Business and Law Practices Flashcards
7 cards from real Licensed Electrical Contractor practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Business and Law Practices flashcards as text
A licensed electrical contractor's bond primarily protects against which situation?
Answer: Financial loss caused by the contractor's failure to complete the work
A contractor's bond protects the client (obligee) against financial loss if the contractor fails to fulfill contractual obligations.
Under the Fair Labor Standards Act (FLSA), which employees are generally entitled to overtime pay at 1.5x their regular rate?
Answer: Non-exempt employees working more than 40 hours per week
The FLSA requires non-exempt employees to be paid 1.5 times their regular rate for hours worked beyond 40 in a workweek.
Which financial statement shows a company's assets, liabilities, and owner's equity at a specific point in time?
Answer: Balance sheet
A balance sheet is a snapshot of a company's financial position — assets, liabilities, and equity — at a single date.
When bidding on a public works project in most states, an electrical contractor is required to pay employees at least the:
Answer: Prevailing wage rate for the trade
Public works projects are governed by prevailing wage laws (e.g., Davis-Bacon Act federally) requiring contractors to pay the locally determined prevailing wage.
An electrical contractor issues a notice to the property owner stating the contractor intends to file a lien if payment is not received. This is called a:
Answer: Preliminary notice (pre-lien notice)
A preliminary notice (pre-lien notice) is sent before filing a mechanic's lien to preserve lien rights and notify the owner of the potential lien.
Which type of insurance covers an electrical contractor if a client claims the contractor's negligent work caused financial harm to the client's business operations?
Answer: Errors and omissions (professional liability)
Errors and omissions (professional liability) insurance covers claims of negligence or mistakes in professional services that cause a client financial harm.
A subcontractor agreement should include a clause requiring the subcontractor to:
Answer: Name the general contractor as an additional insured on the sub's liability policy
Subcontractor agreements typically require the sub to add the general contractor as an additional insured, providing coverage if the sub's work causes a claim.