Law.txt

  1. #1) Which of the following is not exempt from the requirements ofthe Contractors License Law?




    D. A firm that installs, maintains, or monitors fire alarm systems

    Although a license is not required for security alarm systems, one is required for fire alarm systems. 
  2. #2) A contractor's license is not required for a project in which the total price for all labor and materials is less than:




    B. $500
  3. #3) Which of the following individuals will be required to pass the qualifying examination in order to obtain a contractor's license?




    B. a person who has been listed as a partner on an active license for the past four years and has been actively engaged in that business' construction operations
  4. #4) Which of the following statements is true with regard to a Responsible Managing Employee?




    C. An RME must have a separate bond issued to accompany the licensee's bond.
  5. #5) A group of four persons obtains a contractor's license as a partnership. After five years one of these partners, who did not serve as the qualifying individual for the license, disassociates from the partnership. In this situation, which ofthe following statements is not correct?




    B. The remaining partners may continue to conduct business using the same license since the qualifying individual is still involved with the business.


    (Since a partnership license is issued to a specific group of partners, any change to that partnership renders the license void. Therefore, the remaining partners must either apply for a continuation ofthe license or apply for a new license altogether.) 
  6. #6) An individual may qualify for as many as three separate licenses provided that he/she owns at least__ ofthe equity ofeach business for which he/she serves as the qualifying individual.




    B. 20%
  7. #7) If a license is not renewed within following its expiration date, the license will be considered void and cannot be reinstated in any way.




    B. five years
  8. #8) What must a licensee do if the qualifying individual disassociates from the business?




    D. notify the Registrar and replace the qualifier within 90 days
  9. #9) Which of the following is required by law to be included in all advertising placed by a contractor?




    B. contractor's license number
  10. #10) Which ofthe following statements is not true regarding the contractor's bond?




    A. A licensed corporation is required to obtain two separate bonds for the corporation and its qualifying individual.

    Two bonds are required only if the qualifying individual owns less than 10% of the stock of the corporation. 
  11. #1) The Contract Notice must be included in:




    A. all prime contracts only
  12. #2) A licensed contractor enters into a verbal agreement with a customer for home improvement work. The total price for this project is $450. After reviewing this agreement, the contractor decides that he/she does not want to do the work at this price. Which of the following statements is true in this situation?




    B. The contractor is not allowed to cancel or change this contract without the consent of the customer.
  13. #3) In a non-emergency situation, a contractor must give a customer at least to cancel a home solicitation contract.




    A. three business days
  14. #4)Which of the following is not required in a home improvement contract in which the total price exceeds $500?




    B. a notice stating that the contractor must begin work within 10 days following the scheduled start date or be in violation of the law
  15. #5) Which of the following is the least effective way to guard against problems when negotiating a construction contract?




    B. Do not anticipate problems, but instead write up a change order later for any necessary adjustments to the contract.
  16. #6)Which of the following is not recommended when executing a change order?




    D. Bill the customer for the price of the change immediately upon completion ofthe contract.
  17. #7) What is usually the least expensive method of dispute resolution?




    D. Settlement
  18. #8) Which of the following statements about the filing of a mechanics' lien is not correct?




    A. A mechanics' lien serves to attach the owner's constructionfunds.
  19. #9.) Which of the following is not required to give a Preliminary Notice?




    A. A subcontractor whose contract price is less than $1,000
  20. #10) Which of the following statements is not true regarding a stop notice?




    C. A stop notice must be filed with the county recorder's office inorder to be valid.
  21. #1) Which of the following statements with regard to hiring practices is not correct?




    C. It is illegal for an employee to be required to join a union after being hired.

    Although it is illegal to require someone to be a union member before he is hired, it is legal to require that person to join a union after he is hired.
  22. #2) The California Labor Code states that no employee can be required to work more than ____ consecutive days.




    B. 6
  23. #3) If an employee is terminated, when are his/her earned wages due and payable from the employer?




    D. Immediately
  24. #4) If an employee believes that he/she has not been paid wages which are due to him/her, he/she may file a complaint with the:




    C. Labor Commissioner
  25. #5) An employer who fails to pay wages due to an employee is subject to which of the following penalties?




    A. up to 30 additional days of the employee's wages plus a fine of at least $50

    An employer who has committed his first such offense is subject to 30 days' additional wages plus a fine of $50, while the fine amount increases for subsequent offenses to $100 plus 25% of the unpaid wages. 
  26. #6) Paul Evans is a licensed contractor who is building an addition to a customer's horne. He contracts with Reliable Painting Co. to do the painting work on this project. During the course of the job, one of the employees of Reliable Painting is injured. If Reliable Painting failed to cover its employees with a workers' compensation insurance policy and Paul did not check this fact beforehand, which of the following would be true?




    C. The injured employee may file a lawsuit against both Paul and Reliable Painting.


    Paul, the prime contractor, can be held liable for the injured employee's benefits because it is his responsibility to make sure that the employees of any subcontractor with whom he contracts are covered by some form of workers' compensation insurance. 
  27. #7) At what point must a contractor obtain a federal employer identification number?




    D. As soon as he/she hires any employees.
  28. #8) How often should federal tax returns be filed with the Internal Revenue Service?




