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Question 1Oregon construction contractor licensing law and CCB rules

Under Oregon contractor licensing law, which body administers the contractor licensing program and enforces the state's contractor rules?

  1. The Oregon Real Estate Agency
  2. The Oregon Construction Contractors Board Correct answer.
  3. The Oregon Bureau of Labor and Industries
  4. The Oregon Department of Transportation

Explanation

The Oregon Construction Contractors Board (CCB) is the state agency that licenses construction contractors, registers lead-based paint firms, and enforces contractor-related statutes and rules. Other agencies handle transportation, labor, or real estate matters and do not issue contractor licenses.

Question 2Oregon construction contractor licensing law and CCB rules

Which statement correctly describes when a person must obtain an Oregon contractor license before performing work?

  1. Only after the local building department issues a permit
  2. Only when the person advertises in a phone directory
  3. Only when the project value exceeds $50,000
  4. Before undertaking any work for compensation on a project regulated by the CCB Correct answer.

Explanation

Oregon requires a CCB license before a person undertakes, offers to undertake, or submits a bid to do work as a contractor for compensation on regulated structures. The obligation attaches before the work or bid, not after permits issue or at a dollar threshold.

Question 3Oregon construction contractor licensing law and CCB rules

An Oregon contractor license is issued to which of the following?

  1. The general contractor's surety bond company
  2. The business entity or sole proprietor that holds the license Correct answer.
  3. The building official in the jurisdiction where work occurs
  4. Each individual employee who performs construction labor

Explanation

The CCB licenses the business, whether a sole proprietorship, partnership, corporation, or LLC, and that licensed entity is responsible for compliance. Employees work under the licensed business rather than holding individual contractor licenses.

Question 4Oregon construction contractor licensing law and CCB rules

Which individual is required to hold a CCB-issued certification as the responsible managing individual for a licensed contractor business?

  1. A designated individual with the required experience and examination results Correct answer.
  2. The owner of the project being constructed
  3. The company's lead estimator
  4. The company's bookkeeper

Explanation

Oregon requires each licensed business to designate a responsible managing individual (RMI) who meets experience and exam requirements and is certified by the CCB. The RMI need not be an owner, but must be actively connected to the business.

Question 5Oregon construction contractor licensing law and CCB rules

A licensed Oregon contractor's surety bond is intended to protect which parties?

  1. The contractor against weather-related delays
  2. Property owners and others harmed by the contractor's improper performance Correct answer.
  3. The contractor's employees against workplace injuries
  4. The contractor's suppliers against slow payment

Explanation

The CCB surety bond provides a fund from which a property owner or other injured party may recover for damages caused by a licensed contractor's improper work or certain violations. It is not workers' compensation and does not cover the contractor's own business risks.

Question 6Oregon construction contractor licensing law and CCB rules

What is the primary purpose of the CCB's dispute resolution process for homeowners?

  1. To approve architectural plans before construction
  2. To set the prevailing wage for public works projects
  3. To issue building permits for residential remodels
  4. To provide a forum for resolving complaints about a licensed contractor's work without immediate litigation Correct answer.

Explanation

The CCB offers a complaint and dispute resolution process so homeowners can seek resolution of issues with licensed contractors, sometimes avoiding court. It does not set wages, issue permits, or approve plans.

Question 7Oregon construction contractor licensing law and CCB rules

A homeowner signs a contract with an Oregon contractor for a residential remodel. Under CCB rules, what must the written contract include?

  1. The names of all subcontractor employees
  2. A statement of the contractor's CCB license number Correct answer.
  3. A clause waiving the owner's right to file a complaint
  4. The contractor's Social Security number

Explanation

Oregon requires residential contracts to include the contractor's CCB license number along with other specified terms such as the parties, scope, and price. Social Security numbers are not required, and a clause waiving complaint rights would be improper.

Question 8Oregon construction contractor licensing law and CCB rules

For a residential contract subject to Oregon's right-to-cure notice requirements, what must a contractor generally provide to the owner before the contract is signed?

  1. A list of the contractor's prior customers
  2. A completed lien release for all subcontractors
  3. A copy of the contractor's tax return
  4. A written notice of the owner's right to file a complaint with the CCB Correct answer.

