Chapter 1 - Oregon Construction Contractor Laws & Regulations - 100 questions

Chapter 1 is thirteen pages and covers Oregon Construction Contractor Laws & Regulations.

1. Oregon law requires businesses conducting construction activities to be licensed with which agency?

A. Department of Consumer and Business Services
B. Oregon Construction Contractors Board (CCB)
C. Oregon Bureau of Labor and Industries
D. Oregon Department of Revenue

✅ B. Oregon Construction Contractors Board (CCB) (p. 1)
The Oregon CCB is the governing agency responsible for licensing contractors. It oversees residential and commercial contractors, sets licensing standards, issues rules, and enforces compliance with Oregon Revised Statutes Chapter 701.

2. How many members make up the Construction Contractors Board?

A. Five
B. Seven
C. Nine
D. Eleven

CHATGPT GOT THIS ONE WRONG!

✅ B. Seven (p. 1)
The Board has seven members appointed by the Governor and confirmed by the Oregon Senate. This mix of public and industry representatives ensures balanced oversight of the construction industry.

3. Which of the following types of work requires a CCB license?

A. Volunteering on a nonprofit housing build
B. Installing flooring for pay
C. Selling building supplies
D. Inspecting property for sale

✅ B. Installing flooring for pay (p. 2)
Anyone who, “for compensation or with the intent to sell,” arranges or undertakes construction work must hold a CCB license. Paid remodeling, repair, or installation counts as construction activity.

4. The term “contractor” in Oregon refers to an individual or business that ___ .

A. Only constructs new homes
B. Performs construction, improvement, or repair work for compensation
C. Sells construction materials
D. Acts solely as a developer

✅ B. Performs construction, improvement, or repair work for compensation (p. 2)
The statute defines contractors broadly to include anyone who builds, alters, repairs, or improves real property for pay. This includes individuals, partnerships, and corporations.

5. Who must designate a Responsible Managing Individual (RMI)?
A. Every licensed contractor
B. Only commercial contractors
C. Only independent subcontractors
D. Only sole proprietors

✅ A. Every licensed contractor (p. 2–3)
Each licensed business must identify an RMI who completes required pre-license training and passes the CCB exam. The RMI is accountable for ensuring the business follows all regulations.

6. What is the primary purpose of the RMI designation?

A. To handle accounting duties
B. To provide project insurance
C. To ensure regulatory compliance and knowledge of CCB laws
D. To manage employee payroll

✅ C. Ensure regulatory compliance (p. 3)
The RMI serves as the qualified individual who demonstrates understanding of CCB laws and manages adherence to them. Without an RMI, the license cannot be active.

7. Which entity does not require a CCB license?

A. School district constructing buildings for its own use
B. Homeowner remodeling and selling homes for profit
C. Tree-service company removing hazardous trees for pay
D. Commercial builder constructing an office

✅ A. School district constructing buildings for its own use (p. 2)
Public entities such as school districts or community colleges that build on their own property for institutional use are exempt from licensing.

8. What is the license validity period once issued by the CCB?

A. 1 year
B. 2 years
C. 3 years
D. 5 years

✅ B. 2 years (p. 3)
Licenses are valid for two years, aligning with renewal, bonding, and continuing-education cycles.

9. Contractors who work on only one structure or project for their own property to sell are considered ___ .

A. Developers
B. General contractors
C. Owner-builders
D. Exempt contractors

✅ A. Developers (p. 2)
Developers build with intent to sell; they must be licensed if they direct or arrange construction, even if they own the property.

10. Which factor determines whether someone is an independent contractor?

A. Ownership of tools only
B. Ability to set their own schedule
C. Control over how and when work is performed and responsibility for profit or loss
D. Being paid hourly

✅ C. Control over work and profit/loss (p. 2)
An independent contractor operates free from direction, provides their own materials, and bears the risk of profit or loss. Oregon uses a multi-part test to determine this.

11. How does Oregon determine whether an entity qualifies as an independent contractor?

A. Through an interview
B. By completing a multi-part checklist
C. By the number of employees
D. Through a tax audit

✅ B. Multi-part checklist (p. 2–3)
The CCB uses a multi-part checklist (see Appendix K) that assesses control, independence, and business operation to decide if a worker qualifies.

12. The first step in the licensing process is to ___ .

A. Apply for bond coverage
B. Decide on a business entity
C. Pass the CCB exam
D. Pay the license fee

✅ B. Decide on a business entity (p. 3)
Applicants must first decide whether to operate as a sole proprietor, partnership, corporation, or LLC, because the entity choice affects taxes, insurance, and liability.

13. Before receiving a license, a contractor must ___ .

A. Show proof of employment contracts
B. Submit proof of bond and insurance
C. Hire a minimum of two employees
D. Complete five projects

✅ B. Submit proof of bond and insurance (p. 3)
Oregon law requires contractors to file proof of general liability insurance and a surety bond before the CCB issues a license.

14. What type of tax identification number must be obtained if a business hires employees?

A. Business Identification Number (BIN)
B. CCB License Number
C. Social Security Number
D. Federal Taxpayer ID only

✅ A. Business Identification Number (BIN) (p. 3)
Any Oregon business with employees must secure a BIN from the Department of Revenue in addition to a federal EIN.

15. Which endorsement applies to contractors who build only small residential structures?

A. Residential General Contractor
B. Residential Limited Contractor
C. Residential Specialty Contractor
D. Commercial Specialty Contractor

✅ B. Residential Limited Contractor (p. 4)
A Residential Limited Contractor may perform or manage work on smaller projects (under 3 stories or not over $250,000 in value) within defined limits.

16. A large commercial structure is defined as any commercial building ___ .

A. Less than $40,000 in gross annual sales
B. With a contract price over $250,000
C. Over 2,000 square feet
D. Built by two or more contractors

✅ B. Contract price over $250,000 (p. 4)
The manual defines “large commercial structure” as one where total construction cost exceeds $250,000, establishing a threshold for commercial endorsement requirements.

17. What is the licensing endorsement for those managing construction on property they own for sale?

A. Residential General Contractor
B. Residential Developer
C. Commercial Specialty Contractor
D. Home Services Contractor

✅ B. Residential Developer (p. 4)
A Residential Developer organizes or arranges construction on property for sale, rather than performing physical work directly.

18. Which of the following is not a residential endorsement?

A. Residential Specialty Contractor
B. Residential General Contractor
C. Commercial Developer
D. Residential Limited Contractor

✅ C. Commercial Developer (p. 4)
Commercial Developer is a separate endorsement category for non-residential projects.

19. Contractors building 20 or more new residential units per year must hold which endorsement?

A. Residential General Contractor
B. Residential Developer
C. Commercial Specialty Contractor
D. Residential Limited Contractor

✅ B. Residential Developer (p. 4)
Developers constructing 20 or more units annually fall under the Residential Developer endorsement due to the scale and nature of their projects.

20. Contractors working on structures over three stories or worth more than $250,000 must hold a ___ endorsement.

A. Commercial
B. Residential
C. Specialty
D. Limited

✅ A. Commercial (p. 4)
The CCB distinguishes commercial work by height and value thresholds; these projects require a Commercial Contractor endorsement.

21. Which endorsement is needed to perform only specialized residential tasks, such as electrical or plumbing work?

A. Residential Specialty Contractor
B. Residential General Contractor
C. Home Services Contractor
D. Residential Limited Contractor

✅ A. Residential Specialty Contractor (p. 4)
This endorsement authorizes specialized work within defined trade areas rather than general project management.

22. A contractor building a non-residential structure under 20,000 sq ft and worth less than $250,000 would require which license category?

A. Commercial Contractor Level 1
B. Commercial Contractor Level 2
C. Residential General Contractor
D. Residential Developer

✅ B. Commercial Contractor Level 2 (p. 4)
Commercial Level 2 covers smaller commercial projects under the specified size and value thresholds.

23. Which Residential endorsement is appropriate for a contractor with gross annual volume under $40,000 and contracts under $5,000 each?

A. Residential Limited Contractor
B. Residential Developer
C. Residential Specialty Contractor
D. Home Inspector Services Contractor

✅ A. Residential Limited Contractor (p. 4)
Small-scale residential contractors operating under these financial limits qualify for the Residential Limited endorsement.

24. A Residential General Contractor may work on structures that are ___ .

A. Single-family only
B. Up to four stories high and multi-unit
C. Commercial only
D. Mobile homes only

✅ B. Up to four stories high and multi-unit (p. 4)
This endorsement covers all residential structures up to four stories and permits supervising specialty contractors on larger projects.

25. Which endorsement allows contractors to perform limited repairs and maintenance for homeowners?

A. Home Services Contractor
B. Residential Limited Contractor
C. Residential Developer
D. Residential General Contractor

✅ A. Home Services Contractor (p. 4)
This special endorsement authorizes minor repair and maintenance tasks directly for homeowners, distinct from major construction projects.

26. What is the primary purpose of a contractor’s bond in Oregon?
A. To pay for materials
B. To protect consumers from financial loss due to contractor negligence or violations
C. To replace general liability insurance
D. To guarantee project completion
✅ B. Protect consumers (p. 5)
The CCB bond is a security measure for consumers, subcontractors, and employees. If a contractor violates licensing laws or fails to meet contractual obligations, a claimant can seek payment from the bond. It does not serve as insurance or completion coverage.

27. Who is protected by a contractor’s bond?
A. Only the contractor’s clients
B. Homeowners, subcontractors, employees, and suppliers
C. Only homeowners
D. Only the CCB
✅ B. Homeowners, subcontractors, employees, and suppliers (p. 5)
Multiple parties are protected: the bond can compensate consumers for damages and subcontractors or suppliers for unpaid work. The CCB oversees bond claim disputes.

28. What happens if a contractor’s bond is canceled or expires?
A. The contractor is fined
B. The license is immediately suspended
C. The contractor receives a warning
D. Nothing happens until renewal
✅ B. License is immediately suspended (p. 5)
Oregon law mandates continuous bonding. Once a bond lapses, the CCB automatically suspends the contractor’s license until a valid bond is restored.

29. What is the minimum bond amount for a Residential General Contractor?
A. $5,000
B. $10,000
C. $20,000
D. $25,000
✅ C. $20,000 (p. 5)
Bond amounts vary by endorsement. A Residential General Contractor must maintain a $20,000 bond, reflecting higher project complexity and potential liability.

30. What bond amount is required for a Residential Limited Contractor?
A. $5,000
B. $10,000
C. $15,000
D. $20,000
✅ B. $10,000 (p. 5)
Smaller-scale contractors with limited project value are required to post a $10,000 bond—half that of a general contractor—to align with lower financial exposure.

31. What bond is required for Residential Specialty Contractors?
A. $10,000
B. $15,000
C. $20,000
D. $25,000
✅ B. $15,000 (p. 5)
Specialty contractors such as plumbers or painters must maintain a $15,000 bond. This covers trade-specific risk while recognizing smaller project scopes than general builders.

32. Commercial Contractor Level 1 must hold what minimum bond?
A. $20,000
B. $50,000
C. $75,000
D. $100,000
✅ C. $75,000 (p. 5)
Because large commercial jobs involve higher financial exposure, Level 1 contractors must post a $75,000 bond.

