California Law & Business

A Fresno homeowner wants a $725 cabinet repair and trim adjustment. Which contract step best matches CA home improvement requirements?

A progress payment schedule asks the owner to pay for rough plumbing before that phase starts. What is the best contract-admin correction?

An $18,500 patio and door replacement contract is a CA home improvement job. What down payment amount is allowed at signing?

A material supplier on a San Jose remodel serves a preliminary notice on day 31 after first furnishing materials. Under the CA 20-day notice rule, what work period is protected by that late notice?

A Sacramento homeowner signs an $8,400 home improvement contract. What is the largest lawful down payment the contractor may collect at signing?

A $9,950 window replacement contract is signed at the owner's home in Oakland. What is the maximum down payment under the CA home improvement rule?

A signed change order adds $4,250 of cabinet work plus a 12 percent approved markup. What is the change order total?

A $28,000 contract has an approved $2,000 change order. Forty percent of the adjusted work is complete, and the owner already paid a $1,000 down payment. What is the largest additional progress payment that keeps total paid at the value of work performed?

A contract includes a $7,500 tile allowance. The owner selects tile costing $8,650 before installation. Ignoring markup and tax because the contract says none apply, what allowance change should be documented?

A signed unit-price change order adds 220 square feet of waterproofing at $18 per square foot. What amount should be added to the contract?

A $7,200 flooring and baseboard home improvement contract is signed in the owner's kitchen. What is the maximum down payment?

On a $30,000 residential contract, $14,000 of work has been performed and the contractor already collected a $1,000 down payment. Ignoring retention, what is the maximum additional progress payment without exceeding the value of work performed?

A homeowner signs a $12,300 exterior door and siding contract. What is the largest down payment allowed before work starts?

A $4,950 closet build-out is sold as a residential home improvement project. What deposit is allowed under the 10 percent or $1,000 rule?

A signed contract is $22,000, and a written change order adds $3,500. If 30 percent of the adjusted work is complete and $1,000 was already paid as the down payment, what additional progress payment keeps total paid within work value?

An allowance for tile is $6,200. The owner selects a tile package that costs $5,450, and the contract says no markup applies to allowance credits. What adjustment should be documented?

A unit-price change order adds 36 linear feet of trenching at $48 per linear foot. What amount should be added to the contract?

A scope change adds $7,800 of work and the signed change order allows 15 percent overhead and profit. What is the total change order amount?

A contractor has performed $18,400 of contract work. The owner has already paid $12,000. Ignoring retention, what is the most additional progress payment that keeps total paid at work value?

A payment application says 55 percent of a $42,000 contract is complete, and the owner has paid $16,000 so far. What additional amount matches the claimed work value?

A contract includes a $9,500 appliance allowance. The owner selects appliances costing $11,300, and the contract allows no markup on allowance overages. What increase should be documented?

A change order removes $3,600 of work from a $31,000 contract. What is the adjusted contract price?

A bid alternate adds $14,200 to the base bid of $286,500. If the owner accepts the alternate, what is the contract amount before other adjustments?

A subcontractor submits a price for 1,250 square feet of waterproofing at $7.80 per square foot. What is the extended amount?

A contract calls for 5 percent retention on an $18,600 progress payment. How much should be retained from that payment?

After retaining 5 percent from an $18,600 progress payment, what net payment is released?

A homeowner signs a $9,600 home improvement contract. What is the largest down payment allowed before work starts?

An $18,400 patio enclosure contract is a CA home improvement job. What is the maximum down payment?

A contract is $14,000, a signed change order adds $2,800, and 50 percent of the adjusted work is complete. If $1,000 has already been paid, what additional progress payment keeps total paid within earned value?

An allowance is $3,200. The owner selects fixtures costing $2,750, and the contract says no markup applies to credits. What should be documented?

A worker earns $33 per hour. What is the double-time rate?

A worker earns $33 per hour. What is the 1.5-times overtime rate?

A nonexempt carpenter works 10 hours in one workday at a regular rate of $30 per hour. Ignoring any weekly overtime issue, what is the gross pay for that day?

