How the Law & Business exam works
Almost every license qualifier must pass the Law and Business exam. This lesson explains who takes it, how it is built, how to apply and schedule, what happens on test day, and what you must do after you pass. Knowing the process saves you fees and months of waiting.
Who takes the exam
CSLB licenses businesses, but every license needs a qualifying individual, called the qualifier. The qualifier is the person whose experience and exam results qualify the business. The qualifier usually must pass two computer exams: Law and Business, and the trade exam for the classification, such as B General Building or C-10 Electrical.
One exception: a qualifier for the C-61 Limited Specialty classification takes only the Law and Business exam, with no trade exam.
To apply, the qualifier must be at least 18 years old and have at least four years of journey-level experience in the classification within the last 10 years. Experience as a foreman, supervising employee, contractor, or owner-builder also counts. Some education and apprenticeship training can replace part of the experience.
The exam at a glance
| Feature | What to expect |
|---|---|
| Where | In person, on a computer, at a PSI test center |
| Book policy | Closed book. No reference materials allowed. |
| Questions | About 115 multiple-choice questions (CSLB does not publish an official count) |
| Answer choices | 4 options per question, written to have one BEST answer |
| Time | 3½ hours (210 minutes) |
| Math | Some questions need math. A calculator is provided; you cannot bring your own. |
| Guessing | No penalty for guessing. Never leave a question blank. |
| Tutorial | Up to 15 minutes before the exam, not counted in your exam time |
| Results | Printed score report at the test center when you finish |
| Language | English or Spanish |
Exam trap
Do not trust a passing score you read online. CSLB does not publish the pass mark for this exam. You are told the percentage of correct answers needed at the test site.
What the exam covers
CSLB's study guide splits the exam into seven sections. The percentages are approximate. With about 115 questions, each 1% is roughly one question, so the question counts below are estimates.
| Section | Weight | Estimated questions |
|---|---|---|
| 1. Business Organization and Licensing | 13% | about 15 |
| 2. Business Finances | 15% | about 17 |
| 3. Employment Requirements | 20% | about 23 |
| 4. Insurance and Liens | 12% | about 14 |
| 5. Contract Requirements and Execution | 21% | about 24 |
| 6. Public Works | 5% | about 6 |
| 7. Safety | 14% | about 16 |
Contracts (21%) and Employment (20%) together are about 41% of the exam. Give them the most study time, but do not skip Public Works: 5% can still decide a close result.
Taking the exam in Spanish
CSLB offers Spanish versions of 10 commonly taken exams: Law and Business, B General Building, C-8 Concrete, C-9 Drywall, C-15 Flooring and Floor Covering, C-27 Landscaping, C-33 Painting and Decorating, C-36 Plumbing, C-39 Roofing, and C-54 Ceramic and Mosaic Tile.
On your application, where it asks if you need a CSLB-approved translator, write that the language you need is Spanish. After your application is approved for testing, choose the Spanish Law and Business option when you schedule with PSI.
Know this
If your exam is offered in Spanish, you take the Spanish version. You cannot use a translator instead.
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