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

The ADA requires that public accommodations and commercial facilities be accessible to people with disabilities, and contractors must follow ADA Standards for Accessible Design.

Question 2

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

Accepted Answer

One state accepting another state's license as equivalent

Answer

Reciprocity allows a contractor licensed in one state to receive equivalent licensure in another state without retaking all requirements, based on mutual recognition agreements.

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

A contractor with a lapsed license must renew it and pay any required fees or penalties before legally resuming construction work.

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

Form I-9, Employment Eligibility Verification, must be completed for every employee to verify their identity and authorization to work in the U.S.

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

In a sole proprietorship, the business and the owner are the same legal entity, meaning all business debts and liabilities become the owner's personal responsibility.

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 3