NASCLA Business Law and Licensing Requirements 3

Question 1

Under the Americans with Disabilities Act (ADA), contractors performing work on public accommodations must ensure that facilities are:

Accepted Answer

Accessible to individuals with disabilities

Answer

Architecturally unique

Answer

Built with the lowest cost materials

Answer

Completed ahead of schedule

Question 2

Which of the following best describes 'reciprocity' in contractor licensing?

Accepted Answer

One state accepting another state's license as equivalent

Answer

A contractor billing a client twice for the same work

Answer

A contractor sharing license credentials with a partner

Answer

The state renewing a license automatically

Question 3

If a contractor's license has lapsed, which action must they typically take before resuming work?

Accepted Answer

Renew the license and pay any reinstatement fees before continuing work

Answer

Post a sign at the job site noting the lapse

Answer

Continue working and renew within 30 days after completion

Answer

File a federal tax form for the lapse period

Question 4

Under federal law, which form must a contractor use to verify an employee's eligibility to work in the United States?

Accepted Answer

I-9

Answer

W-2

Answer

1099

Answer

W-4

Question 5

A contractor operating as a sole proprietor is personally liable for business debts because:

Accepted Answer

There is no legal separation between the owner and the business

Answer

Sole proprietors are required by law to accept liability

Answer

Sole proprietors always have high insurance deductibles

Answer

The IRS mandates personal liability for self-employed individuals

Question 6

Which of the following best describes 'joint and several liability' in a partnership?

Accepted Answer

Each partner can be held fully responsible for all partnership debts

Answer

Each partner is liable only for their own share of debts

Answer

Partners share liability only if incorporated

Answer

Liability is capped at the initial investment of each partner