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California Contractor Law and Regulations Flashcards

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

Read the first 6 California Contractor Law and Regulations flashcards as text
  1. Which of the following actions can result in disciplinary action by the CSLB?

    Answer: Abandoning a construction project without legal excuse

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

  2. A 'RMO' in CSLB licensing refers to:

    Answer: Responsible Managing Officer

    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.

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

    Answer: Is an employee, not an owner or officer

    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.

  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?

    Answer: 10 days

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

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

    Answer: Sole proprietor with only two employees

    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.

  6. When a licensed contractor's qualifying individual (RMO/RME) leaves the company, the contractor has how many days to replace them before the license becomes inactive?

    Answer: 90 days

    When an RMO or RME disassociates from a license, the firm has 90 days to substitute a new qualifying individual or the license becomes inactive.