North Carolina Contractor Law Practice Test

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How This Practice Test Works

• Each attempt draws 15–20 questions at random from our pool of 158 and shuffles the answer order. Score 80% or more and the next test moves up a difficulty level; under 50% and it eases back.
• After every answer you see an explanation and the N.C. Gen. Stat. reference behind it.
• We use 70% as a practice target. The official NC Business and Law exam has 40 questions in 90 minutes, and you need 70% to pass. It is open book. Source: the PSI candidate bulletin updated 11/19/2025.
• There is no sign-up. Your level is saved only in this browser.

These are original questions written by our editorial team from the published N.C. Gen. Stat.. They are not real exam questions. Questions follow N.C. Gen. Stat. Chapter 87 Articles 1 and 8A (One Call), Chapter 22C (subcontractor pay) and Chapter 44A Article 3 (public bonds), plus the PSI bulletin rules. Erosion control and the NASCLA reference book are not covered.

What the Question Pool Covers

Every question cites the rule behind its answer. Counting those references shows where the pool puts its weight:

Sample Questions With Worked Answers

A few questions from the pool with the answer and explanation, so you can see the style before you start.

1. At what project cost does someone become a general contractor in North Carolina?

   Answer: $40,000 or more. Source text: “where the cost of the undertaking is forty thousand dollars ($40,000) or more…”

   Reference: N.C. Gen. Stat. §87-1

2. Erecting which building makes you a general contractor regardless of cost?

   Answer: A North Carolina labeled manufactured modular building. Source text: “undertakes to erect a North Carolina labeled manufactured modular building…”

   Reference: N.C. Gen. Stat. §87-1

3. Which of these is exempt from the general contractor definition?

   Answer: Furnishing or erecting industrial equipment and monuments. Source text: “furnishing or erecting industrial equipment, power plan equipment, radial brick chimneys, and monuments…”

   Reference: N.C. Gen. Stat. §87-1

Study Before You Test

• North Carolina Contractor Law Guide
• South Carolina Business and Law Exam Guide: PSI Commercial Contractor Exam and S.C. Code Chapter 40-11
• North Carolina Mock Exam

Sources

• N.C. Gen. Stat. Chapter 87, Article 1 (NC General Assembly)
• N.C. Gen. Stat. Chapter 87, Article 8A
• N.C. Gen. Stat. Chapter 22C
• N.C. Gen. Stat. Chapter 44A, Article 3
• PSI NC Candidate Information Bulletin
• NC Licensing Board for General Contractors