Free CSLB Law & Business Exam Practice Test
Realistic 115-question practice exam with instant feedback and score reports.
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About this practice exam
Free CSLB Law & Business Exam practice test with 115 realistic multiple-choice questions, instant grading, and explanations. Administered by PSI. Typical passing score is about 72%. Study with drill mode, category score reports, and a personalized review plan.
Exam format
- 115 multiple-choice practice questions
- Based on the PSI exam format
- Typical passing score: 72%
- Suggested time: 180 minutes
- Drill mode with instant feedback and explanations after each answer
- Category score reports every 20 questions
What's on the exam
This practice test mirrors the weighted categories on the real Law & Business exam:
| Category | Weight |
|---|---|
| Business Organization | 10% |
| Business Finances | 12% |
| Employment Requirements | 10% |
| Workers Compensation | 8% |
| Contract Requirements | 14% |
| Insurance & License Bonds | 10% |
| Project Management | 10% |
| Safety & OSHA | 10% |
| Taxes & Ethics | 8% |
| California Contractor Law | 8% |
Study tips
- Review the official exam content outline before your first practice run.
- Take the full practice exam once to establish a baseline score by category.
- Focus review on categories where you score below the passing threshold.
- Re-take missed questions in drill mode until you can explain each correct answer.
- Schedule the real exam only after consistent passing scores on practice tests.
Sample Law & Business practice questions
Try a few representative questions below. Each includes the correct answer and a short explanation — the same style you'll see in the full practice test.
- Question 1Licensing Law
A California contractor advertises using a license number that belongs to another active licensee. This is best described as:
- A.Permitted if the other licensee gives verbal permission
- B.A minor paperwork issue corrected at renewal
- C.A serious violation that can lead to disciplinary action(Correct)
- D.Allowed for subcontractors only
Explanation
Misrepresenting licensure status or using another person's license number in advertising violates CSLB rules. The Board can pursue disciplinary action including suspension or revocation.
- Question 2Business Finances
Which document best helps a contractor determine whether a specific job was profitable after completion?
- A.A preliminary lien notice
- B.A job cost report comparing estimated vs. actual labor, materials, and overhead(Correct)
- C.The customer's signed change-order log only
- D.The workers' compensation policy declarations page
Explanation
Job costing tracks direct and indirect costs per project. Comparing estimates to actuals shows whether markup covered overhead and profit — essential for sustainable bidding.
- Question 3Contract Requirements
For a California home improvement contract over the statutory threshold, which element is typically required in the written agreement?
- A.A verbal description of work is sufficient if the customer is a repeat client
- B.The contract price, description of work, start/completion dates, and required notices(Correct)
- C.Only the contractor's license number on the invoice
- D.A notarized signature from a building inspector
Explanation
Home improvement contracts must include required consumer-protection disclosures, scope, pricing, and timing. Missing mandatory terms can make the contract unenforceable and trigger CSLB violations.
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Frequently asked questions
How many questions are on this Law & Business practice test?
This practice test includes 115 multiple-choice questions designed to mirror the format and difficulty of the real CSLB Law & Business Exam.
Is this Law & Business practice test free?
Yes. You can start practicing for free. Create an account to save progress, track weak categories, and retake the exam.
Do I get explanations after each question?
Yes. In drill mode you see why the correct answer is right, why distractors are wrong, and practical examples where relevant.
How should I use this practice test to prepare?
Take the full exam under timed conditions, review missed questions by category, then focus study on your weakest sections before scheduling the real exam.
Does this replace official PSI materials?
No. Use this as a supplement alongside official candidate information bulletins, textbooks, and hands-on experience required for your license or certification.
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