CSLB California Contractor Law and Regulations 3

Question 1

Which of the following actions can result in disciplinary action by the CSLB?

Accepted Answer

Abandoning a construction project without legal excuse

Answer

Project abandonment without legal excuse is a violation of the Contractors State License Law and can result in CSLB disciplinary action including license revocation.

Question 2

A 'RMO' in CSLB licensing refers to:

Accepted Answer

Responsible Managing Officer

Answer

RMO stands for Responsible Managing Officer — an officer of the company who holds the required license and takes legal responsibility for the firm's contracting work.

Question 3

An RME (Responsible Managing Employee) differs from an RMO because an RME:

Accepted Answer

Is an employee, not an owner or officer

Answer

An RME is an employee of the business (not an owner or officer) who qualifies for the license and is responsible for supervising construction operations.

Question 4

California's 'prompt payment' law for private construction projects requires contractors to pay subcontractors within how many days of receiving payment from the owner?

Accepted Answer

10 days

Answer

Under California Civil Code Section 8934, general contractors must pay subcontractors within 10 days of receiving payment from the project owner.

Question 5

Which of the following is NOT a valid exemption from California contractor licensing requirements?

Accepted Answer

Sole proprietor with only two employees

Answer

Being a sole proprietor with few employees does not exempt a contractor from CSLB licensing — the $500 threshold and owner-builder exemptions apply, but not business size.

CSLB - Contractors State License Board Practice Test

CSLB - Contractors State License Board Practice Test

CSLB California Contractor Law and Regulations 3