NASCLA Business Law and Licensing Requirements 2

Question 1

When a contractor moves to a new state, the NASCLA exam helps because many states offer reciprocity to candidates who have passed which exam?

Accepted Answer

NASCLA Contractors Business and Law Exam

Answer

Local county trade exam

Answer

IRS contractor certification

Answer

Federal contractor qualification exam

Question 2

A subcontractor license is typically required when the subcontract value exceeds what threshold in most states?

Accepted Answer

The threshold varies by state but is defined by state law

Answer

$500

Answer

$100

Answer

$50,000

Question 3

Which of the following would most likely cause a contractor's license to be revoked?

Accepted Answer

Abandoning a project without cause or just compensation

Answer

Filing taxes late

Answer

Hiring more than 10 employees

Answer

Using subcontractors

Question 4

A contractor's license bond primarily protects which party?

Accepted Answer

The general public and project owners

Answer

The contractor's employees

Answer

The bonding company

Answer

The state licensing board

Question 5

Which act prohibits contractors from discriminating in hiring based on race, color, religion, sex, or national origin?

Accepted Answer

Civil Rights Act of 1964, Title VII

Answer

Americans with Disabilities Act

Answer

Davis-Bacon Act

Answer

Equal Pay Act

Question 6

What is the statute of limitations in the context of contractor licensing and construction law?

Accepted Answer

The time limit within which a legal action must be filed

Answer

The time limit to obtain a license renewal

Answer

The deadline to complete a construction project

Answer

The expiration date on a contractor's bond