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

Many states offer licensing reciprocity to contractors who have passed the NASCLA Contractors Business and Law Exam, easing multi-state licensing.

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

Subcontractor licensing thresholds vary by state; contractors must know their specific state's dollar threshold requirements.

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

Abandoning a project without legal justification is a serious violation that can result in license revocation and civil liability.

Question 4

A contractor's license bond primarily protects which party?

Accepted Answer

The general public and project owners

Answer

A contractor's license bond protects members of the public and project owners from financial harm caused by the contractor's failure to comply with licensing laws.

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

Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex, or national origin for employers with 15 or more employees.

NASCLA - National Association of State Contractors Licensing Agencies Practice Test

NASCLA - National Association of State Contractors Licensing Agencies Practice Test

NASCLA Business Law and Licensing Requirements 2