33. Commercial Contractor Level 2 must post a bond of ___ .
A. $20,000
B. $30,000
C. $50,000
D. $75,000
✅ C. $50,000 (p. 5)
The Level 2 bond reflects mid-sized commercial project risk. It’s less than Level 1 but higher than residential categories.

34. Bonds must be issued by ___ .
A. A licensed surety company authorized to do business in Oregon
B. The contractor’s accountant
C. A bank in any U.S. state
D. The project owner
✅ A. Licensed surety company (p. 5)
Only Oregon-authorized surety firms may issue CCB bonds, ensuring legitimacy and claim enforcement under state law.

35. Which type of insurance is required for every contractor?
A. Workers’ compensation
B. Health insurance
C. General liability insurance
D. Auto insurance
✅ C. General liability insurance (p. 6)
All contractors must carry general liability insurance to cover third-party bodily injury or property damage caused by their operations.

36. What is the minimum general liability insurance required for a Residential General Contractor?
A. $100,000 per occurrence
B. $500,000 per occurrence
C. $1 million per occurrence
D. $250,000 per occurrence
✅ B. $500,000 (p. 6)
Residential general contractors face moderate risk exposure, requiring at least $500,000 per-occurrence coverage.

37. If a contractor’s insurance policy is canceled, what must the insurer do?
A. Notify the CCB immediately
B. Wait 30 days to report
C. Notify the contractor only
D. Do nothing
✅ A. Notify the CCB (p. 6)
Insurers are legally required to inform the CCB upon cancellation to protect the public from uninsured contractors.

38. What happens if a contractor fails to maintain general liability insurance?
A. The CCB issues a warning
B. The license is suspended
C. The contractor must re-take the exam
D. The bond is canceled
✅ B. License suspended (p. 6)
Continuous insurance coverage is mandatory. Lapse results in automatic suspension until proof of coverage is restored.

39. What kind of insurance must employers provide to their workers?
A. Life insurance
B. Workers’ compensation
C. Disability insurance
D. Liability insurance only
✅ B. Workers’ compensation (p. 6)
Any business with employees must provide workers’ compensation coverage to protect against job-related injuries.

40. Which type of insurance covers bodily injury or property damage to a customer’s property?
A. General liability
B. Workers’ compensation
C. Homeowner’s insurance
D. Auto insurance
✅ A. General liability (p. 6)
General liability coverage protects the public and clients from accidental harm or property loss resulting from a contractor’s work.

41. Contractors must notify the CCB of address or ownership changes within ___ days.
A. 7
B. 10
C. 14
D. 30
✅ D. 30 days (p. 7)
Contractors must update the CCB within 30 days of any change in business name, address, ownership, or responsible managing individual to maintain compliance.

42. Which of the following does not automatically renew with a CCB license?
A. Bond
B. Insurance policy
C. Business entity registration
D. All of the above
✅ D. All of the above (p. 7)
Each requirement—bond, insurance, and business registration—must be renewed separately even if the CCB license is renewed, ensuring continuous validity.

43. What is the renewal period for all active CCB licenses?
A. One year
B. Two years
C. Three years
D. Five years
✅ B. Two years (p. 7)
CCB licenses renew every two years, aligning with bond and insurance documentation requirements and continuing-education reporting.

44. To renew a license, contractors must submit ___ .
A. Proof of continuing education and renewal fee
B. A new exam
C. A business plan
D. Updated tax filings
✅ A. Proof of continuing education and renewal fee (p. 7)
Oregon requires residential contractors to complete continuing-education hours and pay renewal fees before reactivation.

45. If a license lapses, what must a contractor do to reinstate it within two years?
A. Apply as a new contractor
B. Submit a reinstatement form and pay late fees
C. Take a new exam
D. Wait six months
✅ B. Submit reinstatement form and late fees (p. 7)
Licenses expired less than two years can be reinstated by paying penalties and providing current insurance and bond proof.

46. If a license has been expired for more than two years, what is required?
A. Renewal with late fee
B. Reapply as a new applicant
C. Written appeal
D. Bond increase

✅ B. Reapply as new (p. 7)
After two years, reinstatement is not allowed; the contractor must complete the full new-license application process.

47. Which of the following could cause the CCB to deny renewal?
A. Outstanding civil penalties or unpaid claims
B. Missing tax returns
C. Too many employees
D. Operating for more than 10 years

✅ A. Outstanding penalties or unpaid claims (p. 7)
Renewal can be denied if the licensee has unresolved disciplinary actions, unpaid civil penalties, or active bond claims.

48. Which type of contractor must complete continuing-education (CE) before renewal?
A. Residential contractors only
B. Commercial contractors only
C. Both residential and commercial
D. Developers only

✅ A. Residential contractors only (p. 7)
Residential contractors are subject to CE requirements, typically six hours for non-key employees and 16 hours for key employees/RMIs.

49. Continuing-education courses must be approved by ___ .
A. The CCB
B. Any private vendor
C. A community college
D. The contractor’s insurer

✅ A. The CCB (p. 7)
Only CCB-approved providers can deliver CE courses that count toward license renewal requirements, ensuring consistency and quality control.

50. Failure to complete continuing education before renewal results in ___ .
A. A temporary suspension of license
B. Permanent loss of endorsement
C. Fine but no suspension
D. Downgrading to limited endorsement

✅ A. Temporary suspension (p. 8)
If CE hours are incomplete, the license cannot renew until proof of completion is submitted, leading to suspension or lapse.

51. What must be displayed in all contractor advertising?
A. Company slogan
B. Contractor’s CCB license number
C. Bond amount
D. Insurance provider
✅ B. Contractor’s CCB license number (p. 8)
Every ad—including business cards, vehicles, websites, and signs—must list the contractor’s active CCB license number. This lets consumers verify legitimacy and protects against unlicensed activity.

52. Failure to include a CCB number in advertising can result in ___ .
A. A warning letter only
B. Civil penalties and possible suspension
C. Immediate loss of insurance
D. Revocation of tax ID
✅ B. Civil penalties and possible suspension (p. 8)
The CCB may issue fines for misleading or incomplete ads. Repeat violations can trigger license suspension until corrected.

53. Which of the following counts as “advertising” under CCB rules?
A. Radio or TV commercials
B. Social-media business pages
C. Company trucks and yard signs
D. All of the above
✅ D. All of the above (p. 8)
The definition is broad—any medium promoting construction services, including digital platforms, must follow CCB advertising rules.

54. What statement must accompany the license number in ads?
A. “Licensed Bonded Insured”
B. “CCB# ____”
C. “Certified Builder of Oregon”
D. “Approved Contractor”
✅ B. “CCB# ____” (p. 8)
Oregon requires the specific “CCB# [number]” format. Generic terms like “licensed” are insufficient without the actual number.

55. Contractors may not advertise services ___ .
A. Outside their city
B. Outside their license classification
C. After hours
D. In another language
✅ B. Outside their license classification (p. 8)
A contractor cannot promote or bid on work types not covered by their endorsement—e.g., a residential contractor may not advertise for large commercial projects.

56. Which document legally defines the contractor–client agreement?
A. Contract
B. Bond certificate
C. Project estimate
D. Business license
✅ A. Contract (p. 9)
A written contract outlines terms, scope, and obligations for both parties. It becomes enforceable once signed.

57. Written contracts are required for all projects costing more than ___ .
A. $200
B. $500
C. $1,000
D. $2,000
✅ C. $1,000 (p. 9)
Oregon mandates written contracts for any residential job exceeding $1,000 to ensure clarity and protect both parties.

58. What must be included in a written contract?
A. Project timeline
B. Payment terms
C. CCB license number
D. All of the above

✅ D. All of the above (p. 9)
Contracts must list parties’ names, addresses, scope, price, payment schedule, start and completion dates, and the contractor’s CCB number.

59. What notice must be attached to every residential contract?
A. Consumer Protection Notice
B. Right to Cancel Form
C. Lien Information Notice
D. Insurance Certificate

✅ C. Lien Information Notice (p. 9)
Contractors must provide a “Notice of Procedures” explaining lien rights. It informs consumers that subcontractors and suppliers can file liens if unpaid.

60. What is a construction lien?
A. A tax on construction income
B. A legal claim for unpaid work or materials
C. A contractor’s license penalty
D. A type of bond

✅ B. Legal claim for unpaid work (p. 9)
A lien lets contractors, subcontractors, or suppliers claim property value for unpaid labor or materials. It ensures payment protection throughout the project chain.

61. A subcontractor who does not receive payment must file a lien within ___ days after project completion.
A. 30
B. 45
C. 75
D. 90

✅ D. 90 days (p. 9)
Under Oregon’s lien law, claims must be filed within 90 days of last furnishing labor or materials to remain valid.

62. Who records a construction lien?
A. The CCB
B. The County Recorder or Clerk
C. The Attorney General
D. The Department of Revenue

✅ B. County Recorder/Clerk (p. 9)
Liens are filed in the county where the property is located so the claim is public record and legally enforceable.

63. Before filing a lien, contractors must serve a ___ notice on the property owner.
A. Notice of Intent to Lien
B. Notice of Right to Lien
C. Notice of Completion
D. Notice of Default

✅ B. Notice of Right to Lien (p. 9)
Oregon law requires sending a Notice of Right to Lien to inform owners before a claim is filed. Without this, the lien is invalid.

64. The Notice of Right to Lien must be served within ___ days of starting work or delivering materials.
A. 8 days
B. 14 days
C. 20 days
D. 30 days

✅ C. 20 days (p. 9)
Notice must be given within 20 days of beginning work or delivery so owners know who might claim payment rights.

65. What is the penalty for failing to provide a required Notice of Right to Lien?
A. Civil fine only
B. Loss of lien rights
C. License revocation
D. Bond increase
✅ B. Loss of lien rights (p. 9)
If the notice isn’t sent, the contractor cannot later file a valid lien for nonpayment.

66. Who may file a construction lien in Oregon?
A. Only general contractors
B. Any licensed contractor, subcontractor, or supplier providing labor or materials
C. Only employees
D. Homeowners only
✅ B. Licensed contractors, subs, or suppliers (p. 9)
Anyone who contributes labor or materials to a project under a valid agreement may file if unpaid.

67. What is a construction warranty?
A. An insurance policy
B. A guarantee that work meets industry standards for a set time
C. A bond replacement
D. A liability waiver
✅ B. Guarantee of work quality (p. 10)
A warranty assures consumers that construction meets industry standards and covers defects for a specified period.

68. Oregon law requires a minimum warranty period of ___ on new residential construction.
A. 6 months
B. 1 year
C. 2 years
D. 4 years
✅ B. 1 year (p. 10)
Builders must warrant new residential construction for at least one year against defects in workmanship and materials.

69. Who is responsible for correcting defects discovered during the warranty period?
A. The homeowner
B. The RMI only
C. The licensed contractor
D. The bond company
✅ C. Licensed contractor (p. 10)
The contractor remains responsible for defective work within the warranty period, and failure to correct may trigger disciplinary action.