    D. Quarterly
  29. #9) Which of the following taxes is to be paid by the employer only?




    C. State unemployment insurance
  30. #10) An employer is required to file quarterly state tax returns with the:




    D. Employment Development Department
  31. #1) Which of the following agencies is responsible for enforcing the Cal/OSHA health and safety standards?




    C. Division of Occupational Safety and Health

    (Although the Cal/OSHA Consultation Service is concerned with the CaI/OSHA health and safety standards, this service is not involved with enforcement ofthese regulations.)
  32. #2) If DOSH receives a complaint alleging a serious hazard to employees, they must investigate this complaint within:




    A. three working days
  33. #3) Which of the following is not a requirement for employers according to Cal/OSHA regulations?




    A. have DOSH personnel personally monitor all safety conferences

    (The employer is required to conduct regular safety meetings with his supervisors and employees,but DOSH does not need to conduct or be present at these meetings. )
  34. #4) Employers are required to have their supervisory personnel conduct "tailgate" safety sessions with their employees at least once:




    C. every 10 working days
  35. #5) Which of the following types of work does not require a DaSH permit?




    B. Excavation ofa 10-foot deep swimming pool

    (Swimming pools are specifically exempted from the DOSH permit requirements for excavations.) 
  36. #6) An employer who wishes to receive a permanent variance from Cal/OSHA regulations may apply to the:




    C. Occupational Safety and Health Standards Board

    (An application for a temporary variance is submitted to DOSH, but permanent variances are controlled by the Standards Board.) 
  37. #7) When hazardous materials are delivered to a contractor, the supplier must furnish him/her with a ____regarding the hazardous materials.




    C. MSDS
  38. #8) A contractor who works on a structure that was built prior to ____ must first inquire if asbestos is present in the structure.




    D. 1978
  39. #9) Which of the following types of injuries or illnesses does not have to be reported to the Division of Labor Statistics and Research?



    C. A cut which receives immediate medical attention after which the employee returns to work.

    (Injuries which require only first aid treatment, even if such treatment is administered by a doctor or nurse, need not be reported.) 
  40. #10) All occupational injuries and illnesses which must be reported are to be submitted on Cal/OSHA Form 5020 within:




    B. Five days
  41. #1) Which of the following agencies is responsible for enforcing the Cal/OSHA health and safety standards?




    C. Division of Occupational Safety and Health

    (Although the Cal/OSHA Consultation Service is concerned with the CaI/OSHA health and safety standards, this service is not involved with enforcement ofthese regulations.)
  42. #2) If DOSH receives a complaint alleging a serious hazard to employees, they must investigate this complaint within:




    A. three working days
  43. #3) Which of the following is not a requirement for employers according to Cal/OSHA regulations?




    B. have DOSH personnel personally monitor all safety conferences

    (The employer is required to conduct regular safety meetings with his supervisors and employees,but DOSH does not need to conduct or be present at these meetings. )
  44. #4) Employers are required to have their supervisory personnel conduct "tailgate" safety sessions with their employees at least once:




    C. every 10 working days
  45. #5) Which of the following types of work does not require a DaSH permit?




    B. Excavation ofa 10-foot deep swimming pool

    (Swimming pools are specifically exempted from the DOSH permit requirements for excavations.) 
  46. #6) An employer who wishes to receive a permanent variance from Cal/OSHA regulations may apply to the:




    C. Occupational Safety and Health Standards Board

    (An application for a temporary variance is submitted to DOSH, but permanent variances are controlled by the Standards Board.) 
  47. #7) When hazardous materials are delivered to a contractor, the supplier must furnish him/her with a ____regarding the hazardous materials.




    B. MSDS
  48. #8) A contractor who works on a structure that was built prior to ____ must first inquire if asbestos is present in the structure.




    A. 1978
  49. #9) Which of the following types of injuries or illnesses does not have to be reported to the Division of Labor Statistics and Research?



    B. A cut which receives immediate medical attention after which the employee returns to work.

    (Injuries which require only first aid treatment, even if such treatment is administered by a doctor or nurse, need not be reported.) 
  50. #10) All occupational injuries and illnesses which must be reported are to be submitted on Cal/OSHA Form 5020 within:




    C. Five days
  51. #1) Which method of accounting is recommended for a construction business?




    C. Accrual basis
  52. #2) Which of the following statements best describes the difference between the balance sheet and income statement?




    C. The balance sheet shows net worth at a particular point in time, while the income statement shows profit earned over a period of time.
  53. #3) The result of subtracting liabilities from assets is known as:




    C. Net worth
  54. Payments which are currently owed to a contractor but have not yet been collected are known as:




    A. Accounts receivable
  55. #5) Fixed assets are defined as:




    B. Assets which are normally kept for more than one year
  56. #6) Depreciation is:




    A. The decrease in value of a fixed asset due to wear and tear, passage oftime, or obsolescence
  57. #7) Debts which are due to paid within one year are known as:




    A. Current liabilities
  58. #8) Direct labor burden refers to:




    B. Payroll costs for labor, such as taxes and insurance
  59. #9) Net working capital is equal to:




    B. Current assets minus current liabilities
  60. #10) What is the most common cause of small business failures?




    D. Insufficient cash flow
Author
Arielcriv
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176642
Card Set
Law.txt
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