Free practice quiz

25 questions spread across the seven exam sections. When you submit, you will see your score for each section, with an explanation and a source for every answer.

You can skip a question; skipped questions count as incorrect.

1. A prime contractor on a public works project wants to protect itself from penalties if a subcontractor does not pay prevailing wages. Under Labor Code section 1775, what must the prime contractor get from the subcontractor before making final payment to it?

Public Works

A copy of the subcontractor's current contractor license

A lien release signed by the subcontractor's material supplier

A signed affidavit that the subcontractor paid prevailing wages

A certificate of the subcontractor's workers' compensation insurance

2. An LLC contractor is dissolving and winding up its business. Under Business and Professions Code section 7071.19, what must it keep or obtain for its required liability policy, if reasonably available?

Insurance and Liens

An extended reporting period of at least 1 year

An extended reporting period of at least 3 years

An extended reporting period of at least 5 years

An extended reporting period of at least 10 years

3. A prime contractor receives a progress payment that includes $15,000 for a subcontractor's work. There is no dispute and no other written agreement. How soon must the prime contractor pay the subcontractor?

Contract Requirements and Execution

Within 3 days after receiving the progress payment

Within 7 days after receiving the progress payment

Within 10 days after receiving the progress payment

Within 30 days after receiving the progress payment

4. A crew piles dirt from a trench next to the excavation. No retaining device is used. Under Title 8 section 1541, how far back from the edge must the pile be kept?

Safety

At least 1 foot

At least 2 feet

At least 4 feet

At least 6 feet

5. The lowest bidder on a public project refuses to sign the contract. Under Public Contract Code section 5106, what may the public entity do without asking for new bids?

Contract Requirements and Execution

Award the contract to any bidder that it prefers

Give the contract to the bidder with the most experience

Reduce the scope until the lowest bidder agrees to sign

Award the contract to the second lowest bidder

6. A contractor hires a new employee. The employee's first day of work for pay is June 2. Under the EDD Employer's Guide (DE 44), when must the contractor report this new hire to the New Employee Registry?

Employment Requirements

Within 10 calendar days of the start-of-work date

Within 20 calendar days of the start-of-work date

Within 30 calendar days of the start-of-work date

Within 60 calendar days of the start-of-work date

7. A contractor wants to hire a person whose own contractor license was revoked. Under Business and Professions Code section 7121, in what role may the contractor employ this person without risking discipline?

Contract Requirements and Execution

Only as a nonsupervising bona fide (real) employee

As the qualifying individual for the company's license

As an officer who manages all the job sites

As a field supervisor in charge of other workers

8. A "B" general building contractor has no plumbing license. A homeowner asks it to replace only a water heater. This job is plumbing work only. Under section 7057, may the contractor take this prime contract?

Business Organization and Licensing

Yes, because a B license covers every building trade

Yes, but only if a licensed plumbing contractor does the work

No, because a B contractor may never take a one-trade job

No, unless the total job price is less than $5,000

9. Under Labor Code section 6401, which of these is a duty of every employer?

Employment Requirements

Make each worker buy his or her own safety devices

Provide safety devices only when Cal/OSHA asks

Furnish and use safety devices that make work safe

Let each worker choose his or her own safety methods

10. A person is convicted for the first time of contracting without a license. What is the maximum penalty under section 7028?

Business Organization and Licensing

A $1,000 fine, 30 days in county jail, or both

A $5,000 fine, six months in county jail, or both

A $10,000 fine, one year in county jail, or both

A $15,000 fine, one year in state prison, or both

11. A contractor runs a weekly payroll. The payroll week ends every Saturday. Under Labor Code section 204, what is the latest time the contractor may pay for each week's work?

Employment Requirements

3 calendar days after the week ends

7 calendar days after the week ends

10 calendar days after the week ends

15 calendar days after the week ends

12. A contractor's crews travel to several job sites during each shift. Under the Hazard Communication standard, where may the safety data sheets (SDSs) be kept?