A nonexempt laborer works 13 hours in one day at $28 per hour. Ignoring weekly overtime, what is the day's gross pay?

A nonexempt employee works 7 consecutive days in the same workweek. On the seventh day, the employee works 6 hours at a regular rate of $26 per hour. What pay applies to the seventh day?

A nonexempt worker's seventh consecutive day in a workweek is 10 hours at a regular rate of $24. What is the seventh-day pay?

A nonexempt installer works 12 hours in a day at a regular rate of $32. Ignoring weekly overtime, what is the correct daily gross pay?

A nonexempt foreman works 9 hours in one day at $40 per hour. What is the gross pay for that day, ignoring weekly overtime?

A nonexempt worker earns $34 per hour and works 11 hours in one day. Ignoring weekly overtime, what is the day's gross pay?

A payroll clerk checks a nonexempt worker paid $22 per hour for a 14-hour day. Before weekly overtime is considered, what is the day's gross pay?

A worker at $25 per hour works 8 hours on the seventh consecutive day of the workweek. What is the pay for that seventh day?

A crew member at $29 per hour works 13 hours on an ordinary workday. How much double-time pay is included in that day?

A worker at $31 per hour works 12.5 hours in one day. Ignoring weekly overtime, what gross pay is due?

A worker's regular rate is $35. What is the overtime rate for hours over 8 up to and including 12 in a CA workday?

A worker's regular rate is $37. What is the double-time rate for hours over 12 in a CA workday?

An employee requests payroll records on March 3. What is the latest calendar date for compliance under the 21-calendar-day rule?

A nonexempt worker at $27 per hour works 9.5 hours in one day. What is the daily gross pay, ignoring weekly overtime?

A nonexempt worker at $36 per hour works 15 hours in one day. What is the day's gross pay, ignoring weekly overtime?

A nonexempt worker at $20 per hour works 6 hours on the seventh consecutive day. What is the seventh-day pay?

A worker's payroll record request is received on June 10. Under DIR's 21-calendar-day limit, what is the latest compliance date?

A worker at $42 per hour works 10.25 hours in a day. Ignoring weekly overtime, what gross pay is due?

A nonexempt worker at $18 per hour works 4 hours on the seventh consecutive day. What is the pay for that seventh day?

The concrete crew worksheet shows a nonexempt worker at $18 per hour works 9 hours on the seventh consecutive day. What is the pay for that seventh day?

A nonexempt employee works five 9-hour days at $28 per hour in one workweek. Assuming no other premium applies, what gross pay is due?

A nonexempt installer works 11 hours in one day at $34 per hour. Ignoring weekly overtime, what is the gross pay for that day?

A nonexempt laborer works 12.5 hours in one workday at $30 per hour. Ignoring weekly overtime, what is the day's gross pay?

A missed meal period premium is owed for one workday at a regular rate of $33. What premium amount is due for that day?

A helper works 9.5 hours in one day at $22 per hour. Ignoring weekly overtime, what gross pay is due?

A nonexempt worker is paid $42 per hour and works 14 hours in one day. Ignoring weekly overtime, what is the day's gross pay?

A nonexempt employee works a seventh consecutive day for 9 hours at $31 per hour. What is the seventh-day pay?

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?

A company has annual overhead of $240,000 and expects 12,000 direct labor hours. What overhead rate per direct labor hour should be used?

A bid includes 320 direct labor hours, and the company's overhead allocation rate is $18 per direct labor hour. How much overhead should be included?

A project has contract revenue of $92,000 and direct job cost of $70,500. What is the gross profit?

A job produced revenue of $84,000 and gross profit of $18,900. What gross margin percentage did it earn?

A contractor has monthly fixed overhead of $36,000. Each average small job contributes $4,500 toward overhead after direct costs. How many such jobs are needed to break even for the month?

A CA contractor expects $72,000 of cash receipts in July and $58,500 of cash disbursements. If beginning cash is $14,000, what ending cash is projected?

