Law & Business Exam

We make passing the Law & Business exam as easy as 123!
TLC will help you pass your California contractors license exam!

ONE – Commit to becoming a Licensed Contractor, prepare at HOME, & on your schedule, Read, Listen, Watch, Learn, & PASS!

  • Read our Law & Business exam manual. (100% Pass Rate!)
  • Listen as instructors review answers you MUST know.
  • Watch instructors review critical parts of the Law manual.
  • Learn to dominate a four-question multiple-choice exam.
  • PASS the Law & Business exam. The best Law exam course available in California at ANY price!

100% success rate! Our clients all PASS THE LAW & BUSINESS EXAM ON THE FIRST ATTEMPT! 

TWO – Apply to the CSLB. We will help! New online tools will help you correctly fill out your original contractor exam application. Fill out the form, call us for assistance, and schedule a free line by line review of your application before submission to the CSLB!

With our help, submitting a correctly filled out contractor application to the CSLB has never been easier!

THREE – Prepare for and pass your law exam. 100% of students dramatically improve their test scores and pass their Law exam.


SKU: N/A Category:

Course Outline


Our Illustrated California Law & Business exam manual covers all the material needed to pass the Law & Business portion of your contractor license exam. The manual is broken down into six separate chapters, each with a glossary of terms and written in layperson’s language. The manual also includes sample forms, summaries, and checklists – everything you need to ace your law exam. There are no complicated legal codes to decipher!

NOTE: When purchasing a contractors course, you will be able to select which format you want to receive.

Choose from either

  • Paper Manual OR
  • eBook – Full Course 100% Online! (Course Trade Manual, Streaming Audio/Video, and Online Practice tests)

Study conveniently in your home or office, without wasting time commuting to a classroom. Our program is ideal for busy professionals who need an affordable, reliable way to pass the law exam.



Expert instructors and attorneys with decades of related trade experience cover critical Law and Business, contractor exam concepts in greater detail. Our audio and video lectures include Contractors’ License Law, Contracts, Mechanics Lien Law, Employment Law, Business Management, Operations Management, and critical Law & Business review questions.

NOTE: When purchasing a contractors course you will be able to select which format you want to receive.

Choose from either

  • CDs & DVDs OR
  • Audio/Video Streaming Online. (Automatically included in eBook Course)

Audio and video lectures complement the Law & Business Manual. Expert instructors with decades of legal experience cover key exam concepts that you must know, while in the comfort of your home, car, or office.


To target your study, review Law & Business test questions with online flashcards. When you already know an answer, mark it as done, and you won’t see it again. Don’t know the answer? Then mark it for further study. In this way, you gain real-time feedback, so you can concentrate on the subjects that you need to improve.


Take a Law & Business test to check your general knowledge. Verify your progress as you master the study material. Our course includes four online practice exams, plus an exam update consisting of the absolute latest test questions. Take your Law exam with complete confidence!


Other schools may offer 90-day access to online tools in the hopes of charging you extra $ for extended access to study materials. Instead, we provide complete access to all online course materials for an entire year.

When applying for your original contractor’s license, YOU MUST ORDER & PASS TWO SEPARATE EXAMS.

  • The 1st  exam is The TRADE EXAM (covering California Contractor trade practices).
  • The 2nd exam is The LAW & BUSINESS EXAM (covering California Contract Law and Business Practices).

Licensed contractors adding a new TRADE to their existing license, DO NOT need to retake the LAW exam.

Course Breakdown


CSLB Law and Business Exam Manual

Chapter 1: Contractors’ License Law: A summary of the codes and regulations that new contractors must know.

Chapter 2: Contracts: Home improvement – Home solicitation – service & repair and Public Works Contracts.

Chapter 3: Mechanics’ Lien Law: Covering mechanics’ liens, stop notices, payment bonds, preliminary notices, and lawsuits.

Chapter 4: Employment 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: Job Site Supervision, Project Management, Estimating & Bidding Bonds, and Job Costing.

Law & Business Review Questions: similar to practice exams but cover “Must Know” information.

Audio/Video Lectures:

Streaming online Audio and Video files or CDs & DVDs summarize key points from each section of the printed manual. Recorded lectures walk students through the plans, questions, and explanations.

