CSLB California Construction Law 1 — Questions and Answers
Question 1: Under California Business and Professions Code, what is the minimum dollar amount of a project that legally requires a contractor's license?
- $300
- $500 (Correct answer)
- $750
- $1,000
Correct answer: $500
California law requires a contractor's license for any project valued at $500 or more in combined labor and materials.
Question 2: Which California code primarily governs contractor licensing requirements and the CSLB?
- California Labor Code
- California Civil Code
- California Business and Professions Code (Correct answer)
- California Health and Safety Code
Correct answer: California Business and Professions Code
The California Business and Professions Code (BPC), Division 3, Chapter 9, is the primary statute governing CSLB and contractor licensing.
Question 3: What is the legal consequence for contracting without a license in California when the project exceeds the license threshold?
- A warning letter only
- Misdemeanor criminal charge and inability to sue for compensation (Correct answer)
- Automatic license suspension
- A civil fine only
Correct answer: Misdemeanor criminal charge and inability to sue for compensation
Unlicensed contractors face misdemeanor charges and are barred from suing to collect payment for work performed.
Question 4: Under California law, how many days does a contractor have to respond to a CSLB citation?
- 10 days
- 15 days (Correct answer)
- 30 days
- 60 days
Correct answer: 15 days
A contractor has 15 days from service of a CSLB citation to appeal or comply with the citation.
Question 5: Which California statute governs the rights and obligations related to mechanics' liens on construction projects?
- California Business and Professions Code
- California Civil Code §8000 et seq. (Correct answer)
- California Labor Code
- California Code of Civil Procedure
Correct answer: California Civil Code §8000 et seq.
California Civil Code §8000 et seq. (the California Mechanics' Lien Law) governs the rights to file and enforce mechanics' liens.
Question 6: In California, what is the statute of limitations for filing a lawsuit based on a written construction contract?
- 2 years
- 3 years
- 4 years (Correct answer)
- 10 years
Correct answer: 4 years
California Code of Civil Procedure §337 sets a 4-year statute of limitations for actions based on written contracts.
CSLB California Construction Law 1
Under California Business and Professions Code, what is the minimum dollar amount of a project that legally requires a contractor's license?