Explanation

Oregon requires contractors to give residential owners a written notice explaining the owner's right to file a complaint with the CCB, often called the consumer protection or right-to-cure notice. This informs owners of the dispute process before they commit.

Question 9Oregon construction contractor licensing law and CCB rules

An Oregon contractor wants to offer to perform work on a project that requires a CCB license. When must the license be in place?

  1. Before submitting the bid or offering to perform the work Correct answer.
  2. At the time the project receives its final inspection
  3. Only before the first payment is received
  4. Within 30 days after the contract is signed

Explanation

Oregon law requires the contractor to be licensed before submitting a bid or offering to do the work, not merely before performing it. Working or bidding without a license can subject the contractor to enforcement action.

Question 10Oregon construction contractor licensing law and CCB rules

Which of the following activities by an unlicensed person would most likely violate Oregon contractor licensing law?

  1. Designing a landscape plan without performing installation
  2. Preparing a property appraisal for a lender
  3. Selling building materials to a licensed contractor
  4. Advertising and bidding to remodel a homeowner's kitchen for compensation Correct answer.

Explanation

Advertising, bidding, and offering to perform construction work for compensation on a regulated structure are contractor activities requiring a CCB license. Selling materials, appraising, or purely designing without construction work generally falls outside contractor licensing.

Question 11Oregon construction contractor licensing law and CCB rules

A licensed Oregon contractor's license lapses because the contractor fails to renew. What is the effect on the contractor's ability to enforce a contract for work performed during the lapse?

  1. The contractor may still sue to enforce the contract in all circumstances
  2. The contract is automatically void and the contractor may never recover
  3. The contractor's license is reinstated retroactively upon payment of a fee
  4. The contractor may be barred from recovering compensation for the unlicensed period Correct answer.

Explanation

Oregon law limits an unlicensed contractor's ability to recover compensation for work performed while unlicensed, though the contractor may still pursue certain remedies. The license is not automatically reinstated retroactively, and the contract is not necessarily void in every respect.

Question 12Oregon construction contractor licensing law and CCB rules

Which Oregon law generally gives a property owner a period to demand that a contractor repair defective work before the owner sues for construction defects?

  1. The workers' compensation exclusivity rule
  2. The state building code permit appeal process
  3. The right-to-cure notice provisions for residential construction defects Correct answer.
  4. The mechanics' lien foreclosure statute

Explanation

Oregon's residential construction defect right-to-cure provisions require an owner to give notice and an opportunity to repair before pursuing certain claims. This is separate from permit appeals, lien foreclosure, or workers' compensation.

Question 13Oregon construction contractor licensing law and CCB rules

A contractor licensed in Oregon wishes to perform work in another state. What is generally required?

  1. Approval from the Oregon Governor's office
  2. Only a copy of the Oregon license filed with the CCB
  3. Compliance with the other state's licensing requirements, which may require a separate license Correct answer.
  4. Nothing, because Oregon licenses are valid nationwide

Explanation

Contractor licenses are state-specific, so an Oregon license does not authorize work in another state. The contractor must satisfy that state's licensing requirements, which may include a separate application, exam, and bond.

Question 14Oregon construction contractor licensing law and CCB rules

Which of the following is a typical continuing education or licensing renewal obligation for an Oregon contractor?

  1. Submitting monthly financial statements to the CCB
  2. Renewing the license on the CCB's schedule and meeting any required training Correct answer.
  3. Passing a new licensing exam every year
  4. Reapplying for a new license number each year

Explanation

Oregon contractors renew their licenses on the CCB's cycle and must satisfy any continuing education or training requirements in effect. They do not retake the exam annually, file monthly financials, or receive a new license number each year.

Question 15Oregon construction contractor licensing law and CCB rules

A contractor's CCB license is suspended for failure to maintain required insurance. What is the contractor's status while suspended?