  • Chapter 1: Contractors’ License Law Audio/Video
  • Chapter 2: Contracts Audio/Video
  • Chapter 3: Mechanics’ Lien Law Audio/Video
  • Chapter 4: Employment Law Audio/Video
  • Chapter 5: Business Management Audio/Video
  • Chapter 6: Operations Management Audio/Video
  • Law & Business Review Questions Audio/Video

Law & Business Online Practice Tools

FLASHCARDS: Online flashcard program tracks your history, allowing you to exclude questions you have already learned.

PRACTICE EXAMS: Timed, to simulate actual exam conditions. Questions are updated weekly to reflect changing trends in exam focus based on current user feedback.

Law and Business course with Law Exam CD's DVDs & online practice tests
Pass the Law and Business Exam – Best course available at any price. 100% Pass Rate!$199

Exam Content


Section 1. Business Organization (10% of Exam)

  • Company organization
  • Project organization

Section 2. Business Finances (15% of Exam)

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

Section 3. Employment Requirements (12% of Exam)

  • Employment regulations
  • Evaluation and record-keeping
  • Payroll

Section 4. Bonds, Insurance, and Liens (10% of Exam)

  • Bonds
  • Workers’ compensation insurance
  • Liens and other remedies
  • Other insurance

Section 5. Contract Requirements and Execution (23% of Exam)

  • Bidding
  • Cost control
  • Contracts
  • Payments

Section 6. Licensing Requirements (8% of Exam)

  • Business license
  • Contractor’s license
  • Activity regulation

Section 7. Licensing Requirements (15% of Exam)

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

Section 8. Safety (7% of Exam)

  • Prevailing wage requirements
  • Bonding requirements
  • Insurance requirements

Percentages are approximate

Source Material


The CSLB utilizes the following publications for the creation of the General Engineering exam. California codebooks can be viewed online:

California Contractors License Law and Reference Book. Matthew Bender & Company, Inc.
PHONE: (800) 223-1940

California Employer’s Guide (DE44). California Employment Development Department.
PHONE: (888) 745-3886

California Labor Code.

Contractors Guide to Business, Law, and Project Management. National Association of State Contractors Licensing Agencies (NASCLA).
PHONE: (623) 587-9354

Greenbook: Standard Specifications for Public Works Construction. BNI Building News.
PHONE: (888) 264-2665

Publication 15 (Circular E) Employer’s Tax Guide. Internal Revenue Service.
PHONE: (800) 829-1040

State of California General Industry & Electrical Safety Orders (Cal/OSHA) and State of California Construction & Electrical Safety Orders (Cal/OSHA). 2019. California Code of Regulations, Title 8. Mancomm.
PHONE: (877) 626-2666

Publisher information is current as of 11/19

Free Practice Quiz - LAW


These 10 sample test questions are similar to the ones you will encounter while taking your California
Law & Business Exam. If you easily answer more than 7 questions correctly you are in pretty good shape.

However, if you get 3 or more practice questions wrong you are in danger of failing the LAW portion of your California Contractors Exam.

Of the following, which is a correct statement regarding a schedule of payments in an original bid?

Correct! Wrong!

How often must contractors’ supervisors conduct “tool box” or “tailgate” safety meetings? ​

Correct! Wrong!

What is the relationship between a prime contractor and a subcontractor?

Correct! Wrong!

How long must an employer keep records of FUTA and other federal payroll taxes?

Correct! Wrong!

Who is responsible for selecting materials when refilling a first-aid kit for a jobsite?

Correct! Wrong!

A subcontractor signs an unconditional waiver and release. This means that the____________________:

Correct! Wrong!

Within how many days must an “agreement to arbitrate” be returned by the participants after being mailed by the Registrar?

Correct! Wrong!

According to contract law, when can subcontractors and material suppliers serve a preliminary notice?

Correct! Wrong!

A stop notice on a public works project is used to:

Correct! Wrong!

Which of the following bonds guarantees both job completion and payment of subcontractors and suppliers?

Correct! Wrong!

Free Law & Business quiz: Take our 2019 exam, see where you stand!
FAIL - You did not pass the Law & Business practice exam.

You need our help! Call us from 8am-10pm, Mon-Sat, for a free consultation. We promise you will be very glad you did!
PASS- have passed the Law & Business practice exam.

You did pretty good! Call us from 8am-10pm, Mon-Sat, for a free consultation. We promise you will be very glad you did!