70. How long do homeowners generally have to file a claim for construction defects?
A. 1 year
B. 2 years
C. 4 years
D. 6 years
✅ D. 6 years (p. 10)
Under Oregon’s statute of limitations, defect claims must be filed within six years from substantial completion of work.

71. Which document must be given to homeowners to explain how to resolve disputes?
A. Home Improvement Complaint Form
B. Consumer Protection Notice
C. Lien Notice
D. Project Completion Certificate
✅ B. Consumer Protection Notice (p. 10)
This notice details the consumer’s rights, contractor responsibilities, and CCB dispute resolution procedures.

72. Contractors must retain copies of all contracts and notices for at least ___ years.
A. 1
B. 2
C. 3
D. 5
✅ D. 5 years (p. 10)
Keeping records for five years allows the CCB to verify compliance and protects both contractors and consumers if disputes arise.

73. Advertising that suggests CCB “endorsement” of a contractor is ___ .
A. Allowed if true
B. Prohibited and misleading
C. Allowed for award-winning firms
D. Permitted on websites only

✅ B. Prohibited (p. 11)
The CCB licenses but does not endorse contractors. Advertising otherwise is misrepresentation and subject to penalties.

74. Which agency investigates complaints about licensed contractors?
A. Department of Justice
B. Construction Contractors Board
C. Attorney General’s Office
D. Oregon Licensing Division

✅ B. Construction Contractors Board (p. 11)
The CCB has authority to receive, investigate, and resolve complaints between consumers and contractors.

75. What is the goal of the CCB dispute resolution process?
A. Punishment
B. Compensation for losses and education to prevent future issues
C. Public humiliation
D. Court prosecution

✅ B. Compensation and education (p. 11)
The CCB aims to resolve disputes fairly and promote compliance through education and corrective action, not criminal penalties.

51. What must be displayed in all contractor advertising?
A. Company slogan
B. Contractor’s CCB license number
C. Bond amount
D. Insurance provider
✅ B. Contractor’s CCB license number (p. 8)
Every ad—including business cards, vehicles, websites, and signs—must list the contractor’s active CCB license number. This lets consumers verify legitimacy and protects against unlicensed activity.

52. Failure to include a CCB number in advertising can result in ___ .
A. A warning letter only
B. Civil penalties and possible suspension
C. Immediate loss of insurance
D. Revocation of tax ID
✅ B. Civil penalties and possible suspension (p. 8)
The CCB may issue fines for misleading or incomplete ads. Repeat violations can trigger license suspension until corrected.

53. Which of the following counts as “advertising” under CCB rules?
A. Radio or TV commercials
B. Social-media business pages
C. Company trucks and yard signs
D. All of the above
✅ D. All of the above (p. 8)
The definition is broad—any medium promoting construction services, including digital platforms, must follow CCB advertising rules.

54. What statement must accompany the license number in ads?
A. “Licensed Bonded Insured”
B. “CCB# ____”
C. “Certified Builder of Oregon”
D. “Approved Contractor”
✅ B. “CCB# ____” (p. 8)
Oregon requires the specific “CCB# [number]” format. Generic terms like “licensed” are insufficient without the actual number.

55. Contractors may not advertise services ___ .
A. Outside their city
B. Outside their license classification
C. After hours
D. In another language
✅ B. Outside their license classification (p. 8)
A contractor cannot promote or bid on work types not covered by their endorsement—e.g., a residential contractor may not advertise for large commercial projects.

56. Which document legally defines the contractor–client agreement?
A. Contract
B. Bond certificate
C. Project estimate
D. Business license
✅ A. Contract (p. 9)
A written contract outlines terms, scope, and obligations for both parties. It becomes enforceable once signed.

57. Written contracts are required for all projects costing more than ___ .
A. $200
B. $500
C. $1,000
D. $2,000
✅ C. $1,000 (p. 9)
Oregon mandates written contracts for any residential job exceeding $1,000 to ensure clarity and protect both parties.

58. What must be included in a written contract?
A. Project timeline
B. Payment terms
C. CCB license number
D. All of the above
✅ D. All of the above (p. 9)
Contracts must list parties’ names, addresses, scope, price, payment schedule, start and completion dates, and the contractor’s CCB number.

59. What notice must be attached to every residential contract?
A. Consumer Protection Notice
B. Right to Cancel Form
C. Lien Information Notice
D. Insurance Certificate
✅ C. Lien Information Notice (p. 9)
Contractors must provide a “Notice of Procedures” explaining lien rights. It informs consumers that subcontractors and suppliers can file liens if unpaid.

60. What is a construction lien?
A. A tax on construction income
B. A legal claim for unpaid work or materials
C. A contractor’s license penalty
D. A type of bond
✅ B. Legal claim for unpaid work (p. 9)
A lien lets contractors, subcontractors, or suppliers claim property value for unpaid labor or materials. It ensures payment protection throughout the project chain.

61. A subcontractor who does not receive payment must file a lien within ___ days after project completion.
A. 30
B. 45
C. 75
D. 90
✅ D. 90 days (p. 9)
Under Oregon’s lien law, claims must be filed within 90 days of last furnishing labor or materials to remain valid.

62. Who records a construction lien?
A. The CCB
B. The County Recorder or Clerk
C. The Attorney General
D. The Department of Revenue
✅ B. County Recorder/Clerk (p. 9)
Liens are filed in the county where the property is located so the claim is public record and legally enforceable.

63. Before filing a lien, contractors must serve a ___ notice on the property owner.
A. Notice of Intent to Lien
B. Notice of Right to Lien
C. Notice of Completion
D. Notice of Default
✅ B. Notice of Right to Lien (p. 9)
Oregon law requires sending a Notice of Right to Lien to inform owners before a claim is filed. Without this, the lien is invalid.

64. The Notice of Right to Lien must be served within ___ days of starting work or delivering materials.
A. 8 days
B. 14 days
C. 20 days
D. 30 days
✅ C. 20 days (p. 9)
Notice must be given within 20 days of beginning work or delivery so owners know who might claim payment rights.

65. What is the penalty for failing to provide a required Notice of Right to Lien?
A. Civil fine only
B. Loss of lien rights
C. License revocation
D. Bond increase
✅ B. Loss of lien rights (p. 9)
If the notice isn’t sent, the contractor cannot later file a valid lien for nonpayment.

66. Who may file a construction lien in Oregon?
A. Only general contractors
B. Any licensed contractor, subcontractor, or supplier providing labor or materials
C. Only employees
D. Homeowners only
✅ B. Licensed contractors, subs, or suppliers (p. 9)
Anyone who contributes labor or materials to a project under a valid agreement may file if unpaid.

67. What is a construction warranty?
A. An insurance policy
B. A guarantee that work meets industry standards for a set time
C. A bond replacement
D. A liability waiver
✅ B. Guarantee of work quality (p. 10)
A warranty assures consumers that construction meets industry standards and covers defects for a specified period.

68. Oregon law requires a minimum warranty period of ___ on new residential construction.
A. 6 months
B. 1 year
C. 2 years
D. 4 years
✅ B. 1 year (p. 10)
Builders must warrant new residential construction for at least one year against defects in workmanship and materials.

69. Who is responsible for correcting defects discovered during the warranty period?
A. The homeowner
B. The RMI only
C. The licensed contractor
D. The bond company
✅ C. Licensed contractor (p. 10)
The contractor remains responsible for defective work within the warranty period, and failure to correct may trigger disciplinary action.

70. How long do homeowners generally have to file a claim for construction defects?
A. 1 year
B. 2 years
C. 4 years
D. 6 years
✅ D. 6 years (p. 10)
Under Oregon’s statute of limitations, defect claims must be filed within six years from substantial completion of work.

71. Which document must be given to homeowners to explain how to resolve disputes?
A. Home Improvement Complaint Form
B. Consumer Protection Notice
C. Lien Notice
D. Project Completion Certificate
✅ B. Consumer Protection Notice (p. 10)
This notice details the consumer’s rights, contractor responsibilities, and CCB dispute resolution procedures.

72. Contractors must retain copies of all contracts and notices for at least ___ years.
A. 1
B. 2
C. 3
D. 5
✅ D. 5 years (p. 10)
Keeping records for five years allows the CCB to verify compliance and protects both contractors and consumers if disputes arise.

73. Advertising that suggests CCB “endorsement” of a contractor is ___ .
A. Allowed if true
B. Prohibited and misleading
C. Allowed for award-winning firms
D. Permitted on websites only
✅ B. Prohibited (p. 11)
The CCB licenses but does not endorse contractors. Advertising otherwise is misrepresentation and subject to penalties.

74. Which agency investigates complaints about licensed contractors?
A. Department of Justice
B. Construction Contractors Board
C. Attorney General’s Office
D. Oregon Licensing Division
✅ B. Construction Contractors Board (p. 11)
The CCB has authority to receive, investigate, and resolve complaints between consumers and contractors.

75. What is the goal of the CCB dispute resolution process?
A. Punishment
B. Compensation for losses and education to prevent future issues
C. Public humiliation
D. Court prosecution
✅ B. Compensation and education (p. 11)
The CCB aims to resolve disputes fairly and promote compliance through education and corrective action, not criminal penalties.

✅ End of Batch 3 (Questions 51–75)

The final Batch 4 (Questions 76–100) will include:

• Violations, Penalties, Civil Claims, and 10 True/False review questions (pp. 11–14).
  
  

Would you like me to continue with Batch 4 now?

You said:

yes

ChatGPT said:

Perfect — here’s Batch 4 (Questions 76–100) — the final section of your 100-question Oregon Construction Contractor Laws & Regulations practice set, based on Chapter 1 (pp. 11–14) of your uploaded PDF.

This final batch covers:
⚖️ Violations, Penalties, Disciplinary Actions, and True/False Review

Each question keeps your requested format: multiple-choice (1–90 total) followed by 10 True/False (91–100).

⚖️ Batch 4 — Violations, Penalties, and Enforcement (pp. 11–14)

76. What is the most common reason contractors face CCB discipline?
A. False advertising
B. Failure to maintain bond or insurance
C. Hiring unlicensed workers
D. Late renewal applications
✅ B. Failure to maintain bond or insurance (p. 11)
The majority of disciplinary cases involve lapsed bonds or insurance policies. Oregon requires uninterrupted coverage; loss of either triggers automatic suspension.

77. What is considered “unlicensed activity” under Oregon law?
A. Working without an active CCB license
B. Subcontracting for another licensed contractor
C. Advertising only on social media
D. Hiring day labor
✅ A. Working without an active license (p. 11)
Unlicensed activity includes performing, offering, or bidding for construction work without a current, valid CCB license—this is one of the most serious violations.

78. What is the maximum civil penalty for unlicensed contracting?
A. $500
B. $1,000
C. $5,000 per offense
D. $10,000 per offense
✅ C. $5,000 per offense (p. 11)
The CCB can impose civil penalties up to $5,000 per violation, per project, to deter illegal contracting.

79. What happens to a bond when a claim is paid?
A. The bond amount increases
B. The contractor must replenish the bond before resuming work
C. The CCB suspends the bond permanently
D. The insurer cancels all policies
✅ B. Contractor must replenish bond (p. 12)
If a claim uses part or all of the bond, the contractor must restore it to the full required amount before continuing licensed work.

