Eight questions in the style of the California Law and Business exam. Each card hides its answer, so pick yours first, then tap to reveal and read the explanation. This is a study warmup. The free 12-question practice quiz is the scored version, with email results.
Question 1
A homeowner signs a home improvement contract for $18,000. What is the maximum down payment the contractor may legally collect?
- A. $1,800
- B. $1,000
- C. $9,000
- D. $1,000 or 10% of the contract price, whichever is less
Question 2
A contractor first furnishes labor on a private project on March 1. By what date must the preliminary 20-day notice be given to preserve full lien rights?
- A. March 10
- B. March 21
- C. March 31
- D. April 20
Question 3
A handyman does casual repair work totaling $950 in labor and materials, with no permit required and no advertising as a contractor. Which statement is correct?
- A. A license is required because the work exceeds $500
- B. The work falls under the minor-work exemption
- C. A license is required for any paid construction work
- D. The exemption only applies to work under $500
Question 4
A contractor receives a $40,000 progress payment on a Friday. By when must each subcontractor be paid, absent a written agreement otherwise?
- A. Within 30 days
- B. Within 14 days
- C. Within 7 days
- D. Within 3 business days
Question 5
A qualifying individual disassociates from a licensed company on June 1. What must the company do?
- A. Nothing until the next renewal
- B. Give written notice within 90 days and replace the qualifier within 90 days
- C. Notify the CSLB within 30 days and replace the qualifier within 30 days
- D. Shut down until a new application is filed
Question 6
An employee is discharged on a Tuesday afternoon. When must the employer pay all wages due?
- A. Within 72 hours
- B. At the next regular payday
- C. Immediately at the place of discharge
- D. Within 7 days
Question 7
A serious injury occurs on a California jobsite at 9:00 a.m. By when must the employer report it to the Division?
- A. Within 24 hours
- B. Within 8 hours of learning of it
- C. By the end of the work week
- D. Within 48 hours
Question 8
Which of the following best describes the contractor license bond requirement?
- A. $15,000, and it functions as liability insurance for the contractor
- B. $25,000, and it protects consumers and the state if the contractor violates the law
- C. $25,000, and contractors may advertise that they are bonded
- D. $100,000 for all licensees
How to use these questions
Eight questions will not get you licensed, but they show you the shape of the exam: specific numbers, specific timelines, and rules that reward precise knowledge over general impressions. Notice how many of the questions above turn on a single figure, and how often the wrong answers are real numbers from different statutes. That is the pattern to drill.
For real preparation, study every miss by learning the underlying rule, not by memorizing the answer. Then run a full timed set before exam day.
Study sheet vs. practice quiz: what is what
This page and the free quiz do different jobs.
This page is a study sheet. Eight questions, no timer, no score. The answers stay hidden until you tap, so you can work each one slowly and read the full explanation. Use it to learn the rules.
The free quiz is the real run-through. Twelve questions, scored at the end with explanations for every answer, plus optional email results so you can track your progress. Use it to find your weak spots before exam day finds them. The full study guide also includes a timed exam simulation for buyers.
Study here first, then prove it on the quiz.
Try the free practice quiz
Ready for the scored version? Take the free 12-question California Law and Business practice quiz with email results.
(PixelSunset is an independent study aid and is not affiliated with the Contractors State License Board or PSI.)