  1. The contractor may work only on projects under $5,000
  2. The contractor is not authorized to perform or bid on regulated work Correct answer.
  3. The contractor may work if the owner signs a waiver
  4. The contractor may continue working because the suspension is administrative

Explanation

A suspended license means the contractor is not authorized to undertake or bid on work requiring a license until the suspension is resolved. Administrative suspension still carries the same practical prohibition, and an owner waiver cannot restore authority.

Question 16Oregon construction contractor licensing law and CCB rules

Oregon requires licensed contractors to carry workers' compensation coverage in which situation?

  1. Only on public works projects
  2. Only when the contractor has more than 50 employees
  3. When the contractor has employees subject to Oregon workers' compensation law Correct answer.
  4. Only when the project exceeds $100,000

Explanation

Oregon contractors with employees subject to the state's workers' compensation law must maintain coverage, and the CCB verifies compliance as part of licensing. Thresholds based on employee count, project type, or dollar value do not define this obligation.

Question 17Oregon construction contractor licensing law and CCB rules

What type of insurance must an Oregon contractor generally maintain to satisfy CCB licensing requirements?

  1. Flood insurance on all projects
  2. Business interruption insurance
  3. General liability insurance meeting CCB minimums Correct answer.
  4. Key-person life insurance

Explanation

The CCB requires licensed contractors to maintain general liability insurance at or above the minimum limits set by rule, and proof of coverage is part of licensure. Flood, key-person, and business interruption coverages are not licensing requirements.

Question 18Oregon construction contractor licensing law and CCB rules

An Oregon contractor is cited by the CCB for working without a license. Which outcome is within the CCB's authority?

  1. Imposition of civil penalties and license sanctions Correct answer.
  2. Criminal prosecution resulting in imprisonment
  3. Revocation of the contractor's driver's license
  4. Foreclosure on the contractor's personal residence

Explanation

The CCB may impose civil penalties, suspend or revoke licenses, and take other administrative action for licensing violations. It does not prosecute criminal cases, revoke driver's licenses, or foreclose on homes.

Question 19Oregon construction contractor licensing law and CCB rules

A homeowner wants to verify whether a contractor is properly licensed in Oregon. What is the most reliable source?

  1. A verbal assurance from the contractor's foreman
  2. The contractor's business card
  3. The CCB's public license lookup Correct answer.
  4. The contractor's advertisement in a local newspaper

Explanation

The CCB maintains a public license lookup that shows whether a business holds a current, active license and the license number. Business cards, ads, and verbal statements are not authoritative verification.

Question 20Oregon construction contractor licensing law and CCB rules

Which of the following best describes the CCB's role regarding lead-based paint renovation activities?

  1. The CCB sets the federal lead hazard standards
  2. The CCB prohibits all renovation of pre-1978 homes
  3. The CCB issues medical clearances for lead exposure
  4. The CCB registers or certifies firms performing lead-based paint renovation, repair, and painting Correct answer.

Explanation

Oregon assigns the CCB responsibility for registering or certifying firms that perform lead-based paint renovation, repair, and painting work, alongside its contractor licensing duties. It does not ban renovation of older homes, set federal standards, or issue medical clearances.

Question 21Oregon construction contractor licensing law and CCB rules

A contractor licensed as a residential general contractor wants to bid on a commercial project. What should the contractor confirm?

  1. That the license endorsement or classification covers the type of work being bid Correct answer.
  2. That the CCB will issue a temporary license after the bid is submitted
  3. That the commercial project has no building permit requirement
  4. That the owner will waive the licensing requirement

Explanation

Oregon licenses contractors with endorsements or classifications that define the scope of work they may perform, so a contractor must confirm the license covers the commercial work. Owners cannot waive licensing, and a temporary license cannot be issued after the fact.

Question 22Oregon construction contractor licensing law and CCB rules

Which statement about the CCB's handling of a complaint against a licensed contractor is accurate?

  1. The CCB acts as the homeowner's private attorney in court
  2. The CCB automatically voids the contract upon receiving a complaint
  3. The CCB can order the contractor to correct the work or pay damages through its process Correct answer.
  4. The CCB refers all complaints directly to criminal court

Explanation

Through its complaint process, the CCB can investigate and order remedies such as correction of work or payment of damages, and it may take licensing action. It does not act as a private attorney, automatically void contracts, or route every complaint to criminal court.