80. Which of the following may the CCB impose for serious or repeated violations?
A. Suspension or revocation of license
B. Increase of bond amount
C. Mandatory retraining
D. All of the above
✅ D. All of the above (p. 12)
Depending on the offense, the CCB may fine, suspend, revoke, or require corrective action such as education or higher bond amounts.

81. What must a consumer do before filing a CCB complaint?
A. Attempt to resolve the issue directly with the contractor
B. Hire an attorney
C. File a lien
D. Contact the Department of Justice
✅ A. Attempt direct resolution (p. 12)
The CCB encourages both parties to communicate and document attempts to resolve disputes before formal complaint submission.

82. Complaints must be filed within ___ year(s) of the work’s completion.
A. 1
B. 2
C. 3
D. 6
✅ A. 1 year (p. 12)
Consumers have one year from the date work was substantially completed to file a formal complaint with the CCB.

83. How does the CCB notify a contractor of a complaint?
A. By email only
B. By phone call
C. Through certified mail
D. Public posting on CCB’s website
✅ C. Certified mail (p. 12)
Formal notification is sent via certified mail to ensure the contractor receives legal notice and has a chance to respond.

84. What happens if a contractor ignores a CCB complaint?
A. It’s automatically dismissed
B. The case proceeds to default order and potential license suspension
C. The complaint expires in 30 days
D. The consumer must refile
✅ B. Default order and suspension (p. 12)
Failure to respond leads to a default judgment and possible license suspension until the matter is resolved.

85. If a contractor disagrees with a CCB decision, they may ___ .
A. File an appeal through the Office of Administrative Hearings (OAH)
B. Contact the Governor’s office
C. Ask for arbitration
D. Ignore the order
✅ A. File an appeal with the OAH (p. 13)
Oregon law provides the right to appeal through the Office of Administrative Hearings, an independent body that reviews agency decisions.

86. How long does a contractor have to appeal a CCB order?
A. 7 days
B. 10 days
C. 20 days
D. 30 days
✅ C. 20 days (p. 13)
The CCB order will specify a 20-day window for the contractor to request an appeal hearing.

87. Who enforces collection of unpaid civil penalties?
A. CCB directly
B. Department of Revenue
C. Oregon Secretary of State
D. The courts only
✅ B. Department of Revenue (p. 13)
Unpaid penalties are referred to the Oregon Department of Revenue for collection under state debt procedures.

88. How can a consumer receive payment for damages through a complaint?
A. CCB Dispute Resolution and Bond Claim
B. Small claims court only
C. Mediation only
D. None of the above
✅ A. CCB Dispute Resolution and Bond Claim (p. 13)
The CCB manages dispute resolution processes that can result in payment from the contractor’s bond for verified consumer losses.

89. What is the main goal of CCB enforcement actions?
A. Protecting public safety and ensuring fair competition
B. Punishing contractors
C. Raising revenue through fines
D. Supporting large corporations
✅ A. Protecting safety and fairness (p. 13)
CCB enforcement maintains a level playing field and protects consumers from unsafe or unethical construction practices.

90. A contractor found guilty of gross negligence may face ___ .
A. A written warning only
B. A temporary fine
C. License revocation and permanent disqualification
D. Retraining

✅ C. License revocation and disqualification (p. 14)
Gross negligence or fraud can lead to permanent revocation and future ineligibility for CCB licensing.

91. Contractors must maintain a continuous bond and insurance policy to stay licensed.

A. True
B. False

✅ True (p. 11)

Oregon law requires uninterrupted coverage; lapses result in immediate suspension until reinstated.

A. True
B. False

92. Performing work under someone else’s CCB license number is allowed if they supervise you.
A. True
B. False

✅  False (p. 11)

Each business must hold its own license. Using another’s number constitutes fraud and unlicensed activity.

93. Consumers can verify a contractor’s license on the CCB website.

A. True
B. False

✅ True (p. 12)
The CCB maintains an online database to confirm active license status, endorsements, and complaint history.

94. The CCB cannot issue fines over $1,000 for any violation.

A. True
B. False

✅  False (p. 11)
Civil penalties can reach up to $5,000 per violation, per project.

95. The Responsible Managing Individual (RMI) is legally accountable for compliance with CCB regulations.

A. True
B. False

✅ True (p. 2–3)
The RMI ensures the business meets licensing, bonding, and continuing-education requirements.

96. A bond automatically renews when the contractor renews their license.

A. True
B. False

✅ False (p. 7)
Bonds and insurance policies must be renewed separately; the CCB license renewal does not extend them.

97. CCB complaints can be filed up to six years after work completion.

A. True
B. False

✅  False (p. 12)
Formal CCB complaints must be filed within one year of substantial completion.

98. A contractor who loses their bond cannot perform any work until it is reinstated.

A. True
B. False

✅ True (p. 12)
Bond cancellation immediately suspends the license; work cannot resume until the bond is restored.

99. Unlicensed contracting is considered a minor infraction.

A. True
B. False

✅  False (p. 11)
Unlicensed activity is a serious offense with fines up to $5,000 and potential criminal referral.

100. The CCB exists primarily to protect the public, not contractors.

A. True
B. False

✅ True (p. 14)
The Board’s mission prioritizes public protection, ensuring ethical business practices and fair consumer treatment.

Chapter 2 – Choosing Your Business Structure - 50 Questions

Chapter 2 is four pages and covers sole proprietorships, partnerships, corporations (C and S), LLCs, business trusts, and naming rules.

1. Practice Questions: Choosing Your Business Structure

1. Oregon law requires sole proprietorships doing business under a different name to register what?
A. Fictitious Name Certificate
B. Business License
C. Assumed Business Name (ABN)
D. State Tax ID

✅ C. Assumed Business Name (ABN) (p. 1)
If a sole proprietor uses a business name different from their legal name, they must register an ABN with the Oregon Secretary of State.

2. What is one major risk of operating as a sole proprietorship?
A. Shared ownership
B. Unlimited personal liability
C. Limited tax deductions
D. Complex setup process

✅ B. Unlimited personal liability (p. 1)
Sole proprietors are personally responsible for all debts of the business, exposing personal assets to risk.

3. Sole proprietors own the ______ of the company.
A. liabilities
B. stock
C. assets
D. shares

✅ C. assets (p. 1)
You own the assets of the business directly; selling the business means selling its assets.

4. A partnership is formed when two or more people join to:
A. Share a property lease
B. Carry on a trade or business
C. Form a nonprofit
D. Share an inheritance

✅ B. Carry on a trade or business (p. 2)
Partnerships exist to conduct business together, sharing profits and losses.

5. A general partnership can be created by:
A. Oral agreement
B. Federal filing
C. Articles of incorporation
D. Franchise registration

✅ A. Oral agreement (p. 2)
Although written agreements are recommended, general partnerships can be formed orally.

6. A limited partnership includes:
A. Two or more limited partners
B. One or more general and limited partners
C. Corporations as owners only
D. Nonprofits as partners

✅ B. One or more general and limited partners (p. 2)
Limited partners have limited liability, while general partners do not.

7. In Oregon, a limited partnership must file with:
A. Secretary of Labor
B. Department of Revenue
C. Secretary of State
D. Oregon CCB

✅ C. Secretary of State (p. 2)
Limited partnerships in Oregon must register by filing a certificate with the Secretary of State.

8. Which type of partnership limits liability for individual partners?
A. General partnership
B. Limited partnership
C. Limited liability partnership (LLP)
D. Joint venture

✅ C. Limited liability partnership (LLP) (p. 2)
An LLP limits liability for its licensed partners but still requires state registration.

9. What happens if one partner leaves a partnership?
A. It automatically dissolves
B. The business becomes a sole proprietorship
C. Dissolution depends on the partnership agreement
D. It converts to a corporation
✅ C. Dissolution depends on the partnership agreement (p. 2)
The agreement determines whether the partnership continues or dissolves.

10. Which of the following is an advantage of a general partnership?
A. Limited liability
B. Ease of formation
C. Complex management
D. Separate legal entity
✅ B. Ease of formation (p. 2)
Partnerships are easy to establish compared to corporations.

11. What is a disadvantage of a general partnership?
A. Tax filing complexity
B. Unlimited personal liability
C. Lack of profit-sharing
D. Excess regulation
✅ B. Unlimited personal liability (p. 2)
Each partner may be held personally responsible for debts.

12. What kind of document officially creates a corporation in Oregon?
A. Certificate of Formation
B. Articles of Incorporation
C. Corporate Charter
D. State Business License
✅ B. Articles of Incorporation (p. 3)
Corporations are formed by filing Articles of Incorporation with the Secretary of State.

13. Who manages a corporation?
A. Partners
B. Board of directors
C. Shareholders
D. The IRS
✅ B. Board of directors (p. 3)
Directors oversee the corporation and select officers such as president and secretary.

14. Shareholders in a corporation are generally:
A. Personally liable for debts
B. Exempt from taxes
C. Not personally liable for business debts
D. Required to file partnership returns
✅ C. Not personally liable for business debts (p. 3)
Liability is limited to the amount invested in the corporation.

15. A corporation continues to exist:
A. Only until all shareholders sell
B. Even if shareholders die
C. Until profits are distributed
D. Only during a fiscal year
✅ B. Even if shareholders die (p. 3)
Corporations exist independently from their owners.

16. Which is an advantage of incorporation?
A. Simple paperwork
B. Personal liability for owners
C. Separate legal entity
D. Limited existence
✅ C. Separate legal entity (p. 3)
Corporations have a separate legal existence apart from their owners.

17. Which is a disadvantage of incorporation?
A. Harder ownership transfer
B. Double taxation
C. Informal record keeping
D. Lack of funding
✅ B. Double taxation (p. 3 & 5)
Corporations pay income tax, and shareholders pay tax again on dividends.

18. The “C” in C Corporation refers to:
A. Corporate
B. Chapter C of the Internal Revenue Code
C. Certificate
D. Centralized management
✅ B. Chapter C of the Internal Revenue Code (p. 3)
C corporations are taxed under Subchapter C of the federal code.

19. What is the key tax advantage of an S Corporation?
A. Avoids corporate income tax
B. Pays higher dividend rates
C. Files no tax forms
D. Allows foreign shareholders
✅ A. Avoids corporate income tax (p. 3–4)
S corporations pass income and losses directly to shareholders, avoiding double taxation.

20. S Corporations may have no more than how many shareholders?
A. 50
B. 75
C. 100
D. Unlimited
✅ C. 100 (p. 4)
They are limited to 100 U.S. citizen or resident shareholders.

21. An LLC is formed by filing what?
A. Articles of Incorporation
B. Articles of Organization
C. Business Trust Agreement
D. Corporate Charter
✅ B. Articles of Organization (p. 4)
LLCs register by filing with the Secretary of State under this document.

22. What type of ownership does an LLC have?
A. Shares of stock
B. Memberships
C. Bonds
D. Units of equity
✅ B. Memberships (p. 4)
LLCs use membership interests rather than stock shares.

