Free AZ Statutes and Rules Training Course and Exam (SRE) for Contractor Licensing Practice Questions

Sample Practice Questions

Try these 10 sample questions from the AZ Statutes and Rules Training Course and Exam (SRE) for Contractor Licensing practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1At which licensing stage may an Arizona company submit a construction bid under the company name?

   1. A. After filing its license application
   2. B. After its qualifying party passes the required examinations
   3. C. After its contractor license is in good standing in the company name
   4. D. After filing its contractor's bond

   Answer: C

   Explanation: A.R.S. § 32-1151 makes it unlawful to "submit a bid ... as ... a contractor without having a contractor's license in good standing in the name of the person, firm, partnership, corporation, association or other organization." Filing an application, passing examinations, or filing a bond is not the same as holding the required license in good standing.

   Reference: 32-1151 - Engaging in contracting without license prohibited — A.R.S. § 32-1151

2. 2For an Arizona corporation holding a contractor license, who is the licensee under R4-9-101?

   1. A. The qualifying party personally
   2. B. The corporation as the licensed business entity
   3. C. Every corporate officer jointly
   4. D. The project manager listed on each permit

   Answer: B

   Explanation: R4-9-101(B) defines a licensee as "a business entity" to which the license is issued, rather than the corporation's individual owners or managers.

   Reference: AAC Title 4 Ch 9 — R4-9-101(B), p. 2

3. 3In an Arizona court dispute, what can serve as prima facie evidence that a construction contract exists?

   1. A. Securing a governmental permit
   2. B. Receiving a zoning variance
   3. C. Recording a notice of completion
   4. D. Obtaining a certificate of insurance

   Answer: A

   Explanation: A.R.S. § 32-1151 states: "Evidence of securing a permit from a governmental agency or the employment of a person on a construction project shall be accepted in any court as prima facie evidence of existence of a contract."

   Reference: 32-1151 - Engaging in contracting without license prohibited — A.R.S. § 32-1151

4. 4Does an Arizona contractor license belong to the qualifying party?

   1. A. Yes, and it follows the qualifying party to a new employer
   2. B. Yes, but only for a sole proprietorship
   3. C. No, it is held by the licensee, not the qualifying party
   4. D. No, it is held jointly by the Registrar and surety

   Answer: C

   Explanation: R4-9-101(B) says the license is held by the licensee and "not the qualifying party."

   Reference: AAC Title 4 Ch 9 — R4-9-101(B), p. 2

5. 5An unlicensed person proposes casual minor work totaling $950, including labor and materials. No permit is required and the work is not part of a larger project. Which rule applies?

   1. A. The casual-minor-work exemption may apply
   2. B. A labor-cost license rule controls
   3. C. A materials-over-labor exemption controls
   4. D. A temporary specialty license is required

   Answer: A

   Explanation: A.R.S. § 32-1121(A)(14) can exempt casual or minor work when "the aggregate contract price ... is less than $1,000," subject to its listed exceptions.

   Reference: 32-1121 - Persons not required to be licensed; penalties; applicability — A.R.S. § 32-1121(A)(14)

6. 6How does the Registrar grant an Arizona restricted contractor-license classification?

   1. A. Automatically upon payment of a specialty fee
   2. B. Case by case based on the specialized work
   3. C. Only through a municipal recommendation
   4. D. By converting every trade license after five years

   Answer: B

   Explanation: R4-9-105(A) says the Registrar grants a restricted scope "on a case-by-case basis" according to the specialized work.

   Reference: AAC Title 4 Ch 9 — R4-9-105(A), p. 17

7. 7Which fact by itself defeats Arizona's small-job exemption for an otherwise standalone casual repair?

   1. A. Its aggregate price is $700
   2. B. The work is casual and minor
   3. C. Its performance requires a local building permit
   4. D. It is performed under one contract

   Answer: C

   Explanation: The exemption does not apply "In any case in which the performance of the work requires a local building permit." The other choices describe facts consistent with the exemption rather than a statutory exclusion.

   Reference: 32-1121 - Persons not required to be licensed; penalties; applicability — A.R.S. § 32-1121(A)(14)(a)

8. 8If requested while applying for a restricted classification, what must the applicant submit to clarify the proposed work?

   1. A. A detailed statement of the type and scope of contracting work
   2. B. A five-year list of every material supplier
   3. C. A notarized forecast of all future bids
   4. D. A municipal certificate assigning a classification

   Answer: A

   Explanation: R4-9-105(B)(1) requires "A detailed statement of the type and scope" of the contracting work the applicant proposes to perform.

   Reference: AAC Title 4 Ch 9 — R4-9-105(B)(1), p. 17

9. 9A $2,400 improvement is divided into three $800 contracts to keep each below the small-job threshold. How does Arizona treat the exemption?

   1. A. Each contract is independently exempt
   2. B. Only the first contract is exempt
   3. C. The exemption does not apply because the larger operation was divided
   4. D. The exemption applies if different invoices are used

   Answer: C

   Explanation: A.R.S. § 32-1121(A)(14)(b) excludes a case where "a division of the operation is made in contracts of amounts less than $1,000" for evasion or otherwise. Splitting the larger job does not create an exemption.

   Reference: 32-1121 - Persons not required to be licensed; penalties; applicability — A.R.S. § 32-1121(A)(14)(b)

10. 10What operational limit applies after the Registrar issues a restricted contractor license?

    1. A. The contractor may perform any specialty work under $1,000
    2. B. The contractor must stay within the field and scope described in the classification
    3. C. The contractor may add related scopes by written notice
    4. D. The contractor must subcontract all field work

    Answer: B

    Explanation: R4-9-105(D) confines the contractor's activities to the "field and scope of operations" described in the restricted classification.

    Reference: AAC Title 4 Ch 9 — R4-9-105(D), p. 17