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The CSLB Law & Business exam is the licensing-law, contracts, safety, and business-management exam CSLB requires alongside the trade exam for nearly every California contractor license classification. It isn’t tied to one trade — applicants for a specialty (C-2 through C-61), General Building (B), or General Engineering (A) classification typically sit for this exam in addition to their trade exam, unless they qualify for an examination exemption.
What does the Law & Business exam cover?
Contract law and estimating, business organization (sole owner, partnership, corporation, LLC), licensing law, workers’ compensation and labor law, safety requirements, insurance, and the CSLB license bond — the day-to-day legal and financial side of running a contracting business in California. (Source: California Business and Professions Code Section 7065.)
How do I get ready for the exam?
Most applicants prepare for the Law & Business exam at the same time as their trade exam — see our step-by-step guide to applying for a California contractor license and our full breakdown of CSLB fees and bond costs. Contractor Pathway includes Law & Business prep with every trade-classification course at no extra cost — see pricing.
Reviewed by Contractor Pathway’s licensed-contractor review team. About our team & expertise →
Facts on this page are checked against the California Business and Professions Code (Contractors, Chapter 9) and CSLB’s own examination guidance.
Last updated: July 16, 2026. Accuracy method: every code citation and answer is verified against current code editions and licensing-board requirements, and corrected as codes change. Refund policy.
CSLB Law & Business exam — frequently asked questions
Do I have to take the Law & Business exam?
Yes — CSLB requires nearly every classification applicant to pass the Law & Business exam in addition to the trade exam for the classification being applied for. Both are administered by PSI on CSLB’s behalf. (Source: CSLB Examination FAQ.)
What does the Law & Business exam cover?
Contracts and estimating, licensing law, business organization, employment and labor law, safety, insurance and bonding, and financial management for a California contracting business. (Source: California Business and Professions Code Section 7065; CSLB Examination FAQ.)
How many questions, how long, and what’s the passing score?
115 multiple-choice questions in 3 hours, closed-book, at a PSI test center, with a 73% passing score. (Source: CSLB Examination FAQ; PSI Exams — CSLB.)
What happens if I fail?
You can retake it after a 21-calendar-day wait, but every attempt must fall within 18 months of your application being accepted or you will need to reapply. (Source: CSLB Examination FAQ.)