23. Which business structure blends traits of corporations and partnerships?
A. Sole proprietorship
B. LLC
C. C Corporation
D. Limited partnership
✅ B. LLC (p. 4–5)
LLCs are hybrid entities offering liability protection with partnership-style taxation.

24. An LLC with one owner is taxed as:
A. A corporation
B. A sole proprietor
C. A partnership
D. A trust
✅ B. A sole proprietor (p. 4)
Single-member LLCs are taxed like sole proprietorships unless they elect otherwise.

25. What is an advantage of an LLC?
A. Unlimited liability
B. Complex record keeping
C. Limited disclosure of finances
D. Public listing requirement
✅ C. Limited disclosure of finances (p. 4)
LLCs are private and not required to disclose finances publicly.

26. What is a business trust?
A. A charitable organization
B. An association under a written trust agreement
C. A federal savings plan
D. A sole proprietor’s savings account
✅ B. An association under a written trust agreement (p. 4)
It allows a group to operate a business collectively under a trust.

27. What is an assumed business name (ABN)?
A. The owner’s legal name
B. A registered trade mark
C. A name other than the owner’s real name
D. A federal registration number
✅ C. A name other than the owner’s real name (p. 4)
If you use a name not your “real and true” one, you must register an ABN.

28. Who must register an ABN?
A. Sole proprietors only
B. All business entities using a name other than their registered name
C. Only foreign companies
D. Only partnerships
✅ B. All business entities using a different name (p. 4)
This ensures transparency in business identification.

29. Trademarks are used to:
A. Identify legal ownership
B. Represent and distinguish products or services
C. Register corporations
D. Replace ABNs
✅ B. Represent and distinguish products or services (p. 4)
Trademarks protect names, logos, or symbols from unauthorized use.

30. Trademarks can be filed at what levels?
A. Local and state
B. State and federal
C. Only federal
D. Only international
✅ B. State and federal (p. 5)
Businesses may file trademarks with state or federal agencies.

31. What does the “Final Inspection” section emphasize about sole proprietorships?
A. They are complex to start
B. They offer easy formation but risky liability
C. They require multiple partners
D. They are heavily regulated
✅ B. Easy formation but risky liability (p. 5)
While simple to form, the owner assumes unlimited personal liability.

32. What advantage do partnerships bring?
A. Limited liability
B. Combining strengths and resources
C. Tax exemption
D. No legal agreement needed
✅ B. Combining strengths and resources (p. 5)
Partners can pool talents and resources for mutual benefit.

33. What type of partnership is formed for a single project?
A. Joint venture
B. Limited partnership
C. LLP
D. Franchise
✅ A. Joint venture (p. 5)
Joint ventures are partnerships created for a specific purpose or project.

34. Corporations allow what type of ownership transfer?
A. Through government approval
B. Through sale of stock
C. By inheritance only
D. Through partnership dissolution
✅ B. Through sale of stock (p. 5)
Shareholders can transfer ownership easily by selling stock.

35. Which form has “double taxation”?
A. LLC
B. Partnership
C. C Corporation
D. Sole Proprietorship
✅ C. C Corporation (p. 5)
Both corporate profits and shareholder dividends are taxed.

36. S Corporations file for tax status using which IRS form?
A. 1120-S
B. 2553
C. 1065
D. 1099
✅ B. 2553 (p. 4)
Form 2553 elects S corporation status with the IRS.

37. An LLC must have at least how many members?
A. 0
B. 1
C. 2
D. 3
✅ B. 1 (p. 4)
LLCs require at least one member to exist.

38. Which is NOT a characteristic of an LLC?
A. Hybrid structure
B. Limited disclosure
C. Double taxation
D. Flexible management
✅ C. Double taxation (p. 4–5)
LLCs avoid corporate double taxation.

39. Business trusts are:
A. Commonly used by contractors
B. Rarely used by contractors
C. Required by law
D. Filed with the IRS
✅ B. Rarely used by contractors (p. 4)
They exist in Oregon but are seldom chosen for contracting businesses.

40. What organization helps search trademarks?
A. IRS
B. U.S. Patent and Trademark Office
C. Oregon CCB
D. Chamber of Commerce
✅ B. U.S. Patent and Trademark Office (p. 4–5)
They maintain the federal registry of trademarks.

41. In a partnership, all partners should discuss expectations before starting to:
A. File taxes
B. Ensure compatibility and shared goals
C. Save money
D. Register trademarks
✅ B. Ensure compatibility and shared goals (p. 2)
Clear communication prevents disputes later.

42. Who can authorize corporate borrowing or investments?
A. Any employee
B. The board of directors
C. The shareholders
D. The CEO alone
✅ B. The board of directors (p. 3)
Boards approve major actions beyond daily operations.

43. Which business type has the simplest ownership structure?
A. LLC
B. Corporation
C. Sole proprietorship
D. Partnership
✅ C. Sole proprietorship (p. 1)
It involves only one owner, making it easy to form.

44. Which form of business is managed by members or managers?
A. LLC
B. S Corporation
C. Partnership
D. Business trust
✅ A. LLC (p. 4)
LLCs can choose member- or manager-managed structures.

45. What must a corporation maintain to stay compliant?
A. Annual board meetings and records
B. Personal account books
C. State partnership filings
D. Trade licenses only
✅ A. Annual board meetings and records (p. 3)
Corporations must document resolutions and meetings.

46. What is one advantage of a partnership over a sole proprietorship?
A. Greater capital and resource base
B. Simpler tax reporting
C. Limited liability
D. No need for agreements
✅ A. Greater capital and resource base (p. 2)
Partners can pool money and expertise.

47. What term describes a corporation’s continued life even after ownership changes?
A. Perpetual existence
B. Limited existence
C. Corporate mortality
D. Transfer liability
✅ A. Perpetual existence (p. 3)
Corporations continue regardless of shareholder death or sale.

48. Which entity type requires the most record keeping and regulation?
A. Partnership
B. LLC
C. Corporation
D. Sole proprietorship
✅ C. Corporation (p. 3)
They must comply with state laws, bylaws, and corporate filings.

49. What must businesses consider when choosing a name?
A. Distinctiveness and future trademark use
B. Cost of signs
C. Ease of pronunciation
D. Length of the name
✅ A. Distinctiveness and trademark potential (p. 4)
Names influence customer perception and brand identity.

50. What does the “Final Inspection” section suggest about business structure choice?
A. All structures are equally safe
B. Each structure has unique risks and benefits
C. Partnerships are the only viable option
D. Sole proprietorships are required for contractors
✅ B. Each structure has unique risks and benefits (p. 5)
The chapter concludes that owners must weigh liability, taxation, and management factors.

Chapter 3 — Hiring & Managing Employees (100 Questions)

Chapter 3 is 15 pages long and covers dd .ddd

This chapter has 15 pages.

1. The primary purpose of a job interview is to:
A. Learn personal background details
B. Assess job-related qualifications
C. Determine political views
D. Compare family situations
✅ B. Assess job-related qualifications (p. 3-1)
Interviews should focus on whether the applicant can perform the job’s essential functions, not on personal or protected traits.

Chapter 3

2. Which question is not appropriate to ask in an interview in Oregon?
A. “Can you perform the essential job duties?”
B. “Are you authorized to work in the U.S.?”
C. “Have you ever been arrested?”
D. “Can you work weekends?”
✅ C. Have you ever been arrested? (p. 3-2)
Oregon guidance allows asking about convictions when job-related, but not arrests.

Chapter 3

3. Oregon’s New Hire Reporting requires employers to report new employees within:
A. 7 days
B. 10 days
C. 20 days
D. 30 days
✅ C. 20 days (p. 3-2)
New hires must be reported to Oregon’s Child Support Program within 20 days of hire.

Chapter 3

4. The main purpose of New Hire Reporting is to:
A. Track unemployment claims
B. Enforce child support obligations
C. Verify OSHA compliance
D. Enroll workers in benefits
✅ B. Enforce child support obligations (p. 3-2)
The program helps locate parents and enforce support orders while reducing fraud.

Chapter 3

5. Before employing minors in construction, Oregon employers must obtain an:
A. Annual Employment Certificate from BOLI
B. Internal HR approval letter
C. OSHA youth clearance
D. I-9 waiver
✅ A. Annual Employment Certificate from BOLI (p. 3-3)
Employers must apply each year to BOLI’s Child Labor Unit for authorization to hire minors in specific occupations.

Chapter 3

6. Minors employed must receive at least one:
A. 10-minute break per 6 hours
B. 30-minute unpaid meal period
C. Hour of double-time
D. Paid lunch
✅ B. 30-minute unpaid meal period (p. 3-3)
Minors must be provided at least one uninterrupted 30-minute meal period.

Chapter 3

7. Once hired, core documents that belong in an employee’s personnel file include:
A. Social media profiles
B. Application and I-9/W-4 forms
C. Personal medical history
D. Credit report
✅ B. Application and I-9/W-4 forms (p. 3-3)
Applications, tax forms, eligibility verification, and related employment records should be maintained.

Chapter 3

8. Employers should maintain employee personnel and payroll records for at least:
A. 6 months
B. 1 year
C. 2 years
D. 5 years
✅ C. 2 years (p. 3-3)
Oregon guidance in this chapter instructs retention of personnel/pay records for at least two years.

Chapter 3

9. The Fair Labor Standards Act (FLSA) establishes:
A. Workplace safety rules
B. Minimum wage, overtime, and recordkeeping
C. Union election procedures
D. Immigration verification rules
✅ B. Minimum wage, overtime, and recordkeeping (p. 3-3)
FLSA is the federal baseline for pay standards.

Chapter 3

10. Under FLSA, a workweek is defined as:
A. Any 5 consecutive days
B. 168 hours—seven consecutive 24-hour periods
C. Two calendar weeks
D. 80 hours worked
✅ B. 168 hours—seven consecutive 24-hour periods (p. 3-4)
This fixed 7-day period is used to determine overtime eligibility.

Chapter 3

11. “Hours worked” under FLSA include:
A. Only time on the jobsite
B. Only billable hours
C. All time an employee is required to be on duty or at a prescribed workplace
D. Travel to and from home
✅ C. All time an employee is required to be on duty or at a prescribed workplace (p. 3-4)
Work time includes duty hours at the employer’s premises or designated jobsite.

Chapter 3

12. Employers must keep FLSA records that include:
A. Personal references
B. Employee name, address, SSN, hours worked, and wages paid
C. Only gross pay totals
D. Supervisor notes only
✅ B. Employee name, address, SSN, hours worked, and wages paid (p. 3-4)
Specific pay and time records are required for compliance.

Chapter 3

13. Oregon minimum wage laws apply to:
A. Volunteers only
B. All employees covered by Oregon law
C. Only state employees
D. Only union employees
✅ B. All employees covered by Oregon law (p. 3-4)
The chapter notes statewide minimum wage obligations.

Chapter 3

14. “Payment for hours worked” means:
A. Employers can average hours across weeks
B. All hours actually worked must be paid
C. Only scheduled hours are paid
D. Only straight time is due
✅ B. All hours actually worked must be paid (p. 3-4)
Employees must receive pay for every hour worked.

