Free LAW Practice Questions

Question 1

A homeowner asks an unlicensed individual to replace several fence boards as a casual, minor repair for a total price of $880, including labor and materials. No permit is required, the individual will work alone, the job is not part of a larger project, and the advertisement states "Not a licensed contractor." Under California contractor licensing law, the licensing result is:

Accepted Answer

The work may qualify for the minor-work exemption because every stated condition is met

Answer

A license is required because every home-improvement job over $500 requires one

Answer

A license is required because an unlicensed person may not advertise construction services at any price

Answer

The work is exempt only if the owner, rather than the worker, purchases all materials

Question 2

A general contractor offers a Class B licensee a tile-only subcontract. The Class B firm does not hold a C-54 tile classification and plans to pass the entire scope to a licensed C-54 subcontractor. Which response is legally sound?

Accepted Answer

Decline the tile-only subcontract unless it first obtains the C-54 classification

Answer

Accept it because any licensed specialty subcontractor may perform the field work

Answer

Accept it if the owner approves the second-tier subcontract in writing

Answer

Accept it if the Class B firm performs project coordination but no tile installation

Question 3

At a growing contracting company, one accounts-payable employee can create vendors, approve invoices, release ACH payments, and reconcile the bank account. Select the control that most directly breaks this fraud opportunity.

Accepted Answer

Assign vendor setup, payment approval, and bank reconciliation to different people

Answer

Require a purchase order to be attached to every invoice before payment

Answer

Lower the dollar threshold at which the same employee must obtain a second signature

Answer

Increase crime-insurance limits and review any covered losses at the end of each year

Question 4

An estimator expects a job to cost $240,000, and management requires a 20% gross margin on the selling price. Ignoring tax and financing effects, determine the bid that meets the requirement.

Accepted Answer

$300,000

Answer

$280,000

Answer

$288,000

Answer

$296,000

Question 5

Before mobilization, a customer pays a $50,000 deposit for work the contractor has not yet earned. What should the initial entry recognize?

Accepted Answer

Increase cash and increase a liability

Answer

Increase cash and recognize $50,000 of revenue

Answer

Increase accounts receivable and decrease equity

Answer

Increase cash and reduce the contract's estimated cost

Question 6

Applying California's ABC test, a roofing company issues a 1099 to a worker who installs roofs, which is the service the company sells. The company sets the worker's schedule and methods, and the worker has no separate roofing clients or independently marketed business. How should the worker be classified under that test?

Accepted Answer

Employee, because the company cannot satisfy all three parts of the ABC test

Answer

Independent contractor, because the worker is paid by invoice rather than payroll

Answer

Independent contractor, because roofing is a licensed construction trade

Answer

Employee only if the worker also fails to supply personal hand tools

Question 7

An eight-employee contractor wants to screen conviction history for a project-manager applicant. Identify the compliant hiring sequence.

Accepted Answer

Make a conditional offer, assess job relevance, give preliminary notice, and allow at least five business days

Answer

Ask about convictions on the application, then assess the offense's age and seriousness before deciding whom to interview

Answer

Complete the background check after interviews, but before making any employment offer

Answer

Make a conditional offer, then rescind it at once if a job-related conviction appears

Question 8

During a shutdown, a nonexempt employee earns $30 per hour and works 13 hours in one workday. The employee works no other hours that week and has no alternative workweek schedule. Calculate the gross wages due for the day.

Accepted Answer

$480

Answer

$390

Answer

$465

Answer

$540

Question 9

A carpenter quits at 10:00 a.m. Tuesday without giving 72 hours' notice. At separation, the employee has unpaid regular wages, 12 hours of earned vacation, and 24 hours of unused statutory paid sick leave. Which composition and timing of final pay are required?

Accepted Answer

Pay wages and earned vacation within 72 hours; sick leave need not be paid out

Answer

Pay all three balances immediately because every accrued leave balance is vested

Answer

Pay regular wages within 72 hours, but hold vacation until the next regular payday

Answer

Pay regular wages and sick leave within 72 hours; vacation is forfeited upon quitting

Question 10

An employee reports a work-related hand laceration and receives stitches at an occupational clinic. There is no inpatient hospitalization, amputation, eye loss, permanent disfigurement, or time lost beyond the injury date. Select the accurate statement about the DWC-1, Form 5020, and eight-hour Cal/OSHA report.

Accepted Answer

Provide DWC-1 within one working day and send Form 5020 generally within five days; these facts do not trigger the eight-hour report

Answer

Notify Cal/OSHA within eight hours, but wait for lost time before providing a DWC-1

Answer

Provide only DWC-1 because stitches remain first aid when the employee returns the same day

Answer

Send Form 5020 only after a full shift is lost; the clinic completes the other reports

Free LAW Practice Questions

Domain 1: Business Organization and Licensing 13% of exam

Question 1

Question 2

Domain 2: Business Finances 15% of exam

Question 3

Question 4

Question 5

Domain 3: Employment Requirements 20% of exam

Question 6

Question 7

Question 8

Question 9

Domain 4: Insurance and Liens 12% of exam

Question 10

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