Safety

Only in each worker's own vehicle, kept with them at every job site

Anywhere, because traveling crews do not need access to SDSs

Only at the chemical supplier's office, available by mail request

At a central place, if workers can get them immediately in emergencies

13. A newly formed C corporation (not an S corporation) will do contracting work. It has never filed an income tax return. According to IRS Publication 583, which tax year can it adopt?

Business Finances

Only a calendar year that ends on December 31

Only a fiscal year that ends on June 30

Either a calendar year or a fiscal year

Any period the owners pick, even 18 months long

14. A contractor's company is short of cash. The owner signs the checks. He knowingly uses federal income tax withheld from workers' pay to buy materials instead of depositing it. According to IRS Publication 15, what may happen?

Business Finances

Nothing happens if the tax is paid by the end of the year

The owner may personally owe a penalty of 100% of the unpaid tax

Only the company owes the tax, never the owner personally

The owner owes only interest, with no penalty at all

15. A contractor puts its license on inactive status with the CSLB. Under Business and Professions Code section 7071.6, must the contractor keep its $25,000 contractor's bond while the license is inactive?

Insurance and Liens

Yes, because the bond must stay on file at all times

Yes, but the bond amount drops to $7,500 while inactive

No, because a bond is not required while the license is inactive

No, because the bond is only needed for the first two years

16. A contractor bids $1,200,000 to rebuild a city street. Under Public Contract Code section 4104, the bid must list each subcontractor whose work is more than what amount?

Contract Requirements and Execution

$6,000

$10,000

$12,000

$60,000

17. Under Labor Code section 2810.5, a contractor must give each new hourly employee a written notice at the time of hiring. Which information must this notice include?

Employment Requirements

The names and pay rates of the contractor's other workers

The name, address, and phone number of the workers' compensation carrier

The contractor's yearly gross income and profit for the last year

The amount of the contractor's license bond and its bond company

18. A contractor is a monthly schedule depositor. On one payday, it builds up $105,000 in employment taxes. According to IRS Publication 15, when must it deposit this tax?

Business Finances

By the 15th day of the next month

By the next business day after that day

By the following Wednesday or Friday

With the quarterly Form 941 return

19. Every bid on a public works contract of a public entity must include which signed statement?

Contract Requirements and Execution

A statement of the bidder's yearly profit and loss

A list of all public projects the bidder has lost

A promise to hire workers only from the local area

A noncollusion declaration made under penalty of perjury

20. A person with no contractor license posts ads for kitchen remodels of $20,000 and up. The ads appear only on a social media page, not in print. Does section 7027.1 apply to these ads?

Business Organization and Licensing

Yes, because electronic ads count as advertising

No, because the ads do not list any prices

No, because only printed ads count as advertising

Yes, but only if the person paid for the ads

21. During a remodel, a crew finds asbestos-containing pipe insulation that no one knew about. Under Title 8 section 1529, how soon must the employer tell the building owner and the other employers on the site?

Safety

Within 24 hours of the discovery

Within 3 days of the discovery

Within 10 days of the discovery

Within 30 days of the discovery

22. Under the Cal/OSHA Construction Safety Orders, what makes a person a "competent person"?

Safety

The person can identify hazards and is authorized to fix them promptly

The person has worked at least five years in the construction trades

The person has passed a written Cal/OSHA safety exam

The person holds a general engineering license from the CSLB

23. A subcontractor finished its work. The general contractor asks for a lien waiver before it hands over the final check, so the subcontractor has not been paid yet. Under the Civil Code waiver forms, which form should the subcontractor sign?

Insurance and Liens

Unconditional Waiver and Release on Final Payment

Unconditional Waiver and Release on Progress Payment

Conditional Waiver and Release on Progress Payment

Conditional Waiver and Release on Final Payment

24. According to the SBA, what should a business owner have ready to improve the chances of getting a bank loan?

Business Finances

A personal credit card with a high spending limit

A signed contract for every job planned this year

A business plan, expense sheet, and five-year projections

A letter from the CSLB that approves the loan

25. Under the EDD Employer's Guide (DE 44), how long must an employer keep its payroll records?

Employment Requirements

At least 3 years

At least 4 years

At least 5 years

At least 7 years