Chapter 3

15. Overtime pay under Oregon/FLSA is generally:
A. Straight time
B. Time and one-half over 40 hours in a workweek
C. Double time after 8 hours/day
D. Time and one-quarter
✅ B. Time and one-half over 40 hours in a workweek (p. 3-5)
Unless exempt, overtime is 1.5× the regular rate after 40 hours.

Chapter 3

16. Employers may establish the workweek as any recurring period of:
A. 5 days
B. Seven consecutive 24-hour periods
C. Calendar month
D. Biweekly payroll cycle
✅ B. Seven consecutive 24-hour periods (p. 3-5)
The workweek can start any day/time but must be a fixed 168-hour cycle.

Chapter 3

17. Regular paydays in Oregon must occur so that the time between paydays does not exceed:
A. 14 days
B. 21 days
C. 35 days
D. 45 days
✅ C. 35 days (p. 3-5)
Pay intervals may not be more than 35 days apart.

Chapter 3

18. Deductions may not be taken from an employee’s wages for:
A. Legally required taxes
B. Court-ordered garnishments
C. Uniforms or tools required by the employer
D. Voluntary benefit premiums
✅ C. Uniforms or tools required by the employer (p. 3-6)
The chapter lists uniforms/tools as prohibited wage deductions.

Chapter 3

19. Upon discharge (involuntary termination), an Oregon employee’s final paycheck is due:
A. Next regular payday
B. Within 72 hours
C. Immediately
D. Within 7 days
✅ C. Immediately (p. 3-6)
Final wages are due at once when the employer discharges the worker.

Chapter 3

20. The Oregon Prevailing Wage Rate applies to:
A. Private residential construction
B. Public works projects funded in whole or part by public money
C. Volunteer community projects
D. Federal military bases only
✅ B. Public works projects funded in whole or part by public money (p. 3-6)
The chapter explains coverage criteria for public construction.

Chapter 3

21. Public works contracts must contain an overtime clause requiring:
A. Straight time for all hours
B. Time and one-half for overtime hours
C. Double time on weekends only
D. Only daily overtime
✅ B. Time and one-half for overtime hours (p. 3-7)
Oregon requires overtime provisions in public contracts.

Chapter 3

22. For wage disputes on private jobs, employees may file a wage claim with:
A. CCB
B. BOLI
C. SAIF
D. OSHA
✅ B. BOLI (p. 3-7)
BOLI handles wage claims when wages are unpaid.

Chapter 3

23. For unpaid wages on CCB-licensed construction work, an employee can file a claim with:
A. DMV
B. CCB
C. IRS
D. SAIF
✅ B. CCB (p. 3-7)
CCB may accept wage claims tied to licensed contracting activity.

Chapter 3

24. Form I-9 is required to verify:
A. Wage rates
B. Employment eligibility/identity
C. Tax withholding status
D. Driving record
✅ B. Employment eligibility/identity (p. 3-8)
INA requires I-9 completion for every new hire.

Chapter 3

25. Acceptable I-9 documentation combinations include:
A. Any photo plus library card
B. A document establishing identity and another establishing work authorization
C. Voter card only
D. Verbal attestation
✅ B. Identity + employment authorization (p. 3-8)
The form allows one List A document or a List B + List C combo.

Chapter 3

26. The ADA prohibits discrimination in:
A. Hiring only
B. Employment practices including hiring, advancement, compensation, and training
C. Benefits only
D. Safety rules
✅ B. Employment practices including hiring, advancement, compensation, and training (p. 3-9)
ADA covers a broad range of employment activities.

Chapter 3

27. A qualified individual with a disability is one who:
A. Requests part-time only
B. Meets job requirements and can perform essential functions with or without reasonable accommodation
C. Needs no supervision
D. Is over 40 years old
✅ B. Meets job requirements and can perform essential functions with or without reasonable accommodation (p. 3-9)
This is the ADA’s definition for coverage.

Chapter 3

28. A reasonable accommodation may include:
A. Lowering performance standards
B. Eliminating essential job functions
C. Job restructuring or modified schedules
D. Guaranteed promotions
✅ C. Job restructuring or modified schedules (p. 3-9)
Examples include adjustments enabling performance of essential duties.

Chapter 3

29. The Davis-Bacon Act relates to:
A. Family leave
B. Federal prevailing wage requirements on federally funded construction
C. Age discrimination
D. Polygraph testing
✅ B. Federal prevailing wage requirements on federally funded construction (p. 3-10)
It’s one of the other labor laws summarized.

Chapter 3

30. The Employee Polygraph Protection Act generally:
A. Requires lie detector tests
B. Prohibits most private employers from using lie detector tests
C. Allows random polygraphs for all
D. Applies only to public employers
✅ B. Prohibits most private employers from using lie detector tests (p. 3-10)
Testing is heavily restricted.

Chapter 3

31. FMLA provides eligible employees up to:
A. 6 weeks unpaid leave
B. 8 weeks paid leave
C. 12 weeks unpaid, job-protected leave
D. Unlimited leave
✅ C. 12 weeks unpaid, job-protected leave (p. 3-10)
Covers specified family and medical reasons.

Chapter 3

32. The Age Discrimination in Employment Act (ADEA) protects workers aged:
A. 18+
B. 30+
C. 40+
D. 50+
✅ C. 40+ (p. 3-10)
Prohibits age-based employment discrimination for those 40 and older.

Chapter 3

33. USERRA protects:
A. Veterans’ housing rights
B. Uniformed service members’ employment and reemployment rights
C. Immigration status
D. Overtime exemptions
✅ B. Uniformed service members’ employment and reemployment rights (p. 3-10)
Covers service members returning to civilian jobs.

Chapter 3

34. Required postings must be:
A. Kept in payroll files
B. Posted conspicuously where employees can readily see them
C. Sent to each employee by mail
D. Only on the company intranet
✅ B. Posted conspicuously where employees can readily see them (p. 3-11)
The chapter summarizes federal poster requirements.

Chapter 3

35. Oregon employers must also post:
A. Oregon Minimum Wage Poster and Oregon Family Leave Act poster
B. State tax tables
C. Workers’ comp premium charts
D. Building permits
✅ A. Oregon Minimum Wage Poster and Oregon Family Leave Act poster (p. 3-12)
Oregon-specific notices are mandatory.

Chapter 3

36. An employee handbook helps by:
A. Replacing all contracts
B. Communicating policies and expectations
C. Setting wages for the market
D. Waiving legal rights
✅ B. Communicating policies and expectations (p. 3-12)
It’s a central resource for standards and procedures.

Chapter 3

37. Recommended handbook topics include:
A. Company history and mission
B. Investment advice
C. Political endorsements
D. Vendor price lists
✅ A. Company history and mission (p. 3-12)
The chapter lists common sections to include.

Chapter 3

38. Discipline should be:
A. Informal and verbal
B. Early, consistent, and documented
C. Applied only at year-end
D. Decided by peers
✅ B. Early, consistent, and documented (p. 3-13)
Documentation supports fairness and legal compliance.

Chapter 3

39. Using proper termination procedures helps minimize risk of:
A. Higher taxes
B. Wrongful termination claims
C. Unemployment claims
D. OSHA inspections
✅ B. Wrongful termination claims (p. 3-13)
Consistency and procedure reduce legal exposure.

Chapter 3

40. Workers’ Compensation Insurance in Oregon provides benefits for:
A. Retirement savings
B. Work-related injury/illness medical and wage loss
C. Paid vacation
D. Jury duty pay
✅ B. Work-related injury/illness medical and wage loss (p. 3-13)
It compensates employees injured on the job.

Chapter 3

41. Oregon employers may secure workers’ comp insurance by:
A. Only through the federal government
B. Self-insuring (if approved) or purchasing from SAIF or private carriers
C. Using employee contributions
D. Buying property insurance
✅ B. Self-insuring (if approved) or purchasing from SAIF or private carriers (p. 3-14)
The chapter outlines available coverage options.

Chapter 3

42. SAIF Corporation is:
A. A federal OSHA office
B. A state-chartered, not-for-profit corporation providing workers’ comp insurance
C. A union trust
D. A payroll service
✅ B. A state-chartered, not-for-profit corporation providing workers’ comp insurance (p. 3-14)
SAIF is Oregon’s long-standing workers’ comp insurer.

Chapter 3

43. The Assigned Risk Plan helps employers who:
A. Want lower taxes
B. Cannot obtain coverage in the voluntary market
C. Prefer to be exempt
D. Have no employees
✅ B. Cannot obtain coverage in the voluntary market (p. 3-14)
Provides a path to obtain required insurance.

Chapter 3

44. Non-complying employers may be subject to:
A. Reward payments
B. Penalties and liability for claims
C. Free coverage
D. Federal grants
✅ B. Penalties and liability for claims (p. 3-14)
Failure to maintain required coverage triggers penalties.

Chapter 3

45. Most independent contractors in Oregon:
A. Must carry their own workers’ comp if they have subject workers
B. Are covered by the hiring firm’s policy by default
C. Are exempt from all laws
D. Do not need licenses
✅ A. Must carry their own workers’ comp if they have subject workers (p. 3-15)
Classification affects coverage responsibilities.

Chapter 3

46. Contractors who use leased employees should ensure:
A. The leasing company provides workers’ comp and other benefits
B. No one is covered
C. The employees are exempt from payroll taxes
D. I-9s are unnecessary
✅ A. The leasing company provides workers’ comp and other benefits (p. 3-15)
Leasing firms typically carry comp and benefits for their workers.

Chapter 3

47. Employers pay unemployment insurance taxes to:
A. The IRS only
B. State and federal programs
C. Local school districts
D. BOLI
✅ B. State and federal programs (p. 3-15)
Both levels fund UI benefits under specified rules.

Chapter 3

48. A person is unemployed through no fault of their own when:
A. They resign for personal reasons
B. They are laid off due to lack of work
C. They are discharged for misconduct
D. They stop showing up
✅ B. They are laid off due to lack of work (p. 3-15)
UI eligibility hinges on separation circumstances.

Chapter 3

49. Oregon’s chapter “Final Inspection” stresses that your interviewing should:
A. Focus on personal details
B. Avoid illegal questions and be job-related
C. Always be casual
D. Be conducted by peers only
✅ B. Avoid illegal questions and be job-related (p. 3-15)
It reiterates lawful, targeted interviewing.

Chapter 3

50. The chapter’s “Final Inspection” also reminds employers about:
A. Ignoring new hire reporting
B. Mandatory New Hire Reporting timelines
C. Eliminating handbooks
D. Paying cash only
✅ B. Mandatory New Hire Reporting timelines (p. 3-15)
Compliance items are summarized at the end.

Chapter 3

51. Which of the following is appropriate to ask an applicant?
A. “What is your religious affiliation?”
B. “Are you pregnant?”
C. “Can you meet our attendance requirements?”
D. “What is your sexual orientation?”
✅ C. Can you meet our attendance requirements? (p. 3-1 to 3-2)
Only job-related, non-discriminatory questions should be asked.

Chapter 3

52. It is unlawful in Oregon to ask applicants about prior:
A. Convictions related to the job
B. Arrests
C. Certifications
D. Licenses
✅ B. Arrests (p. 3-2)
Arrest inquiries are prohibited; conviction inquiries must be job-related.