A company has current assets of $96,000 and current liabilities of $64,000. What is its current ratio?

A contractor has current assets of $88,000, inventory of $14,000, and current liabilities of $37,000. What is the quick ratio?

A project budget has estimated cost of $118,000. The current cost-to-complete estimate is $131,000. What is the projected cost overrun?

A job was budgeted for $42,000 of labor but is now forecast at $46,200. What is the labor cost variance?

A direct labor payroll is $22,000. The employer's added payroll burden for estimating is 18 percent. What total labor cost should be used?

A new CA employer uses the example UI rate of 3.4 percent and ETT rate of 0.1 percent on the first $7,000 of annual wages per employee. What employer UI plus ETT amount applies to one employee's first $7,000?

A CA contractor buys $14,000 of taxable materials for a lump-sum job, and the applicable tax rate in the problem is 8.25 percent. What tax amount should be budgeted on those materials?

A contractor paid tax at a 7.75 percent rate when buying materials, but the jobsite rate is 8.25 percent. The materials cost $20,000. What additional use tax difference should be budgeted?

A calendar-year individual contractor follows FTB's 2026 estimated-tax installment pattern of 30 percent, 40 percent, 0 percent, and 30 percent. If estimated CA tax is $10,000, how much is due with the second installment?

A contractor pays a $2,500 tax bill by credit card, and the problem states a 2.3 percent service fee. What is the service fee?

An income statement shows revenue of $420,000, cost of goods sold of $310,000, and operating expenses of $72,000. What is net income?

A balance sheet shows cash of $52,000, accounts receivable of $74,000, equipment of $120,000, accounts payable of $38,000, and a loan payable of $96,000. What is total equity?

An accounts receivable aging report shows $18,000 current, $9,500 at 31-60 days, and $6,500 over 60 days. What total receivables are outstanding?

A contractor owes vendors $7,200 current, $4,300 at 31-60 days, and $2,500 over 60 days. What total accounts payable are outstanding?

A job has approved contract value of $200,000 and approved change orders of $18,500. If billings to date are $141,500, what unbilled contract amount remains?

A conditional progress release covers invoices of $8,400, $6,250, and $3,350. What total amount is covered?

A covered claim is $18,500 and the deductible is $2,500. What amount remains after the deductible in this study problem?

Materials first furnished on day 1, and a 20-day notice is mailed on day 28. How many days of earlier furnishing fall outside the 20-day lookback in this study problem?

A private-work study problem gives a 90-day lien-recording period after completion. Completion is day 42. What outside day results?

A closeout checklist requires 18 lien releases, and 15 are received. How many are still missing?

A supplier first delivers materials on day 1 and serves preliminary notice on day 34. Under the 20-day lookback rule, materials furnished starting on what day are protected?

A supplier first furnishes materials on day 1 and serves preliminary notice on day 19. What is the lien-preservation effect of that timing?

A supplier serves preliminary notice on day 47 after first furnishing. Which period is protected by the late notice?

A supplier invoice is $8,600, and the owner will issue a joint check for the full invoice. What amount should appear on the joint check?

A claimant signs a conditional release for $12,000 but is paid only $9,500. What amount is actually supported by payment?

A subcontractor is paid $6,400 for a progress draw. What amount should the unconditional progress release match after payment clears?

Annual insurance premium is $21,600. What monthly accrual should be budgeted if spread evenly?

For many CA lien claimants other than the direct contractor, a valid notice of completion can shorten the lien recording deadline to 30 days. If notice is recorded on May 5, what date is 30 days later?

For a direct contractor, a valid CA notice of completion can shorten the lien recording deadline to 60 days. If notice is recorded on April 10, what date is 60 days later?

A project is completed on March 1 with no notice of completion. What date is 90 days after completion?

A subcontract requires $1,000,000 per occurrence liability coverage, but the certificate shows $500,000. How much additional per occurrence limit is needed to meet the subcontract requirement?

A contract requires a $2,000,000 aggregate limit, and the subcontractor's policy shows $1,500,000. What is the shortfall?

