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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 statute of limitations for bringing a claim against a California contractor for construction defects?

    Answer: 3 years for patent defects; 10 years for latent defects from substantial completion

    California sets a 3-year statute of limitations for patent (obvious) defects and a 10-year outer limit for latent (hidden) defects, measured from substantial completion.

  2. What does 'substantial completion' mean in a construction contract?

    Answer: When the project is sufficiently complete for its intended use with only minor punch-list items remaining

    Substantial completion is the point at which the project is complete enough for the owner to occupy or use it for its intended purpose, triggering key contractual timelines and rights.

  3. What is required when a California contractor operates under a fictitious business name (DBA)?

    Answer: The DBA must be registered with the county and also listed on the CSLB contractor license

    California contractors using a fictitious business name must register it with the county clerk and update their CSLB license to reflect the DBA name.

  4. What is the legal consequence of contracting in California without a valid license for work valued over $500?

    Answer: It is a misdemeanor and the contractor loses the right to sue to collect payment

    Contracting without a valid license for work over $500 is a misdemeanor in California, and unlicensed contractors cannot enforce payment in court.

  5. When is a California contractor required to obtain a building permit for landscaping work?

    Answer: When the work involves grading, structural elements, retaining walls, or utility connections as required by local jurisdiction

    Building permits are required for landscaping work involving significant grading, retaining walls, drainage alterations, or connections to utilities, as defined by local building codes.

  6. What is the effect of a property owner recording a Notice of Completion in California?

    Answer: It shortens the deadline for subcontractors and suppliers to file mechanic's liens from 90 days to 30 days

    Recording a Notice of Completion shortens the mechanic's lien filing window for subcontractors and suppliers from 90 days to 30 days, giving the owner faster lien resolution.