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Study Guide for the Law and Business Examination

FOR EXAMINATIONS SCHEDULED ON OR AFTER JUNE 29, 2005

Content of the Examination

The Law and Business Examination is divided into ten major sections. These sections are:

1. Company start-up procedures (10%)

  1. Regulations
  2. Planning
  3. Business records

2. Human resources (6%)

  1. Legal status
  2. Qualifications
  3. Employment recordkeeping

3. General business requirements (20%)

  1. Accounting practices
  2. Information management
  3. Cash flow

4. Insurance and bonds (7%)

  1. General business insurance
  2. Workers' Compensation insurance
  3. Bonds

5. Pre-contract considerations (12%)

  1. Estimating
  2. Verification

6. Proposals and contracts (9%)

  1. Writing
  2. Content
  3. Warranty

7. Contract compliance (9%)

  1. Industry standards
  2. Changes
  3. Invoicing
  4. Contract clauses

8. Public works (4%)


9. Safety (9%)

  1. Training
  2. Regulations
  3. Hazardous materials

10. Legal (14%)

  1. Lien law
  2. Collections
  3. Civil Code
  4. Environment
  5. Local

*Percentages are approximate*


Test Site Policy
This is a closed-book examination. No reference materials may be used during the examination. All materials brought to the examination site must be left in an unmonitored area at your own risk.



Test Strategy

This is a multiple-choice examination with four choices per question. Some questions require mathematical computation. Examination questions are written to provide only one BEST answer and are NOT written as trick questions.


All correct answers have equal value. If you are unsure about a particular question, it is better to try to answer the question with the chance of possibly getting it correct (and earning one point) than it is to leave the question blank and definitely get it wrong (and lose one point).


Ample time is provided to answer all examination questions, so be sure to read each question and its four choices completely and carefully before selecting the BEST possible answer to the question.



Sample Questions

The following questions are typical of the types of items that are on the examination. The correct answer is highlighted.

1. As part of the safety training process contractors' supervisors are required to conduct "tool box" or "tailgate" safety meetings. How often must these meetings be held?

  1. Daily
  2. At least once every ten working days
  3. At least once a month
  4. At least once a quarter

2. Which of the following items is a job-related direct cost?

  1. Trade Association membership dues
  2. Contractor's license renewal fee
  3. Performance bonds
  4. Office rent

3. What legal remedy can be pursued for nonpayment of funds owed to a contractor from a private job?

  1. Notify the city building official.
  2. File preliminary lien notice.
  3. Perfect the claim of the lien.
  4. File a Stop Notice.

*All questions are written and reviewed by licensed contractors who are actively working in the field*


Resources

Publisher information is provided. Additional sources for purchasing materials may be available online.


California Contractors License Law and Reference Book.
Matthew Bender & Company, Inc.,
PHONE: (800) 562-1197.
FAX: (800) 828-8341.
INTERNET: www.lexis.com


Cal/OSHA State of California Construction Safety Orders.
California Code of Regulations, Title 8,
Industrial Relations, Division 1, Chapter 4, Subchapter 4.
BNI Publications, Inc.
PHONE: (888) 264-2665.
INTERNET: www.bnibooks.com
VIEW ONLINE: www.dir.ca.gov/dosh/LawsAndRegulations.htm


Standard Specifications for Public Works Construction (Green Book).
BNi Building News.
PHONE: (888) 264-2665.
FAX: (760) 734-1540.
INTERNET: www.bnibooks.com


Terms of Agreement - A Consumer Guide to Home Improvement Contracts.
Contractors State License Board.
PHONE: (800) 321-2752
FAX: (916) 255-4535.
INTERNET: www.cslb.ca.gov


Contractors Guide to Business, Law and Project Management.
National Association of State Contractors Licensing Agencies (NASCLA).
PHONE: (623) 587-9354
FAX: (623) 587-9625
INTERNET: www.nascla.org

*Publisher information is current as of 01/09*

13E-71


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