California Contractor Law and Business Practice Test
Every California contractor license applicant takes the CSLB Law and Business exam. Practice all seven sections of CSLB’s study guide with explanations that cite the law, then sit a full 115-question practice exam on the 3½-hour clock with a score for every section.
115 questions on the real 3½-hour clock, weighted to CSLB’s study guide, with a score for every section and an explanation for every answer.
Or start with a free 10-question drill- 414 original Law and Business questions with explanations
- 8 free drills: every study-guide section plus a mixed set
- 57% of candidates passed in fiscal year 2022/23
How long does the IRS require an employer to keep its employment tax records, such as wage payment amounts and copies of filed returns?
Law and Business exam format
Every license applicant: Law and Business is the same exam for every classification, taken alongside the trade exam (C-61 Limited Specialty applicants take it with no trade exam). In fiscal year 2022/23, 17,737 candidates took it and 57% passed.
- Format
- Computer-based multiple choice at PSI test centers. Every question has four choices and one BEST answer
- Time
- 3½ hours for each exam, after an on-screen tutorial of up to 15 minutes that does not count against your time
- Reference
- Closed book. A calculator is provided; you may not bring your own
- Scoring
- No penalty for guessing. You get a printed score report before you leave: a pass report does not show your score; a fail report shows your overall score and the number of questions you answered correctly
- Fees
- $450 application fee to CSLB for one classification, then $51.43 to PSI for each exam, every attempt. After you pass: the initial license fee ($200 sole owner, $350 other entities) and the $25,000 contractor bond
- Retakes
- Wait 21 calendar days after a failed attempt, then reschedule with PSI and pay the exam fee again. You have 18 months from the date CSLB accepts your application to pass
- Spanish
- Law and Business and General Building (B) are offered in Spanish, and you can switch between English and Spanish on screen. For an exam that is not translated, CSLB can approve a translator
- Where
- 20 PSI test centers in California and one in Oregon. Law and Business is also offered at PSI centers in other states
What’s on the Law and Business exam
The 7 sections of CSLB’s Law and Business study guide with their approximate weights. Our practice exam draws its 115 questions in the same proportions. Every section has a guide and a free ten-question drill with an explanation after every answer; each drill’s first attempt is free.
| Section | Weight | What it covers | Drill |
|---|---|---|---|
| 1. Business Organization and Licensing | 13% | Sole ownerships, partnerships, corporations and LLCs, qualifiers, license classifications, bonds, renewals and the rules on advertising and hiring subcontractors. | 10-question drill |
| 2. Business Finances | 15% | Cash flow, budgets, overhead and markup, depreciation, balance sheets and income statements, financial ratios and business taxes. | 10-question drill |
| 3. Employment Requirements | 20% | Hiring and documents, employees versus independent contractors, wage and hour rules, payroll and payroll taxes, and the records you must keep. | 10-question drill |
| 4. Insurance and Liens | 12% | Workers’ compensation, liability and other business insurance, mechanics liens, stop payment notices, payment bond claims and lien releases. | 10-question drill |
| 5. Contract Requirements and Execution | 21% | Bidding and estimating, job cost control and scheduling, contract elements, home improvement contracts, change orders and payment rules. | 10-question drill |
| 6. Public Works | 5% | Prevailing wages, certified payroll, DIR registration, apprentices, and the bond and insurance requirements on public jobs. | 10-question drill |
| 7. Safety | 14% | Cal/OSHA training and reporting duties, the Injury and Illness Prevention Program, job-site safety and hazardous materials such as asbestos and lead. | 10-question drill |
What the Law and Business exam tests
- Contract Requirements and Execution (about 21%) and Employment Requirements (about 20%) are the two largest sections. Together they are over 40% of the exam.
- Business Finances (15%), Safety (14%), Business Organization and Licensing (13%) and Insurance and Liens (12%) come next.
- Public Works is the smallest section, at about 5%: prevailing wages, bonds and insurance on public jobs.
Sit the full exam under the real clock
115 questions on the real 3½-hour clock, weighted to CSLB’s study guide, with a score for every section and an explanation for every answer.
Or start with a free 10-question drillCommon questions
How many questions are on the CSLB Law and Business exam?
CSLB does not publish the number of questions. It publishes the sections and their approximate weights in the study guide, and every CSLB exam allows 3½ hours. Our practice exam uses those weights on the same clock.
What score do you need to pass the CSLB Law and Business exam?
CSLB does not publish passing scores; the percentage of correct answers needed varies by exam, and you are told it at the test site. A pass report does not show your score. A fail report shows your overall score and the number of questions you answered correctly, so you can see how far you were from the line.
Are these real CSLB exam questions?
No. CSLB’s questions are confidential, and sharing them is illegal. These are original practice questions written to CSLB’s published study guide outline, with an explanation and the law or code section behind every answer.
What is the CSLB Law and Business pass rate?
In fiscal year 2022/23, 57% of the 17,737 candidates who took the Law and Business exam passed, according to CSLB’s 2024 Sunset Review report. That count includes first attempts and retakes.
Is the Law and Business exam open book?
No. It is closed book. CSLB lists the California Contractors License Law & Reference Book as the main study resource; read it before the exam, not during it.
Can I take the Law and Business exam in Spanish?
Yes. Law and Business is one of the CSLB exams offered in Spanish, and you can switch between the English and Spanish versions on screen. In 2025, 6,853 candidates took it in Spanish.
Ready for exam day?
115 questions on the real 3½-hour clock, weighted to CSLB’s study guide, with a score for every section and an explanation for every answer.
Or start with a free 10-question drillMore CSLB exam practice
One California contractor pass covers both practice exams and every drill.
Exam format, weights, fees, retake rules and pass rates checked November 2026: CSLB study guide: Law and Business (13E-LAW, 03-2026) · CSLB study guide: General Building (B) (13E-B, 03-2026) · PSI: CSLB Law and Business examination information guide (May 2026) · PSI: CSLB General Building (B) examination information guide (May 2026) · CSLB: Examinations frequently asked questions · CSLB: List of all fees · CSLB: Get Licensed to Build · CSLB: 2025 Accomplishments (exams administered, applications, Spanish exams) · CSLB: Sunset Review Oversight Report 2024 (exam pass rates, Table 8).
Original independent practice questions written to CSLB’s published study guide outline. Not affiliated with or endorsed by the Contractors State License Board (CSLB) or PSI.