Chapter 3

53. New Hire reports are sent to the:
A. Oregon Secretary of State
B. Oregon Child Support Program
C. IRS
D. CCB
✅ B. Oregon Child Support Program (p. 3-2)
That agency administers reporting.

Chapter 3

54. To hire minors, employers must keep the BOLI certificate:
A. Hidden in payroll files
B. Available at the worksite
C. With the IRS
D. In the applicant’s home
✅ B. Available at the worksite (p. 3-3)
Certificates, once approved, must be posted/available where minors work.

Chapter 3

55. Employee files should include performance evaluations and:
A. Political preferences
B. Disciplinary notices
C. Family medical history
D. Personal diaries
✅ B. Disciplinary notices (p. 3-3)
Performance/discipline records belong in the personnel file.

Chapter 3

56. FLSA recordkeeping requires retaining hours worked on a:
A. Monthly basis only
B. Daily and weekly basis
C. Annual summary only
D. Project basis only
✅ B. Daily and weekly basis (p. 3-4)
Hours must be recorded to determine pay and overtime.

Chapter 3

57. Oregon minimum wage posters must be:
A. In the payroll office only
B. Posted at each location and easily seen by employees
C. Kept with the manager
D. Optional for contractors
✅ B. Posted at each location and easily seen by employees (p. 3-12)
Visibility is required at workplaces.

Chapter 3

58. Meal periods generally must be provided separately from:
A. Paid rest breaks
B. Overtime
C. Orientation
D. Training
✅ A. Paid rest breaks (p. 3-5)
Rest and meal periods are distinct obligations under Oregon rules.

Chapter 3

59. Employers cannot deduct from wages for:
A. Cash shortages due to employee theft with evidence
B. Voluntary benefit premiums
C. Damaged equipment deposits or breakage shortages
D. Federal income tax
✅ C. Damaged equipment deposits or breakage shortages (p. 3-6)
Deposits/shortages are listed among prohibited deductions.

Chapter 3

60. If an employee quits with at least 48 hours’ notice, final pay is due:
A. Immediately
B. On the last day worked
C. By the next regular payday
D. Within 5 business days
✅ B. On the last day worked (p. 3-6)
Oregon’s timing for voluntary separations depends on notice given.

Chapter 3

61. If an employee quits without 48 hours’ notice, final pay is due within:
A. 72 hours
B. 48 hours
C. 7 calendar days
D. 30 days
✅ A. 72 hours (p. 3-6)
The chapter details final wage deadlines for various scenarios.

Chapter 3

62. Covered public works include:
A. Construction, reconstruction, major renovation, painting, and landscaping
B. Only new building construction
C. Only road construction
D. Only federal projects
✅ A. Construction, reconstruction, major renovation, painting, and landscaping (p. 3-6)
The list summarizes typical covered activities.

Chapter 3

63. Questions about age are inappropriate unless:
A. You’re curious
B. Needed to verify legal minimum age for the job
C. For better team “fit”
D. For payroll curiosity
✅ B. Needed to verify legal minimum age for the job (p. 3-1)
Age inquiries must be tied to legal requirements.

Chapter 3

64. The I-9 employee section (Section 1) must be completed:
A. Within the first week
B. On or before the first day of employment
C. After 30 days
D. Only for non-citizens
✅ B. On or before the first day of employment (p. 3-8)
Timely completion is required.

Chapter 3

65. The employer verification section (Section 2) of I-9 must be completed by:
A. The employee’s family member
B. The employer or authorized representative within three business days of the start date
C. The IRS
D. BOLI
✅ B. Employer/authorized rep within three business days (p. 3-8)
Verification must be prompt and documented.

Chapter 3

66. ADA covers individuals with a record of or regarded as having:
A. Any condition
B. A physical or mental impairment substantially limiting major life activities
C. Only visible disabilities
D. Temporary colds
✅ B. A physical or mental impairment substantially limiting major life activities (p. 3-9)
The chapter defines who is protected.

Chapter 3

67. Reasonable accommodation does not require an employer to:
A. Eliminate essential job functions
B. Modify equipment
C. Adjust schedules
D. Provide readers/interpreters when appropriate
✅ A. Eliminate essential job functions (p. 3-9)
Core duties need not be removed.

Chapter 3

68. Wage Garnishment Law protects employees from being fired because:
A. They have any garnishment for any reason
B. Their pay is garnished for a single debt
C. They have two garnishments
D. They refuse to pay taxes
✅ B. Their pay is garnished for a single debt (p. 3-10)
Termination due to one garnishment is prohibited.

Chapter 3

69. Equal Pay Act of 1963 prohibits pay discrimination based on:
A. Education level
B. Sex for substantially equal work
C. Years of service
D. Performance ratings
✅ B. Sex for substantially equal work (p. 3-10)
Covers equal pay for equal work.

Chapter 3

70. WARN requires certain employers to provide notice of:
A. Wages
B. Plant closings and mass layoffs
C. OSHA inspections
D. Benefit changes
✅ B. Plant closings and mass layoffs (p. 3-10)
Advance notice is required under specified conditions.

Chapter 3

71. EEO and other federal posters apply to:
A. All employers, regardless of size
B. Employers meeting poster-specific thresholds (e.g., federal contractors, size)
C. Only manufacturers
D. Only public employers
✅ B. Employers meeting poster-specific thresholds (p. 3-11)
The table lists who must post each notice.

Chapter 3

72. Oregon contractors on prevailing wage projects must post a notice containing:
A. Project owner’s home address
B. Prevailing wage rates for the project and required notices
C. Union bylaws
D. Voter registration info
✅ B. Prevailing wage rates for the project and required notices (p. 3-12)
The chapter summarizes state posting content.

Chapter 3

73. A handbook should include a policy against harassment because it:
A. Is required for tax credits
B. Sets expectations and complaint procedures
C. Replaces investigations
D. Eliminates liability automatically
✅ B. Sets expectations and complaint procedures (p. 3-12)
Clear policies aid prevention and response.

Chapter 3

74. Drug and alcohol policies should be in the handbook to:
A. Encourage social events
B. Clarify prohibitions and testing rules
C. Lower wages
D. Replace safety training
✅ B. Clarify prohibitions and testing rules (p. 3-12)
The chapter lists it among key policies.

Chapter 3

75. Proper documentation of discipline supports:
A. Raises
B. Defending decisions if challenged
C. Elimination of overtime
D. Tax deductions
✅ B. Defending decisions if challenged (p. 3-13)
Records are vital in disputes.

Chapter 3

76. At-will employment means:
A. Employees can be fired for illegal reasons
B. Either party may end employment at any time for lawful reasons
C. Contracts are required
D. No policies matter
✅ B. Either party may end employment at any time for lawful reasons (p. 3-13)
Subject to exceptions and unlawful discrimination prohibitions.

Chapter 3

77. Contractual employees generally have:
A. No rights
B. Specific terms that may limit termination
C. Higher minimum wage
D. Guaranteed overtime
✅ B. Specific terms that may limit termination (p. 3-13)
Contracts can alter at-will presumptions.

Chapter 3

78. Workers’ compensation can also provide benefits for:
A. Commuting accidents unrelated to work
B. Fatalities arising out of employment
C. Investment losses
D. Jury service
✅ B. Fatalities arising out of employment (p. 3-13)
Benefits may extend to dependents in fatal cases.

Chapter 3

79. Private insurance companies may provide comp coverage through:
A. SAIF only
B. Licensed insurers selling policies via agents
C. The IRS
D. Oregon DMV
✅ B. Licensed insurers selling policies via agents (p. 3-14)
Employers can shop the voluntary market.

Chapter 3

80. Assigned Risk policies typically have:
A. Lower rates than voluntary market
B. Higher rates due to risk
C. No premiums
D. Federal subsidies
✅ B. Higher rates due to risk (p. 3-14)
Rates reflect the higher risk profile of assigned employers.

Chapter 3

81. If an employer fails to carry workers’ comp, the Workers’ Compensation Division may:
A. Provide free coverage
B. Impose penalties and pursue claims costs
C. Replace the owner
D. Offer tax credits
✅ B. Impose penalties and pursue claims costs (p. 3-14)
Sanctions for non-compliance are significant.

Chapter 3

82. Exempt contractors licensed as commercial contractors must:
A. Maintain no coverage
B. Maintain personal election workers’ comp if they have subject workers
C. Use homeowner policies
D. Only carry auto insurance
✅ B. Maintain personal election workers’ comp if they have subject workers (p. 3-15)
Contractor classification affects comp obligations.

Chapter 3

83. For leased employees, the leasing company (PEO) typically provides:
A. Nothing
B. Payroll, taxes, workers’ comp, and benefits
C. Only tools
D. Only uniforms
✅ B. Payroll, taxes, workers’ comp, and benefits (p. 3-15)
Leasing transfers many employer obligations to the PEO.

Chapter 3

84. UI benefits may be denied if the worker was separated for:
A. Lack of work
B. Gross misconduct
C. Business closure
D. Plant layoff
✅ B. Gross misconduct (p. 3-15)
Fault-based separations can disqualify benefits.

Chapter 3

85. The Final Inspection page highlights that discipline should be:
A. Avoided
B. Early and documented
C. Peer-voted
D. Secret
✅ B. Early and documented (p. 3-16)
Reiterates documentation to reduce risk.

Chapter 3

86. The Final Inspection also reminds employers that a handbook is:
A. Optional but recommended for communicating policies
B. Legally unnecessary and discouraged
C. Only for large companies
D. Replaced by posters
✅ A. Optional but recommended for communicating policies (p. 3-16)
A handbook is a valuable tool to set expectations.

Chapter 3

87. Under Oregon rules, a rest period is generally:
A. Combined with meals
B. Paid and separate from the meal period
C. Unpaid
D. Only for minors
✅ B. Paid and separate from the meal period (p. 3-5)
Rest and meal periods are distinct.

Chapter 3

88. Employers must pay all hours worked, including:
A. Pre-shift prep required by the employer
B. Volunteer time
C. Commute time from home
D. Off-site hobbies
✅ A. Pre-shift prep required by the employer (p. 3-4)
Work the employer requires counts as payable time.

Chapter 3

89. On public works, overtime applies after:
A. 30 hours/week
B. 40 hours/week unless project rules differ
C. Only on Sundays
D. Only if unionized
✅ B. 40 hours/week unless project rules differ (p. 3-7)
Overtime standards are embedded in public contracts.

Chapter 3

90. Employees who believe they are owed wages should first:
A. Call OSHA
B. File a BOLI wage claim
C. Contact SAIF
D. Notify DMV
✅ B. File a BOLI wage claim (p. 3-7)
BOLI administers wage claims and investigations.

Chapter 3

91. I-9 non-compliance may result in:
A. Free training only
B. Fines and penalties
C. Tax refunds
D. Immigration amnesty
✅ B. Fines and penalties (p. 3-8)
The chapter warns employers about penalties for failing to comply.