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C-61 Specialty Contractor



D1 Architectural Porcelain – Now under D64 Nonspecialized
D2 Asbestos Fabrication – Now under C2
D3 Awnings
D4 Central Vacuum Systems
D5 Communication Equipment – Converted to C7
D6 Concrete Related Services
D7 Conveyors Cranes – Now under D21 Machinery and Pumps
D8 Doors and Door Services – Now under D28 Doors Gates and Activating Devices
D9 Drilling Blasting and Oil Field Work
D10 Elevated Floors
D11 Fencing – Converted to C13
D12 Synthetic Products
D13 Fire Extinguisher Systems – Now under C16
D14 Floor Covering Converted to C15
D15 Furnaces – Now under General A or C20
D16 Hardware Locks and Safes
D17 Industrial Insulation – Now under C2
D18 Prison and Jail Equipment – Under relevant class
D19 Land Clearing – Now under C12 or General A – If a license is required
D20 Lead Burning and Fabrication – Now under D64 Non-specialized
D21 Machinery and Pumps
D22 Marble – Now under C29
D23 Medical Gas Systems – Now under C36
D24 Metal Products
D25 Mirrors and Fixed Glass – Now under C17
D26 Mobile Home Installation and Repairs Converted to C47
D27 Movable Partitions – Now under D34 Prefabricated Equipment
D28 Doors, Gates and Activating Devices
D29 Paperhanging
D30 Pile Driving and Pressure Foundation Jacking
D31 Pole Installation and Maintenance
D32 Power Nailing and Fastening – Now under D64 Nonspecialized
D33 Precast Concrete Stairs – Now under C29
D34 Prefabricated Equipment
D35 Pool and Spa Maintenance
D36 Rigging and Rig Building – Now under General A
D37 Safes and Vaults – Now under D16 Hardware Locks and Safes
D38 Sand and Water Blasting
D39 Scaffolding
D40 Service Station Equipment and Maintenance
D41 Siding and Decking
D42 Non-Electrical Sign Installation
D43 Soil Grouting – Now under C32 or C12 or General A
D44 Sprinklers – Now under D12 Synthetic Products
D45 Staff and Stone – Now under C29
D46 Steeple Jack Work – Under relevant class
D47 Tennis Court Surfacing – Now under C12 or General A
D48 Theater and School Equipment – Now under D34 Prefabricated Equipment
D49 Tree Service
D50 Suspended Ceilings
D51 Waterproofing and Weatherproofing – Under relevant class
D52 Window Coverings
D53 Wood Tanks
D54 Rockscaping – Now under C15 or C27
D55 Blasting – Now under C12 or General A
D56 Trenching Only
D57 Propane Gas Plants – Now under General A
D58 Residential Floating Docks – Now under General A
D59 Hydroseed Spraying
D60 Striping – Now under C32
D61 Gold Leaf Gilding – Now under D64 Nonspecialized
D62 Air and Water Balancing
D63 Construction Cleanup
D64 Non-specialized
D65 Weatherization and Energy Conservation

CSLB lists the C-61 classifications in “D” subcategories for administrative tracking. Definitions for the “D” subcategories were developed by staff and approved by the Board as policy.

D3 Awnings: An awning contractor installs, modifies or repairs aluminum, metal, vinyl or canvas awnings and patio covers. These installations can be either freestanding or attached to a structure. Patio enclosures or carports are not included in this classification.

D4 Central Vacuum Systems: A central vacuum systems contractor installs, modifies, maintains or repairs central vacuum systems, pneumatic tube dispatching systems or any other type of pipeline which operates systems of reduced pressure for any purpose.

D6 Concrete-Related Services: A concrete-related services contractor installs reusable steel concrete form sections or interlocking precast pavers; performs post-tensioning work, concrete sawing, breaking, curing, floor hardening treatment, coloring concrete, concrete restoration, coring work or operates a concrete pumping service; and also includes the application of gunite, but does not include the installation of reinforcing steel.

D9 Drilling, Blasting and Oil Field Work: A drilling, blasting and oil field work contractor does core and post hole drilling, horizontal drilling (no piping) and drilling for placement of charges and performing blasting work; performs drilling for site dewatering, oil well drilling, and other oilfield-related specialty work. (DOES NOT INCLUDE WATER WELL DRILLING)

D10 Elevated Floors: An elevated floors contractor installs wood or metal framed elevated computer flooring systems. This work does not include the construction of mezzanines.