Question 23Oregon construction contractor licensing law and CCB rules

An Oregon contractor allows its general liability insurance to lapse during an active license term. What is the most likely consequence under CCB rules?

  1. The contractor must retake the licensing exam
  2. The CCB may suspend the license until coverage is restored Correct answer.
  3. The license remains fully valid until the next renewal
  4. The contractor may continue working if it posts a sign at the job site

Explanation

Continuous insurance coverage is a condition of licensure, and a lapse can result in suspension until proof of coverage is restored. A job-site sign does not cure the lapse, and re-examination is not the remedy for an insurance gap.

Question 24Oregon construction contractor licensing law and CCB rules

Which of the following is a required element of the CCB's arbitration or mediation process for certain residential disputes?

  1. The dispute must be within the CCB's jurisdictional limits and timely filed Correct answer.
  2. The dispute must involve at least $250,000
  3. The homeowner must first sue in circuit court
  4. The contractor must admit fault before arbitration

Explanation

The CCB's dispute processes apply to disputes that fall within its jurisdictional limits and are filed within applicable deadlines. A prior lawsuit, an admission of fault, or a large dollar threshold is not a prerequisite.

Question 25Oregon construction contractor licensing law and CCB rules

A contractor's license is revoked by the CCB. Which statement best describes the effect?

  1. The contractor may continue operating under the same license number
  2. The contractor loses authority to perform or bid on regulated work and may face restrictions on relicensing Correct answer.
  3. The contractor may transfer the license to a family member
  4. The revocation applies only to public works projects

Explanation

Revocation removes the contractor's authority to perform or bid on regulated work and may carry restrictions or conditions on future licensing. The license cannot be transferred to another person, and revocation is not limited to public projects.

Question 26Oregon construction contractor licensing law and CCB rules

Under Oregon contractor licensing law, which entity administers contractor licenses and enforces the state's contractor regulations?

  1. The Oregon Department of Consumer and Business Services
  2. The Oregon Building Codes Division
  3. The Oregon Construction Contractors Board Correct answer.
  4. The Oregon Bureau of Labor and Industries

Explanation

The Oregon Construction Contractors Board (CCB) is the agency that issues contractor licenses, sets licensing requirements, and enforces contractor regulations. The Building Codes Division handles code adoption and building permits, not contractor licensing.

Question 27Oregon construction contractor licensing law and CCB rules

Which type of Oregon CCB license is required for a contractor who builds or remodels residential structures, including single-family homes and small multifamily buildings?

  1. A homeowner permit exemption
  2. A commercial general contractor license
  3. A residential general contractor license Correct answer.
  4. A residential specialty contractor license

Explanation

Oregon separates contractor licensing into residential and commercial endorsements, and residential general contractors may take on whole-house construction and remodeling work. Specialty licenses are limited to defined trades rather than full structure construction.

Question 28Oregon construction contractor licensing law and CCB rules

Before an Oregon contractor may lawfully offer or submit a bid to perform work requiring a CCB license, what must the contractor hold?

  1. A pending application on file with the CCB
  2. A surety bond posted but no license
  3. A business registry number from the Secretary of State
  4. An active CCB license appropriate to the work Correct answer.

Explanation

Oregon law requires an active CCB license before a contractor may advertise, offer, bid, or perform work that requires a license. A pending application or business registration alone does not confer authority to bid.

Question 29Oregon construction contractor licensing law and CCB rules

What is the primary function of the CCB's required surety bond for a licensed Oregon contractor?

  1. To guarantee the contractor's employees receive prevailing wages
  2. To satisfy federal OSHA bonding requirements for construction
  3. To provide a fund from which certain claimants may recover for licensed work Correct answer.
  4. To insure the contractor's tools against theft on job sites

Explanation

The CCB surety bond is a consumer-protection mechanism that can pay certain claims arising from a licensed contractor's work. It is not a wage guarantee, tool insurance, or an OSHA requirement.

Question 30Oregon construction contractor licensing law and CCB rules

An Oregon contractor is licensed but has not yet obtained the workers' compensation coverage the CCB requires for its employees. What is the most likely consequence for the license?