Chapter 3

92. ADA requires equal opportunity in:
A. Hiring only
B. Selecting, testing, training, and benefits
C. Marketing activities
D. Sales practices
✅ B. Selecting, testing, training, and benefits (p. 3-9)
Equal access must span all employment practices.

Chapter 3

93. Under FMLA, employers must maintain:
A. Vacation accruals only
B. Group health insurance coverage during leave
C. Double pay
D. Bonuses for leave
✅ B. Group health insurance coverage during leave (p. 3-10)
Coverage continues on the same terms as if employed.

Chapter 3

94. WARN notices are typically required for employers with:
A. Any size
B. No employees
C. Employers meeting federal thresholds for plant closings/mass layoffs
D. Only contractors
✅ C. Employers meeting federal thresholds for plant closings/mass layoffs (p. 3-10)
Notice obligations depend on size and event.

Chapter 3

95. Federal poster lists include items like:
A. OSHA Job Safety, Equal Employment Opportunity, FMLA, and Employee Polygraph Protection Act
B. City dog licenses
C. Vehicle registrations
D. Tax rate charts
✅ A. OSHA, EEO, FMLA, EPPA (p. 3-11)
The chapter’s table summarizes common federal posters.

Chapter 3

96. Oregon contractors should also post at the project:
A. Stock prices
B. A Notice of where to obtain prevailing wage rates
C. Political endorsements
D. Customer reviews
✅ B. A Notice of where to obtain prevailing wage rates (p. 3-12)
Project postings must inform workers of applicable rates.

Chapter 3

97. Handbooks should include safety rules because they:
A. Replace OSHA
B. Provide clear expectations and reduce accidents
C. Eliminate training
D. Are optional fluff
✅ B. Provide clear expectations and reduce accidents (p. 3-12)
Safety policies are called out as a key section.

Chapter 3

98. Terminating an employee should include:
A. Skipping documentation to avoid paper trails
B. Following policy, documenting reasons, and paying final wages on time
C. Peer voting
D. Delaying final pay
✅ B. Following policy, documenting reasons, and paying final wages on time (p. 3-13 & 3-6)
Proper process plus timely final pay reduces legal risk.

Chapter 3

99. Workers’ comp generally covers medical care and:
A. Retirement contributions
B. Wage-loss benefits for accepted claims
C. Profit sharing
D. Tuition
✅ B. Wage-loss benefits for accepted claims (p. 3-13)
Benefits include time loss and related compensation.

Chapter 3

100. The chapter’s final summary reminds employers to:
A. Ignore federal laws
B. Use handbooks, document discipline, follow termination procedures, and maintain required insurance
C. Avoid posters
D. Skip new hire reporting
✅ B. Use handbooks, document discipline, follow termination procedures, and maintain required insurance (p. 3-16)
The “Final Inspection” consolidates the chapter’s key compliance practices.

Chapter 4 — Working with Subcontractors (50 Questions)

Chapter 4 is 3 pages long and covers solddddd

1. Subcontractors most commonly obtain jobs through which high-quality source?
A. Random cold calls
B. Referrals from trusted industry contacts
C. Social media ads only
D. Government grant lists
✅ B. Referrals from trusted industry contacts (p. 4-1)
The chapter emphasizes that some of your best subs come through referrals—from other subcontractors, fellow contractors, trade associations, suppliers, and design professionals (architects/engineers). Referrals reduce risk because the referee can speak to reliability, workmanship, and professionalism, giving you a stronger starting point than a cold lead. Building a reputation for quality makes this pipeline self-reinforcing.

Chapter 4

2. When evaluating a potential subcontractor, which criterion directly protects your reputation with the client?
A. Their logo design
B. Whether they sell/produce quality products
C. The color of their trucks
D. Their social media following
✅ B. Whether they sell/produce quality products (p. 4-1)
Chapter 4 notes that your reputation rides on your subs’ work. Screening for product/work quality up front prevents rework, callbacks, and warranty fights that can cost time and goodwill. Owners judge the general contractor by the outcome, so quality is a non-negotiable screening item.

Chapter 4

3. Which step helps you organize the referral process into a reliable pipeline?
A. Taking phone notes and discarding them monthly
B. Keeping a list of qualified subcontractors with lead times
C. Relying on memory for who’s available
D. Hiring whoever answers first
✅ B. Keeping a list of qualified subcontractors (p. 4-1)
The chapter recommends keeping a live list and allowing sufficient lead time to line up subs. A curated roster with capabilities, availability, and insurance info speeds mobilization and reduces last-minute scrambling that causes delays and change-order disputes.

Chapter 4

4. What should you request from every subcontractor to verify risk transfer?
A. A letter of recommendation
B. A price breakdown
C. Certificates of insurance and proof they’re current
D. A company holiday card
✅ C. Certificates of insurance (p. 4-1)
Before a sub steps on site, obtain and follow up on insurance certificates (and keep them updated). Verifying coverage (e.g., general liability, workers’ comp if required) protects the GC and owner if injuries or property damage occur, and it’s a standard prequalification step.

Chapter 4

5. Why does Chapter 4 advise interviewing subs even when you’re not scheduling them for a job?
A. To practice your interview skills
B. To justify admin time to the owner
C. To build a bench and understand capabilities before urgent needs arise
D. To pressure them on pricing
✅ C. To build a bench and understand capabilities before urgent needs arise (p. 4-1)
Proactive interviews help you pre-vet quality, staffing, safety culture, and schedule capacity. When a project hits, you can award faster and with less risk because you already understand their strengths and limits.

Chapter 4

6. A “winning partnership” with a sub begins with which onboarding action?
A. Sending only the project drawings
B. Providing an orientation on your policies and procedures
C. Letting the sub learn rules by observation
D. Relying on the owner to explain site rules
✅ B. Providing an orientation on your policies and procedures (p. 4-1)
The text stresses clear expectations at the start—your safety rules, documentation routes (RFIs, change orders), schedule interfaces, and quality standards. Early clarity prevents later conflict and supports schedule adherence.

Chapter 4

7. Which communication behavior helps sustain strong GC–sub partnerships?
A. Ignoring questions to avoid delays
B. Being clear on instructions and soliciting questions
C. Using only written memos
D. Not visiting the site
✅ B. Being clear on instructions and soliciting questions (p. 4-2)
Chapter 4 promotes two-way communication: issue precise instructions and invite questions to catch misinterpretations before they cause rework. This builds trust and ensures alignment on scope and quality.

Chapter 4

8. What does the chapter recommend regarding feedback and morale?
A. Avoid feedback; it causes friction
B. Publicly criticize to keep pressure on
C. Reward good work and provide constructive comments on improvements
D. Ignore performance
✅ C. Reward good work and provide constructive comments (p. 4-2)
Positive reinforcement for results and constructive coaching on gaps drive continuous improvement. Subs who feel respected are more responsive on punch-list items and schedule pushes.

Chapter 4

9. Why should GCs visit the jobsite before other subs mobilize?
A. To take photos for marketing
B. To communicate requirements that affect others’ work
C. To meet neighbors
D. To check cafeteria options
✅ B. To communicate requirements that affect others’ work (p. 4-2)
Early site walks let you coordinate interfaces—access, laydown, protection, and sequence constraints—so incoming subs aren’t blocked. This reduces idle time and change-order friction.

Chapter 4

10. What periodic compliance check does Chapter 4 advise for all subs?
A. Car insurance
B. Payroll bank statements
C. A properly endorsed CCB license
D. Social media posts
✅ C. A properly endorsed CCB license (p. 4-2)
The text tells GCs to check that every subcontractor’s CCB license is active and properly endorsed. This protects you against enforcement actions and helps ensure lawful contracting.

Chapter 4

11. Which posted resource keeps expectations visible to every worker on site?
A. GC’s marketing brochure
B. Written site rules posted in a conspicuous place
C. Owner’s meeting minutes
D. City zoning map
✅ B. Written site rules posted (p. 4-2)
Posting rules (cleanliness, safety, conduct, radio volume, salvage prohibitions, etc.) maintains standards and provides a continual reminder for every crew and shift.

Chapter 4

12. According to the Site Rules, what is the expectation for jobsite condition?
A. Leave debris until end of week
B. Keep the jobsite clean and free of debris
C. Only clean for inspections
D. Cleanliness is optional
✅ B. Keep the jobsite clean and free of debris (p. 4-2)
Clean jobsites are safer, more efficient, and look professional to owners and inspectors. The chapter elevates cleanliness as a baseline rule, not a cosmetic choice.

Chapter 4

13. What does the chapter require regarding safety and regulatory compliance?
A. Leave to the sub’s discretion
B. Follow all safety policies and Oregon OSHA regulations
C. Follow OSHA only when the owner is present
D. Substitute company rules for OSHA
✅ B. Follow all safety policies and Oregon OSHA (p. 4-2)
Safety responsibility is explicit: subs must comply with applicable codes and Oregon OSHA alongside project-specific rules. This reduces incidents and citations.

Chapter 4

14. What does Chapter 4 say about tools and equipment?
A. GC provides everything
B. Subs must provide their own tools/equipment
C. Owner rents tools
D. City supplies tools
✅ B. Subs must provide their own tools/equipment (p. 4-2)
Requiring subs to bring the gear they need clarifies responsibilities and avoids delays over missing equipment. It also reflects their status as independent businesses.

Chapter 4

15. Which conduct rule appears in the Site Rules list?
A. Freedom to use foul language
B. Behave professionally; do not use foul language
C. Only foremen must be professional
D. Vulgar radio content is acceptable
✅ B. Behave professionally; no foul language (p. 4-2)
Professional behavior supports a respectful, safe environment and reduces complaints from owners, neighbors, and inspectors.

Chapter 4

16. What policy does Chapter 4 include about salvaging items?
A. Anyone may take salvage
B. Foremen may take salvage
C. Salvage is prohibited without permission
D. Only the owner can salvage
✅ C. Salvage is prohibited without permission (p. 4-2)
Unapproved salvage can become theft or create liability. Putting this in site rules eliminates ambiguity about ownership of removed materials.

Chapter 4

17. Why does the chapter discourage loud/offensive radio content?
A. Radios interfere with lasers
B. Keep radios at a moderate level and free of offensive content to protect safety, focus, and professionalism
C. Only electricians may use radios
D. Radios are banned by OSHA
✅ B. Moderate and non-offensive radio use (p. 4-2)
Noise and offensive content can distract, inflame tensions, or violate workplace standards—posting this rule helps maintain a productive site culture.

Chapter 4

18. Which statement best describes an independent contractor under Chapter 4?
A. Works under the GC’s daily direction and control
B. Is free from direction/control over the means and manner of providing services
C. Is paid hourly and supervised by a GC foreman
D. Performs tasks as assigned like an employee
✅ B. Free from direction/control over means and manner (p. 4-2)
Independence in how the work is done (methods, sequencing within scope) is a core indicator distinguishing a contractor from an employee.

Chapter 4

19. Which business attribute supports independent-contractor status?
A. No business address
B. Maintains its own place of business
C. Uses GC’s office and branding
D. Shares the owner’s home office
✅ B. Maintains its own place of business (p. 4-2)
Operating from its own premises signals a separate business entity, not a dependent employee arrangement.

Chapter 4