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Business Practices and Contract Law Flashcards

6 cards from real C27 LICENSE practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Business Practices and Contract Law flashcards as text

  1. What is the purpose of a Preliminary Notice (Notice to Owner) in California construction law?

    Answer: To preserve lien rights for subcontractors and material suppliers who lack a direct contract with the owner

    A Preliminary Notice preserves the right of subcontractors and material suppliers to file a mechanic's lien if they are not paid, since they have no direct contract with the property owner.

  2. How many days does a subcontractor have to file a mechanic's lien in California after the property owner records a Notice of Completion?

    Answer: 30 days

    California Civil Code requires subcontractors and material suppliers to file a mechanic's lien within 30 days after the owner records a Notice of Completion.

  3. What is 'indemnification' in the context of a landscaping contractor's contract?

    Answer: One party's contractual agreement to protect another party from specified losses or legal liability

    Indemnification is a contractual obligation where one party agrees to cover losses, claims, or legal costs incurred by the other party under specified circumstances.

  4. Which agency licenses and has disciplinary authority over C-27 landscaping contractors in California?

    Answer: Contractors State License Board (CSLB)

    The Contractors State License Board (CSLB) is the California agency responsible for licensing, regulating, and disciplining all contractors, including C-27 landscaping contractors.

  5. What must appear in all advertising by a California licensed contractor?

    Answer: The contractor's CSLB license number

    California law requires licensed contractors to display their CSLB license number in all forms of advertising, including websites, business cards, vehicles, and signs.

  6. What is the purpose of a change order in a landscaping contract?

    Answer: To document and authorize agreed-upon changes to the original scope, price, or timeline

    A change order is a written document signed by both parties that modifies the original contract to reflect mutually agreed changes in work scope, cost, or schedule.