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California · Updated October 2026

California CSLB Law & Business Exam: free practice test

Every California applicant takes Law & Business plus the trade exam for their classification. It's closed book, so you need the numbers memorized: bond amounts, down-payment limits, lien deadlines and cancellation rules.

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About the CSLB Law & Business exam

Every California applicant takes Law & Business plus the trade exam for their classification. It's closed book, so you need the numbers memorized: bond amounts, down-payment limits, lien deadlines and cancellation rules.

What's on the exam

CSLB Law & Business
Licensing and the CSLB
7 key facts
Home Improvement Contracts
7 key facts
Mechanics Liens and Payment
7 key facts
Bonds, Insurance, Workers' Comp
7 key facts
Employment Law and Payroll
7 key facts
Cal/OSHA Safety Requirements
7 key facts
Business Finance and Estimating
6 key facts

Each branch is a topic in the official outline. Members see every key fact on the full mind map. Read the free study guide →

How to pass the CSLB Law & Business exam

  • Closed book: build flashcards for every dollar figure and day count.
  • Watch for 2025 changes: the minor-work exemption is now under $1,000, not $500.
  • Home improvement rules (down payment, right to cancel, required notices) are heavily tested.
  • Lien deadlines depend on whether a notice of completion was recorded. Learn both paths.

Save your results and get your Readiness Score

Create a free account after the test: your score by topic, a mistakes bank, the first study-notes topic, flashcards and the Construction Math Formula Sheet.

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What's in the full CSLB Law & Business prep

Full question bank

600+ exam-style questions written to each official outline. Every answer explained, with the rule it comes from.

Timed exam simulator

Real question counts and time limits, so test day feels like practice day.

Exam Readiness Score

One 0 to 100 number that tells you when you're ready to book. Reach 80 and you're covered by our Pass Guarantee.

Flashcards + spaced repetition

530+ cards that come back right before you'd forget them. Five minutes a day keeps every number fresh.

Key study notes

Each topic boiled down to the 5 to 7 facts that get tested, with the statute or code section.

Mind maps

See the whole exam on one screen: every topic and the facts under it.

Sample questions with answers

These are the questions in the free test above, with answers. Try the test first. You'll learn more by getting some wrong.

1. Since January 1, 2025, an unlicensed person may perform minor work in California only if the total contract price is under what amount, no permit is required, and they employ no one?
Answer: $1,000. AB 2622 raised the Business & Professions Code §7048 minor-work exemption from $500 to $1,000, with the permit and no-employee conditions.
2. The contractor's license bond required by CSLB is:
Answer: $25,000. SB 607 raised the contractor's bond to $25,000 effective January 1, 2023.
3. The maximum down payment on a home improvement contract is:
Answer: 10% of the contract price or $1,000, whichever is less. B&P Code §7159.5 limits the down payment to $1,000 or 10% of the contract price, whichever is less.
4. A homeowner aged 65 or older who signs a home improvement contract has a right to cancel within:
Answer: 5 business days. Most buyers get 3 business days. Since 2021, buyers 65 and older get 5 business days.
5. A service and repair contract under B&P §7159.10 is limited to a contract price of:
Answer: $750 or less. Service and repair contracts are capped at $750 and have their own, simpler disclosure rules.
6. A subcontractor must serve a preliminary notice within how many days of first furnishing labor or materials to protect full lien rights?
Answer: 20 days. Civil Code §8204: serve the 20-day preliminary notice within 20 days of first furnishing. Late notice only covers work from 20 days before service onward.
7. If no notice of completion is recorded, a direct contractor must record a mechanics lien within how many days after completion of the work of improvement?
Answer: 90 days. Civil Code §8412: 90 days after completion when no notice of completion or cessation is recorded. With a recorded notice, it's 60 days for direct contractors.
8. When the owner records a notice of completion, a subcontractor must record its lien within:
Answer: 30 days after recording. Civil Code §8414: claimants other than the direct contractor have 30 days after a notice of completion is recorded.
9. Which classification must carry workers' compensation insurance even if the contractor has no employees?
Answer: C-39 Roofing. Since 2017, C-39 Roofing licensees must have workers' comp regardless of employees (C-8, C-20, C-22 and D-49 are also covered). Universal coverage is phased in later.
10. A licensee must notify CSLB of a change of business address within:
Answer: 90 days. B&P §7083 requires notice of changes in address, business name or personnel of record within 90 days.
11. A Responsible Managing Employee (RME) must be employed by the licensee for at least:
Answer: 32 hours per week or 80% of operating hours. B&P §7068.1: the RME must be permanently employed and actively engaged at least 32 hours per week or 80% of the business's operating hours, whichever is less.
12. A California contractor's license number must appear on:
Answer: All bids, contracts and advertising. B&P §7030.5 requires the license number on all construction contracts, subcontracts, calls for bid and all forms of advertising.
13. Cal/OSHA must be notified of a serious workplace injury, illness or death within:
Answer: 8 hours. Title 8 §342 requires reporting serious injuries, illnesses and deaths to Cal/OSHA immediately, and no later than 8 hours after the employer knows.
14. A Cal/OSHA permit is required before constructing a trench or excavation that employees will enter at a depth of:
Answer: 5 feet or more. California requires an annual or project Cal/OSHA permit for trenches and excavations 5 feet or deeper into which a person must descend.
15. An active California contractor license must be renewed every:
Answer: 2 years. Active licenses expire every 2 years. Inactive licenses are renewed every 4 years.

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  • Video lessons as they release
  • New exams added during your access
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Licensing guide

How to Get a Contractor License in California (2026): To get a California contractor license, you need at least four years of journey-level experience in the last 10 years, a $450 application to the Contractors State License Board (CSLB), and passing scores on the Law and Business exam plus a trade exam for most classifications. After you pass, you pay a $200 or $350 initial license fee, file a $25,000 contractor bond, and file workers' compensation coverage or an exemption. You need a license for any job of $1,000 or more in labor and materials, or any job that needs a building permit.

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Exam details are summarized from the official candidate information available in October 2026. Boards change formats and fees, so confirm with Contractors State License Board (CSLB) before you book. ContractorConquer is not affiliated with any licensing board or testing company.

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