Free Utah Contractor Business and Law Examination Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Utah Contractor Business and Law Examination practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1A contractor forms a Utah limited liability company. What is the company's legal relationship to its members?

   1. A. It is an entity distinct from its members
   2. B. It is merely a trade name for its members
   3. C. It is a branch of the Division of Corporations
   4. D. It is a partnership only while it has two members

   Answer: A

   Explanation: Utah Code §48-3a-104(1) states, "A limited liability company is an entity distinct from its member or members." The company therefore has a separate entity identity.

   Reference: Utah Code 48 3 a — §48-3a-104(1), page 4

2. 2A Utah contractor prepares a bid for work that requires a contractor license. What identifying information must appear on the bid?

   1. A. The qualifier's Social Security number
   2. B. The contractor's license number
   3. C. The insurer's producer number
   4. D. The company's unemployment account number

   Answer: B

   Explanation: Utah Code §58-55-304(2) requires, "The contractor's license number shall be made a part of all permit applications, contracts, agreements, or bids when a license is required."

   Reference: Utah Code 58 55 — §58-55-304(2), page 60

3. 3A Utah procurement unit uses the statutory bidding process. Which item must its invitation for bids state?

   1. A. The objective criteria used to evaluate bids
   2. B. Each bidder's private tax return
   3. C. The future names of all subcontractor employees
   4. D. The winner's profit after completion

   Answer: A

   Explanation: Utah Code §63G-6a-603(2)(c) requires the invitation to include "the objective criteria that the procurement unit will use to evaluate bids."

   Reference: Utah Code 63 G 6 a — §63G-6a-603(2)(c), page 36

4. 4A Utah construction contract calls for progress payments. Which statutory practice is required?

   1. A. Payments may occur only at final completion
   2. B. The contractor alone may choose whether to pay
   3. C. The contract must provide for scheduled payments
   4. D. Every payment must await a court order

   Answer: C

   Explanation: Utah Code §13-8-4 states that a party "shall make all scheduled payments under the terms of the construction contract." The agreed schedule therefore controls the progress payments.

   Reference: Utah Code Title 13 — §13-8-4(2), pages 77-78

5. 5Under the Utah DOPL model residential agreement, the parties discover a conflict between the plans and specifications. Which document controls?

   1. A. The specifications
   2. B. The plans
   3. C. The contractor's estimate
   4. D. The permit application

   Answer: A

   Explanation: The DOPL model agreement says that when the plans and included specifications conflict, "the specifications will govern." This is a common project-control principle supported by Utah's official model.

   Reference: Residential Construction Agreement — Section 2.3

6. 6By when should a Utah preliminary notice generally be filed to preserve lien rights for all covered work?

   1. A. Within 5 days after first work
   2. B. Within 10 days after first work
   3. C. Within 20 days after first providing construction work
   4. D. Only after final completion

   Answer: C

   Explanation: Utah Code §38-1a-501 says a claimant "shall file a preliminary notice with the registry no later than 20 days" after commencing construction work.

   Reference: Utah Code 38 1 a — §38-1a-501(1), page 17

7. 7Which pair states the two alternative methods a Utah contractor applicant may use to demonstrate financial responsibility before license issuance?

   1. A. A signed Division questionnaire or the required bond
   2. B. Financial statements and tax returns
   3. C. A credit report and ownership history
   4. D. Bankruptcy schedules and a written explanation

   Answer: A

   Explanation: Section 58-55-306 allows either "completing a financial responsibility questionnaire the division prepares" with certification or "submitting a bond in the form and amount the commission determines by rule." Option A states those alternatives; the other records may support an audit but are not the two initial statutory methods.

   Reference: Utah Code 58 55 — §58-55-205

8. 8What minimum liability-insurance limit per incident must an active Utah contractor generally maintain?

   1. A. $500,000
   2. B. $1,000,000
   3. C. $2,000,000
   4. D. $5,000,000

   Answer: B

   Explanation: Rule R156-55a-302d requires "coverage amounts of at least $1,000,000 for each incident and $2,000,000 in total." The per-incident minimum is therefore $1,000,000.

   Reference: Utah Office of Administrative Rules — R156-55a-302d(1)(a)(i)

9. 9A Utah contractor furnishes and installs materials that become real property. Who is generally the final consumer responsible for sales or use tax on those materials?

   1. A. The property owner
   2. B. The contractor
   3. C. The building inspector
   4. D. The material manufacturer only

   Answer: B

   Explanation: Publication 42 states, "The person who converts the property to real property must pay tax on the purchase of the material." In this furnish-and-install transaction, that person is the contractor.

   Reference: Pub 42 | Utah State Tax Commission — Construction Materials and Fixtures — Contractor Purchases

10. 10Under OSHA construction rules, at what height must employees on an unprotected walking/working surface generally receive fall protection?

    1. A. 4 feet or more
    2. B. 6 feet or more
    3. C. 10 feet or more
    4. D. 15 feet or more

    Answer: B

    Explanation: Section 1926.501 covers an unprotected surface "which is 6 feet (1.8 m) or more above a lower level" and requires fall protection.

    Reference: 1926.501 - Duty to have fall protection. | Occupational Safety and Health Administration — §1926.501(b)(1)