Contractors Law Exam CA Practice Test 1 Questions with Approved and Verified Answers Graded Excellently Top Tier
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A contractor and a homeowner sign a home solicitation contract. If the owner lawfully cancels
the contract, how long does the contractor have to pick up unused materials that were delivered
to the owner's property?
a. within 24 hours after cancellation
b. within 10 days after cancellation
c....
Contractors Law Exam CA Practice Test 1 Questions
with Approved and Verified Answers Graded
Excellently Top Tier
A contractor and a homeowner sign a home solicitation contract. If the owner lawfully cancels
the contract, how long does the contractor have to pick up unused materials that were delivered
to the owner's property?
a. within 24 hours after cancellation
b. within 10 days after cancellation
c. within 20 days after cancellation
d. It's too late. If the materials are delivered to the property before a notice of cancellation is
received, the materials become the property of the owner. - CORRECT ANSWER ✔✔ -c. within
20 days after cancellation
A contractor entered into a home improvement contract for more than $500 with Mrs. Swenson
to remodel her kitchen and bathroom. The contract calls for a down payment before work is to
begin. According to the Business and Professions Code, how much may the contractor accept
from Mrs. Swenson as down payment for the work?
a. The contractor may accept as much as Mrs. Swenson agrees to pay.
b. The down payment is limited to $1,000 or 10% of the total price, whichever is less.
c. The contractor may require enough of a down payment to cover the total cost of materials, but
not labor costs.
,d. Nothing. The contractor must wait until the work is completed to accept any payment. -
CORRECT ANSWER ✔✔ -b. The down payment is limited to $1,000 or 10% of the total price,
whichever is less.
A contractor has had a problem with employees stealing tools and equipment 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 convictions.
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 convictions, but it would
not be legal for city or county agencies to ask about such arrests.
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. - CORRECT ANSWER ✔✔ -b. It is not
legal to ask prospective employees about arrests not leading to convictions.
A contractor hires a subcontractor to demolish a concrete wall. Who is responsbile for supplying
safety goggles?
a. Cal/OSHA
b. subcontractor
c. property owner
d. contractor - CORRECT ANSWER ✔✔ -b. subcontractor
,A contractor is looking for an insurance policy to cover a high degree of exposure to risk. Of the
following, which policy would be best for this purpose?
a. property
b. general liability
c. builder's risk
d. umbrella - CORRECT ANSWER ✔✔ -d. umbrella
A contractor meets Mr. Jones at his home to discuss remodeling. The contractor and Mr. Jones
sign a contrat that includes a three-day cancellation form. After the contractor leaves, Mr. Jones
decides not to have the work done. Instead of using the cancellation form, Mr. Jones sends the
contractor a letter by first-class mail stating that he is canceling the contract. Is Mr. Jones'
cancellation effective?
a. No. Mr. Jones did not return the contract with the letter.
b. No. Mr. Jones did not sign and return the cancellation form.
c. Yes. Mr. Jones' letter does cancel the contract because it indicates his intention not to be
bound by the contract.
d. No. However, the letter would have cancelled the contract had it been sent by certified or
registered mail. - CORRECT ANSWER ✔✔ -c. Yes. Mr. Jones' letter does cancel the contract
because it indicates his intention not to be bound by the contract.
A contractor usually will not be held liable for a suppllier going on strike, but if your supplier did
go on strike what would you do?
, a. Contact the owner immediately.
b. Contact the architect immediately.
c. Contact the general building contractor immediately.
d. Continue work as usual. - CORRECT ANSWER ✔✔ -a. Contact the owner immediately.
A contractor, on his own initiative, changed the design of a building and carried out the change.
The owner rejected the change and stated that the building has lost market value. If the owner
takes the contractor to court and obtains a favorable judgement, the owner is:
a. due the cost of repairs or the loss of market value
b. due any loss of profits
c. entitled to a new building
d. due only the loss of market value - CORRECT ANSWER ✔✔ -a. due the cost of repairs or the
loss of market value
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 business practice
for this contractor to inform the subcontractor that the bid is substantially lower than the bids of
the other subcontractors?
a. No. It would be unethical for the contractor to inform any subcontractor that their bid is
substantially lower than the other bids, even if the contractor believes that the subcontractor has
made an error.
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