Free Law and Business practice exam: Timed, Scored, Explained
50 questions picked at random from our free set. Answer them all, then finish to see your score, your weakest section, and every question explained with its official source. No sign-up.
50 questions, half Law and half Business.
0 of 50 answered 0:00
1 / 50
According to the Labor Commissioner’s Minimum Wage FAQ, during the first 160 hours of employment, what may a learner with no previous similar or related experience in the occupation be paid?
2 / 50
A plumber hires a helper who works on customer jobs under the plumber's direction. Under Labor Code Section 2775, can the helper be classified as an independent contractor?
3 / 50
A homeowner cancels a home improvement contract in writing under the Three-Day Right to Cancel. Under BPC Section 7159, how soon after receiving the notice of cancellation must the contractor return what the homeowner paid?
4 / 50
If materials cost $100 and you add a 50% markup, what is the selling price?
5 / 50
A homeowner calls a plumber at night because a burst pipe is flooding the house, and wants the work to start right away. Under Civil Code Section 1689.13, how can the buyer waive the right to cancel for this emergency repair?
6 / 50
A homeowner made a progress payment and asked the contractor for full and unconditional releases from potential lien claimants for that work. Under BPC Section 7159.5, what may the homeowner do until the releases are furnished?
7 / 50
Under IRS Publication 15, how long must a plumbing contractor keep all records of employment taxes?
8 / 50
An owner-builder personally did all the work on a new house on their own lot and lists it for sale four months after completion. Under BPC Section 7044, what does offering the house for sale at that time create?
9 / 50
Under Title 8 Section 3203, what must an Injury and Illness Prevention Program (IIPP) include regarding work place hazards?
10 / 50
Under the CSLB Law and Business book, when the registrar's decision revokes a contractor's license, what waiting period applies before the license may be reinstated or reissued?
11 / 50
Under Business and Professions Code Section 7159.5, what is the consequence for a licensee who accepts a downpayment larger than the section allows on a home improvement contract?
12 / 50
According to the CSLB Law and Business book, what is "retention" on a contractor's balance sheet?
13 / 50
According to the CSLB Law and Business book, what happens to a contractor's license issued to a general partnership when the partnership wants to add another general partner?
14 / 50
Under Title 8 Section 14300.7, which work-related injury is recordable on the Cal/OSHA Form 300 log?
15 / 50
Under IRS Publication 15, a contractor's required $8,000 payroll tax deposit is made 4 days late. What is the late-deposit penalty?
16 / 50
Under Civil Code Section 8060, where is a claim of lien (mechanics lien) recorded?
17 / 50
An employer willfully fails to pay a discharged plumber’s final wages when they are due. Under Labor Code Section 203, for how long can the employee’s wages continue as a penalty?
18 / 50
Under Civil Code Section 8812, when must an owner who withheld a retention pay it to the direct contractor?
19 / 50
According to CSLB's licensing guide, which solar energy projects is a C-36 plumbing contractor authorized to perform?
20 / 50
A plumber’s on-the-job cut requires medical treatment beyond first aid. The employer is insured. Under Labor Code Section 6409.1, by when must the employer file the occupational injury report with the insurer?
21 / 50
According to the CSLB Law and Business book, which item is usually the largest single expense item on a contractor's income statement?
22 / 50
A plumbing contractor wants to hand out promotional gifts to prospective home improvement customers, with no contract required. Under BPC Section 7157, what is the maximum value of one such gift?
23 / 50
A general contractor pays a plumbing subcontractor's retention late. Under Civil Code Section 8818, what penalty does the general contractor owe?
24 / 50
Under the accrual basis, which method in the CSLB Law and Business book reports profits and losses regularly based on work accomplished on each job while the job is still in progress?
25 / 50
What does it mean if CSLB places a contractor on probation?
26 / 50
Under BPC Section 7159.14, when may a plumber collect payment on a service and repair contract?
27 / 50
Under Labor Code Section 226, how often must an employer furnish each employee an accurate itemized wage statement in writing?
28 / 50
A plumbing contractor's workers' compensation coverage lapses while employees are working, and an employee is injured. According to the CSLB Law and Business book, what is the contractor's position?
29 / 50
Following the employer’s directions, a plumbing employee pays out of pocket for a fitting needed on a job. Under Labor Code Section 2802, what must the employer do?
30 / 50
Under Civil Code Section 1668, what is the status of a contract clause that exempts a contractor from responsibility for their own fraud, willful injury, or violation of law?
31 / 50
A contractor who holds only a C-36 plumbing license starts to advertise electrical panel upgrades. Under BPC Section 7027.1, what is this?
32 / 50
According to the CSLB Law and Business book, Contractors State License Law requires a contractor to carry commercial general liability (CGL) insurance when the business is organized as which type of entity?
33 / 50
According to the CSLB advertising guidelines, how must a C-36 plumbing contractor display its business name, address, and license number on each commercially-registered vehicle?
34 / 50
A general contractor receives the retention payment from the owner. Under Civil Code Section 8814, when must it pay the plumbing subcontractor its share of the retention?
35 / 50
How often must a C-36 license be renewed?
36 / 50
A plumbing contractor moves the business to a new business address. Under BPC Section 7083, how long does the licensee have to notify the registrar in writing?
37 / 50
What types of claims does general liability insurance typically cover?
38 / 50
Under Labor Code Section 3700, which is one of the ways a private plumbing employer may secure the payment of workers’ compensation?
39 / 50
A subcontractor never served a preliminary notice. What impact does this have on their mechanics lien rights?
40 / 50
A homeowner owes a plumbing contractor money and will not settle. According to the CSLB Law and Business book, the contractor may get a monetary judgment in small claims court of up to what amount?
41 / 50
According to the CSLB Law and Business book, what does the revenue amount on a contractor's income statement reflect?
42 / 50
A homeowner's bathroom repipe contract depends on getting a loan, and the lender has yet to agree to make the loan. Under BPC Section 7163, what may the contractor do in the meantime?
43 / 50
A contractor has total current assets of $270,000 and total current liabilities of $180,000. According to the CSLB Law and Business book, what is the current ratio?
44 / 50
Actual job costs are running well above the estimate. According to the CSLB Law and Business book, what are management controls established to do?
45 / 50
A journey-level plumber works as an employee of a licensed C-36 contractor, is paid only wages, does not run an independent business, and does not control the final results of the work. Under BPC Section 7053, does this plumber need a contractor's license?
46 / 50
If a change order states the original total price was $3,000 and a change adds $500, what should the change order clearly state as the new total?
47 / 50
Under the Mechanics Lien Warning required by BPC Section 7159, how can a homeowner pay for a subcontractor's work after receiving that subcontractor's Preliminary Notice?
48 / 50
According to the CSLB Law and Business book, what is the liability exposure of each partner in a general partnership?
49 / 50
A plumber works on the seventh day of work in one workweek and works 6 hours that day. Under Labor Code Section 510, at what rate must those 6 hours be paid?
50 / 50
A homeowner paid an unlicensed contractor for plumbing work. Under Business and Professions Code Section 7031(b), what may the homeowner sue to recover?