1. Must be 18 years of age or older and have the experience and skills to manage the daily activities of a construction business, including field supervision. Or you must be represented by someone with the necessary qualifications. This person will serve as your qualifying individual.
2. The contractor or other person who will act as the qualifying individual must have had, within the ten years immediately before the filing of the application, at least four full years of experience at a journey level, or as a foreman, supervisor, or contractor in the classification for which he or she is applying. The experience claimed on the application must be verifiable and individuals who have knowledge of the experience must certify the accuracy of the experience information provided by the applicant.
3. Out of state individuals can apply for a California License if they meet the qualifications. Several states have reciprocity agreements with California which makes it easier to get a license.

Course Materials: Student’s enrolled in the Law and Business course will receive the following items:

• Turn-key Online Exam Prep Systems which include:
  • Online Practice Tests
  • Exam Simulations
  • Flash Cards
  • Zero IT/IS Investment

• Along with
• • • Printed Law and Business Manual
    • Audio/Video Lectures:
      • Chapter 1: License Law
      • Chapter 2: Mechanics’ Lien
      • Chapter 3: Labor Code
      • Chapter 4: Business Management
      • Law and Business Review Questions
    • Printed Law and Business Practice Exams:
      • Law Test 1
      • Law Test 2
      • Law Test 3
      • Law Test 4
      • Law Test 5
      • Law Update

The exam is divided into 7 major sections:

Exam Overview

The Law and Business examination consists of multiple choice questions related to business management and construction law. Applicants can find information on the breakdown of the topics covered in the examination in the Study Guide for the Law and Business Examination that is sent to applicants along with the Notice to Appear for Examination.

It is best to guess! Do not leave an answer blank as that will definitely be a wrong answer. Take your time to read over the question and each answer to find the BEST answer. You will have plenty of time to answer each question.

Exam Topics

The California Law and Business  Exam is divided into the following 7 sections:

1. Business Organization and Licensing (13%)

• Company organization
• Licensing requirements
• Advertising and subcontracting

2. Business Finances (15%)

• Cash management
• Budget and planning
• Taxes
• Financial reporting

3. Employment Requirements (20%)

• Hiring employees
• Supervising and training employees
• Evaluation and record-keeping
• Payroll

4. Insurance and Liens (12%)

• Workers’ compensation insurance
• Business insurance
• Liens and other remedies

5. Contract Requirements and Execution (21%)

• Bidding • Cost control
• Project organization
• Contracts
• Payments

6. Public Works (5%)

• Prevailing wage requirements
• Bonding requirements
• Insurance requirements

7. Safety (14%)

• Training and reporting requirements
• General safety
• Hazardous/unknown materials

Test Site Policy

This is a closed-book examination. No reference materials may be used during the examination. All materials brought to the examination site must be left in an unmonitored area at your own risk.

Test Strategy

This is a multiple-choice examination with four choices per question. Examination questions are written to provide only one BEST answer. Some questions require mathematical computation. A calculator will be provided. There is no penalty for guessing. If you are unsure about a particular question, it is better to try to answer the question than to leave the question blank. Plenty of time is provided to answer all examination questions, so be sure to read each question and its four choices completely and carefully before selecting the BEST possible answer to the question.

The California Law and Business Exam Prep course is available in the comfort of your home using a detailed presentation that takes you through all the information you will need to pass the exam on your first try. You will have access to this course for a full year so you can study at your own pace. Our course is available 24/7 on mobile and desktop.

Material Covered in the Online Course

Designed specifically for California, our Law and Business Manual covers Contractors’ License Law, Mechanics’ Lien Law, Labor Law and Business Principles, including Accounting, all explained in everyday language.

Our Law and Business Course is broken up into five easy to understand sections.

Chapter 1: License Law

A summary of the codes and regulations that new contractors must know.

Chapter 2: Contracts

This new chapter covers contracts such as Home Improvement Contracts, Home Solicitation Contracts, and Public Works Contracts.

Chapter 3: Mechanics’ Lien Law

Covering mechanics’ liens, stop notices, payment bonds, preliminary notices and lawsuits.

Chapter 4: Labor Law

Hiring, wages, benefits, workers’ compensation, employee safety, and payroll taxes.

Chapter 5: Business Management

Principles of management, business entities, and accounting for contractors.

Chapter 6: Operations Management

This new chapter covers jobsite supervision, inventory control, bidding process, and specialty bonds for jobs.

Review Questions

This section of the manual includes the “most difficult” questions with explanations. DVD or Audio CD lectures walk students through these questions and explanations.

How the California Law and Business Exam Prep Course Helps You Pass Your Exam

The Law and Business Course features practice tests and an update containing the newest questions.  The practice tests contain questions, answers, and explanations.  The questions are designed to help test and build each student’s knowledge of the Law and Business subject areas before taking the state license exam.

You have complete access to your course for 365 days.

You will access practice tests which require a 90% or above.

We encourage you to take the practice exams multiple times as the questions on the test change each time. Our courses are designed to help you become familiar with the references and allow you to find the information quickly as the exams are timed.