A salesperson solicits home improvement contracts for a licensed contractor but has not registered as an HIS. What should the contractor do?
Correct Answer
A) Stop the person from soliciting until the required HIS registration issue is resolved.
A person who solicits, sells, negotiates, or executes home improvement contracts for a licensed contractor generally must be properly registered as an HIS unless an exception applies.
Why This Is the Correct Answer
A person who solicits, sells, negotiates, or executes home improvement contracts for a licensed contractor generally must be properly registered as an HIS unless an exception applies.
Why the Other Options Are Wrong
Option B: Treat the salesperson as exempt because a licensed contractor will sign the final contract.
Treat the salesperson as exempt because a licensed contractor will sign the final contract. does not satisfy the required party, deadline, proof, license, bond, insurance, or agency trigger for home improvement salesperson.
Option C: Have the salesperson use the owner's name on contracts.
Have the salesperson use the owner's name on contracts. does not satisfy the required party, deadline, proof, license, bond, insurance, or agency trigger for home improvement salesperson.
Option D: CSLB license record.
CSLB license record. does not satisfy the required party, deadline, proof, license, bond, insurance, or agency trigger for home improvement salesperson.
Memory Technique
Home Improvement clock for Correcting Residential: party, date, proof, then rights.
Reference Hint
Study anchor (closed-book): memorize Home improvement salesperson from CSLB 2026 Law Book; California Business and Professions Code; CSLB. / Business and Professions Code home improvement salesperson registration; CSLB HIS.; know the rule or calculation trigger without relying on exam-room lookup.
More Law & Business Questions
A Fresno homeowner wants a $725 cabinet repair and trim adjustment. Which contract step best matches CA home improvement requirements?
A project has $6,500 retainage withheld. The owner releases 60 percent of retainage at substantial completion. How much cash is released?
Cash is $52,500 and monthly burn is $17,500. How many months of runway are available?
A supplier offers 1.5 percent early-pay discount on a $22,000 invoice. What is the discount?
A balance sheet lists assets of $310,000 and liabilities of $185,000. What is owner's equity?
A job is estimated to cost $135,000. What price gives a 25 percent gross margin?
A customer invoice of $4,000 has a stated late charge of 1.5 percent. What late charge is added?
A bid has direct labor of $18,000, materials of $12,500, and equipment rental of $3,500. If the contractor adds 20 percent markup on direct cost, what is the bid price?
A contractor wants a 25 percent gross margin on a job with estimated cost of $60,000. What selling price gives that margin?
A completed project sold for $150,000 and had total cost of $126,000. What gross margin percentage did the project earn?