  1. The CCB may suspend or refuse to renew the license until coverage is shown Correct answer.
  2. The license remains fully active because workers' compensation is optional
  3. The contractor may continue bidding but not signing contracts
  4. The license automatically converts to a specialty license

Explanation

Maintaining required workers' compensation coverage is a condition of holding a CCB license, and the CCB may suspend or decline to renew a license when coverage lapses. The license does not downgrade to another type, and bidding authority is not preserved.

Question 31Oregon construction contractor licensing law and CCB rules

Which statement best describes the CCB's authority when a licensed contractor repeatedly violates licensing laws after prior discipline?

  1. The CCB may act only if a homeowner files a lawsuit first
  2. The CCB may suspend or revoke the license and impose civil penalties Correct answer.
  3. The CCB may only issue a warning letter because licenses are property rights
  4. The CCB must refer all repeat violations to a criminal court for prosecution

Explanation

The CCB has administrative authority to discipline licensees, including suspension, revocation, and civil penalties for violations. It does not need a prior homeowner lawsuit, and its authority is not limited to warnings.

Question 32Oregon construction contractor licensing law and CCB rules

A contractor holds a CCB license but lets the required general liability insurance lapse mid-term. What is the most likely CCB response?

  1. Suspend the license until proof of compliant coverage is restored Correct answer.
  2. Transfer the license to the contractor's surety company
  3. Take no action until the next scheduled renewal
  4. Reduce the license to a specialty endorsement

Explanation

Oregon requires contractors to maintain general liability insurance as a condition of licensure, and the CCB may suspend a license when coverage lapses. The license is not downgraded or transferred, and the CCB does not wait for renewal to act.

Question 33Oregon construction contractor licensing law and CCB rules

Which of the following is a recognized way an Oregon contractor may satisfy the CCB's pre-license training requirement?

  1. Submitting three homeowner reference letters in place of training
  2. Completing an approved pre-license course and passing the required exam Correct answer.
  3. Paying an additional licensing fee in lieu of education
  4. Showing five years of out-of-state experience with no exam

Explanation

Oregon requires applicants to complete approved pre-license education and pass the CCB examination as part of licensing. Reference letters, out-of-state experience alone, or extra fees do not replace these requirements.

Question 34Oregon construction contractor licensing law and CCB rules

An Oregon contractor's license has been expired for several months while the contractor continued to sign new residential contracts. What exposure does the contractor face?

  1. The contractor may cure the issue by backdating the license application
  2. The contracts are automatically valid because the contractor was once licensed
  3. The CCB may impose civil penalties and the contractor may be unable to enforce the contracts Correct answer.
  4. The contractor faces no exposure if the homeowner paid in full

Explanation

Performing or contracting for work without an active license exposes a contractor to CCB civil penalties and can affect enforceability of the contract. A prior license or full payment does not cure unlicensed activity, and applications cannot be backdated.

Question 35Oregon construction contractor licensing law and CCB rules

Which item must an Oregon residential contractor generally include in a written home improvement contract under CCB rules?

  1. The contractor's CCB license number Correct answer.
  2. The subcontractors' home addresses
  3. The homeowner's mortgage balance
  4. The contractor's personal social security number

Explanation

CCB rules require home improvement contracts to identify the contractor's CCB license number along with other key terms. Personal identifiers like social security numbers and unrelated financial or personal details are not required contract elements.

Question 36Oregon construction contractor licensing law and CCB rules

For a residential contract covered by Oregon's right-to-cure process, what must a contractor generally provide to the homeowner at the time of contracting?

  1. A performance bond equal to the contract price
  2. A written notice informing the homeowner of the right to require repair before litigation Correct answer.
  3. A notarized waiver of all warranty claims
  4. A binding arbitration clause signed by the homeowner

Explanation

Oregon's right-to-cure statute requires contractors to give homeowners written notice of the opportunity to demand repair of alleged defects before suing. The notice does not waive warranties, compel arbitration, or require a performance bond.

