The Virginia Business and Law exam is open book and number-heavy: it turns on dollar thresholds, day counts, and the exact wording of statutes. These original sample questions are written in exam style to show how the test asks about the real rules. They are not real exam questions (no one outside the administrators has those), and the full guide includes 150 practice questions by topic. Read every explanation, including for the ones you get right.
Question 1. A contractor's firm performs a single home-improvement contract priced at $175,000. Under current Virginia law, what license class is required?
A. Class C B. Class B C. Class A D. No license is required because the work is residential
Answer: C. Class A covers a single contract or project of $150,000 or more under the 2025 thresholds (HB1707/SB1059, effective 7/1/2025). The old $120,000 figure still appears in many prep books but no longer controls.
Question 2. The Transaction Recovery Fund's maximum payment per claimant, as amended in 2025, is:
A. $20,000 B. $30,000 C. $40,000 D. $100,000
Answer: B. The per-claimant maximum is $30,000, including any amount already paid from the contractor's surety bond. The aggregate cap is $100,000 per regulant per biennium. $20,000 is the stale pre-2025 figure.
Question 3. A subcontractor's last day of work on a Virginia project was March 14. The subcontractor last performed work on March 20. By when must the memorandum of lien be filed?
A. Within 90 days of March 14 B. Within 90 days from the last day of March C. Within 6 months of March 20 D. Within 60 days of completion
Answer: B. Virginia Code 43-4 requires filing not later than 90 days from the last day of the month in which the last labor or materials were furnished, and never later than 90 days after completion or termination. The month-end rule is the one the exam loves.
Question 4. Under the Virginia Public Procurement Act, after the prime contractor receives payment from the public body, it must pay each subcontractor its proportionate share within:
A. 3 days B. 7 days C. 30 days D. 60 days
Answer: B. Va. Code 2.2-4354 requires payment within 7 days of the prime's receipt of public funds, or written notice to the agency and sub of intent to withhold, with reasons. The 60-day figure applies when the prime has not been paid.
Question 5. A Class A contractor applies with a $50,000 surety bond instead of demonstrating net worth. This is:
A. Permitted as an alternative to the $45,000 net worth requirement B. Permitted only for Class B firms C. Permitted only for renewals, not initial applications D. Not permitted; net worth must be shown in cash
Answer: A. A $50,000 surety bond may substitute for the Class A ($45,000) or Class B ($15,000) net worth requirement. Class C has no net worth requirement at all.
Question 6. Virginia is a federally approved OSHA State Plan state. Occupational safety and health enforcement on most private construction sites in Virginia is handled by:
A. Federal OSHA B. The Virginia Occupational Safety and Health (VOSH) program under the Department of Labor and Industry C. The Board for Contractors D. The local building department
Answer: B. Virginia's State Plan means VOSH under DOLI enforces on most private sites, applying the adopted 29 CFR 1926 standards plus Virginia-unique standards. Federal OSHA keeps jurisdiction only over federal workers, USPS, maritime, military facilities, and similar enclaves.
Question 7. A residential contractor issues one invoice that lumps together materials and labor for $8,000. Under Virginia sales tax law:
A. Only the materials portion is taxable B. The entire $8,000 charge, including labor, is taxable C. Only the labor portion is taxable D. The whole charge is exempt because contractors are consumers
Answer: B. Separately stated installation charges are exempt, but when materials and labor are lump-summed, tax applies to the entire charge including labor. The contractor-as-consumer rule means the contractor pays tax at purchase and does not collect it from the customer, but it does not exempt lump-sum charges.
Question 8. When a designated employee leaves a Class B firm, the time to name a replacement is:
A. 90 days under both statute and regulation B. 120 days under both statute and regulation C. 90 days by statute, 120 days by regulation D. 60 days under both statute and regulation
Answer: C. This is the genuine conflict: the statute (54.1-1106(E), 54.1-1108(E)) says 90 days while the regulation (18VAC50-22-220(B)) says 120 days. The exam treats it as an open question; know both numbers.
Question 9. An unlicensed contractor performs work with substantial good-faith performance and no actual knowledge of the licensing defect. The contract is:
A. Enforceable as written B. Enforceable only in small claims court C. Enforceable only if the contract was for less than $1,000 D. Unenforceable; unlicensed contracts are never enforceable
Answer: A. Va. Code 54.1-1115(C) makes unlicensed contracts unenforceable unless there was substantial good-faith performance AND no actual knowledge of the defect. Failing to renew creates a rebuttable presumption of knowledge, which knocks out the "no actual knowledge" prong.
Question 10. A Class C contractor renews its license. The renewal fee is:
A. $195 B. $225 C. $235 D. $240
Answer: A. Renewal fees: C $195, B $225, A $240. Do not confuse these with the initial application fees (C $235, B $380, A $400) or the reinstatement fees (C $405, B $460, A $490).
The pattern to notice
Nearly every question above turns on a single figure: $150,000, $30,000, 90 days, 7 days, 6 feet. The exam's wrong answers are usually close: 120 days instead of 90, $20,000 instead of $30,000, the $25 LLC late penalty instead of the $50 fee. That is why the open-book strategy emphasizes highlighted numbers and a tabbing map: you win by finding the controlling figure fast, not by memorizing the whole statute.
This is an independent study aid, not affiliated with DPOR, the Board for Contractors, PSI, or NASCLA. For the full 150-question bank weighted to the official outline, see the Virginia study guide.
Try the free practice quiz
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