When conducting job interviews, may the contractor ask prospective employees about their arrest records?A.It is legal to ask prospective employees about arrests not leading to con- victions.B.It is not legal to ask prospective employees about arrests not leading to convictions.C.It is legal for a private employer to ask about arrests not leading to convic- tions, but it would not be legal for city or county agencies to ask about such arrests. 1 / 4

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D.It is legal for a private employer to ask about arrests leading to convictions, but it would not be legal for a federal, state, or local public agency to do so.Answer It is not legal to ask prospective employees about arrest not leading to convictions.

4.Why would a contractor have a case in Superior Court?Answer If it is a dispute of more than $25,000 it can be transferred to Superior Court.

5.Which would not have to be reported to DOSH immediately or within 24 hours?A.Death from a three-story fall.B.Drunken crane operator hits a high-voltage power line C.Car accident in which an employee steps onto a public road, gets hit by a car, and suffers a concussion.D.Employee falls off forklift and suffers a sever back injury.Answer Car accident in which an employee steps onto a public road, gets hit by a car, and suffers a concussion.

6.A general contractor has obtained bids from several subcontractors for a private project. He notices that one bid is substantially lower than the rest. Is it ethical and a good 2 / 4

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business practice for this contractor to inform the subcontractor that the bid is substantially lower than the bids of the other subcontractors?Answer Yes. If the contractor has reason to believe that the subcontractor has made an error in preparing his bid, the contractor should notify the subcontractor of the apparent error, but the contractor may not disclose the amounts of the other bids.

7.An employer must furnish an employee with a completed IRS Form W-2 (Wage and Tax Statement) by Answer The 31st of January.

8.After a job is completed, the owner decides to have additional work done. How should the contractor proceed?Answer Write a new contract and ask the owner to sign it.

9.The purpose of a 20-day preliminary notice for private work is to?Answer Notify the owner that the person or firm who sent the notice has improved the property.

10.Is it legal for a contractor to pay employees in cash?Answer Yes, if the contractor provides each employee with a wage 3 / 4

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deduction statement semimonthly or at the time of each wage payment.

11.You are bidding on a job with plans drawn by the owner.You notice a code violation and bring it to the attention of the owner. The owner declines to remedy the code violation and tells you not to worry. What should you do?Answer Decline to bid the work.

12.On a time-and-materials job, you should Answer Add profit and overhead to labor and materials 13.Your employee sets a cabinet wrong. The cabinet falls from the wall and damages the client's counter top. What should you do?A.Claim the damage on your general liability insurance policy.B.Require the employee to pay for the damage to the countertop.C.Tell the client to claim the damaged counter top on his or her homeowner's insurance policy.D.No action is required- The client must assume the risk of damage.Answer Claim the damage on your general liability insurance policy.

14.Of the following, which is best for determining the number of hours re- quired for different phases of a project and for

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