D12 Synthetic Products: A synthetic products contractor installs:

(a) Synthetic counter tops and wall coverings; fiberglass, plastic, vinyl and epoxy products; plastic tile board and decorative artwork; and synthetic turf;

(b) Bathtub and enamel refinishing, resin and epoxy application, and synthetic caulking and sealants;

(c) Reservoir liners, vinyl swimming pool relining, pier piling wrap, and rodent guards; and

(d) PVC piping systems for irrigation and drainage; and subsurface irrigation drip systems.

D16 Hardware, Locks, and Safes: A hardware, locks and safes contractor installs, modifies or repairs power and/or manually activated door and window locks with related hardware, built-in safes, and vaults.

D21 Machinery and Pumps: A machinery and pumps contractor installs, removes, modifies or repairs:

(a) Pumps; conveyors; cranes; dock levelers; various hoisting and material handling equipment; and meters;

(b) Dumbwaiters; handicap lifting and assistance equipment; automated speed-rail trolley systems for garment hanging; and

(c) Automatic car washing racks and auto body paint finishing booth equipment.

NOTE: Construction of buildings and/or roof structures for this equipment is not included.

D-24 Metal Products: A metal products contractor installs, modifies or repairs the following:

(a) Metal cabinets, lockers, modular storage structures, mail chutes, cable racks; and aluminum or vinyl storm doors and windows;

(b) Metal wall tiles; aluminum fascia covers; and metal gutters; and

(c) Aluminum studs and trusses; metal railings and turnstiles; metal prison cell accessories such as welded-to-structure cell furniture; grills; and cabinets.

D28 Doors, Gates, and Activating Devices: A doors, gates and activating devices contractor installs, modifies or repairs all types of residential, commercial or industrial doors including overhead or sliding door assemblies. This includes but is not limited to: wood and screen doors, metal-clad doors, glass sliding/ stationary doors and frames, automatic revolving doors, hospital cubical doors and related installations; power-activated doors, gates, movable sun shades/shutters; card-activated equipment and other access control device; and any low-voltage electronic or manually operated door hardware/device.

D29 Paperhanging: A paperhanging contractor applies all types and varieties of decorative wall coverings, except painting or paneling, including paper and vinyl goods, cork, burlap and carpet-type wall coverings.

D30 Pile Driving/Pressure Foundation Jacking: A pile driving/pressure foundation jacking contractor provides a pile driving and/or caisson drilling or auger service. This work also includes but is not limited to the injection of concrete or mortar into foundations for stabilization purposes.

D31 Pole Installation and Maintenance: A pole installation and maintenance contractor installs wood or precast poles to support the wiring or cable that is installed by others or installs and maintains flagpoles.

D34 Prefabricated Equipment: A prefabricated equipment contractor performs the installation of prefabricated products/equipment, including but not limited to the following:

(a) Theater stage equipment, school classroom equipment, playground equipment, bleacher bench/seat component parts (no installation or renovation of any supporting or structural member); store fixtures, and display cases (either prefabricated or modular form); all forms and types of toilet/shower room partitions/accessories; and prefabricated closet systems.

(b) Laboratory and medical equipment, and dust-collecting systems; factory-built fireplaces and accessories (no masonry facing); major appliance installations and ventilating hoods in connection with existing fuel and energy lines which are installed by others.

(c) Bus stop shelters, prefabricated phone booths; prefabricated soundproof environmental clean rooms; panelized refrigerated walk-in boxes (not to include the work of refrigeration contractor); all types of modular office, institutional or home improvement systems including, but not limited to, all types of pre-finished and/or UL listed pre-wired wall panels.

D35 Pool and Spa Maintenance: A pool and spa maintenance contractor installs, replaces or repairs pool motors, pumps,
filters, gas heaters and any above-ground piping in connection with pools; includes electrical switches, breakers, pool lights, diving boards, existing solar systems that heat pools, pool and spa acid baths, and applies vinyl liners to existing surfaces.

D38 Sand and Water Blasting: A sand and water blasting contractor uses the force of compressed air in conjunction with abrasive materials or water to clean or prepare surfaces for any protective, decorative and/or functional treatment.

D39 Scaffolding: A scaffolding contractor erects metal or wood scaffolding including temporary sidewalk sheltered construction work barricades.

