Law and Business exam · California · 2026

California Contractor Law and Business Exam Prep 2026

Study for the California Contractors State License Board (CSLB) Law and Business exam with practice questions, full mock sittings and flashcards. Built on California's own public domain statutes and regulations, not on any copyrighted study guide.

800+ Study items
115 Mock exam
72% To pass
100% Offline
The exam

What the California contractor Law and Business exam involves

Every applicant for a California contractor license must pass the Law and Business examination. It is administered by PSI Services for the Contractors State License Board (CSLB) at a PSI test center, and it is scored separately from the trade (classification) exam.

How many questions are on the California Law and Business exam?

The CSLB does not publish an exact scored-question count. Prep sources commonly describe the Law and Business exam as about 115 multiple-choice questions, and CSLB officially gives you 3.5 hours (210 minutes) to complete it. It is a closed-book, computer-based exam with four choices per question.

  • Questions: about 115, multiple choice, four choices, one best answer (CSLB does not publish an exact count)
  • Time limit: 3.5 hours (210 minutes), confirmed by CSLB
  • Format: closed book, taken on a computer at a PSI test center

What is the pass mark for the California Law and Business exam?

The CSLB does not publish a fixed passing score. Its official guidance is that you are told the percentage of correct answers needed to pass at the test site, and that the percentage varies by examination. Any specific figure such as 72 percent that you see on prep sites is not an official CSLB number. Successful candidates are simply told they passed and are not given a detailed score.

What topics are on the California Law and Business exam?

The CSLB Law and Business Study Guide divides the exam into seven major sections with these approximate weights, and our mock exams and practice topics follow the same official blueprint.

  • Business Organization and Licensing: about 13%
  • Business Finances: about 15%
  • Employment Requirements: about 20%
  • Insurance and Liens: about 12%
  • Contract Requirements and Execution: about 21%
  • Public Works: about 5%
  • Safety: about 14%

When does a California contractor license become required?

You need a California contractor license for any construction job where the combined cost of labor and materials is 500 dollars or more. Below that 500 dollar threshold the work may fall under the minor-work exemption, but splitting a larger job into smaller contracts to stay under the cap is prohibited.

How is the exam applied for, and can you retake it?

You apply to the CSLB, which charges an application fee (currently 450 dollars for one classification) that covers exam scheduling through PSI. After a failed exam you are generally eligible to retake it after 21 days, and your application stays valid for 18 months in which to pass both the Law and Business and the trade exams.

Features

A complete study system, on one device

01 / PRACTICE

Practice mode

Work through 686 questions by topic across all seven official sections, from business organization and finances to employment, insurance and liens, contracts, public works and Cal/OSHA safety, with an explanation and a California statute reference on every answer.

02 / MOCK

Mock exam

Sit full mock exams weighted to the CSLB's own seven-section blueprint, so your practice mix matches the real Law and Business exam: licensing, finances, employment, insurance and liens, contracts, public works and safety.

03 / FLASHCARDS

Flashcards

Drill 194 flashcards on the dollar thresholds, bond amounts, deadlines and Cal/OSHA rules the exam expects you to know cold, from the 25,000 dollar contractor bond to the 500 dollar licensing threshold.

What's inside

What to look for in an exam-prep app

Based on the official public source Yes, California's own enacted statutes and regulations: Business and Professions Code Division 3, Chapter 9 (the Contractors State License Law), Civil Code works-of-improvement and mechanics lien law, Labor Code (wages, workers' compensation, prevailing wage and Cal/OSHA) and Title 8 construction safety orders, with the CSLB Law and Business exam blueprint for topic weights and CSLB and PSI materials for exam logistics
Timed mock exam 115 questions, 210 min
Pass rule applied 72% to pass
Answer explanations mapped to the source Yes
Weak-area review Yes
Flashcards (spaced repetition) Yes
Works fully offline, no account Yes
Ads None
Payment One-time purchase
Last content review 2026-07-06
In the app

Calm, focused study, nothing else

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Sample questions

Try 10 real practice questions

Tap an answer to see why it is right, mapped to the official source, exactly as in the app.

Business Organization & Licensing

What is the common name of California's Business and Professions Code Division 3, Chapter 9, which governs contractors?

Based on: B&P § 7000 (short title)

Business Organization & Licensing

How often must the Contractors State License Board meet to transact business?

Based on: B&P § 7006 (board meetings)

Business Finances

In double-entry bookkeeping, each transaction records equal amounts of what?

Based on: Double-entry bookkeeping

Employment Requirements

Before the CSLB will issue, reinstate, or renew a license, what must an applicant or licensee generally have on file at all times?

