Law 1 Part 1

24 question-and-answer flashcards covering key legal, accounting, safety, and administrative topics likely to appear on the Law and Business exam.

How long does a consumer have to cancel a home-solicitation contract?

Until midnight of the third business day after the date of the transaction.

Which accounting method is NOT recommended for contractors?

Cash method.

On which types of contracts must the “Mechanics Lien Warning” be included?

Home-improvement, swimming-pool, and service-and-repair contracts.

When a joint-control addendum is used, which item may be omitted from a home-improvement contract?

Schedule of payments.

Current liabilities on a balance sheet are debts payable within what time frame?

Within one year.

Within how many days must an employer make personnel records available after a written request by an employee?

No later than 30 calendar days.

If a collective-bargaining agreement contains a successor clause, is a new owner bound by it?

Yes—a successor clause can bind a successor for up to three years.

After building plans are approved, what is the next step in project management?

Schedule the job.

Who is responsible for tracking change orders on a construction project?

The general contractor.

How often should the RME or job supervisor visit the job site?

At least once a day.

Is it acceptable to rely on an employee’s memorized Social Security number during hiring?

No—the actual Social Security card must be inspected.

Who must pay for a pre-employment physical examination?

The employer.

What happens if employees are fired for filing a DOSH safety complaint and they appeal?

The contractor must reinstate the employees and reimburse lost wages and benefits.

May a licensed contractor check the owner-builder box when applying for a permit on a job contracted with an owner?

No—the contractor may not mark owner-builder when the owner has hired the contractor.

If you find previous work that violates code, what should you do?

Report the violation to the owner and provide an estimate for the necessary repairs.

Upon finding a 6-inch discrepancy on the plans, what should the contractor do?

Contact the architect or building designer for clarification.

What occurs to a sole-owner construction business and license when the owner dies?

The business terminates and the contractor’s license is cancelled.

Who is primarily responsible for jobsite safety?

Both the employer and the employees.

What form must the required Injury & Illness Prevention Program (IIPP) take?

A written plan that includes procedures, is implemented, and is documented.

Which injury must be reported to DOSH?

A worker suffers a concussion and cannot return to work for a full day.

What is the purpose of issuing a Preliminary Notice on a home-improvement project?

To preserve a subcontractor’s or supplier’s right to file a mechanics lien if unpaid.

How should a prime contractor verify that a subcontractor has workers’ compensation insurance?

Ask to see the expiration date on the subcontractor’s certificate of insurance.

What is the maximum Cal/OSHA penalty for each serious violation?

Up to $25,000 per violation.

For what dollar amount will the CSLB arbitrate home-improvement contract disputes?

When the alleged damages are under $50,000.