D40 Service Station Equipment and Maintenance: A service station maintenance contractor installs and/or removes underground fuel storage tanks up to 20,000 gallons which have been or are to be used for dispensing gasoline, diesel fuel, waste oil or kerosene (no chemicals). This work involves the installation and/or removal of all incidental tank-related piping, electrical work, including the installation of vapor probes in backfill areas of the tanks and any associated calibration work including, but not limited to, the testing and adjustment of leak detection and vapor recovery equipment, such as automatic tank gauges, leak line detectors, vapor recovery lines, and in-station diagnostics. This contractor also performs the installation of auto hoisting equipment, grease racks, compressors, air hoses, and other service station equipment.

NOTE: Licensees holding this classification prior to January 18, 2001, may perform all the work as described above. Licenses issued after this date may perform the “calibration” work only.

D41 Siding and Decking: A siding and decking contractor applies or installs all types of exterior siding including wood, wood products, vinyl, aluminum and metal siding to new or existing buildings. This contractor also constructs wooden decks and related handrails. This work shall not include the construction or installation of covers or enclosures of any kind.

D42 Non Electrical Sign Installation: A non-electrical sign installation contractor fabricates and installs all types of nonelectrical signs including, but not limited to: post or pole-supported signs, signs attached to structures, painted wall signs, and modifications to existing signs.

D49 Tree Service: A tree service contractor prunes trees, removes trees, limbs or stumps (including grinding) and engages in tree or limb guying.

D50 Suspended Ceilings: A suspended ceilings contractor installs, modifies or repairs all types of suspended ceilings including, but not limited to: lay-in-grid and other types of systems involving solid, perforated or translucent ceiling panels (no electrical work).

D52 Window Coverings: A window coverings contractor installs or applies decorative, architectural/functional window/glass treatment or covering products including, but not limited to: all types of materials and fabrics that make up louvers, shutters, Venetian, and mini-blinds; residential or commercial draperies and screens; expanded metal window and door guards; plastic film window treatment and/or any other window treatment applied for temperature control or as a screening device.

D53 Wood Tanks: A wood tanks contractor erects or repairs elevated wooden storage tanks and related cooling towers. (Hot tubs are not included.)

D56 Trenching: A trenching contractor is limited to trenching only for foundations, pipelines, conduit and related trenching work.

D59 Hydroseed Spraying: A hydroseed spraying contractor applies seeds through any liquid media to any type of surface that has been prepared or contoured by others.

D62 Air and Water Balancing: An air and water balancing contractor installs any device and performs any work related to providing a specified flow of air in all types of existing heating and cooling systems and/or related to providing a specified flow of water in water piping systems.

D63 Construction Cleanup: A construction cleanup contractor cleans up and/or removes from building grounds or structures any debris resultant from any construction project including, but not limited to: concrete, dirt, scrap lumber, plaster, drywall, any paint or adhesive products from windows, floors, ceramic tile and bathroom fixtures.

D64 Non-specialized: A non-specialized contractor installs, modifies, maintains and repairs new products and/or new installations which are not defined in any section herein or defined in any license classification authorized by the Board under Chapter 9, Division 3 of the Business and Professions Code (Contractors License Law).

D65 Weatherization and Energy Conservation: 
A weatherization and energy conservation contractor installs, removes, modifies or repairs or provides maintenance services for energy conservation products limited to the following: door and window weather stripping, caulking, water heater pipe wrap, water heater blankets, insulating gaskets for electrical outlet covers, shade screens, shutters, storm windows, tinted window film, residential water flow-restricting devices installed onto existing fixtures. (DOES NOT INCLUDE INSULATION, GLAZING OR HEATING VENTILATING AND AIR-CONDITIONING WORK)


(a) Limited specialty is a specialty contractor classification limited to a field and scope of operations of specialty contracting for which an applicant is qualified other than any of the specialty contractor classifications listed and defined in this article.

(b) An applicant classified and licensed in the classification Limited Specialty shall confine activities as a contractor to that field or fields and scope of operations set forth in the application and accepted by the Registrar or to that permitted by Section 831.

(c) Upon issuance of a C61 license, the Registrar shall endorse upon the face of the original license certificate the field and scope of operations in which the licensee has demonstrated qualifications.

(d) A specialty contractor, other than a C61 contractor, may perform work within the field and scope of the operations of Classification C61, provided the work is consistent with established usage and procedure in the construction industry and is related to the specialty contractor’s classification.

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