Based on: B&P § 7125

Employment Requirements

Who issues and files the Certificate of Workers' Compensation Insurance required under B&P 7125?

Based on: B&P § 7125

Insurance & Liens

What is the required amount of a California contractor's bond?

Based on: B&P 7071.6

Insurance & Liens

In whose favor is a contractor's bond executed?

Based on: B&P 7071.5

Contract Requirements & Execution

Above what aggregate contract price do the home improvement contract requirements of Section 7159 apply?

Based on: B&P 7159(b)

Public Works

Under Labor Code 1720, work is a 'public work' when it is construction, alteration, demolition, installation, or repair done under contract and paid for how?

Based on: Lab. Code 1720(a)

Safety

What is the stated purpose of the California Occupational Safety and Health Act of 1973?

Based on: Lab. Code 6300

Source & accuracy

Where the questions come from, and when we last checked

Built from California's own enacted statutes and regulations: Business and Professions Code Division 3, Chapter 9 (the Contractors State License Law), Civil Code works-of-improvement and mechanics lien law, Labor Code (wages, workers' compensation, prevailing wage and Cal/OSHA) and Title 8 construction safety orders, with the CSLB Law and Business exam blueprint for topic weights and CSLB and PSI materials for exam logistics (2026 edition (California law in force 2026; exam blueprint from the CSLB Law and Business Study Guide for examinations scheduled on or after 1 December 2021)), the official public source, used under California enacted statutes and regulations are uncopyrightable edicts of government and are published free by the State of California at leginfo.legislature.ca.gov. This app uses the enacted law, not the copyrighted CSLB or LexisNexis reference book. The Business Finances topic uses independently authored original study material, not statute text.. View the official source .

Last checked against the source: 2026-07-06.

Study items
800+
Questions
686
Flashcards
194
Mock exam
115
Pass mark
72%

All questions are original and written from the public source. No official exam questions are copied.

Content audit trail
  • 2026-07-06 Exam facts verified against primary CSLB and PSI sources across two independent AI research passes. Confirmed as official: the 3.5-hour (210-minute) time limit and the seven-section content blueprint with its topic weights. Confirmed as NOT published by CSLB: the exact scored-question count and any fixed pass mark, both of which are described honestly here rather than stated as precise official figures. Every question was cross-checked against its cited California statute by a second, independent AI model.
  • 2026-07-06 Initial build from California public-domain statutes and regulations: 686 questions and 194 flashcards across all seven official Law and Business sections. The copyrighted CSLB reference book and any official examination questions were deliberately not reproduced.
FAQ

Common questions

Is this the official California contractor exam app?

No. This is an independent study aid and is not affiliated with or endorsed by the State of California, the Contractors State License Board (CSLB), or PSI. It is built from public domain California statutes and regulations.

How many questions are on the California Law and Business exam?

The CSLB does not publish an exact scored-question count. Prep sources commonly describe it as about 115 multiple-choice questions, and CSLB gives you 3.5 hours (210 minutes) to complete the closed-book exam.

What is the pass mark for the California Law and Business exam?

The CSLB does not publish a fixed passing score. Officially, you are told the percentage needed to pass at the test site, and it varies by exam. Figures like 72 percent that appear on prep sites are not official CSLB numbers, so our mock exams use an internal practice threshold, not a claimed official pass mark.

When do I actually need a California contractor license?

Once the combined cost of labor and materials on a job is 500 dollars or more. Splitting a larger job into smaller contracts to stay under that threshold is not allowed.

What topics does the app cover?

All seven official CSLB Law and Business sections at their official weights: Business Organization and Licensing, Business Finances, Employment Requirements, Insurance and Liens, Contract Requirements and Execution, Public Works, and Safety.

Does the app work offline?

Yes. Everything is stored on your device. There is no login and no internet connection is needed after you install it, so you can study anywhere.

Who writes these questions, and how do you check the answers are right?

Every question is written from California's public statutes and cites the section it comes from. Before it ships, a second, independent AI model from a different family confirms the cited statute supports the answer, and a human reviews anything the two models disagree on. Read the full process at rivermaplearning.com/how-we-build-questions.

How do I restore my purchase on a new phone?

Use the Restore Purchases option on the same app store account you bought it with, and the full question bank unlocks again at no extra charge.

Get the app

Walk into your test prepared.

One purchase. Every question. Yours offline, forever.

This app is not affiliated with, endorsed by, or sponsored by the Contractors State License Board (CSLB) or the State of California. It is an independent study aid. Six of the seven exam topics are built from publicly available California statutes and regulations; the Business Finances topic uses independently authored general business-finance study material. Mock pass marks are this app's internal practice thresholds: the CSLB does not publish a fixed passing score.