A subcontractor has $750,000 coverage but the contract requires $1,000,000. What percent of the required limit is currently shown?

A contractor has $1,000,000 liability coverage and must meet a $2,000,000 aggregate requirement. What additional aggregate limit is needed?

A conditional progress release lists $15,000, but the check delivered is $13,250. What unpaid balance remains from that listed amount?

A supplier's preliminary notice protects materials from day 18 forward. The supplier delivered $4,200 before day 18 and $9,600 from day 18 forward. What amount is protected by that notice timing?

A flooring supplier first furnishes material on day 1 and serves preliminary notice on day 18. What lien-right timing result best fits CA guidance?

A supplier first furnishes on day 1 and serves preliminary notice on day 42. Under the 20-day lookback rule, materials from what day forward are protected?

A supplier's protected invoices total $16,400. The owner already paid $11,750 by joint check. What unpaid protected amount remains?

A claimant signs a conditional release for $18,000, but only $15,250 actually clears. What paid amount is supported?

A joint check is written for a $12,300 supplier invoice and 10 percent retainage is withheld by written agreement. What joint-check amount is paid now?

A direct contractor is paid $36,000 and must pay two suppliers: $12,500 and $8,750. How much remains before other costs?

A late notice is served on day 63 after first furnishing. Under a 20-day lookback, protected furnishing begins on what day?

A subcontract requires $1,000,000 liability coverage, but the certificate shows $500,000. What should be corrected?

An insurance premium is $18,600 per year. What monthly accrual should be budgeted if spread evenly?

A Class B contractor's prime contract includes fire sprinkler work classified as C-16. What must the contractor do for that scope?

A Class B contractor includes water-well drilling classified as C-57 in the overall project. What is the correct licensing path?

A registered home improvement salesperson leaves one contractor and begins selling for another. What must be checked?

An applicant needs 4 years of qualifying experience and has documented 3.25 years. How many additional years are short?

A contractor bond is $25,000 and a separate qualifying individual bond is $25,000. What total bond amount is represented?

The required contractor bond is $25,000, but the bond on file is $18,750. What shortage exists?

A small repair quote has $420 labor and $510 materials. What aggregate amount is compared to the minor-work threshold?

An office assigns 26 home improvement leads, and HIS association is confirmed for 19. How many leads still need confirmation?

A contractor license renews every two years. How many months are in two renewal cycles?

A customer paid $14,800 to an unlicensed contractor for work requiring a license. What paid-compensation amount is used in this practice problem?

A subcontractor's license classification does not cover the trade scope being subcontracted. What should the prime do before award?

A handyman proposes a $975 shelf repair. The work needs no permit, is not part of a larger project, the person will work alone, and the ad clearly says the person is not licensed. Which statement best fits the B&P §7048 minor-work exemption?

A contractor licensed only as Class B wants to self-perform a C-10 electrical-only service call with no other trades. What is the licensing concern?

An unlicensed person offers to do a $1,000 fence repair that otherwise needs no permit and is not part of a larger job. Does the §7048 minor-work exemption apply?

A $700 drywall patch would normally be under the dollar limit, but the city requires a permit for the work. How does that affect the §7048 exemption?

An unlicensed person offers to perform one $800 phase of a $4,800 bathroom remodel. What is the licensing issue?

CSLB's current contractor bond amount is $25,000. If a contractor already has a $15,000 bond on file, how much additional bond amount is needed to reach $25,000?

A $25,000 contractor bond is required, and a separate Bond of Qualifying Individual is also required at $25,000. What total bond amount is represented by both bonds?

For a repeat unlicensed-contracting offense, B&P §7028 uses the greater of 20 percent of the contract price or $5,000 as the minimum fine measure. If the contract price is $18,000, what is 20 percent?

Using B&P §7028's repeat-offense comparison, a repeat offense involved a $42,000 contract. Which minimum fine comparison amount is greater: 20 percent of the contract price or $5,000?

A repeat unlicensed-contracting offense involved payments of $16,000. Under the 20 percent or $5,000 comparison, which amount controls as the greater figure?

