CSLB California Construction Law 2

Question 1

What does the 'doctrine of substantial performance' allow a contractor to do in California?

Accepted Answer

Recover payment even if minor defects exist, subject to offset

Answer

Substantial performance allows a contractor to recover payment when work is nearly complete, with the owner receiving a deduction for uncorrected deficiencies.

Question 2

Under California law, which party typically bears the risk if undisclosed subsurface conditions are discovered during excavation?

Accepted Answer

The owner, if the contract includes a differing site conditions clause

Answer

When a contract includes a differing site conditions clause, the owner generally bears the risk for unknown subsurface conditions that differ materially from those indicated.

Question 3

What California law requires contractors to provide a written contract for home improvement work exceeding $500?

Accepted Answer

California Business and Professions Code §7159

Answer

BPC §7159 mandates written contracts for home improvement projects over $500, specifying required disclosures and terms.

Question 4

A California contractor working without a valid license may be ordered to do which of the following by the CSLB?

Accepted Answer

Disgorge (return) all compensation received for unlicensed work

Answer

Under BPC §7031, an unlicensed contractor can be required to disgorge all compensation received, even if the work was properly performed.

Question 5

What is the maximum fine the CSLB can impose per citation violation on a licensed contractor?

Accepted Answer

$5,000

Answer

The CSLB can impose civil penalties of up to $5,000 per violation per citation issued to licensed contractors.

CSLB - Contractors State License Board Practice Test

CSLB - Contractors State License Board Practice Test

CSLB California Construction Law 2