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Law & BusinessLicensingmedium11% of exam part

A contractor's contract form lists a DBA name but not the legal licensed business name. What should be checked?

Correct Answer

D) Whether the DBA and legal business identity are properly reflected in CSLB and contract records.

Contract identity should align with the licensed entity and any properly recorded business name.

Answer Options
A
Use the prior license record while the new contracting entity signs the documents.
B
Sign under the sales name and update CSLB records after the first progress payment.
C
Rely on common ownership without matching the contracting entity to the license record.
D
Whether the DBA and legal business identity are properly reflected in CSLB and contract records.

Why This Is the Correct Answer

Contract identity should align with the licensed entity and any properly recorded business name.

Why the Other Options Are Wrong

Option A: Use the prior license record while the new contracting entity signs the documents.

Use the prior license record while the new contracting entity signs the documents. skips the written authority, scope, price, notice, or release control needed for business name and license identity.

Option B: Sign under the sales name and update CSLB records after the first progress payment.

Sign under the sales name and update CSLB records after the first progress payment. skips the written authority, scope, price, notice, or release control needed for business name and license identity.

Option C: Rely on common ownership without matching the contracting entity to the license record.

Rely on common ownership without matching the contracting entity to the license record. skips the written authority, scope, price, notice, or release control needed for business name and license identity.

Memory Technique

Auditing Forms shortcut is not a term until paper carries it.

Reference Hint

Study anchor (closed-book): memorize Business name and license identity from CSLB 2026 Law Book; California Business and Professions Code; CSLB. / Business and Professions Code license identity and contract requirements; know the rule or calculation trigger without relying on exam-room lookup.

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