An applicant has 2.5 years of qualifying experience and needs 4 years. How many additional years are short in this study problem?

A Class B contractor subcontracts electrical work to a properly licensed C-10 subcontractor as part of a multi-trade building project. What is the licensing result?

A customer paid $7,500 to an unlicensed person for work requiring a license. Under B&P §7031's disgorgement concept, what amount may the customer seek to recover?

An LLC contractor needs a $100,000 LLC employee/worker bond and a $25,000 contractor bond. What total bond amount is represented by those two bonds?

A contractor needs the current $25,000 contractor bond, but the file shows only $18,000. How much additional bond amount is needed?

A repeat unlicensed-contracting scenario uses the greater of 20 percent of the contract price or $5,000. For a $32,000 contract, which comparison amount is greater?

A repeat unlicensed-contracting scenario uses the greater of 20 percent of the contract price or $5,000. For a $12,000 contract, which amount controls?

A minor repair is priced at $999, needs no permit, is not part of a larger project, has no employees, and the ad states not licensed. How far below the $1,000 threshold is it?

An unlicensed person quotes $450 labor and $575 materials for one job. What is the aggregate contract price for the §7048 threshold?

A 150-foot trench uses one access point per 25 feet in this study problem. How many access points are needed?

A scaffold platform is rated for 2,400 pounds, and the planned combined load is 2,760 pounds. How far over rating is it?

A guardrail plan requires 28 sections, and 21 sections are installed. How many remain to be installed?

A spoil pile must be 24 inches from a trench edge, but it is 7 inches away. How much farther back must it move?

An IIPP follow-up log lists 14 unsafe conditions, and 9 are closed by the correction date. How many remain open?

A project lasts 55 working days and toolbox meetings are planned every 10 working days. Rounding up, how many meetings are needed?

A serious injury becomes known to the employer at 7:15 a.m. If the outside reporting limit is 8 hours, what is the latest report time?

Seventeen outdoor workers need one quart of water per worker per hour for a 6-hour shift. How many quarts are needed?

A roofing crew needs 144 quarts of water. How many gallons is that?

A cool-down area seats 9 workers, but 15 workers need to use it during the same rest period. How many more seats are needed?

A ladder working length is 32 feet. Using a 4-to-1 setup ratio, how far should the base be from the support?

Twenty-two workers are exposed to high-noise chipping, and hearing protection is issued to 16. How many more workers need protection?

A chemical inventory shows 31 products, and the SDS binder has 27 records. How many SDS records are missing?

Respirator use is required for 19 workers, and fit/training records are complete for 13. How many remain incomplete?

A crew of 9 outdoor workers needs drinking water planned at one quart per employee per hour for an 8-hour shift. How many quarts are needed?

Using one quart per employee per hour, how many gallons of water are needed for 12 workers during a 6-hour outdoor shift?

A straight trench is 90 feet long, and the access rule in the problem requires ladder access within 25 feet of workers. How many access points are needed to keep maximum travel within 25 feet along the trench?

A ladder is set at 20 feet of working length. Using a 4-to-1 setup ratio, how far should the base be from the wall?

A heat plan calls for 10 workers, 10 hours, and one quart per employee per hour. How many gallons are required?

A crew has 14 workers for a 7-hour hot outdoor shift. At one quart per employee per hour, how many quarts are needed?

An employer documents 6 hazards during a quarter and corrects 4 of them. What percent of documented hazards were corrected?

A crew works 30 working days on a CA project. If toolbox meetings are required at least every 10 working days, what is the minimum number of meetings?

A hot outdoor shift has 16 employees for 9 hours. Using one quart per employee per hour, how many gallons of water are needed?

A tailgate meeting was held on working day 4. If the next one must occur within 10 working days, by what working day should it occur?

A high-heat observation method allows one supervisor to observe 20 or fewer employees. How many observation groups are needed for 38 employees?

A construction crew works at 96 degrees Fahrenheit for an 8-hour outdoor shift. If high-heat cooldown rests are scheduled every 2 hours, how many periods are scheduled?