Question 37Oregon construction contractor licensing law and CCB rules

Which best describes the CCB's role in handling a homeowner's complaint against a licensed contractor?

  1. The CCB serves as the homeowner's private attorney in court
  2. The CCB must dismiss complaints involving written contracts
  3. The CCB can order the contractor to pay any amount the homeowner demands
  4. The CCB may investigate and pursue administrative discipline or dispute resolution Correct answer.

Explanation

The CCB investigates complaints and may pursue administrative discipline and, where applicable, dispute resolution processes. It does not act as a private attorney, cannot simply award whatever amount is demanded, and does not dismiss complaints merely because a written contract exists.

Question 38Oregon construction contractor licensing law and CCB rules

Which statement about the CCB's dispute resolution process for residential construction defects is accurate?

  1. It replaces all court jurisdiction over construction defect claims
  2. It requires homeowners to surrender their right to a jury trial
  3. It offers a structured path for resolving certain homeowner-contractor disputes outside court Correct answer.
  4. It applies only to commercial projects over one million dollars

Explanation

The CCB provides a structured dispute resolution process for certain residential disputes as an alternative to litigation. It does not eliminate court jurisdiction, is not limited to large commercial projects, and does not strip jury trial rights.

Question 39Oregon construction contractor licensing law and CCB rules

An Oregon contractor wants to work on a project classified as commercial. What licensing step is generally appropriate?

  1. Rely on the residential license because all licenses are equivalent
  2. Wait until the project is complete to add the commercial designation
  3. Ask the homeowner to obtain the commercial permit instead
  4. Obtain or confirm the commercial endorsement or license appropriate to the work Correct answer.

Explanation

Oregon distinguishes residential and commercial contractor licensing, so commercial work generally requires the appropriate commercial authorization. A residential license is not equivalent, and licensing must be in place before performing the work.

Question 40Oregon construction contractor licensing law and CCB rules

Which of the following is a typical continuing obligation for an Oregon licensed contractor during an active license term?

  1. Reincorporating the business annually
  2. Keeping license information and insurance current with the CCB Correct answer.
  3. Completing a new licensing exam every year
  4. Posting a performance bond for each individual project

Explanation

Licensees must keep their CCB records current, including insurance and business information, throughout the license term. Annual re-examination, annual reincorporation, and per-project performance bonds are not general continuing obligations.

Question 41Oregon construction contractor licensing law and CCB rules

A homeowner wants to confirm that a contractor's CCB license is active and appropriate for the planned work. What is the most reliable approach?

  1. Accept a photocopy of a license the contractor provides
  2. Rely on the contractor's advertised license number
  3. Ask the contractor's supplier for verbal confirmation
  4. Check the contractor's license status directly through the CCB's official lookup Correct answer.

Explanation

The CCB's official license lookup is the authoritative source for verifying status, endorsements, and insurance compliance. Photocopies, supplier statements, and advertisements can be outdated or inaccurate.

Question 42Oregon construction contractor licensing law and CCB rules

Which statement best describes how the CCB treats a contractor's failure to comply with lead-based paint renovation requirements?

  1. Lead-based paint rules do not apply to licensed contractors
  2. The CCB may coordinate with or defer to the appropriate environmental regulator while enforcing licensing rules Correct answer.
  3. The CCB issues federal lead certification numbers directly
  4. The CCB is the sole agency that certifies lead-safe renovation firms

Explanation

Lead-based paint renovation is primarily governed by environmental regulators, and the CCB's role is to enforce contractor licensing compliance, coordinating with those agencies where needed. The CCB does not itself certify lead-safe firms or issue federal certifications.

Question 43Oregon construction contractor licensing law and CCB rules

If a contractor's CCB license is revoked, which statement best describes the effect?

  1. The contractor loses authority to perform or offer licensed contracting work Correct answer.
  2. The contractor may keep working until the revocation is appealed
  3. The contractor's employees automatically inherit the license
  4. The contractor may continue only residential work

Explanation

Revocation removes the contractor's authority to offer or perform work requiring a CCB license. The contractor cannot keep working pending appeal, employees do not inherit the license, and no category of licensed work remains authorized.

