New Jersey Business and Law Exam (Electrical Contractor and Master Plumber)
Practice at the real exam's pace
Every practice exam shows your time per question against the real exam's clock (2:36 here), and each topic lands in one of these:
What's on the exam
Questions per topic, out of 50Topics
Business Organization
Exam: New Jersey Business and Law Exam (Electrical Contractor and Master Plumber)
Subtopics: Business naming, trade names, trademarks, and New Jersey name reservation procedures
Key Concepts
Choosing a name (Naming Your Business, Page 2-6) - The name affects customers' impression of the company, and its individuality affects future trademarks and service marks; it is important to select a distinctive name. - Searches can be conducted using: the U.S. Patent and Trademark Office Trademark Hotline (703) 308-9000; the Secretary of State Office in the state where you intend to do business; and internet search engines such as www.yahoo.com or www.google.com.
Licensing
Key Concepts
Electrical contractor eligibility (N.J.A.C. 13:31-2.1; Pages 3-1 to 3-2) - Over 21; high school diploma or equivalency; at least five years of practical hands-on experience immediately preceding application, in compliance with the National Electrical Code. - Substitutes for the five years: four-year apprenticeship approved by both a Federal agency and a Federally certified State agency + at least one year experience; eligibility as a qualified journeyman electrician under N.J.A.C. 13:31-5.1 + at least one year; bachelor's degree in electrical engineering + two years; or work in the field of electrical contracting for at least five years immediately preceding application.
Estimating and Bidding
NASCLA Contractors Guide to Business, Law and Project Management — New Jersey, 2nd Edition, Chapter 7: Bidding and Estimating
Key Concepts
Bid Documents (Chapter 7 — Bid Documents, pp. 7-1 to 7-2) - A competitive bid package often includes: an invitation to bid (brief overview of the project, deadlines, general requirements); bid instructions (specifics on how the bid should be completed and submitted); bid forms (bid sheet, bid schedule, bidder's questionnaire on experience, financial responsibility and capability, and a copy of the contract); and supplements (items important to the overall bid process such as a property survey and soil analysis). - A bidder can be found unresponsive / non-responsive if information is incorrectly submitted or omitted altogether. - Pre-bid meetings may be scheduled, especially for larger…
Contract Management
NASCLA Contractors Guide to Business, Law and Project Management — New Jersey, 2nd Edition, Chapter 8
Key Concepts
Required Contract Elements (Chapter 8 — Required Contract Elements). Four key elements must be in effect to make a contract binding: - Offer and acceptance — An offer outlines the obligations and compensation; submitting an estimate or bid is an offer. A counteroffer is not considered acceptance; acceptance occurs only when both parties agree to the contract terms. If no deadline for acceptance is stated, the offer expires in a "reasonable time." - Consideration — Both parties must give up something of value. - Competent parties — Parties must have legal capacity/be of sound mind. Someone heavily under the influence of drugs or alcohol may lack competence; courts…
Project Management
Key Concepts
Scheduling Process (Chapter 9, "Scheduling Process," pp. 9-1 to 9-2) — Scheduling takes the list of tasks and labor hours from the quantity take-off estimate and assigns an order of completion. The process determines: sequence of tasks, activity duration, contingency time, task time ranges, and float time.
- Sequence of tasks: some tasks run at the same time; others must precede the next (drywall before paint; interior and exterior paint may be applied simultaneously).
- Activity duration depends on size of the project, labor hours estimated, and length of time dedicated to the task each day.
- Contingency time is a buffer between tasks against unforeseen delays. Tasks subject to weather delays require more; standard work requires less than custom work; tasks in areas…
Risk Management
Key Concepts
New Jersey workers' compensation coverage (Employment-Related Insurance — Workers' Compensation Insurance, pp. 4-5 to 4-6) - New Jersey law requires employers not covered by Federal programs to have workers' compensation coverage or be approved for self-insurance. - Acceptable coverage option 1: a policy written by a mutual or stock carrier authorized to write insurance in New Jersey. Premiums are based on the classification(s) of the work performed by employees, the claims experience of the employer, and the payroll of the employer. - Acceptable coverage option 2: self-insurance through application to and approval by the Commissioner of the Department of Banking and Insurance. Approval is based on the employer's financial ability to meet its obligations and the permanence of the business; **posting of security may…
Safety
Key Concepts
Underground utility safety — New Jersey One Call - New Jersey law requires excavators to call at least three FULL business days before excavation; weekends and holidays are not counted (NASCLA Business and Law Guide (New Jersey), Chapter 12 — Underground Utility Safety / New Jersey One Call). - Worked example from a verified question: a Friday-morning groundbreaking in a week with no legal holidays — the latest compliant markout request is Monday of that week, because Tuesday, Wednesday and Thursday then pass as the three full business days.
New Jersey Department of Environmental Protection (DEP) - The Division of Water Supply evaluates and classifies all waters of the state and regulates both point-source discharges (municipal wastewater and industrial facilities) and non-point source discharges,…
Labor Law
Key Concepts
Required federal postings — dollar thresholds (NASCLA Business and Law Guide (New Jersey), Chapter 11 (Employee Management) — Required Postings section)
- "Notice to All Employees Working on Federal or Federally Financed Construction Projects" must be posted by any contractor or subcontractor engaged in contracts in excess of $2,000 for the actual construction, alteration or repair of a public building or public work financed in whole or in part by federal funds, guarantee or pledge.
- "Employee Rights on Government Contracts" applies to every contractor or subcontractor with a contract with the United States or the District of Columbia in excess of $2,500 whose principal purpose is furnishing services in the U.S. through the use of service employees.
- **"Know Your Rights" (equal employment…
Financial Management
NASCLA Contractors Guide to Business, Law and Project Management — New Jersey, 2nd Edition, Chapter 14: Financial Management
Key Concepts
Bookkeeping and the accounting cycle. Bookkeeping is the first step in the accounting process and involves accurate recording of all financial transactions; financial statements are derived from this information. The accounting cycle steps, in order, are: (1) classifying and recording transactions, (2) posting transactions, (3) preparing a trial balance, (4) preparing an adjusted trial balance, (5) preparing financial statements, (6) analyzing financial statements. (Financial Management chapter — The Accounting Cycle section)
Tax Law
Key Concepts
Employer Identification Number (EIN) — Chapter 15, Employer Identification Number section - Before you become an employer and hire employees, you need a Federal Employer Identification Number (EIN), also referred to as a taxpayer identification number. It is a 9-digit number issued by the IRS, arranged 00-0000000. - The EIN is obtained by completing Form SS-4, which may be submitted by phone (Business and Specialty Tax Line, (800) 829-4933), fax, mail, or online at www.irs.gov. - The only entities that do not need an EIN are sole proprietorships with no employees that file no excise or pension tax returns, and single-owner LLCs (where the owner files employment tax returns). All other entities, including partnerships, must obtain an EIN.
Lien Law
Governing law: N.J.S. 2A:44A-1 et seq., the "Construction Lien Law" (Chapter 16; Appendix J).
Key Concepts
What a lien is. A construction lien "clouds" title to real property, stopping the owner from selling with clear title; it may be foreclosed in a lawsuit and the court can order the property sold and the proceeds used to pay the contractor, subcontractor or supplier — even if the owner already paid the general contractor (Chapter 16, What is a Lien?).
Who may file. Any contractor, subcontractor or supplier who provides work, services, material or equipment pursuant to a contract, for the value furnished in accordance with the contract and based upon the contract price (Chapter 16; N.J.S. 2A:44A-3). A licensed architect, engineer, land surveyor or certified landscape architect…