An indoor hot-work area has 7 employees for a 6-hour shift. Using one quart per employee per hour, how many quarts of water are needed?

A cool-down area must seat 11 employees during a meal period, but the current setup seats 6. How many more seats are needed?

Management learns of a reportable serious injury at 2:00 p.m. If the standard outside limit is 8 hours, what is the latest report time?

IIPP inspection records are kept for the standard one-year period. How many months is that retention period?

A worker's required package is $80 and paid package is $76 for 18 hours. What shortfall is indicated?

A public works worker performs 8 straight-time hours at a prevailing wage package of $62. What is the straight-time wage package for that day?

For new construction, alteration, installation, demolition, or repair, the DIR small-project threshold is $25,000. A repair contract is $30,000. Is it above that threshold?

An owner-operator's contract price is $18,000. Materials are $7,000, subcontractors are $5,000, and overhead is $2,000. What estimated labor amount remains?

A public agency awards a $1,250 repair contract. Ignoring small-project registration relief, how far above the $1,000 prevailing-wage threshold is it?

A public works progress payment is $200,000. If the standard 5 percent retention cap applies, what is the maximum retention on that payment?

A final public works payment has a disputed item valued at $6,000. Under the 150 percent disputed-amount limit, how much may be withheld for that item?

A subcontractor's retention share is $12,000. There is a bona fide dispute valued at $2,000, and the contract allows withholding 150 percent of the disputed amount. How much should be released if that is the only holdback?

DIR guidance says DAS 142 should be submitted at least 3 business days before apprentices are required. If apprentices are needed Friday, what is the latest business day to submit, assuming no holidays and counting backward three business days?

Training fund contribution is $0.95 per covered hour for 140 hours. What contribution is due?

DIR public works apprenticeship guidance uses a one-to-five apprentice-to-journeyman hour concept. If a craft has 100 journeyman hours, how many apprentice hours are needed?

A public works contractor owes training fund contributions of $0.85 per hour for 320 covered craft hours. What is the contribution amount?

A ready-mix driver is paid for a public works delivery and the reporting rule requires submission within five working days after payment. If paid Monday, what is the fifth working day after payment, assuming no holidays?

A classification's prevailing wage package is $48 base plus $19 fringe. For 6 straight-time hours, what total package amount is due?

A public works subcontract has $75,000 in progress payments. Under a 5 percent retention cap, what total retention would be withheld?

A public work contract is $1,001. How far above the $1,000 prevailing-wage threshold is it?

A repair contract is $26,200. How far above the $25,000 small-project repair threshold is it?

A public maintenance contract is $13,750. How much room remains below the $15,000 maintenance small-project threshold?

A $17,900 maintenance contract is compared with the $15,000 maintenance threshold. How far above the threshold is it?

A prevailing wage package is $74 per hour. Cash wage paid is $61 and qualifying fringe contribution is $13. Is the package met?

The required package is $68 per hour, but cash plus qualifying fringes total $64 per hour for 20 hours. What underpayment is indicated?

A wage shortfall is $2.50 per hour for 36 covered hours. What back wage amount is owed before penalties or interest?

A DAS 142 apprentice request must be sent 72 hours before apprentices are needed. If apprentices are needed on day 10, by what day should the request be sent?

A job has 12 journeypersons, and the problem's apprentice ratio requires 1 apprentice for each 5 journeypersons or fraction. How many apprentices are needed?

Training fund contribution is stated as $0.80 per covered hour. If 120 hours are worked, what contribution is due?

A public works progress payment is $340,000. If 5 percent retention applies, what retention amount is withheld?

A completion event occurs on day 40, and undisputed retention must be released within 60 days. What is the outside day for release in this study problem?

Retention held is $28,000, and the agency has a good-faith dispute over $6,500. What undisputed amount should be released?

A public works claimant is owed $18,200 and later receives $5,000. What unpaid amount remains for payment-remedy analysis?

The payment bond threshold in a study problem is $25,000, and the public works contract is $31,500. How far above the threshold is it?