Question 44Oregon construction contractor licensing law and CCB rules

An unlicensed person advertises and performs a residential roofing job for compensation in Oregon. Which violation is most directly implicated?

  1. Exceeding the scope of a specialty license
  2. Failing to carry workers' compensation for a sole proprietor
  3. Contracting without a CCB license Correct answer.
  4. Violating building code setback requirements

Explanation

Advertising and performing work that requires a CCB license without holding one is unlicensed contracting. There is no specialty license to exceed, and code or coverage issues are separate from the core licensing violation.

Question 45Oregon construction contractor licensing law and CCB rules

A contractor licensed in Oregon plans to perform work in Washington. What is generally required?

  1. The Oregon license automatically authorizes work in Washington
  2. The contractor must satisfy Washington's own contractor registration requirements Correct answer.
  3. The contractor must surrender the Oregon license first
  4. The contractor needs only a federal contractor identification number

Explanation

Contractor licensing is state-specific, so an Oregon license does not authorize work in Washington; the contractor must meet Washington's registration requirements. No federal ID substitutes, and the Oregon license need not be surrendered.

Question 46Oregon construction contractor licensing law and CCB rules

Which of the following best describes the CCB's general approach to arbitration or mediation of certain residential disputes?

  1. It forces every dispute into binding arbitration regardless of the parties' wishes
  2. It provides a voluntary or statutorily defined process that can produce a binding result if the parties agree or the statute requires Correct answer.
  3. It allows the contractor to choose the arbitrator unilaterally
  4. It prohibits homeowners from being represented by counsel

Explanation

The CCB framework offers defined mediation and arbitration processes for certain residential disputes, with binding effect depending on the statute and the parties' participation. The contractor does not unilaterally pick the arbitrator, and parties may use counsel.

Question 47Oregon construction contractor licensing law and CCB rules

A contractor licensed as a residential specialty contractor wants to take on a project outside the defined specialty scope. What should the contractor do?

  1. Ask the homeowner to sign a scope waiver
  2. Perform the work and disclose the scope issue afterward
  3. Obtain the license endorsement appropriate to the broader scope before contracting Correct answer.
  4. Proceed because a specialty license covers all residential work

Explanation

A specialty license authorizes only the defined trade scope, so broader work requires the appropriate license or endorsement first. A homeowner waiver does not expand license authority, and disclosure after the fact does not cure the violation.

Question 48Oregon construction contractor licensing law and CCB rules

Which statement about the CCB's authority over a licensed contractor's advertising is accurate?

  1. The CCB requires all advertisements to include the contractor's home address
  2. The CCB regulates only the size of advertisements
  3. The CCB may take action if advertising misrepresents the contractor's license status or scope Correct answer.
  4. The CCB cannot act on advertising because it is protected speech

Explanation

The CCB may act against misleading advertising that misstates a contractor's license status or the scope of work the contractor is authorized to perform. It does not regulate ad size, require home addresses, and commercial misrepresentation is subject to regulation.

Question 49Oregon construction contractor licensing law and CCB rules

A contractor's CCB license lapses for non-renewal while the contractor is mid-project. What is the most accurate statement about the contractor's status?

  1. The contractor may continue because the contract predates the lapse
  2. The contractor is unlicensed and may not lawfully continue licensed work until reinstated Correct answer.
  3. The contractor remains licensed until the project is finished
  4. The contractor's employees may continue under the former license

Explanation

A lapsed license means the contractor is no longer licensed, and licensed work may not lawfully continue until the license is reinstated. A preexisting contract or the presence of employees does not extend licensing authority.

Question 50Oregon construction contractor licensing law and CCB rules

Which of the following is generally true about the CCB licensing exam requirement for new Oregon contractor applicants?

  1. Applicants may take the exam after beginning licensed work
  2. Applicants are exempt if they have ten years of experience
  3. Applicants may substitute a letter of recommendation
  4. Applicants must pass the CCB exam covering laws, rules, and business practices Correct answer.

Explanation

New applicants must pass the CCB examination, which covers contractor laws, rules, and business practices, before licensure. Experience alone does not waive the exam, and the exam must be passed before licensed work begins.